BOI looking to enter MF sector, in talks with Bharti AXA

PADGHA (Maharashtra): Public sector lender Bank of India today said it is in talks with Bharti Axa and two other asset management companies for an entry into the mutual funds business and hopes to seal the deal before end September.

"We are in talks with Bharti AXA and two other companies ...we will announce it before end of the next quarter," Chairman and Managing Director, Alok Misra, told reporters.

Bharti, which exited life insurance business earlier this month by selling off its stake in Bharti Axa Life Insurance to Reliance Industries, is also tipped to be looking at options of exiting other non-core businesses, to concentrate on telecom and retail.

A senior Bank of India official said it makes sense to acquire an operational business than start something which will take two years to build up.

The Mumbai-headquartered Bank of India has appointed consultancy firm Ernst and Young for advising it on the takeover of an existing player, the official added.

Bank of India hopes to firm up its non interest income through an entry into the MF business. It will use its network of over 3,500 branches nationally to distribute its products.