GenNext private bank seen keen on buying a fund house

Speculation that one of the biggest AMCs, owned by a large conglomerate, is on the block refuses to die down. Grapevine has it that a new generation private sector bank, which already owns a mutual fund, is negotiating with the group to acquire the mutual fund behemoth. Some in the industry believe this is unlikely, as it would stretch the private bank's balance sheet, as the deal could run into thousands of crores.

Promoters of the large fund are speculated to be exiting the asset management business as operating margins have declined significantly, post-entry load ban. Another fast-growing financial services firm, known for its growth plans in the MF industry through buyouts, was also speculated to be in the race for acquiring this asset management company.