Public sector Bank of Baroda has entered into an agreement with Italian bank UniCredit S.p.A. to acquire its 51 per cent stake in Baroda Pioneer Asset Management Company, thus increasing its shareholding to 100 per cent. Its foreign partner Pioneer Investments, which was earlier owned by UniCredit, will exit the venture.
The move comes on the back of the acquisition of Pioneer Investments by Amundi — a subsidiary jointly created by Crédit Agricole and Societe Generale — earlier this year. France-based Amundi has a 37 per cent stake in SBI Mutual Fund.
Commenting on the development, PS Jayakumar, Managing Director & CEO, Bank of Baroda said, “given the rapid growth in the mutual fund industry, and the trend of household savings moving towards financial assets, the bank sees merit in building out the asset management business, with an aim to become a meaningful player in the asset and wealth management space.”
The agreement is subject to approval from regulatory authorities.
“While in many respects, it will be business as usual, we are keen to see significant growth in the business hence; we will evaluate all options in that regard, including inducting a strategic partner, if merited,” he said.
As of November 2017, the fund’s average assets under management (AUM) stood at about Rs 11,000 crore.