BoI buys 51% Bharti Axa MF stake

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Remaining 49 per cent stake will be with the Axa Group.

However,the bank did not disclose the transaction size.

With the acquisition,Bharti Enterprises,which had about 25 per cent stake in the fund house,has made an exit from the asset management business.

The bank has acquired 25 per cent stake from Bharti Enterprises,while 26 per cent from the Axa Investment Managers Asia Holdings.

In December,2011 BoI had said the name of the fund house will be changed to Bank of India AXA Investment Managers after the acqisition is complete.

With the stake transfer,BoI is re-entering mutual fund business. The bank was in the mutual fund business in 1990.

Of the six schemes launched by the fund,four had been redeemed and two schemes transferred to Tauras Mutual Fund after giving exit option to investors in 2004.

At present,there are eight MFs either fully or partly owned by banks along with overseas partners.

These include Baroda Pioneer Mutual Fund,Canara Robeco Mutual Fund,ICICI Prudential MF,Principal MF of PNB and SBI Mutual Fund,Axis MF,IDBI Mutual Fund and Union KBC MF of Union Bank.