BoB to merge MF arm with BNP Paribas AMC

Merged entity to offer new products

Baroda Asset Management India Limited, a wholly owned subsidiary of Bank of Baroda (BoB) and BNP Paribas Asset Management India Private Limited, a wholly owned subsidiary of BNP Paribas Asset Management Asia Limited, have agreed to merge, subject to regulatory and legal approvals.

As per a statement, BoB and BNP Paribas Asset Management Asia have entered into binding agreements.

“The strategic alliance allows both companies to leverage each other’s strengths to offer products specially designed for retail and institutional clients in India. This demonstrates their ongoing commitment to introducing new products to cater to the increasing investment appetite of investors,” stated the release.

BoB, in a statement to the stock exchanges, further said that during 2018-19 the total income of Baroda AMC was pegged at ₹50.19 crore while that of BNP Paribas AMC was ₹96.12 crore.

According to data from Value Research, a mutual fund tracking company, Baroda AMC had assets under management (AUM) totalling ₹10,477 crore as on August 31. For BNP Paribas AMC, it was pegged at ₹6,563.13 crore as on September 30.

Post the closure of the transaction, BoB and BNP Paribas AMC will hold a stake of 50.1% and 49.9% stake respectively in the merged fund house.

“This joint venture will allow us to create a stronger, more competitive asset management company in the Indian mutual fund industry with the large distribution network of Bank of Baroda and the expertise of BNP Paribas coupled with the benefit of the firm’s ability to source offshore funds,” said P S Jayakumar, managing director and CEO, Bank of Baroda.

“India is a key market in the region for BNP Paribas Asset Management. By leveraging Bank of Baroda’s large number of branches for distribution and our global experience of managing assets across more than 30 markets, this partnership will enable us to offer products and services to a much larger investor base in India,” added Ligia Torres, chief executive officer, Asia Pacific, BNP Paribas Asset Management.