On August 19, IndusInd Bank announced that the Reserve Bank of India has approved its plan to establish a unit for managing mutual fund assets.
In a regulatory filing, the bank announced that it will create a wholly owned subsidiary to handle the asset management of mutual funds and will also invest equity capital in this new subsidiary.
The banking regulator informed IndusInd Bank of this decision in a letter received earlier today.
On August 19, IndusInd Bank’s shares closed 1.30% lower at ₹1,347.70 each on the BSE.
The new asset management company (AMC) will manage mutual fund operations and receive equity investment from the bank.
Previously, IndusInd Bank offered mutual fund products but lacked significant scale.
In FY24, the bank earned only ₹50 crore from mutual fund and portfolio management services.
This is significantly lower compared to Kotak Mahindra, ICICI Bank, and Axis Bank, which earned ₹280 crore, ₹540 crore, and ₹540 crore respectively from similar services.
Earlier this year, IndusInd International Holdings Limited, a Mauritius-based investment company with interests in banking and financial assets, and Invesco Ltd. announced a definitive agreement to form a joint venture.
Under this agreement, IIHL will acquire a 60% stake in Invesco Asset Management India Limited.
