MUMBAI (Reuters) - Axis Bank has been granted approval from the Reserve Bank of India (RBI) to set up an asset management company, the Mint newspaper reported on Saturday, citing the lender’s executive director, Asok Kumar.
The new company would be a fully-owned unit of the bank and is now awaiting approval from the stock market watchdog to offer fund management and advisory services, he told the newspaper.
Indian fund industry assets have jumped three and a half times to $137 billion in three years, growth that has attracted global players such as South Korea’s Mirae Asset, American International Group and JP Morgan.
UBS and Japan’s Shinsei Bank are among more than 20 players waiting in the wings to join the 33-member industry, which is forecast to manage about $520 billion by 2015.
Axis Bank which, posted a 62 percent jump in earnings to 10.59 billion rupees ($247 million) for the fiscal year ended March 2008, entered into an agreement with Banque Privee Edmond de Rothschild Europe to offer wealth management services for overseas Indians in September.