SBI To Acquire UTI Mutual Fund

According to a report published in The Economic Times (ET), State Bank of India (SBI) has initiated a process to acquire UTI Mutual Fund. SBI will then merge it with its asset management arm SBI Mutual Fund. The merger will create India's biggest mutual fund by assets.

The country’s largest state-run bank had mooted the proposal to the Department of Financial Services, which has forwarded it to the Department of Economic Affairs. The report states that presently, the proposal is in its initial stage. "There has been some preliminary discussion," ET quoted a source.

Neither UTI Mutual Fund nor SBI has yet commented on the matter.

SBI already has a 18.5% stake in UTI Mutual Fund. Other public sector undertakings (PSUs) like Punjab National Bank, Bank of Baroda and Life Insurance Corporation also have stakes of 18.5% each in the company. US fund manager T Rowe Price is largest shareholder, having a 26% stake.