Baroda Asset Management India and BNP Paribas Asset Management India have merged to form Baroda BNP Paribas Mutual Fund with effect from 14 March. Bank of Baroda, the parent company of Baroda AMC, will hold 50.1% stake in the combined entity, while BNP Paribas AMC, the asset management arm of BNP Paribas, a leading European bank, will hold the remaining.
Baroda BNP Paribas (BBNP) Mutual Fund will offer investors 28 schemes across equity, hybrid, debt and overseas fund of fund categories. It will manage assets worth ₹22,522 crore and will provide offshore advisory services too. Going by the December 2021 quarter AMFI data on average assets under management, the 10 AMCs had AUMs ranging from Rs. 1.1 lakh crore to Rs. 6.3 lakh crore.
Suresh Soni, former head of Baroda Asset Management India, has been appointed as the CEO of BBNP Mutual Fund. The merger was first announced in October 2019 and received the securities market regulator, Sebi’s approval in January 2022.
Following this, investors of both the AMCs were given a one-month exit option that ended on 4 March and now the merger has come into effect. The newly formed combined AMC is expected to gain from Baroda AMC’s scale and existing distribution and BNP Paribas’s experience in managing assets globally.
Source: Mint