Baroda Asset Management Company (AMC) and BNP Paribas AMC (India) have agreed to merge their businesses.
Responding to a Business Standard query, BNP Paribas AMC (India) also confirmed that deputy chief executive officer Anand Shah has decided to part ways with the organisation.
Apart from the executive role, Shah was also head of investments at the AMC.
“There is a succession plan in place with a different head and team leads of asset classes to cover his (Shah’s) responsibilities,” the AMC said.
Meanwhile, the parent companies of the two AMCs — Bank of Baroda and BNP Paribas AMC (Asia) — have entered into binding agreements.
“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 PS Jayakumar, managing director and chief executive officer (CEO) of Bank of Baroda.
According to data sourced from Association of Mutual Funds in India, Baroda AMC managed Rs 10,675 crore of average assets in September quarter. BNP Paribas AMC managed Rs 7,300 crore of average assets for the same period.
“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,” said Ligia Torres, CEO, Asia Pacific, BNP Paribas Asset Management.
Source: Business-Standard