Like other public sector banks like State Bank of India and Canara Bank, which have either investigated or started IPO plans for their subsidiaries, Bank of India (BOI) is thinking about offering its mutual fund and life insurance divisions as the initial candidates for possible market listing.
“We do see our mutual fund and insurance subsidiaries as the most likely to be off the block when the time is right,” said Rajneesh Karnatak, MD & CEO of Bank of India. “But not in this financial year. Our focus right now is on growing these platforms organically, expanding distribution, and ensuring they are strategically aligned with our core banking business.”
Public sector banks (PSBs) were asked by the finance ministry in June of this year to consider listing their subsidiaries on stock exchanges in order to generate revenue from their investment after further expanding their business activities. Before entering the capital markets, BOI is adopting a more methodical strategy, giving scale and value first priority.
As of July 2025, 7,62,969 investor folios across 20 equity, hybrid, and debt funds totaled Rs 13,183 crore under managed of BOI Mutual Fund, a wholly owned subsidiary of BOI. The life insurance division of BOI owns a 27.5% share in Star Union Daiichi. The life insurance generated Rs 8,033 crore in net premium income for FY25.
As of July 2025, the life insurance firm held a 3.25% market share among private insurers based on first premiums. Our subsidiaries are strategic levers that enhance our core banking operations and enable us to provide our clients with a full-spectrum financial ecosystem; they are not merely supplementary enterprises.
Life insurance and mutual funds are essential components of our client interaction approach and cross-selling strategy, Karnatak stated. In order to unlock short-term value, we are not in a haste to list these subsidiaries. Our priorities are increasing distribution, boosting operational metrics, increasing profitability, and foremost creating embedded value. We will think about listing the companies if we get to a point where they are established and scalable," he continues.
No comments:
Post a Comment