Canara Bank calls off sale of AMC assets

Public sector banking major, Canara Bank has backtracked on its plans to sell off stakes in Canara Robeco Asset Management Company. The bank had announced a monetization drive in November this year, wherein it had put its AMC, registrar and transfer agent businesses on the block. 

Canara Robeco Asset Management Company, a subsidiary of Canara Bank, is one of the oldest mutual fund houses operating in the country. The company is a joint venture between Robeco a Netherlands-based asset management company and the bank.

Given the boom in the mutual fund industry, the bank has decided to defer the strategic sale of its holdings in Canara Robeco Asset Management Company Limited. With the growing retail investor participation in MFs, mutual fund houses have registered a record high of Rs. 1.69 lakh crore in assets under management this year.

The MF industry’s Assets Under Management (AUM) stood at Rs. 22.79 lakh crore as on November 30, 2017, which is a seven-fold increase in a span of about 10 and half years, when compared to Rs. 3.26 lakh crore as on March 31, 2007.