BUSINESS

Punjab & Sind Bank intends to enter the mutual fund industry and will choose a partner by September

According to a senior official, the state-owned Punjab & Sind Bank is intending to enter the mutual fund industry in an effort to increase its fee-based revenue. The bank intends to collaborate with a company by September.

Swarup Kumar Saha, managing director of Punjab & Sind Bank, told PTI that the bank has already put out a request for proposals to choose a partner in the fintech sector.

He expressed the expectation that by the end of the second quarter, the bank will be able to choose a partner and begin operations for the current fiscal year.

 

By cross-selling goods, the asset management firm would assist the bank in growing its fee revenue, he said.

 

In India, there are 44 asset management businesses. As of June 30, 2023, these firms have Rs 44,39,187 crore in assets under management (AUM).

 

The Indian MF industry’s AUM increased more than fivefold in only ten years, from Rs 8.11 lakh crore at June-end 2013 to Rs 44.39 lakh crore as of June 30, 2023.

 

State Bank of India (SBI), one of several lenders in the public sector, has subsidiaries that manage mutual funds.

 

Speaking on the growth strategy for the current fiscal year, Saha said credit growth is anticipated to be 13–14% while deposit mobilization will have an increase of 8–10%.

 

He said that the bank hopes to maintain new slippages under Rs. 1,500 crore in the current fiscal year and anticipates a recovery of Rs. 1,500 crore.

 

He said that the provision coverage ratio, which is now 88.58 percent, should be raised to 90 percent.

 

According to him, the bank wants to lower its net NPA to 1.5% and its gross NPA to 6% over the course of the year.

 

 

 

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