Suresh Soni has been appointed as the CEO of the merged entity.
Bank of Baroda will have 50.1 per cent stake in the asset management company (AMC), while BNP Paribas Asset Management will hold the remaining 49.9 per cent, according to a statement.
The resulting jointly held AMC will leverage on the strengths that each partner has developed, to offer products specifically designed for retail and institutional clients in India.
This partnership demonstrates both institutions’ commitment to the Indian market, and their desire to cater to the fast-evolving needs of the country’s investors, it added.
Baroda BNP Paribas Mutual Fund will offer 28 schemes across equity, hybrid, debt and overseas fund of fund categories.
With touch points in 90 towns and cities across India, it is expected to serve over 1 million investor folios and more than 10,000 distributors.
The joint venture (JV) AMC will also provide offshore advisory services and has combined assets under management and advisory of Rs 22,522 crore as on Monday.
“BNP Paribas Asset Management is a leading global asset manager, backed by BNP Paribas, and the JV will leverage their global experience, expertise and processes to build a stronger asset management platform offering high-quality investment solutions at scale.
“We have a tremendous opportunity before us in the Indian asset management space,” said Sanjiv Chadha, Managing Director and CEO, Bank of Baroda.
David Vaillant, Global Head of Finance, Strategy and Participations, BNP Paribas Asset Management, said, “This strategic partnership will enable us to expand in terms of scale and client outreach, as well as to grow our distribution network, and will provide Baroda BNP Paribas Mutual Fund with our global experience in managing assets across more than 30 markets”.
Baroda BNP Paribas Mutual Fund is managed by the joint venture AMC, a strategic partnership between public sector lender Bank of Baroda and BNP Paribas Asset Management, the asset management arm of BNP Paribas, a leading banking group in Europe.
“The Indian mutual fund industry is witnessing strong growth. There is a wave of both experienced and new investors across economic strata who want to participate in the India growth story.
“This joint venture combines the complementary strengths of two partners — massive local reach and in-depth knowledge of the Indian market of Bank of Baroda with the global expertise of BNP Paribas Asset Management. It gives us an opportunity to serve investors and partners in not just ‘India’, but ‘Bharat’ too,” Soni said.
“Our aim is to deliver strong performance, by offering diverse and innovative investment solutions, combined with impeccable service to our investors to help fulfil their financial goals,” he added.
In October 2019, Baroda Asset Management and BNP Paribas Asset Management had said they have decided to merge their businesses in a bid to leverage each other’s strengths to offer products for retail and institutional investors.