Bank of India Plans to List Mutual Fund, Life Insurance Subsidiaries

BANK OF INDIA (BOI) is considering listing its mutual fund and life insurance arms, following in the footsteps of public sector peers such as State Bank of India and Canara Bank, which have already explored or initiated IPO plans for their subsidiaries.

- MAHESH NAYAK

"Mutual fund and insurance subsidiaries are most likely to be off the block when the time is right," said managing director and CEO Rajneesh Karnatak, adding that listing won't take place this year. "Our focus right now is on growing these platforms organically, expanding distribution and ensuring they are strategically aligned with our core banking business."

In June, the finance ministry asked public sector banks to look at monetizing their investment in subsidiaries by listing them on the bourses after scaling up operations. BOI is taking a more measured approach, prioritizing scale and value before stepping into the capital markets.