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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
India’s largest lender is going out of its way to grow its mutual fund business at the cost of shareholders, raising questions of corporate governance.
State Bank of India and SBI Mutual Fund appear to be a match made in heaven. India’s largest lender has been generously offering its vast network of branches to grow the assets of its mutual funds business, making it the country’s largest mutual fund house. But this flourishing relationship comes at a cost.
Thanks to SBI’s eagerness to grow its mutual funds business, the bank’s shareholders—including the Indian government, the majority stakeholder—have suffered annual losses of about Rs 1,100 crore (roughly $125 million) in the form of foregone commissions, according to a back-of-the-envelope calculation.
What this means is that SBI …
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The Rs 250 SIP was launched last year by the former SEBI chairperson with one clear goal: financial inclusion. More than a year later, the much-hyped scheme doesn’t seem to have caught on with MF investors.
As retail interest in public issuances fades, mutual funds are filling the gap—funding promoter exits and delivering subpar returns to the very investors they represent.
