Bank of India to List Mutual Fund and Life Insurance Subsidiaries After Scaling Up Operations

Strategic Insights -

Bank of India, a leading public sector bank, is planning to list its mutual fund and life insurance subsidiaries after scaling up their operations. The bank's CEO, Rajneesh Karnatak, expressed that the focus is on organic growth, profitability, and distribution before considering Initial Public Offerings (IPOs). This approach is in contrast to other public sector banks, which have rushed into listings without fully developing their subsidiaries.

The bank's mutual fund arm, BOI Mutual Fund, has an asset under management of Rs 13,183 crore with 7,62,969 investor folios across 20 equity, hybrid, and debt funds. The life insurance arm, Star Union Daiichi, has earned a net premium income of Rs 8,033 crore in FY25 and enjoys a market share of 3.25% among private insurers.

Key Takeaways:

  • Bank of India plans to list its mutual fund and life insurance subsidiaries after scaling up operations, taking a measured approach to ensure profitability and distribution before considering IPOs.
  • As on July 2025, BOI Mutual Fund has an asset under management of Rs 13,183 crore with 7,62,969 investor folios across 20 equity, hybrid, and debt funds.
  • Star Union Daiichi, the life insurance arm, has earned a net premium income of Rs 8,033 crore in FY25 and enjoys a market share of 3.25% among private insurers.
  • The bank's focus is on organic growth, expanding distribution, improving profitability, and strengthening operational metrics before considering listings.
  • BOI is leveraging its mutual fund and insurance arms to deepen customer engagement by bundling products with salary accounts, housing loans, and wealth offerings.
  • The bank aims to organically grow its mutual fund and life insurance business, deepen its integration with the bank, and ensure meaningful contributions to its consolidated performance.

Statistics:

  • Rs 13,183 crore: Asset under management of BOI Mutual Fund as on July 2025.
  • 7,62,969: Number of investor folios across 20 equity, hybrid, and debt funds for BOI Mutual Fund as on July 2025.
  • Rs 8,033 crore: Net premium income earned by Star Union Daiichi in FY25.
  • 3.25%: Market share enjoyed by Star Union Daiichi among private insurers as on July 2025.

Sources:

  • Bank of India plans to list its mutual fund and life insurance subsidiaries after scaling up operations (IE Online Media Services Pvt. Ltd., 2025)
  • BOI Mutual Fund's asset under management is Rs 13,183 crore with 7,62,969 investor folios as on July 2025 (IE Online Media Services Pvt. Ltd., 2025)
  • Star Union Daiichi's net premium income is Rs 8,033 crore in FY25 and enjoys a market share of 3.25% among private insurers as on July 2025 (IE Online Media Services Pvt. Ltd., 2025)