Public sector lender Bank of India is hopeful of starting its asset management business

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next fiscal and currently waiting for regulatory approvals, a top official said today.

Bank of India (BoI) recently bought 51 per cent stake in the mutual fund business of Bharti Axa, which is a joint venture between telecom company Bharti Enterprises and Axa Investment Managers of France.

"At present, we are waiting for necessary approvals from the regulator. We can't give any time frame but are hopeful of starting our operation in the next fiscal," BoI chairman and managing director Alok Misra said.

BoI had started its mutual fund business in 1990. Of the six schemes aunched by the fund, four had been redeemed and two schemes transferred to Tauras Mutual Fund after giving exit option to investors in 2004.

With the likely approval from the regulator, the bank will re-enter this space and join another 41 players in the domestic market space.

Banks are entering into mutual fund market in the recent time to boost their fee-based income by leveraging their branches for distribution.

At present, there are around eight MFs which are owned fully or partly by banks with overseas partners like Baroda Pioneer Mutual Fund, Canara Robeco Mutual Fund, ICICI Prudential MF, Principal MF of Punjab National Bank, Axis MF, SBI Mutual Fund, and IDBI Mutual Fund among others.

BoI posted a 9.6 percent rise in its net profit to Rs 716.15 crore in the third quarter on an income of Rs 8,002.27 crore, which rose 30.85 percent from Rs 6115.76 crore.