AU Small Finance Bank in pact to sell mutual fund schemes

AU Small Finance Bank has entered into an agreement with Asset Management Companies (AMCs) to distribute their mutual fund schemes, a release from the company stated.

The bank has tied up with 11 mutual funds namely-HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Reliance Mutual Fund, SBI Mutual Fund, Adity Birla Sun Life Mutual Fund, DSP BlackRock Mutual Fund, Axis Mutual Fund, Franklin Templeton Mutual Fund, Motilal Oswal Mutual Fund and Mirae Asset Mutual Fund.

"As a bank we would focus on systematic investment plan (SIP) as it imparts financial discipline in the lives of retail investors. It also provides the benefit from the power of compounding and averaging purchase cost, keeping the volatility of the market aside," Sanjay Agarwal, MD & CEO of AU Small Finance Bank.

AU Bank commenced its banking operations on April 19, 2017. As on September 30, 2017, AU Bank’s distribution network was at 301 branches, 113 asset centres, 23 offices and 287 ATMs spread across 11 states and one Union Territory. AU Bank had gross asset under management of Rs 12,134 crore, total deposits of Rs 1,978 crore and an employee base of 9,974 team members at the end of H1 FY18.