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Synopsis : The Reserve Bank of India (RBI) has approved SBI Mutual Fund (SBI MF) to acquire up to 9.99% of Karur Vysya Bank's (KVB) paid-up share capital or voting rights. This move enhances SBI MF's presence in the banking sector, subject to specific regulatory conditions. SBI MF must complete the acquisition within a year and maintain its stake below 9.99%. Established in 1987, SBI MF is a leading entity in India's mutual fund industry, managing assets worth ?913,780.06 crores as of March 2024. The fund house continues to expand its offerings, recently launching the SBI Innovative Opportunities Fund.
The RBI's approval is contingent upon SBI MF adhering to several regulatory conditions, including the stipulation that the mutual fund must complete the acquisition within one year. Additionally, SBI MF must ensure that its stake in KVB does not exceed 9.99%. If the shareholding dips below 5%, SBI MF will be required to seek fresh approval from the RBI to increase its stake again.
SBI Mutual Fund's Position in the Market
SBI Mutual Fund, a prominent player in India's mutual fund industry, was established in 1987 as a trust with the State Bank of India (SBI) as the sponsor. As of March 31, 2024, SBI MF managed assets worth ?913,780.06 crores, accounting for 17.11% of the industry's total assets under management (AUM). The fund house offers a diverse portfolio of 72 primary schemes, catering to a wide range of investor preferences.
Recently, SBI MF launched the SBI Innovative Opportunities Fund, a thematic mutual fund that was open for public subscription from July 29 to August 12, 2024. This launch underscores SBI MF's commitment to providing innovative investment options for its clients.
