FPJ BUSINESS DESK Mumbai International asset management and private banking group Schroders PLC on Friday said it had reached a deal to buy a 25% stake in the asset management arm of Indias Axis Bank Ltd.
The transaction will provi
de an access to Schrodersalt39 global distribution network and help in advising overseas funds investment in Indian securities.
The deal, however, is subject to regulatory approval and is likely to be completed in 2012.
Schroders is a global asset management company with 187.3 bn pounds under management.
Shikha Sharma, MD and CEO, Axis Bank said, alt39 We are excited at the opportunity to partner with Schroders in building our asset management business.
We look forward to collaborating with Schrodersalt39 distinctive product and global distribution franchise in the coming years.alt39 The asset sale came on a day when Axis Bank reported an increase of 25% in its net profit to Rs. 1,277 cr for the quarter ended March 2012 as compared to Rs. 1,020 cr in the same period of last financial year.
Demand deposits grew by 18% from Rs. 77,767 cr to Rs. 91,422 cr. The savings bank deposits grew by 26% and current account deposits by 8% resulting into CASA ratio going up to 42% of aggregate deposits.
The net interest income and fee income for the financial 2012 saw a growth of 22% and 25% respectively.
The net interest margin was 3.59% in financial year 2012 as compared to 3.65% in the last financial year.
Operating profit of the bank for FY12 grew 16% year on year basis.
The net NPA stood at 0.25% for the FY12 as against 0.26% as on 31st March 2011. The Capital Adequacy Ratio ( CAR) for the Bank was 13.66% as on 31st March 2012 as compared to 12.65%.
