Bank of India Plans Future Listing of Mutual Fund and Insurance Arms

Unlike some public sector peers that rushed to list subsidiaries, Bank of India (BOI) is taking its time. CEO Rajneesh Karnatak said the bank will focus on organic growth, profitability, and stronger distribution before considering IPOs. “We are not in a hurry. First we want to build scale and value, then think of listing,” Karnatak said.

Push from the Finance Ministry

The Finance Ministry has encouraged state-owned banks to monetise their subsidiaries by listing them, but BOI prefers to strengthen its businesses before moving to capital markets.

Mutual Fund and Insurance Snapshot

• BOI Mutual Fund
  • AUM of ₹13,183 crore (as of July 2025)
  • Nearly 7.6 lakh investor folios
  • 20 equity, hybrid, and debt schemes
    
     
• Star Union Dai-ichi Life Insurance:
  • BOI holds 27.5% stake
  • Net premium income of ₹8,033 crore (FY25)
  • 3.25% market share in first-year premiums among private insurers

Long-Term Strategy Over Quick Gains

Karnatak said BOI’s subsidiaries are not “side businesses” but strategic tools that boost customer engagement. The bank uses product bundling, such as linking salary accounts and loans with insurance and mutual funds, to deepen relationships.

This has already shown results: bundled accounts have 2.5x higher balances compared to simple savings accounts.

Capital Ready, Scale the Next Step

BOI has already infused the required regulatory capital into its subsidiaries and does not plan further investments soon. The focus now is on:

• Expanding distribution through its 5,300 branches
• Improving profitability
• Strengthening operations

Also Read: Senco Gold Maintains Positive Outlook for FY26 Despite High Gold Prices!

 Bank of India Share Price Movement

Bank of India share price (NSE: BANKINDIA) is currently trading at ₹115.62, up by ₹0.76 or 0.66% as of August 19, 10:50 am IST. The stock opened at ₹114.93 and touched a high of ₹115.89 and a low of ₹114.40 during the session. The company has a market capitalisation of ₹52,650 crore, with a price-to-earnings (P/E) ratio of 5.55. It offers a dividend yield of 3.50%, with a quarterly dividend amount of ₹1.01 per share. Over the past 52 weeks, the stock has reached a high of ₹130.24 and a low of ₹90.05.

Conclusion

Bank of India is preparing its mutual fund and insurance businesses for long-term growth before considering IPOs. By prioritising scale, profitability, and integration with core banking, BOI hopes to ensure that when the time comes, the listings will deliver maximum value to investors and customers alike.

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