Canara Bank has entered into a distribution agreement with SBI Funds Management Limited to offer the latter’s mutual fund schemes to its customers. As per news reports, the bank will distribute SBI Mutual Fund products through its existing branches and approved channels.
The agreement relates only to distribution of products and does not involve any change in ownership structure.
Under the pact, Canara Bank will act as a distributor for mutual fund schemes managed by SBI Funds Management. Customers of the bank will be able to access various categories of schemes, including equity, debt, and hybrid funds.
The bank’s role will be limited to facilitating investments. Portfolio management, fund operations, and regulatory responsibilities will continue to rest with the asset management company.
SBI Funds Management Limited was set up in 1987 and is among the established asset managers in the country. It is a joint venture between State Bank of India and Amundi of France.
As of December 2025, the fund house reported assets under management of ₹12,41,000 crore. It services over 25 crore investor folios across its schemes.
Banks often enter distribution agreements to expand the range of financial products available to customers without directly managing investment assets. Through this arrangement, Canara Bank adds SBI Mutual Fund schemes to its third-party product basket.
The structure enables customers to invest in market-linked instruments through their existing banking relationship, while investment decisions remain with the fund house.
Read More: Canara Bank Share Price Rises 2% as Stable Ratings and Strong Asset Quality Support Outlook!
As of February 23, 2026, 12:20 pm, Canara Bank share price was trading at ₹155.88, a 1.12% increase from the previous closing price.
The agreement positions Canara Bank as a distributor of SBI Mutual Fund products. Customers will be able to access schemes managed by SBI Funds Management, which will continue to oversee investment management and compliance functions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 23, 2026, 1:50 PM IST
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