State run, Bank of India (BoI) is soon going to open to its asset management company (AMC) to venture into mutual funds. The bank is in discussions with a French bank, Credit Agricole and a Spanish financial services group, BBVA for the purpose.

The bank has decided to foray into the mutual find because it wants to intensify its fee-based income and offer a complete range of financial products.

Recently BoI has also entered into a joint venture to start a life insurance business. The bank received an approval from Insurance Regulatory and Development Authority to commence the venture. It has tied-up with Union Bank of India and Dai-ichi of Japan to start the foray as Star- Unio Dai-ichi Life Insurance (SUD Life).

Under this venture, BoI holds 51% of the stake while Union Bank of India and Dai-ichi hold 23% and 26% respectively. The company is likely to launch its first product in the market by the end of January.

In the past few years, some other public sector banks have also joined hands with foreign banks in order to start their mutual funds foray. These banks include some like Union Bank of India, Bank of Baroda and Canara Bank which has just introduced a foreign partner.

Bank of India is going to finalize on a partner for its AMC foray in the coming two to three weeks. Among the two parties, BBVA was earlier also known for being in talks with Union Bank of India to start an AMC but the bank had finalized on Belgian player KBC group for the purpose and started its operations last year.

Credit Agricole group which is the other participant for the venture is the second largest French bank and is planning to enter into asset management, private banking and consumer finance in the Indian market.

Earlier BoI had its mutual fund business but it had stopped venturing about a decade back.