SBI Funds Management net jumps 40% in FY20

Our Bureau Mumbai | Updated on October 30, 2020 Published on October 30, 2020

SBI Funds Management has reported that its net profit jumped 40 per cent in financial year ended March 2020 to ₹600 crore against ₹429 crore logged in the same period last year, on lower operational cost.

Income was down 15 per cent at ₹1,317 crore (₹1,558 crore) and the dividend paid to the owners of the company also dipped 38 per cent to ₹706 crore (₹1,136 crore).

Salary cost up

Salary to employees were up at ₹232 crore (₹211 crore) while the operating cost was more than halved to ₹257 crore (₹684 crore) after SEBI shifted major expenses to be part of individual mutual fund schemes.

SBI Funds Management is a joint venture between State Bank of India and Amundi Asset Management Company, a leading European AMC. Besides managing SBI Mutual Fund, it provides various other services such as portfolio management, alternative investment fund and financial advisory services.

AUM gains 31%

The average asset under management of SBI Funds increased 31 per cent last fiscal to ₹3.73 lakh crore against ₹2.83 lakh crore registered in FY19. Its market share, in terms of AAUM in mutual fund segment grew by 2.23 per cent to 13.82 per cent, it said in the second Integrated Annual Report for the financial year 2020 published on Friday.

Vinay Tonse, Managing Director, SBI Funds, said this year report includes newer elements to adhere by the UN’s Sustainable Development Goals (SDG) while creating value for customers and investors.

Navneet Munot, CIO, said the report this year includes aspects on how the company adopted Responsible Investing and how the value creation process highlights the impact of business on SDG.

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Published on October 30, 2020
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