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Informist, Wednesday, May 6, 2026

 

NEW DELHI – The Pension Fund Regulatory and Development Authority has allowed Bank of Baroda to sponsor a pension fund, enabling it to start pension fund management business, the bank said Wednesday. The lender will set up a pension fund management company subject to other regulatory approvals, it said in an exchange filing.

 

Informist had exclusively reported on Apr. 28 that PFRDA would soon onboard public sector banks to manage pension corpus so that their branch network in tier-II and tier-III cities could be used to popularise pension schemes among the masses. Bank of Baroda is the first bank to get an approval from the pension regulator to foray into pension fund management after PFRDA allowed scheduled commercial banks to set up pension funds independently to manage the corpus under the National Pension System.

 

In January, the PFRDA board had approved a framework allowing scheduled commercial banks to independently set up pension funds to manage pension corpus. This was aimed at addressing regulatory constraints that limited bank participation in managing pension corpus so far. 

 

Currently, 10 pension fund managers operate under PFRDA -- LIC Pension Fund Ltd., SBI Pension Funds Pvt. Ltd., UTI Pension Fund Ltd., HDFC Pension Fund Management Ltd., ICICI Prudential Pension Funds Management Co. Ltd., Kotak Mahindra Pension Fund Ltd., Aditya Birla Sun Life Pension Fund Management Ltd., Tata Pension Fund Management Pvt. Ltd., Axis Pension Fund Management Ltd., and DSP Pension Fund Managers Pvt. Ltd. Together, they manage a pension corpus of INR 16.5 trillion.

 

On Wednesday, shares of Bank of Baroda ended at INR 270.30 on the National Stock Exchange, up 2.6%. For the December quarter, the bank reported a net profit of INR 50.55 billion on total income of INR 353.50 billion.  End

 

Reported by Sagar Sen

Edited by Avishek Dutta

 

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