Canara Bank has entered into a distribution agreement with SBI Funds Management Limited, enabling the bank to offer SBI Mutual Fund schemes to its customers across its branch network and authorised channels.

The arrangement is purely a distribution partnership and does not involve any equity participation or change in ownership between the two institutions.

Scope of the Distribution Agreement

Under the agreement, Canara Bank will act as a distributor for mutual fund schemes managed by SBI Funds Management. Customers will gain access to a broad range of investment products, including:

• Equity mutual funds
• Debt mutual funds
• Hybrid and balanced funds

The bank’s responsibility will be limited to facilitating investments and onboarding customers. All portfolio management activities, fund administration, and regulatory compliance will remain under the purview of the asset management company.

This structure allows Canara Bank to expand its third-party product offerings while maintaining its core banking focus.

About SBI Funds Management

SBI Funds Management Limited, established in 1987, is one of India’s prominent asset management companies. It operates as a joint venture between State Bank of India and Amundi, the France-based asset management firm.

As of December 2025, the fund house reported assets under management (AUM) of approximately ₹12,41,000 crore. It services more than 25 crore investor folios across its various schemes, reflecting its wide retail and institutional reach.

Strategic Context

Banks frequently enter into distribution arrangements with asset management companies to broaden their suite of financial services without directly assuming fund management responsibilities. Through this collaboration, Canara Bank enhances its investment product portfolio by adding SBI Mutual Fund schemes to its offerings.

For customers, the agreement simplifies access to market-linked investment products via their existing banking relationship. However, investment decisions, fund strategy, and performance management will continue to be handled exclusively by SBI Funds Management.

The partnership reflects a broader trend of banks leveraging third-party tie-ups to provide diversified financial solutions while maintaining operational boundaries between distribution and asset management functions.

Summary

Canara Bank has signed a distribution agreement with SBI Funds Management Limited to offer SBI Mutual Fund schemes to its customers. The bank will distribute equity, debt, and hybrid funds through its branch network, while portfolio management and regulatory responsibilities remain with the asset management company. The partnership expands Canara Bank’s third-party investment offerings without altering ownership structures.

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