Axis Bank enters into the retirement business

Axis Bank on Tuesday announced that it has received regulatory nod to act as a pension fund manager and has already crossed ₹100 crore in assets under management (AUM) for its retirement business. The third largest private sector lender received a commencement of business certificate from the Pension Fund Regulatory and Development Authority (PFRDA) on September 20, and the AUM has been managed in the first 45 days of the business, as per a company statement.

The bank has launched a step-down subsidiary Axis Pension Fund Management through its subsidiary Axis Asset Management Company, which marks its foray into the retirement business, the statement added.

Axis Bank’s chief executive and managing director Amitabh Chaudhry said Axis Pension Fund will capitalise on the investment management capabilities and distribution strength of the group and aims to be the preferred retirement solutions provider.

Chaudhry claimed it is the first private pension fund to cross the ₹100 crore AUM mark within 45 days of business operations.

Axis PFM will manage pension funds of investors across the all citizens’ model, corporate sector and government sector, as per investment guidelines defined by the regulator, the statement said.

The company aims to aid all the individuals in building their retirement wealth with NPS (New Pension Scheme) for a regular income post retirement. It will focus on maximising risk-adjusted returns for its investors on a consistent and long-term basis while adhering to PFRDA guidelines, it added.