GRAPHIC: Banks are one of the biggest MF distributors in India

Banks due to their huge network of branches are preferred as MF distributors

Banks, because of their huge network of branches, are one of the biggest mutual fund (MF) distributors in the country. While most banks that distribute MFs are free to sell any schemes offered by the country’s more than 40 fund houses, they have shown a preference towards their own MF subsidiary. Canara Bank, for instance, earned nearly Rs 17 crore in MF commissions in 2016-17; the entire amount came from their arm, Canara MF. Similarly, State Bank of India (SBI) earned Rs 175.46 crore in MF commission, 98 per cent of that by selling SBI MF schemes. The share of