PSBs continue to lag behind private banks in MF sales in FY17

Some of the public banks showed improvement; much more still needs to be done

India's public sector banks (PSBs) have continued to lag behind their private peers when it comes to selling mutual funds (MFs) to investors. Despite having a huge branch network across the country — more than half of which are in the rural and semi-urban regions — state lenders appear not excited to do a serious MF distribution business.

It is worth to note that the MF sector has been attracting a lot of investments from the country's hinterland. The inflows are at historic highs and so is the burgeoning investors' base. However, this is not being adequately captured as a business opportunity