Performance of commercial banks in converting bank deposits to mutual fund AUM Dr. Das Joy1, Dr. Shil Parag2 1Assistant Professor, Department of Commerce, Tripura University, Suryamaninagar, Tripura, India. Email id: joy.kxj@gmail.com 2Associate Professor, Department of Commerce, Assam University, Silchar, India. Email id: drps007.aus@gmail.com Online published on 23 November, 2018. Abstract The present study deals with the performance of public commercial banks in terms of conversion ratio of the deposits held by them to Asset under Management of their mutual fund business. Banks, after independence, were identified as an agent by the government which can be used to bring change in the economic condition of the country as a result of that most of the bigger banks were nationalized. But, during 1980s, deposits and profits in public sector banks declined and Government of India had to amend the Banking Regulation Act to provide the banks a wider scope in business operation. From 1986–87 onwards banks were allowed to undertake non-traditional activities by setting up subsidiaries. As a result many banks started their own sponsored mutual fund companies since they had some pre-existing advantages, like huge deposits lying with them, customer reach and large customer base. This study covers ten years data starting from March 2007 to March 2016 collected from Corporate Capitaline Plus database and also from the various publications made by Reserve Bank of India, AMFI and commercial banks from time to time. The data thus collected has been analyzed by using conversion ratio, correlation coefficient and panel data analysis to reach the conclusion. The study disclosed that the private banks performed better in terms of conversion of deposits to asset under management of their mutual fund companies, than the public sector commercial banks. Top Keywords Asset under Management, Bank deposits, Commercial Banks, Mutual fund. Top |