Navneet Munot, a seasoned campaigner in the field of finance has been appointed as the CEO of the AMC
HDFC, which is the largest bank in the country on account of its market cap, which is larger than that of SBI has ordained a change of guard on its Mutual Front wing. Munot, an experienced finance executive, has lent his services to the State Bank of India (SBI) Funds Management as its chief investment officer, is deemed by many as an adequate replacement to the current MD and CEO Milind Barve, who has had a marathon run at the company, who has been an integral part of it since its beginning twenty years ago, in the year 2000.
In a statement, HDFC informed the stock and its shareholders about the move, as its quintessential to take the investors and their insights into confidence, before making such a crucial move. HDFC Mutual Fund’s Board of Directors has given a green signal to the appointment at its meeting, according to a regulatory filing by HDFC Mutual Funds.
Meanwhile, SBI Funds Management, also issued a statement, confirming his departure, as Mr. Munot resigned from the SBI to join HDFC without a cooling period.
Although the parent company, HDFC Bank is bigger than SBI based on market cap, when it comes to their asset management wings, SBI Funds Management is the biggest asset management house in the country, managing assets of over Rs. 4.5 lakh crore, while HDFC Mutual Funds has an asset base of Rs. 3.75 lakh crore.
Mutual Fund houses are Asset Management Companies, these are institutions that invest pooled in money from investors into financial instruments like equities, mutual funds, securities, etc.
It remains to be seen how the stocks react to this, given how big a change this is, in the market