SBI, HDFC Bank Net flows into regular schemes of large mutual fund (MF) houses rose sharply in 2024-25 (FY25), with sponsor banks driving a significant share of these inflows. According to Business Standard, bank-backed players such as SBI Mutual Fund, ICICI Prudential MF, and HDFC MF dominated the landscape.
SBI Mutual Fund Leads the Pack
- SBI Mutual Fund, India’s largest MF house, reported net inflows of ₹38,429 crore in FY25, more than double the ₹17,857 crore in FY24.
- This represents a 115% jump, largely driven by a threefold rise in inflows via its parent, State Bank of India (SBI).
- SBI contributed 68% of total inflows, channeling ₹26,027 crore in FY25, compared to ₹9,253 crore in FY24.
Strong Momentum at ICICI Prudential and HDFC Mutual Fund
Other bank-backed fund houses also reported robust growth:
| Fund House | FY25 Net Inflows (₹ crore) | YoY Growth | Contribution from Parent Bank | Change vs FY24 |
|---|---|---|---|---|
| ICICI Prudential MF | 32,789 | Doubled | ICICI Bank: 5,662 | Reversed two years of outflows |
| HDFC Mutual Fund | 32,783 | +56% | HDFC Bank: 5,034 | 1.7x higher than FY24 |
Banks Drive Distribution Strength
Banks continue to be the largest distributor segment for mutual funds in the regular space, leveraging their unmatched reach and customer networks.
- Clients of SBI, HDFC Bank, and ICICI Bank collectively hold nearly ₹3.5 trillion in MF investments.
- Sponsor banks benefit from a large, KYC-verified, digitally enabled customer base, giving their fund houses a competitive edge.
“Sponsor banks are central to MF inflows in India, leading both by total assets and new investor acquisition. With rising digital adoption and retail penetration, their dominance is expected to continue,” said Sunil Subramaniam, market expert.
Kotak and Axis See Turnaround
The inflow surge extended beyond the top three:
- Kotak Mutual Fund: Kotak Mahindra Bank routed ₹1,050 crore in FY25, up sharply from just ₹40 crore in FY24.
- Axis Mutual Fund: Axis Bank turned the tide from a ₹5,186 crore outflow in FY24 to an ₹343 crore inflow in FY25.
Nippon India MF: Non-Bank Player Holding Ground
The lone non-bank among the Big Five, Nippon India MF, also posted strong numbers.
- Net inflows into its regular plans hit ₹20,433 crore in FY25, up 51% year-on-year.
- A key driver was NJ India Invest, which channelled ₹2,800 crore, more than double the previous year.
Key Takeaways
- Bank-backed fund houses dominate inflows in FY25, led by SBI MF, ICICI Prudential MF, and HDFC MF.
- Sponsor banks’ customer base and distribution power remain the strongest growth drivers.
- Kotak and Axis MFs witnessed a turnaround, while Nippon India MF held ground with distributor support.
- With digital penetration deepening, bank-sponsored fund houses are expected to retain their leadership in India’s MF industry.
