Bank of Baroda Mutual Fund is targetting a four-fold growth in the size of assets under management at Rs 1,000 crore (Rs 10 billion) by March 31, 2004 by introducing new schemes, including two equity funds.

"Currently the AUM of mutual fund stood at Rs 250 crore (Rs 2.50 billion) and expect the two new schemes -- BoB balance and BoB growth schemes -- to generate Rs 50 crore (Rs 500 million) through the initial public offering," P S Shenoy, chairman, Bank of Baroda, said at the launch of two-equity schemes in Mumbai on Thursday.

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"We want the BoB asset management company, a subsidiary of BoB, to grow the investor base from the current 30,000 and the bank will extend support to leverage branch network with 2.4 crore (24 million) customers," Shenoy said.

Asked if BoB had any plans to divest its holding in UTI asset management company through the IPO, Shenoy said, "We are acting as one of the sponsors of UTI MF and as of now we like to be with the fund."

UTI MF chairman and managing director M Damodaran on Wednesday stated that the UTI asset management company was planning to go public and its sponsors, including Bank of Baroda, could divest their holding through the IPO.

The subscription for the BoB balance and growth schemes, which opened on Thursday, would be closed on September 3.

N L Khurana, managing director, BoB AMC, said the fund manages three open-ended debt schemes and one equity related scheme.

Khurana said the MF would use BoB's 38 overseas branches to reach out to the non-resident Indians.

The minimum application amount for schemes was Rs 3,000.

The MF would charge entry load ranging from 0.5-1.5 per cent based on the quantum of investment. However, there would not be any exit load for two schemes.