Axis Bank Ltd. (532215.BY) said Wednesday it is evaluating partnerships in India and globally for its asset management unit that could add value to its investment management business, but declined to comment on a report that U.K.'s Schroders PLC (SDR.LN) may acquire about 30% of Axis Asset Management Co.

"When we are able to identify the right partner, we will assess the appropriate partnership arrangement," an Axis Bank spokesman said in an emailed statement.

Schroders declined to comment.

On Wednesday, the Business Standard and the Economic Times newspapers reported senior executives from asset manager Schroders are likely to visit Mumbai next week to finalize a deal, which could help the U.K. company revive its presence in India.

The reports of a tie-up comes at a time of stifled growth for India's mutual fund industry that managed INR6.82 trillion (about $137 billion) in assets as of Dec. 31.

In 2009, the capital-markets regulator scrapped the entry-load--a fee that asset management companies charged investors buying mutual fund units--and also directed fund houses to standardize exit-load charges.

Fund houses used a major portion of the entry load to pay distributors' commissions. After the load was scrapped, distributors lost the incentive to sell funds, which in turn has hampered sales of the popular category of equity funds.

Still, the lure of capturing large household savings has resulted in steady foreign interest in the asset management segment, as nearly all privately owned general and life insurers--where 26% foreign ownership is allowed--have overseas partners. Global majors such as New York Life Insurance Co. and AXA Asia Pacific Holdings Ltd. have joint ventures in India.

In January, Japan's biggest life insurer, Nippon Life Insurance Co., said it will buy a 26% stake in Reliance Capital Asset Management Ltd. for INR14.5 billion.

In 2010, Japan's second largest broker, Daiwa Securities Group Inc., bought Mumbai-based Shinsei Asset Management Private Ltd. and Shinsei Trustee Co. (India) Pvt. Ltd., to set foot in India's asset management business.

Swiss lender UBS AG also recently said it is open to strategic tie-ups in the asset management segment.

-By Khushita Vasant, Dow Jones Newswires; 91 22 6145 6122; khushita.vasant@dowjones.com