India's Bank of Baroda signed an agreement with BNP Paribas Asset Management Asia Ltd. to merge its wholly owned unit, Baroda Asset Management India Ltd., with BNP Paribas Asset Management India Pvt. Ltd.

Bank of Baroda also agreed to merge Baroda Trustee India Pvt. Ltd. with BNP Paribas Trustee India Pvt. Ltd., according to an Oct. 11 BSE filing.

Both deals will be through all-stock transactions and are subject to regulatory approvals.

Following the merger, the Indian lender will own a 50.1% stake in the merged asset management company, while BNP Paribas Asset Management Asia will hold a 49.9% stake. In the merged trustee company, Bank of Baroda and BNP Paribas Asset Management Asia will own 50.7% and 49.3% of the company's shares, respectively.

Bank of Baroda expects the deals to create "greater business synergies," and help it grow its business by leveraging BNP Paribas' global asset management know-how and its own experience in running Indian retail networks.