MFs using all means to get new accounts

The Indian mutual fund industry has been facing tough times of late. Fund houses are finding it tough to get new clients into their system. This is given that the SEBI has knocked off the fees that distributors used to get from selling mutual funds (under the garb of entry loads). In these times thus, mutual fund companies are restoring to all means to get in new accounts. One step these companies have taken is to tap their existing clients for more funds. 
Leading the ploy are bank-sponsored fund houses. These are increasingly becoming dependent on their bank sponsors or in-house partners to help garner a tidy collection. And the results are there for everyone to see. These bank-sponsored fund houses are witnessing inflows of around 40-70% of new fund offer (NFO) collections coming from the sponsor bank's customers.