Yes Bank gets an approval from RBI to set up an AMC

Yes Bank has received an approval from the Reserve Bank of India (RBI) to sponsor a mutual fund and to set up an Asset Management Company (AMC) and a Trustee Company. The AMC and Trust Companies shall be set up as wholly owned subsidiaries of Yes Bank. Further, Yes bank will apply to SEBI to seek necessary approvals.

There are 45 mutual fund houses in the country with assets under management (AUM) about Rs 13 lakh crore. The fund houses had an average AUM of Rs 1314532 crore at the end of September 2016.

The AMC will channelize the savings of the retail and institutional investors in equity and debt capital markets. This will complement Yes Bank's retail liabilities strategy and also allow the AMC to leverage the bank's distribution network for customer acquisition, and provide customers a seamless digital experience for their investments & saving solutions. The bank will simplify and integrate 'manufacturing to distribution' of equity and debt investment products for all its customers.

The AMC will gain from the bank's expertise in investment advisory, wealth management solutions, debt capital markets. Its significant and growing customer base & distribution network and overall execution expertise, to build a large and profitable Fund Management franchise.

The share price of the bank increased by 1.56 per cent in early trades on BSE and is trading at Rs 734.4 on intraday basis. The shareholding pattern of the bank indicates that FII holdings contracted by 63 basis points to 44.42 per cent while DII holdings expanded by 63 basis points 21.29 per cent during June 2015 quarter.

Recently, Yes Bank tied up with Singapore based MatchMove Pay, Asia's leading mobile payment platform provider, for a multi-dimensional strategic partnership to accelerate its expansion into the country's booming e-commerce market and revolutionise India's e-commerce and payments ecosystem.

Yes Bank is a private sector bank. The Bank has corporate, retail and small medium enterprises (SME) banking platforms. It offers product suite encompassing financial markets, investment banking, corporate finance, branch banking, business banking, transaction banking and wealth management offerings. Yes Bank operates in four business segments viz. Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations.