YES Bank gets RBI nod for mutual fund, AMC, trustee company

12 Oct 2015

New generation private sector lender Yes Bank has received 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.

Yes Bank ''has received an approval from the RBI to sponsor a mutual fund, and to set up an asset management company and a trustee company,'' the bank stated in a regulatory filing today.

The Rana Kapoor-led lender proposes to set up the AMC and the trustee company as its wholly owned subsidiaries, the filing sated the bank stated in a regulatory filing today.

 ''In its twelfth year of operation, as Yes Bank accelerates into its next phase of growth, this new business initiative will provide further acceleration to Yes Bank's differentiated product offerings,'' it further said,

Asset management companies and trustee companies will be wholly owned subsidiaries of Yes Bank, it added.

The lender said its AMC will channelise savings of 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,'' it added.

The bank will now apply to market regulator Securities and Exchange Board of India (Sebi) to seek necessary approvals.