Money & Banking

YES Bank eyes inorganic route in mutual fund space

Our Bureau Mumbai | Updated on January 22, 2018

YES_BANK   -  Business Line

Gets RBI nod; looking for MF with assets over ₹30,000 crore

YES Bank, which received RBI’s approval to set up a mutual fund on Monday, said it is on the lookout to acquire an existing mutual fund.

Pralay Mondal, Senior Group President — Retail and Business Banking, speaking to BusinessLine, said, “We will build out asset management company and grow organically. But we are open to the possibility of buying an existing fund as well. Preferably not too small, but with assets of between ₹30,000-40,000 crore.”

The Rana Kapoor-promoted private sector bank received the central bank’s approval to sponsor a mutual fund and set up an AMC and a trustee company, as wholly-owned subsidiaries of the bank. The bank will apply for approval from capital market regulator SEBI within a fortnight, Mondal said.

Launch within a year

“Then it is a two-stage process. The in-principle approval from SEBI will take 4-6 months, after which we will take another six months roughly to set up. So we should be ready to launch within a year,” Mondal said. “Meanwhile, we’re in the process of hiring, putting together a team.”

Mondal believes the bank and the MF will share several synergies, the biggest advantage being distribution through its branch network. “The bank has several corporate clients, who will now be able to use the AMC’s services also.” The AMC will first capitalise on its existing presence in metros before moving into smaller cities.

The group already has a brokerage arm with YES Securities, incorporated in 2013. The securities broker offers a trading/ investment platform in equity and other financial products.

Published on October 12, 2015

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