YES Bank plans to seek regulator nod for entering mutual fund business

Private sector lender YES Bank plans to seek approval from regulators for entering into the asset management and primary dealership business.

“With a view to complete the overall bouquet of financial products to its customer franchise, the bank plans to set up an asset management company (AMC), primarily to channelise the savings of retail investors in equity and debt capital markets. This will complement the bank’s retail liabilities strategy, strengthen multi-product customer engagement and also allow the bank to leverage its distribution network for customer acquisition,” the lender said in a filing to exchanges.

However, the bank is yet to decide on whether it wants to build an asset management business or to buy an AMC.

“Unlike the retail securities broking arm business that we were sure about building it internally, we are still finalising on whether we want to buy an AMC or build our own. As a result we are working on both the possibilities now,” said Rajat Monga, group president and chief financial officer, YES Bank.

The mutual fund business will further help YES Bank improve its focus on scaling up this end of the segment.

“The AMC will also complement the bank's retail strategy and help in leveraging existing infrastructure to provide the necessary retail thrust. This will allow the bank build a holistic wealth management proposition for its customers and enable the bank to strengthen traction witnessed in building retail market share on the back of its savings account proposition,” said the release.

Yes Bank