Yes Bank, which is at present redrawing its strategic roadmap under new chief executive Ravneet Gill, is likely to exit the asset management business as it believes that scaling up operations amid intensifying competition could be difficult. The bank could either sell the business to another asset manager or wind it up over a period of time.
The company entered into an investment management agreement with Yes Trustee Limited to act as the investment manager for any funds to be launched by Yes Mutual Fund. It obtained the Securities and Exchange Board of India’s (SEBI) nod to launch mutual fund operations on July 3, 2018. Yes Mutual Fund has launched its first Scheme, Yes Liquid Fund, in January 2019.
The bank will be looking at raising equity capital of Rs 7,000 crore as the core tier-I capital has fallen to 8.4 percent. Yes Bank denied that it was considering an exit from the asset management business. “Yes Bank’s subsidiaries are core to extending the bank’s product offerings and reach,” a spokesperson at the lender said in a mailed response.
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