Yes Bank gets RBI approval for setting up mutual fund

The scrip opened at Rs. 730 and has touched a high and low of Rs. 736.5 and Rs. 727 respectively.

Yes Bank , India's 5th largest private sector bank, has received an approval from the Reserve Bank of India to sponsor a Mutual Fund and to setup a Asset Management Company (AMC), and a Trustee Company. The AMC and the Trust Companies shall be set up as wholly owned subsidiaries of YES Bank Limited.

YES Bank will now apply to SEBI to seek necessary approvals.

The Asset Management Company (AMC) will channelize the 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, and provide customers a seamless digital experience for their investments  & savings solutions. The Bank will simplify and integrate "manufacturing to distribution" of equity and debt investment products for all its customers.

The AMC will also 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.

In its 12th year of operations, as YES BANK accelerates into its next phase of growth, this new business initiative will provide further acceleration to YES Banks differentiated product offerings to its customers.

The stock  is currently trading at Rs. 734.45, up by 9.25 points or 1.28% from its previous closing of Rs. 725.2 on the BSE. The scrip opened at Rs. 730 and has touched a high and low of Rs. 736.5 and Rs. 727 respectively. So far 360856(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 30383.36 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 910 on 04-Mar-2015 and a 52 week low of Rs. 560 on 09-Oct-2014. Last one week high and low of the scrip stood at Rs. 756.7 and Rs. 720.5 respectively.

The promoters holding in the company stood at 22.04 % while Institutions and Non-Institutions held 65.71 % and 12.25 % respectively.

The stock is currently trading above its 200 DMA.