Yes Bank announced its exit from mutual fund business

Private sector Yes Bank on Friday announced its exit from the mutual fund business. The bank said on Friday that it would sell its stake in asset management and trustee subsidiary units. In a communication sent to the stock exchanges, the bank said that it has confirmed agreement to sell its 100 percent stake in Yes Bank Asset Management (India) Limited (YesAMC) and Yes Trustee Limited (YTL) to GPL Finance & Investments Limited on August 21, 2020. Both are completely owned subsidiaries of Yes Bank.

The bank said that necessary approvals from regulatory authorities are yet to be obtained for the deal. YesAMC is an asset management company of Yes Mutual Fund and YTL is a trustee of Yes Mutual Fund. Yes Bank said that after the completion of the deal, the subsidiaries of YesAMC and YTL Bank will cease to be and will exit the mutual fund business. The bank said that it would complete the sale deal of its subsidiaries within 8 to 12 months from the execution of the pact.

Currently, the bank has no promoter. YESAMC’s revenue share in the financial year 2019-20 was Rs 33 lakh, which is negligible in percentage. The net asset share of AMC during the year is Rs 49.7 Crore, which is negligible in percentage. YTL’s revenue and net asset share remained nil during the year. GPL Finance and Investment Limited is an NBFC that will acquire 100 percent of YesAMC and YTL. On the BSE, Yes Bank shares closed down 1.21 percent at Rs 15.57 per share on Friday.