Yes Bank expands into Mutual Funds
The private bank follows a well trodden path in setting up its own mutual fund
Incorporated in 2003, Yes Bank is one of the largest private sector banks in the country and provides a full range of products, services, and digital offerings to corporate, MSME & retail customers.
The bank has 1100 branches spread across the country and employs more than 18,000 people. Yes Securities, its wholly owned subsidiary, operates in Investment banking, Merchant banking, & brokerage businesses.
On July 5, Yes bank announced that it has received approval from SEBI to expand into Mutual Funds through its subsidiary, Yes Asset Management (India) Limited (YAMIL).
A lucrative Expansion
Mutual Funds represent an attractive means of expansion for banks, the industry is expanding rapidly; riding on the wave of increasing financial awareness among the public and government backing.
Mutual funds in India now have an AUM of over 23 trillion rupees
The revenue is lucrative, banks run some of the largest mutual funds in the country and aside from revenue from managing funds, they also make a substantial sum of money from selling the funds. For instance, SBI made 550 crores in commission last year just by selling its own funds.
YAMIL will start fund offerings in both debt and equity markets over the next 6–12 months and will operate out of Yes bank’s headquarters in Mumbai. The company plans to grow its investor base using a ‘digital first’ strategy which would likely entail working with other fund vendors and leveraging its own online and offline presence.
At Minance we see this expansion in a positive light. The bank has continued to grow its core business and is setting up offices abroad. It also recently received approval for its Custodian of Securities business. With Mutual Funds, Yes Bank is making a logical expansion to diversify and improve its revenue sources and we remain positive over its long-term prospects.
Yes Bank is part of Minance’s Bloom portfolio. To know more about Bloom and our other investment services, visit our website.
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