Yes bank wants to exit mutual fund business

 

Private sector Yes Bank mutual funds will exit the business. The bank said on Friday that it would sell its stake in asset management and trustee subsidiaries. In a communication sent to the stock markets, the bank said that on August 21, it had acquired 100 per cent stake in Yes Bank Asset Management (India) Limited and Yes Trustee Limited, GPL. Finance and Investments Limited has a firm agreement to sell. Both are wholly owned subsidiaries of Yes Bank.

 

Yes Bank said that White Oak Investment Pvt Ltd holds a 99 per cent stake in the acquiring company, but ultimately the beneficiary of the buyer company is Prashant Khemka, who owns White Oak Investment Management Pvt Ltd. Holds 99.99 per cent stake. 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. 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 per cent of YesAMC and YTL.