Yes Bank gains after RBI approves setting up AMC

Yes Bank rose 1.19% to Rs 733.85 at 10:09 IST on BSE after the bank said it received an approval from the central bank for setting up an asset management company.

The announcement was made during trading hours today, 12 October 2015.

Meanwhile, the BSE Sensex was up 66.18 points, or 0.24%, to 27,145.69.

On BSE, so far 72,000 shares were traded in the counter, compared with an average volume of 4.48 lakh shares in the past one quarter.

The stock hit a high of Rs 736.50 and a low of Rs 727 so far during the day. The stock hit a record high of Rs 910 on 4 March 2015. The stock hit a 52-week low of Rs 562.05 on 10 October 2014.

The stock had underperformed the market over the past one month till 9 October 2015, rising 1.36% compared with 5.29% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 9.41% as against Sensex's 1.79% decline.

The large-cap company has an equity capital of Rs 418.97 crore. Face value per share is Rs 10.

Yes Bank said it has received an approval from the Reserve Bank of India (RBI) to sponsor a mutual fund and to setup an 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. Yes Bank will now apply to Securities and Exchange Board of India (Sebi) to seek necessary approvals, the bank said.

The 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 digical 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 bank said.

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.

Yes Bank's net profit rose 27.7% to Rs 551.20 crore on 22.8% growth in total income to Rs 3797.02 crore in Q1 June 2015 over Q1 June 2014.

Yes Bank is India's fifth largest private sector bank with a pan India presence across all 29 states and 7 Union Territories of India.

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