New Delhi: Yes Bank said on Sunday that it will foray into mutual fund business next fiscal year through organic or inorganic route.
“There is a plan to enter into asset management business organically or inorganically… to what extent there is opportunity we will explore,” Yes Bank managing director and CEO Rana Kapoor told PTI.
Initially, he said, Rs 50 crore has been earmarked by the board for the business.
The asset management company will also complement the private sector lender’s retail strategy and help in leveraging existing infrastructure to provide the necessary retail thrust, he said.
This will allow the bank build a holistic wealth management proposition for its customers and enable the bank to strengthen traction witnessed in building retail market share on the back of its savings account proposition, he added.
At present, there are 45 mutual fund houses in the country with assets under management (AUM) about Rs 12 lakh crore. The fund houses had an average AUM of Rs 11,81,356 crore at the end of January 31, up from Rs 10,51,343 crore at the end of December.
In November, mutual funds’ assets base stood at Rs 10.90 lakh crore.
Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.
Meanwhile, Yes Bank in the first Renewable Energy Global Investors meet here made a commitment for funding 5,000 MW of renewable energy projects.
The funding would be done over a period of next 5 years and it would be between Rs 20,000-25,000 crore.
Yes Bank has also made a commitment of funding clean energy projects at the United National Climate Change Summit 2014.
Meanwhile, the bank has bagged AIMA RK Swamy High Performance Brand Award 2014. The award recognised brands for their influence on business metrics which is assessed using financial data.