Yet another milestone for YES bank
Private lender Yes bank has received final regulatory approval from the Securities & Exchange Board of India (Sebi) to start mutual fund business. This approval is subsequent to the Reserve Bank of India’s (RBI) approval.
Why is this important
With the final regulatory approval received, YES Asset Management (India), a wholly owned subsidiary of YES Bank, will launch fund offerings across the spectrum in both debt and equity markets over the next 6-12 months. With mutual fund business, Yes bank will further expand its offerings which in turn will help improve its presence in the BFSI space.
Besides, Yes Bank (CMP: 345, Mcap: 79,501 crores, FY20E P/B of 2.2x) is entering at a time when midcap’s and smallcap’s are hitting freshlows, thereby, offering significant return generating opportunities for the investors.