Yes Bank which is currently redrawing its strategic road map under new chief executive Ravneet Gill, is likely to exit the asset management business as it believes that scaling up operations amid intensifying competition could be difficult, said people familiar with the plans. The bank could either sell the business to another asset manager, or wind it up over a period of time, said one of the persons cited above.
“The business hasn’t been able to expand much,” said the person. “Either Yes Bank has to sell the business, which is too small for some big player to be interested in, or it may have to wind it down over a period of time. It just doesn’t make sense to continue with it, given the priorities.'”
The company entered into an investment management agreement with Yes Trustee Limited to act as the investment manager for any funds to be launched by Yes Mutual Fund. It obtained the Securities and Exchange Board of india’s (SEBI) nod to launch mutual fund operations on July 3, 2018. Yes Mutual Fund has launched its first Scheme, Yes Liquid Fund, in January 2019.
