Shares of Yes Bank soared over 2 per cent on Tuesday after the country's fourth largest private sector lender said that its asset management company has received approval for launch of two mutual fund schemes.
Boosted by the development, shares of bank rose as much as 2.52 per cent to Rs 182.50 apiece on the BSE, after opening higher at Rs 181.00 against a previous closing price of Rs 178.00.
In a similar trend, stocks of the lender were trading at Rs 178.05, up 0.03 per cent, on the National Stock Exchange.
"Pursuant to the final regulatory approval (Certificate of Registration) from the Securities & Exchange Board of India (SEBI) to commence its mutual fund business, YES Asset Management (India), the wholly owned subsidiary of the bank has received SEBI approval to launch two mutual fund schemes, YES Liquid Fund and YES Ultra Short Term Fund," the lender said in a filing to the Bombay Stock Exchange.
The bank said that this approval is subsequent to the Reserve Bank of India's (RBI) approval granted to Yes Bank to sponsor a mutual fund followed by SEBI's in-principle approval received subsequently.
In a separate filing to the exchange, YES bank announced appointment of the former chief of IRDAI and LIC, TS Vijayan, as Additional Director (Independent) on its board. The financial services veteran has been appointed as Independent Director for a period of 5 years, which is subject to the approval of shareholders in the next General Meeting of the Bank. T S Vijayan has been a key member of the 'Search & Selection Committee' ('S&SC') set up to identify a suitable successor for the new MD and CEO position.
"Given that the S&SC has made significant progress and is in advanced stages, the N&RC and the Board has decided to seek T S Vijayan's larger engagement and involvement, now as an Additional Board Director (Independent) with continuation on the four member S&SC," the bank said.
With this appointment, YES Bank's current Board constitutes, Brahm Dutt (Independent Director), Mukesh Sabharwal (Independent Director), Ajai Kumar (Non-Executive Non-Independent Director), Subhash Chander Kalia (Non-Executive Non-Independent Director), Pratima Sheorey (Independent Director), Uttam Prakash Agarwal (Additional Director -Independent), T S Vijayan, (Additional Director -Independent) and Rana Kapoor, Managing Director & CEO.
As on September 17, 2018, Reserve Bank of India had intimated that Rana Kapoor may continue as the MD & CEO till 31 January 2019. The Board of Directors of the bank are scheduled to meet on December 13 to consider the CEO search panel's recommendation to appoint a successor to the current MD and CEO Rana Kapoor.
The bank had a troublesome last week, with ratings agencies ICRA Ltd and CARE Ratings Ltd downgraded its debt instruments and reports of corporate governance issues, which saw stocks skidding to 52-week low.
Meanwhile, the BSE Sensex was trading at 36,112.83, down 128.17 points, or 0.35 per cent.
Edited by Chitranjan Kumar