Yes Bank sells asset management, mutual fund businesses to Khemka's White Oak

Troubled lender Yes Bank on Friday executed a definitive agreement for the sale of 100 per cent equity shareholding of Yes Asset Management and Yes Trustee to GPL Finance and Investments which is 99 per cent owned by White Oak Investment Management.

The ultimate beneficial holder of the purchaser is Prashant Khemka who owns 99.99 per cent of White Oak Investment Management. The transaction is subject to requisite approvals from regulatory authorities.

Yes Asset Management is the asset management company of Yes Mutual Fund and Yes Trustee is the trustee of Yes Mutual Fund.

"Upon completion of the transaction, Yes Asset Management and Yes Trustee will cease to be subsidiaries of the bank and the bank will exit its mutual fund business," Yes Bank said in regulatory filings at stock exchanges.

It said the revenue contribution of Yes Asset Management in FY20 was Rs 33 lakh and net worth contribution totalled Rs 49.7 crore.

Several banks are boosting their balance sheets in anticipation of bad debts as the coronavirus pandemic pulls down economy and businesses.

According to rating agency ICRA's estimates, Yes Bank requires equity infusion of Rs 9,000 crore to Rs 13,000 crore to meet regulatory capital requirements, including capital conservation buffers.

( With inputs from ANI )