Yes Bank leads race for Deutsche’s Indian fund arm1 min read . Updated: 22 Jan 2015, 03:55 PM IST
The deal, which sources estimate at nearly `200 crore, is coming at a time of optimism in Indian markets after a surprise rate cut and hopes of reforms
Mumbai: Yes Bank Ltd is the main suitor in the race for Deutsche Asset Management (India) Pvt. Ltd’s mutual fund business in India, two sources who are directly involved in the process said, although talks are still at an early stage.
The deal, which the sources estimate at nearly ₹ 200 crore, is coming at a time of optimism in Indian markets after a surprise interest rate cut and hopes of reform ahead of the government’s maiden budget next month.
Deutsche Asset Management is a Mumbai-based investment management division of Deutsche Bank AG, with average mutual fund assets of ₹ 22,670 crore in the October-December period, data from the Association of Mutual Funds in India shows.
Earlier this month Yes Bank’s board of directors agreed to seek approval from Indian regulators to set up asset management and primary dealership businesses.
Local media reported last week that Yes Bank was considering a move for Deutsche’s Indian mutual fund business.
“The process of the Deutsche mutual fund acquisition is the key focus for the bank in short term," one of the sources said.
Both sources declined to be identified because the information has not been made public.
Yes Bank and Deutsche did not respond to requests for comment.