Good news for YES Bank! Here is why share price jumped 4%

YES Bank share price on Thursday rallied by 4 per cent after the private lender received approval from capital markets regulator Sebi to start mutual fund business. The stock went up by 3.96 per cent to settle at Rs 348.80 on BSE. 

During the day, YES Bank shares soared 4.54 per cent to Rs 350.75. At NSE, shares of the company jumped 3.88 per cent to close at Rs 348.60.

The stock was the top gainer on both the key indices during the day. The company's market valuation rose by Rs 3,159.27 crore to Rs 80,423.27 crore.

In terms of equity volume, 11.36 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.

Sebi's approval comes after the Reserve Bank of India's (RBI) nod to YES Bank to sponsor a mutual fund followed by Securities and Exchange Board of India's (Sebi) in-principle approval received subsequently, the bank said in a statement yesterday.

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"YES Asset Management (India) Limited ('YAMIL') will leverage YES BANK's Knowledge Banking expertise and relationship capital across retail, corporate and institutional investors to effectively channelize their assets in equity and debt capital markets," said Rana Kapoor, Managing Director & CEO, YES Bank. 

"This strategic initiative will further complement YES BANK's retail liabilities and wealth management strategy, and also allow YAMIL to build on the bank's 'DIGICAL' distribution network to provide customers a seamless investment and banking experience," he added.