Financial Daily from THE HINDU group of publications
Friday, Oct 08, 2004
Financial Daily from THE HINDU group of publications Friday, Oct 08, 2004 |
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Money & Banking
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Private Banks Yes Bank pegs credit portfolio at Rs 1,000 cr M. Ramesh
Chennai , Oct. 7 THE one-month old Yes Bank expects to build up a credit portfolio of Rs 1,000 crore by the end of the financial year, the Managing Director and CEO, Mr Rana Kapoor, told Business Line today. He said that at least 30 per cent of the lendings would be made to agriculture where he felt the bank had a comparative advantage. Elaborating on that, Mr Kapoor said that the bank would look at "the entire supply chain", seed companies, fertilisers and agro-chemicals, irrigation equipment, storage centres, warehouses and even irrigation projects. "You have to have a 360 degree overview of the industry," he said. He noted that the agriculture-oriented strategy of the bank fit in well with the thinking of the Government. The Yes Bank began operations on September 3. How was the first month of operations? Mr Kapoor said that while starting operations was very exciting, the bank had "miles to go and a lot of challenges." Would late entry into an age-old business be a high hurdle to cross? Mr Kapoor said that the late entrants also had advantages. For example, "it is much easier today to build a pan-India set up, although we would concentrate on certain geographies." In addition, the bank sees itself as a "reference bank" for agriculture, a bank with a specialised expertise in the area. "Pricing is not the door opener," Mr Kapoor said. Answering another question, he said the timing of the bank's IPO was yet to be decided, although an IPO is a certainty. The bank currently has a team of 160 people, which would increase to 250 by March. Two or three more senior professionals are expected to join the bank in the next six months, he said. The Indian promoters, (professional bankers, Mr Ashok Kapur and Mr Rana Kapoor) jointly hold 52 per cent of the bank's equity, while 20 per cent of the equity is held by Rabobank, Netherlands, a part of the Rabobank Group. Three other private equity institutional investors: CVC-Citigroup - New York; AIF Capital - Hong Kong; and ChrysCapital - San Francisco collectively own 25 per cent of the equity.
More Stories on : Private Banks | Credit Market
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