The Hindu Business Line : Yes Bank plans risk tools for SMEs

The bank sees tremendous scope in this area as most SMEs in the country are not fully aware of the potential of such products and the benefit they could derive from them, said Mr Ajay Mahajan, Group President, financial markets and private banking.

The bank, which commenced operations in August, has already put in place a team to market its risk management products to core wholesale clients and SMEs.

"The team's role is not just to sell treasury products but to educate corporates on how they can manage their forex and treasury risks more effectively," said Mr Mahajan.

Medium-sized corporates usually do not have substantial investments and infrastructure in treasury like larger corporates.

The decisions, say, in respect of the currency or fixed to floating mix on loans, are not always made by them on the basis of a view but generally get driven by lenders providing capital. Yes Bank would look at providing advisory services to these corporates, he added.

"An exporter taking a term fixed rate rupee loan could be better off swapping to dollar-denominated floating rate loan in the swap market, based on the current views on the currency and interest rates.

Corporates would be assisted in making such decisions in line with their risk management philosophy to help them take better advantage of market conditions," he said.