The Hindu Business Line : YES Bank is in talks with foreign majors

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YES Bank is in talks with foreign majors

Keen on strategic investment and business correspondent relationship

Shashi Ashiwal

No derivative exposure risk: Mr Rana Kapoor (left), MD & CEO, YES Bank, and Mr Rajat Monga, CFO, at a press conference in Mumbai on Wednesday. –

Our Bureau

Mumbai, April 9 The private sector YES Bank is in talks with foreign banks, both for strategic investment as well as for business correspondent relationships.

Large MNC banks are keen on expanding in India and looking at significant minority or near majority stake in Indian banks. Banks such as YES bank will be in a privileged position to talk to foreign banks when the Reserve Bank of India guidelines become conducive, said Mr Rajat Monga, Chief Financial Officer, YES Bank.

Foreign banks are expected to get more leeway in expanding their network in India after 2009. By then, YES Bank would be in a better position to attract foreign partners, as it will have a bigger network and a larger share of SME and retail business, Mr Monga said.

Mr Monga was talking to reporters at a press conference to announce the bank’s fourth quarter results.

Net profit doubles

The net profit of the bank for the quarter ended March 31, 2008 more than doubled to Rs 64 crore from Rs 31 crore in the same period a year ago. The bank also reported a net NPA of 0.09 per cent for the first time and made higher provisions of Rs 22.8 crore as against Rs 12.7 crore.

Mr Rana Kapoor, Chief Executive Officer and Managing Director, said the bank did not have any delinquency in its marked-to-market (MTM) derivatives exposure. The bank has 130 forex clients across large corporates and mid corporates. Out of the total MTM derivatives exposure, large corporates account for about 70 per cent, while mid-corporates or emerging corporates account for the remaining 30 per cent.

“We do not have a single derivatives exposure to the SME sector. We have filtered our clients very carefully,” Mr Kapoor said.

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