Financial Daily from THE HINDU group of publications
Tuesday, Aug 05, 2003
Financial Daily from THE HINDU group of publications Tuesday, Aug 05, 2003 |
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Private Banks Money & Banking - Private Banks Yes Bank promoters seek more time to begin operations Poornima Mohandas
Mumbai , Aug. 4 PROMOTERS of the `Yes Bank' have sought more time from the RBI to start operations. The group has applied for yet another extension of the banking licence due to expire this month, according to sources close to the promoters. Mr Rana Kapoor and Mr Ashok Kapur along with Rabo Bank International are promoting the bank. The licence valid for one year had already been renewed once in February for a six-month period. Rabo group had applied to the RBI a couple of weeks ago but the regulator was yet to grant permission for the extension, officials said. Two banking licences, valid for a year, had been granted by the RBI in February 2002 after a gap of many years. While the Kotak Mahindra group rolled out an eponymous `elitist' bank in February this year, the three banking professionals, Mr Rana Kapoor, Mr Ashok Kapur and Mr Harkirat Singh who roped in the Dutch co-operative bank, Rabo Bank International, have seen some tough times. In April 2003, Mr Harkirat Singh, one amongst the three pulled out of the venture and there have also been reports of Rabo Bank International pulling out of the venture. This was however denied by the Dutch bank. On inception, the bank's shareholding pattern was to be as follows: 51 per cent to the two banking professionals, Mr Rana Kapoor and Mr Ashok Kapur and 49 per cent to Rabo Bank International. Any new banking entity would need a minimum equity capital of Rs 200 crore to start operations. The Rabo group despite the buoyancy of the stock markets was not mulling an IPO and various other options of raising capital were on the drawing board, the officials said. The earlier plan was to augment the bank's capital within the first one year of commissioning. The 51 per cent held by the two individuals at inception was to be divided between an IPO or a private placement. Employee stock options were also on the cards, the sources said. While the US recruitment agency, Korn & Ferry, had been engaged for the task of recruitment, KPMG had been roped in to put the technology backbone in place. About 120-150 people were to be recruited for the start of the new bank, they had earlier said.
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