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In order to augment its fee income component, private sector Yes Bank is on a spree of partnering with non-bank lenders catering to different segments and is in “final stages” of signing up with mortgage lender HDFC, a top official said.
“We are in the process of signing up with HDFC Ltd for distributing housing loans...its a broad distribution alliance and is in the final stages,” the bank’s Founder, Managing Director and Chief Executive, Mr Rana Kapoor, told PTI here.
Yes Bank competes directly with HDFC’s subsidiary HDFC Bank, a peer in the private sector banking space. For FY 11, the bank’s growth in non-interest income was a muted eight per cent to Rs 623.3 crore as compared to the impressive 58.2 per cent rise in the net interest income.
The talks with HDFC come right after a similar alliance was sealed with Dewan Housing Finance last week. “We have signed an alliance with Dewan Housing for certain housing loans of a certain denomination,” Mr Kapoor said, adding the bank is already engaging with potential partners in equipment loans and micro loans which are “not necessarily” microfinance.
Going ahead, Yes Bank will be looking for partners in the commercial vehicle financing space, he said.
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