The countrys youngest private sector bank, Yes Bank, which started operations in 2004 has become the fourth largest private sector bank with a balance sheet of Rs 52,000 crore. Rana Kapoor, MD and CEO, is gearing up for a foreign listing together with an international launch. Kapoor tells Anita Bhoir that the bank wants to set up offices in Singapore and Dubai next year.
You have launched a Version 2.0 growth plan
In Version 2.0 we aim to become the Professionals Bank of India and to grow the balance sheet to Rs1,50,000 crore with advances at Rs 1 lakh crore and deposits of Rs 1,25,000 crore by March 2015. Moreover, on the cards is a pan-India branch network of 750 and a workforce of 12,000.
By March 2015 we would migrate from a medium-sized bank to a large bank. We would like to scale up our branch banking business which includes the SME piece, micro enterprises, consumer banking and wealth management and take it to about 60% of the loan book from 5% currently.
The remaining 40% would be split between large and mid corporates. We also want to ensure that our borrowings from the wholesale market would be down to 7% from the current 10%.
When will you be a full-service retail bank?
We will launch retail assets without a credit card offering in March 2012 with a thrust on growing liabilities. We will have marketing tie-ups with other banks to provide various loan products rather than manufacture products.
Are there any plans to raise fresh capital?
We will raise funds to the tune of $500 million through an American depository receipt (issue) by the end of next year. We are keen on an overseas listing. In 2011-12 our priority would be to set up branches in Singapore and the Dubai International Finance Centre.
What is your exposure to the MFI sector and are you open to restructuring these loans?
Our advances to the MFIs, including pool buyouts, are at 0.97% of total advances, across 15 borrowers. To the Andhra Pradesh MFIs we have an exposure of about Rs 60 crore.
I am of the view that if the restructuring leads to economic value preservation we should do it.
The RBI is in the process of issuing new bank licences. What does this mean for medium sized banks like yours ?
New bank licences would create dissonance. At present,