Yes Bank Nearing Financial Closure

Mumbai, Nov 6: | Updated: Nov 7 2003, 05:30am hrs
The equity holding profile in Yes Bank has more or less been firmed up, and the operational rollout is scheduled for sometime in January 2004.

Yes Bank managing director and chief executive officer Rana Kapoor said that he along with co-promoter Ashok Kapur will hold 52 per cent in the bank. A 20 per cent stake will be held by Rabobank with three per cent in the hands of senior staffers. CVC Citigroup will hold 10 per cent with ChrysCapital and Russel Asia Infrastructure Fund holding 7.5 per cent apiece. The paid-up capital of the bank is Rs 200 crore.

Yes Bank is among the two new recipients of a Reserve Bank of India (RBI) banking licence, the other being Kotak Mahindra Bank.

On way to full-fledged operations, Yes Bank has hiccuped with one of the original promoters, Harkirat Singh, a former country-head of Deustche Bank in India, opting out of the venture after differences with his partners. The venture then underwent a reconfiguration, and had two deadline extensions from the central bank to go operational.

Mr Kapoor will now be the MD & CEO of Yes Bank after stepping down as chief executive officer of Rabo India Finance. Mr Kapoor, Mr Kapur and Mr Singh had originally set up Rabo India Finance, which was Rabobanks first foray into India. With Mr Kapoor taking over as MD & CEO of Yes Bank, speculation is off as to who will hold that post.

Yes Bank is sought to be positioned primarily as a wholesale corporate bank, albeit with a niche retail focus. Korn Ferry is now head-hunting on behalf of the bank to find personnel to fill up key managerial positions.