The tie-ups which will be in place from day one of its operations will enable the bank to reach the masses and get it a ready customer base. The bank will be operational in the third quarter of FY2005 and is already in talks with companies. In an exclusive interview with FE, Rana Kapoor, managing director & CEO, Yes Bank, said the bank is also planning to launch an initial public offer in July 2005. (See interview on page 2)
The IPO will effectively dilute the stake of all its promoters proportionately by 25 per cent, said Mr Kapoor. The advantage of being a late starter is that things are in place, and we can forge tie-ups before we start working.
The bank, which is currently in an aggressive recruitment mode, is targeting Rs 1,000 crore of deposits and advances in the first six months of operation.
We would like to generate 30 per cent of our business from agri- and food business which has an immense potential in the country, he said, adding: Food and agri-lending is not an easy proposition. To create credit mechanisms, to create credit protection, an institution needs certain skill sets, certain best practices, knowledge management, structuring expertise. The operative phrase for the Yes Bank is going to be to create a business intelligence in the food and agri economy.
While we will be a specialised food and agri bank, we will also have portfolio management servics and we will grow skill sets and credit mechanisms, he added.
We need to orchestrate our strategy in such a way that we would have a good urban, semi-urban and an emerging rural business. We have to focus on rural where there are good characteristics which would be converted into more bankable propositions, he observed.
The bank will focus on certain economic clusters like semi-urban locations which have certain industry and business clusters, whether it is Ratnagiri for mangoes, or soyabean of Indore, or spices from Kerala.
We need to capture dairy in either Maharashtra or Punjab. Coffee, tea in West Bengal and Assam. We also need to figure out where we are going to add value to certain business intelligence, noted Mr Kapoor.