Yes Bank to expand in North

Have a total of 14 branches

Yes Bank plans to take the number of its retail branches in the northern region to 14 during the current financial year. The bank also aims a growth of 65 per cent in its total business from the north in the coming years.

Of the 30 licences the bank had received so far, 14 would be in places like Delhi, Gurgaon, Noida, Greater Noida, Faridabad, Lucknow, Jaipur, Chandigarh, Ludhiana, Srinagar and Govindgarh, with some of them having more than one branch.

"The northern region had been under-serviced and under-banked so far inspite of its excellent demography. If explored, the market would offer great potential," the bank's Managing Director-cum-Chief Executive Officer Rana Kapoor said.

The bank would not have a national business strategy, but would "customise the strategy based on geography", Kapoor added.

Yes Bank, which intends to open a branch in Srinagar, would focus on the development of eco tourism and renewable energy in the state. The bank had also identified sectors like food and agri-business, engineering and textiles as the key areas of growth in other northern states of the country.

"We would set up branches near the industrial clusters in the major towns," Kapoor said, adding, Yes Bank would gradually expand to the semi-urban and rural markets after the completion of the 30 branches in the first phase.

The bank would also channelise credit to small and medium enterprises in association with the Small Industries Development bank of India and other co-operative banks, Kapoor said.

Yes Bank, which had started operations as a full fledged scheduled commercial bank in October 1, 2004, had floated a public issue of 70 million equity shares of Rs 10 each at a price band of Rs 38-45. The issue, scheduled to open on June 15 and close on June 21, would enable Yes bank to raise about Rs 300 crore from the capital market.

The 52 per cent joint holding of the two Indian promoters Ashok Kapur and Rana Kapoor in the bank, will fall to 38.6 per cent after the public offer.

Rabo Bank at present owns 20 per cent of the bank, while three private equity investors, CVC-Citigroup, AIF Capital and ChrysCapital collectively own 25 per cent.

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Growing bigger

• The bank aims a growth of 65 per cent in its total business from the north
• The bank had identified sectors like eco tourism, engineering and textiles as the key areas of growth
• The bank's public issue of Rs 7 crore equity shares is expected to raise Rs 300 crore from the capital market