The Hindu : Yes Bank to be functional by Jan.

Online edition of India's National Newspaper
Saturday, Oct 04, 2003

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Yes Bank to be functional by Jan.

NEW DELHI OCT. 3 . After a series of hitches, Rana Kapoor and Ashok Kapur-promoted Yes Bank will be up and running by the end of January next and its initial public offering (IPO) will hit the market by April 2004.

"Financial closure of the bank will be achieved in another fortnight. By January-end or early February, the first branch of the bank will start functioning,'' Mr. Rana Kapoor, CEO and Managing Director of Rabo India Finance Private Ltd., said today.

The approval for the bank had been secured in 2002 but promoters could not stick to the mandatory period of 12 months for getting the bank started. The promoters secured extension, which expires on November 30. The financial closure of the bank would be achieved before the deadline, Mr. Kapoor said.

Both Indian promoters will initially hold 26 per cent stake in the bank, which will have a paid-up capital of Rs. 200 crores.

Three private equity partners will share 25 per cent stake. Rabo Bank, Holland, will hold 20 per cent while the remaining equity will be given to the top management.

"The first branch of Yes Bank will begin functioning in Mumbai and the next branch will open in Delhi.

After that we will take around six months to settle down and put technologies and processes in place and then again branch expansion will start,'' Mr. Kapoor said.

He said Yes Bank's IPO, for enhancement of capital, will come in April 2004 "as we want to derisk the business fast.'' — UNI

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