Few Indian banks push the technology agenda like YES Bank does. Partially because of its newcomer status and because of the entrepreneurial culture it fosters, the six-year-old bank takes IT innovation very seriously. For example, its most recent tie-up was with Obopay, which makes it the first Indian bank to support mobile-to-mobile money transfers.
Credit for much of that innovative spirit goes to Rana Kapoor, founder and MD of YES Bank. Kapoor, a risk-taker and entrepreneur in the financial space for 30 years, knew he was raising the stakes when he started YES Bank. But the bet paid off. In the first quarter of this fiscal year, YES Bank’s net profit rose 56.3 percent, the highest in its history. Here, he answers some questions about the bank’s evolution, his experience and IT’s role.
Tell us a little about the growth of YES Bank and its evolution.
Rana Kapoor: We like to call ourselves a “new-generation, private, Indian Bank”, which I am sure, will evolve to be one of the professional banks of the country. We have had sequential growth over the past six years as a wholesale bank (wholesale banks work primarily with institutions and organisations). These accounts constitute 64 per cent of our business volumes. We have also established a full-service commercial bank, and this comprises 28 percent of our business.
We are now leaning towards building an integrated SME and MSME (micro, small and medium enterprise) proposition. Through our enterprising branches across the country, we want to provide a superior service proposition and comprehensive banking services. In the next five years, we want to build an enduring financial institution through a culture that stimulates and fosters innovation in new products, services and processes, and new business and financial models. YES Bank’s vision is to build the world’s “best quality bank” within India by 2015. And, I am sure, IT will help us manifest our vision.
Let’s talk about your career and what your banking experience has taught you.
My career has fluctuated between commercial and investment banking and now to a more comprehensive banking platform. Prior to founding YES Bank, I was the CEO, managing director, and main managing partner of Rabo India Finance, a corporate finance and investment banking organisation. Before that, I was the general manager and country head for ANZ Grindlays’ Investment Bank.
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