New Delhi: Dubbing itself as the bank for the future industries in India, Yes Bank on Sunday said that it is evolving as a unique model and could not be compared with market leaders State Bank of India (SBI) or ICICI Bank.
“SBI is a sovereign bank. Both ICICI and HDFC Banks are sponsored by very strong institutions... in our case a model has to evolve very differently. It has to evolve in the context of present and future economic situtation,” Yes Bank managing director and CEO Rana Kapoor told the agency.
Aiming an over six-fold growth in advances to reach Rs80,000 crore by 2015 from just Rs12,000 crore now, he said: “We are very clear in what we want to be in the next six years. We have updated our vision and plans for the year 2015.
“Our endeavour is to build a professional bank of India which would hopefully be one of the best quality banking organisations in our part of world.”
Stating that Yes Bank could not be compared with any of the leading banks of India now as they were institutionally supported, he said he would rather have his entity structured on the lines of the HDFC Bank in terms of strenghts and stable reservoir of deposit funding.
Kapoor felt that his bank was grossly undervalued but declined to elaborate on the grounds that it was a listed entity. Shares of Yes Bank have more than doubled since April and last traded on Friday at Rs128 compared to Rs51 in April.
Speaking about the growth strategy, Kapoor said: ”We want to evolve as a bank for the future industries for India and our focus is to concentrate on high growth industries like agri-business, infrastructure, energy sector, health care and communications.“
“Roughly about 70% of our exposure is to six key industries and 30% across the board,” he said.
The bank is aiming at a year-on-year growth of at least 45% in the next six years.
“We will be growing at 30-35% on conservative basis but on a good day growing 45-50% is not impossible for a bank like us,” he said.
By 2015 the bank is expecting a balance sheet of Rs1,25,000 crore to Rs1,50,000 crore from Rs25,000 crore at the end of March 2009.
The bank reported a net profit of Rs303.8 crore for 2008-09, a growth rate of nearly 52% over the previous year.
The paid-up capital of the bank stood at Rs297 crore and the networth is Rs1,650 crore. Total capital funds of the bank is Rs3,060 crore as of March 2009.