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Chennai: Private sector YES
Bank, which is entering the capital market with its initial
public offering (IPO), today said it would open new branches
at Chennai, Hyderabad and Mumbai before this month-end.
Addressing a news conference here, H Sreekrishnan, executive
director of YES Bank, said the bank would have a branch
network of seven by June-end. Currently, it has branches in
Mumbai, Delhi and Gurgoan.
The bank has 30 branch licences from the Reserve Bank of
India. "We hope to have a 30 branch network by March 2006,"
he said adding, the branch network would help to tap the
retail segment.
The bank is offering seven crore new shares of Rs 10 each in
the price band of Rs 35-45 per equity share through the IPO,
which would open on June 15 and close on June 21.
The proceeds of the issue would be used to augment long-term
capital requirements to implement growth plans and meet
minimum capital requirement of Rs 300 crore.
DSP Merrill Lynch Ltd and Enam Financial Consultants are lead
book running managers for the issue.
The bank would adopt knowledge intensive approach for
corporate and business banking customers. This area would be
segmented into corporates with over Rs 500 crore turnover and
mid-size entities with Rs 50-500 crore and expect 35-40 of
total revenues from this sector, Sreekrishnan said.
MUMBAI: Yes Bank has posted a net profit of Rs 61.3 lakh for
the half-yearly period ended March 31 ‘05. Operating profit
during the period was Rs 4.05 crore, and the bank made
provisions of Rs 3.4 crore, it said, ahead of its initial
public offer.
The bank reported interest income and expenses of Rs 27.2
crore and Rs 11.8 crore, and net interest income of Rs 15.4
crore. Other income was Rs 14.7 crore and gross income was
estimated at Rs 30.1 crore. Operating expenses were at Rs 26
crore.
Net interest margin during the first half was 2.8%, while
credit spread was 2.0%. The bank has a capital adequacy ratio
of 19%. As per the bank’s red-herring prospectus dated June
2, during the period November 21 ‘03 to March 31 ‘05, Yes
Bank registered a net loss of Rs 3.75 crore.
The Netherlands-based Rabobank International Holding intends
to maintain a 20% equity stake in Yes Bank, following the
bank’s IPO. “Rabobank will maintain its stake through a
combination of participating in the IPO and market
purchases,” said Rana Kapoor, MD, Yes Bank.
The Reserve Bank of India has accorded approval to Rabobank
to maintain its shareholding in Yes Bank at 20% of the
post-issue equity share capital.
Yes Bank is entering the capital market with a public issue
of 7 crore equity shares of Rs 10 each, within a
book-building range of Rs 38 and Rs 45. The issue would be
open from June 15-21.
Yes Bank is promoted by Rana Kapoor and Ashok Kapur. Both
hold 52.1% of the outstanding equity shares in the bank.
Post-issue, the promoters’ stake in Yes Bank is expected to
come down to 38.62%. Other major shareholders in Yes Bank
include Rabobank (20%) and three foreign private equity
investors, namely, Citicorp (10%), ChrysCapital (7.5%) and
AIF Capital (7.5%).
The Rabobank stake in Yes Bank would be locked in for five
years, up to May 24, ‘09. The private equity investors would
be locked in for a period of three years up to March 10, ‘07,
said Mr Kapoor.
The bank currently has a loan book (including credit
substitutes) of Rs 950 crore and net advances of Rs 760 crore,
Mr Kapoor added.
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