YES Bank is girding up for infrastructure play once the investment cycle revives in the sector, Rana Kapoor, managing director and chief operating officer said.
Of particular interest is the power companies, which would soon start looking for bankers to fund their bids for coal blocks in the ensuing e-auction.
"We would be focusing on those mines meant for offtake by thermal power projects, and particularly those mines where some of the legacies of the past are in a way curtailed," Kapoor told reporters on the sidelines of an industry conference organised by the West Bengal government.
It's not only the power or steel companies which are diligently going through the details of the coal blocks put up for ensuing coal block e-auction, mining data and crunching numbers about their viability and potential.
YES Bank too is pretty much going through the whole process in a bid to prepare itself and shortlist some blocks which the bank believe can become bankable.
Coal block auction would also help derisk the power sector, a phenomenon which would also be witnessed in sectors like transportation, logistics, renewable energy and urban development projects.
"In the next cycle of infrastructure sector we want YES Bank to be an important player."
YES Bank is factoring a growth in the range of 27-30% in credit next year.
"With the expected revival in the economy and if we get around 6.5% of GDP growth, a medium sized bank like us get a credit multiplier of 4-4.5 times which will help us to clock a growth of 27-30% in credit."
To fund the infra play, YES is going for major fund raising programme of more than Rs 5,000 crore.
"With interest rates coming down, we are now finalising shareholders' approval for launching infrastructure bonds and hybrid capital. So, we would be targeting Rs 2,500-3,000 crore of hybrid capital and another Rs 2,500 crore of infra bonds in the next six months. The infra bond would be launched by March and the hybrid capital by June-July." The private sector banker is planning to re-enter credit card business in 2016-17, he said.
YES Bank had earlier in 2012 launched a co-branded credit card by tying up with American Express Bank, a business which was however later scrapped.
By 2015-16, YES also plans to complete the launch of the suit of home loan products which it recently launched.
"While e-commerce is helping credit card business grow, softening of interest rates would also act as a trigger for the home loan sector in coming days," he said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}