Wednesday, March 6, 2013

Rana Kapoor

Managing Director and CEO, Yes Bank, speaks to Avneesh Singh about how the six year old bank has grown commendably over the years and looks forward to making it even bigger given the opportunities in India

Within a period of six years, Yes Bank’s Rana Kapoor has made much judicious use of opportunities; at this juncture, with the focus being on brand building, Rana reveals his views on how being a new entrant feels:

B&E: How is the banking sector performing in totality? What do you think will be the future scenario ?

Rana Kapoor (RK): The banking sector, in my opinion, is positively tuned. Be it the private sector or the public sector, the constant motivation has been to progress further. Statistics say that foreign banks are a little quiet, private sector banks are pacing fast and the public sector banks are also gearing up. Thus, the future scenario seems to be promising.

B&E: RBI has been very strict with its monetary policy. What are your views on it?

RK: I think the monetary policy of the RBI is very much on the expected lines and balanced as well. It is absolutely clear that they want to anchor inflation without compromising on growth. There is a growth plus inflation management chapter and RBI is taking care of that. The steps of RBI also signal that there is a belief in the system that inflation cannot be only managed by monetary or fiscal actions. It also requires management through supply side economics. As a nation we need to increase our production either through new capacity addition or full utilisation of installed capacity and finally, make sure that the demand pull is normalised.

B&E: Being a relatively new entrant in this sector, how are you competing with the big banks?

RK: I think there are abundant opportunities in India. For a young bank like ours, which has been growing exponentially at almost 75 to 80%, it is terrific. Thus, with a free footing along with agile management systems and good credit systems, we ideally should respond to the growth opportunities. So, whether it is the large, medium or even the small corporations, our turnaround time is a very important differentiator. We can turnaround most of the credit proposals within two to four days. But the crux of the matter is that we have to grow in all aspects and different segments of the economic parameters.

B&E: Financial inclusion does not comprise microfinance only. It has other products lined up as well. But your bank has bene looking only at microfinance... Or are there other products too?

RK: With a meagre experience of six years, we are going through a lot of transition in management and strategy. So we have to make use of the most important bread and butter opportunities which are coming from wholesale and commercial banking. The linear earnings from those businesses are being invested in branch banking, SME banking and also across the board in terms of deposit management. This will provide sustenance for a long time because the top line in the bank is very good. We now have to work towards making it completely SME driven and consumer driven in the next 5 years to come.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles


Posted by at
Labels: , , , , , , , , , , ,