In 2003, Rana Kapoor, along with Ashok Kapur and Rabobank International started Yes Bank with the vision of Building the Best Quality Bank of the world in India by 2015. The first branch opened in Mumbai in 2004 and it has 1150 branches in 2019. Yes Bank came up with IPO in 2005 when it raised Rs 300 crore. In 2008 Yes bank became the youngest greenfield bank in India which qualified, YES BANK to invest in the infant sectors. In the first six years of operations YES Bank clocked a compound annual growth rate (CAGR) of 74% and in 2010-2011 it became the fourth-largest private sector bank in the country.
Rana Kapoor started Yes Bank
Rana Kapoor has been in the banking sector since 1980. After graduating in economics from Delhi University Rana Kapoor in 1979 went to do MBA from New Jersey’s Rutgers University. He interned in the IT department of Citibank in New York. It inspired him to imagine building something similar in India. He held senior positions at Bank of America (1980-1995 where he won Eagle Pin by the Chairman of Bank of America), ANZ Grindlays’ Investment Bank ( 1996-98), and set up non-banking financial company, Rabo India Finance.
Yes Bank started without pre-established system and institutional support as underdogs. .It was the time when the concept of a professional entrepreneur wasn’t common. But Investors placed the bets on the professionals running Yes Bank. Despite the hurdles, such as the death of Ashok Kapur in the terrorist attack in 2008 and court case, Yes Bank charged steadily towards success under the leadership of Rana Kapoor. And so did it Stock price (which has dipped since Aug 2018 when RBI refused to extend Rana Kapoor term at the Yes Bank)
The secret to Yes Bank’s growth has been Rana Kapoor’s and it’s top management team to establish service driven, customer-centric, professional & entrepreneurial commitment. When the RBI deregulated the savings bank deposit rate, Rana Kapoor saw a huge opportunity to get retail deposits. And within a few hours, Rana Kapoor announced that YES Bank will be giving 6% as interest.
In 2008 In the wake of the global crisis, when most other banks became conservative. Rana Kapoor invested in the brand, increased the number of branches, intensified customer relationship and product management, pressing on the accelerator. For example was in 2007 Yes Bank gave a loan to Bajaj Electricals appliance maker(at 2-3% higher interest) to acquire debt-free firm when not many banks were willing by looking at the big picture. He looked at the parent company and not only at the balance sheet.
Building excellence in service delivery is critical for Rana Kapoor’s team and it partnered with leading-edge technology providers to do so. It has the Highest Market share of 30% in UPI Merchant Payments volumes as per NPCI. Processed ~ 36 Crore transactions amounting to ~ 65,000 Crores in Q3FY19. Total registrations crossed 10 Crores
Under his leadership, YES BANK steadily evolved as the “Professionals Bank of India” with great business and financial outcomes. Yes Bank and Rana Kapoor received significant international and national recognition and accolades over the years. Such as
- In 2005, Kapoor was named Ernst & Young’s Start-up Entrepreneur of the Year,
- In Nov 2009 3rd Most Valuable Indian CEO of the Year by Business World magazine
- And recently in Jul 2018 at Asian Banking and Finance Awards ceremony, held in Singapore Yes Bank, won Domestic Trade Finance Bank of the Year – India & Domestic Technology & Operations Bank of the Year – India awards in the Retail Banking segment and Mortgage and Home Loan Product of the Year – India & the SME Bank of the Year – India awards in the Corporate Banking segment.
Ravneet Singh Gill will become YES Bank’s managing director and chief executive by 1 March 2019. On the appointment of Ravneet Singh Gill, Rana Kapoor said, ” I am certain that his diverse, comprehensive experience as a career banker will provide significant confidence & conviction to all stakeholders including employees, customers and investors.” And we hope that Yes Bank marches ahead to achieve the vision set by Rana Kapoor.
