(22 January 2013 – India) Yes Bank, one of India’s private sector banks is looking to speed-up growth through the acquisition of Royal Bank of Scotland Group (RBS)’s retail assets.Yes Bank Chief Executive Rana Kapoor said the proposed acquisition is an important strategic decision, because of the urge to augment retail banking strategy.
Kapoor also said it would help the bank acquire some well-trained staff, who he believes would be a good cultural fit.
He said one-time book value would be more than enough to pay for RBS’ assets, but noted that his bank has yet to begin due diligence.
Retail and small and medium scale businesses currently account for some 14 percent of the bank’s US$8.2 billion (A$7.7 billion) loan book.
Yes Bank posted a third-quarter net profit of US$63 million, up 35 percent year-on-year. Net interest margin expanded 20 basis points to 3 percent, mainly driven by cheaper current account and savings account deposits.