Mumbai, May 24, 2013 - YES BANK, India’s fourth largest private sector Bank, has entered into a strategic agreement with The International Finance Corporation (IFC), a member of the World Bank Group, for participating in its flagship Global Trade Finance Program (GTFP).
Through this programme, YES BANK will be extended credit guarantees by IFC to cover its payment risks under trade instruments issued by the Bank in favor of participating correspondent banks. Moreover with a wider access to a global network, the program will enable YES BANK to facilitate transactions in challenging markets, promoting competitive financing and building correspondent bank relationships with new institutions.
Mr. Rana Kapoor, Managing Director & CEO, YES BANK, said, “This is a significant development that will boost YES BANK’s operations in the Indian and International trade and payments network. Through this programme, we plan to further improve our credit availability and also take advantage of competitive pricing and longer tenor transactions from correspondent banks, on account of risk sharing with IFC. Moreover, we will be able to offer our esteemed clients a wider base of foreign currency trade finance products at competitive rates, which will facilitate further expansion of our trade business.”
The Global Trade Finance Program offers correspondent banks partial or full guarantees covering payment risk on participating banks for trade related transactions. These guarantees cover a variety of underlying trade instruments such as letters of credit, trade-related promissory notes, accepted drafts, bills of exchange, guarantees, bid and performance bonds and advance payment guarantees.
“Expanding trade finance opportunities makes an important contribution to growth,” said Ayaan Adam, IFC Manager for Financial Markets in South Asia. “IFC's partnership with YES BANK will enable the bank to offer easy and affordable access to trade finance to local entrepreneurs, who can reach new markets, grow their businesses, and hire more staff."
Launched in September 2005, IFC’s Global Trade Finance Program seeks to promote trade flows between emerging markets and increase developing countries’ share of global trade. Under the program, IFC has provided $23 billion in credit guarantees for more than 26,000 trade transactions. The program brings together over 500 banks in 150 countries, linking large banks in developed markets with smaller ones in fragile and conflicted-affected states and the poorest regions of middle-income countries.
This trade finance agreement gives further impetus to relations between IFC and YES BANK that have grown over the last few years. Last year, IFC provided a $75 million loan to help YES BANK expand its network to reach underserved people, small and medium enterprises, and agricultural borrowers in India.
About YES BANK
YES BANK, India’s fourth largest private sector Bank, is the outcome of the professional & entrepreneurial commitment of its Founder, Mr. Rana Kapoor and his top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the Future Businesses of India. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. YES BANK has a knowledge driven approach to banking, and a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals’ Bank of India with the vision of “Building the Best Quality Bank of the World in India” by 2015.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.
For further information, please contact:
YES BANK, India
Ph.: + 91 9833452757;022 66699090
IFC In New Delh
Ph.: +91 11 4111 1000