YES BANK, founded in 2003, and very successful, consistently profitable meeting Indian government priority sector lending (PSL) requirements, in contrast to virtually all other private banks that are considering PSL activity as a necessary but unprofitable part of its portfolio. To do this, YES BANK established various practices of banking, responsible for corporate finance. But now, the team is considering going to the banking board to take the concept one step further: pro-actively investing in PSL-qualifying activities, not as a matter of compliance, and as a business. In case the bank to devote significant financial and human resources in an ambitious program of financial inclusion to serve previously unbanked rural population due to rapid expansion of the branch network and the use of non-banking correspondents business? In addition, if the bank makes a portion of its scarce capital Tatva Capital, a private equity company focused on renewable energy, clean technologies, waste management, water and sanitation, nutrition and agriculture, affordable housing, health, education and livelihood creation? The Council is ready to include the development of banking in the main bank, or it would be a serious error in judgment? "Hide
by Michael Chu, Namrata Arora Source: Harvard Business School 31 pages. Publication Date: 01 Oct 2010. Prod. #: 311063-PDF-ENG
Related Case Solutions & Analyses:
Fu Ji Food and Catering
Executive Focus: Values Relationships and Organizational Culture: Principled Leadership at Brightpoint Inc.
Ocean Carriers
Smith Family Financial Planning
Fixed Income Arbitrage In Financial Crisis
The Bid for Bell Canada Enterprises (BCE)
How One Bad Family Member Can Undermine a Family Firm: Preventing the Fredo Effect
Valuing Rajat Bhatia’s Business Plan
B/E Aerospace, Inc.
Cadillac Fairview Inc.
