MICROCAPITAL BRIEF: Asian Development Bank Loans $200m to Yes Bank of India to Fund Women’s Self-Help Groups, Small-Scale Farmers

The Asian Development Bank (ADB), a multilateral development finance institution based in the Philippines, has recently approved a loan of up to USD 200 million to Yes Bank Limited, an Indian commercial bank based in Mumbai. The loan will be on-lent to “2.5 million rural, low income women”[1] who are members of self-help groups and “up to 37,000 small-scale farmers”[1] working in rural areas of the country. The loan agreement also includes a provision for USD 1 million to be used for technical assistance for capacity building, including financial literacy training and product development.

Mr Todd Freeland, the director general of private sector operations at the Asian Development Bank, said that “ADB is proud to partner with Yes Bank in promoting rural financial inclusion in India. ADB’s capital investment and technical assistance will provide sustainable finance to low income women and their families”[1]. He added that “in addition to income generation via female self-help groups, the project targets small farmers to allow them to benefit from agricultural value chains and enhance their productivity through better access to markets and investment finance”[1]. Mr Rana Kapoor, the managing director and chief executive officer of Yes Bank, stated that “this significant commitment from Asian Development Bank reiterates our focus towards responsible banking and furthering the financial inclusion agenda”[1].

In 2013, the 67-member ADB distributed financial assistance totaling approximately USD 21 billion. As of fiscal year-end 2013, Yes Bank reported INR 991 billion (USD 16.0 billion) in total assets, return on assets of 1.5 percent and return on equity of 24.8 percent.

By Alíz Crowley, Research Associate

About Yes Bank Limited

Yes Bank Limited is a private-sector, commercial bank headquartered in the city of Mumbai, India. The bank’s business lines include wealth management and institutional, corporate, investment and retail banking. The bank has developed a microfinance initiative known as “Yes Sampann” in collaboration with Accion, a US-based microfinance nonprofit organization. Yes Bank is listed on the National Stock Exchange and the Bombay Stock Exchange in India. The organization has a branch network of approximately 500 branches. As of fiscal year-end 2013, Yes Bank reported INR 991 billion (USD 16.0 billion) in total assets, return on assets of 1.5 percent and return on equity of 24.8 percent.

About Asian Development Bank (ADB)

Established in 1966 and headquartered in Manila, the Philippines, the Asian Development Bank (ADB) is a development finance institution that consists of 67 members. ADB has three strategic priorities: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants, equity investments and guarantees to private companies in member countries in the region. In 2013, ADB’s financial assistance totaled approximately USD 21 billion.

Sources and Additional Resources

[1] Asian Development Bank, ADB $200 Million Loan to YES Bank Helps Rural Women, Small Holder Farmers

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MicroCapital Universe Profile: Yes Bank

MicroCapital Universe Profile: Asian Development Bank

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