MICROCAPITAL BRIEF: International Finance Corporation (IFC) Lends $75m to Yes Bank of India to Increase Funding for Small Businesses, Farms in India

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently announced it will be lending USD 75 million to India’s Yes Bank, a commercial bank headquartered in Mumbai, to support its on-lending activities to small and medium-sized enterprises and agricultural clients.

The loan will be in the form of a subordinated bond, and is expected to benefit approximately 350,000 enterprises.

Dr Rana Kapoor, Managing Director & CEO of Yes Bank, commented, “IFC’s support to Yes Bank will help strengthen our credit systems and processes, risk management and customer relationship management, and help us deliver more financial services to the target sector [1].” As of March 2011, Yes Bank had INR 590 billion (USD 11 billion) in total assets.

By Amira Berrada, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects

About Yes Bank: Yes Bank is a private-sector, commercial bank headquartered in Mumbai, India. The bank’s business lines include corporate and institutional banking, financial markets, investment banking, branch banking, business and transaction banking and wealth management. Yes Bank’s vision includes socially responsible banking, and the bank has developed a microfinance initiative known as Yes Sampann in collaboration with ACCION, a Boston-based microfinance organization. As of March 2011, Yes Bank had INR 590 billion (USD 11 billion) in total assets.

 Sources and Additional Resources:

[1] http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/436642F52342C12A8

MicroCapital.org story, April 8, 2012, “MICROCAPITAL BRIEF: Advans SA Opens Microfinance Institution Advans Cote d’Ivoire, International Finance Corporation (IFC) Invests $1m in Equity” https://www.microcapital.org/microcapital-brief-advans-sa-opens-microfina

MicroCapital.org story, March 5, 2012, “MICROCAPITAL BRIEF: European Union Funds International Finance Corporation (IFC) to Support Microfinance Institution Arvand’s Agricultural Loans in Tajikistan” https://www.microcapital.org/microcapital-brief-european-union-funds-inte

MicroCapital.org story, March 1, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $32m to Garanti Bank Romania for Small and Medium-Sized Enterprises” https://www.microcapital.org/microcapital-brief-international-finance-cor

MicroCapital Universe Profile for International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int

MicroCapital Universe Profile for Yes Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Yes

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.