MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Loan $150m to Yes Bank of India for On-lending to Women-Owned Micro-, Small, Medium-Sized Enterprises (MSMEs)

The International Finance Corporation (IFC), a multilateral development bank and member of the US-based World Bank Group, plans to loan USD 150 million to Yes Bank, a commercial bank based in the Indian city of Mumbai. Yes Bank intends to use the loan for on-lending to women-owned micro-, small and medium-sized enterprises (MSMEs) in an effort to stimulate job creation and economic development.

This is IFC’s second loan to Yes Bank since April 2012, when it underwrote USD 75 million of 15-year subordinated debt to help Yes Bank extend financing to MSMEs in low-income regions of India.

As of fiscal year-end 2013, Yes Bank reported INR 991 billion (USD 16.0 billion) in total assets, return on assets (ROA) of 1.5 percent and return on equity (ROE) of 24.8 percent. IFC has 182 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

By A’kos Szebeni, Research Associate

About Yes Bank

Yes Bank 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. As of fiscal year-end 2013, Yes Bank reported INR 991 billion (USD 16.0 billion) in total assets, return on assets (ROA) of 1.5 percent and return on equity (ROE) of 24.8 percent.

About International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the US-based World Bank Group, 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. The IFC has 182 member countries and as of fiscal year-end 2013, reported total assets of USD 77.5 billion and return on assets (ROA) of 1.3 percent.

Sources and Additional Resources:

[1] International Finance Corporation, “IFC’s $150 Million Financing to India’s YES Bank to Boost Lending to Women Entrepreneurs,” http://ifcext.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/82C26C43BD8B08CD85257C4A0025C66E

MicroCapital, January 5, 2014, “International Finance Corporation (IFC) to Loan $1.5m to FINCA MDO for Microlending in Tajikistan,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-1-5m-to-finca-mdo-for-microlending-in-tajikistan/

MicroCapital, November 21, 2013, “International Finance Corporation (IFC) Loans $31m to Fullerton Credit to Support Small, Medium-Sized Enterprises (SMEs) in China,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-31m-to-fullerton-credit-to-support-small-medium-sized-enterprises-smes-in-china/

MicroCapital, February 8, 2013, “International Finance Corporation (IFC), Yes Bank to Create Fund for Small Businesses in India,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-yes-bank-to-create-fund-for-small-businesses-in-india/

MicroCapital, October 30, 2012, “International Finance Corporation Aims to Boost Entrepreneurship in Romania with $10m Loan to Patria Credit,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-aims-to-boost-entrepreneurship-in-romania-with-10m-loan-to-patria-credit/

MicroCapital, April 9, 2012, “International Finance Corporation (IFC) Lends $75m to Yes Bank of India to Increase Funding for Small Businesses, Farms in India,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-lends-75m-to-yes-bank-of-india-to-increase-funding-for-small-businesses-farms-in-india/

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

MicroCapital Universe Profile: International Finance Corporation (IFC),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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