Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • October 2010 (Revised November 2010)
  • Case
  • HBS Case Collection

YES BANK: Mainstreaming Development into Indian Banking

By: Michael Chu and Namrata Arora
  • Format:Print
  • | Pages:31
ShareBar

Abstract

YES BANK, founded in 2003 and highly successful, has consistently been profitable meeting the Indian government's Priority Sector Lending (PSL) requirements, unlike virtually all other private sector banks, which view PSL activity as a necessary but loss-making part of their portfolio. To do this, YES BANK created a distinct Development Banking practice, under the purview of the Corporate Finance division. But now, the Development Banking team is contemplating going to the board to take the concept one step further: pro-actively investing in PSL-qualifying activities not as a matter of regulatory compliance but as business. Should the bank devote significant financial and human resources into an ambitious Financial Inclusion Program to serve previously unbanked rural populations through a rapid expansion of its branch network and the use of nonbank business correspondents? In addition, should the bank commit part of its scarce capital to Tatva Capital, a private equity venture focused on renewable energy, clean technology, waste management, water and sanitation, food and agribusiness, affordable housing, healthcare, and education and livelihood creation? Is the board ready to incorporate development banking into the mainstream of the bank, or will this turn out to be a major error in judgment?

Keywords

Development Economics; Private Equity; Microfinance; Investment; Governing and Advisory Boards; Corporate Social Responsibility and Impact; Environmental Sustainability; Expansion; Banking Industry; India

Citation

Chu, Michael, and Namrata Arora. "YES BANK: Mainstreaming Development into Indian Banking." Harvard Business School Case 311-063, October 2010. (Revised November 2010.)
  • Educators
  • Purchase

About The Author

Michael Chu

General Management
→More Publications

More from the Authors

    • October 2022
    • Faculty Research

    Ceibal: Sustaining and Scaling Educational Innovation in Uruguay

    By: John J-H Kim, Michael Chu and Mariana Cal
    • September 2022
    • Faculty Research

    BancoSol: Financial Inclusion in the Perfect Storm

    By: Michael Chu and Carla Larangeira
    • August 2022 (Revised October 2022)
    • Faculty Research

    Katitas: Home Ownership for the Majority of Japan

    By: Michael Chu, Akiko Kanno and Nobuo Sato
More from the Authors
  • Ceibal: Sustaining and Scaling Educational Innovation in Uruguay By: John J-H Kim, Michael Chu and Mariana Cal
  • BancoSol: Financial Inclusion in the Perfect Storm By: Michael Chu and Carla Larangeira
  • Katitas: Home Ownership for the Majority of Japan By: Michael Chu, Akiko Kanno and Nobuo Sato
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College