Jalan believes India’s banking sector is at an inflection point
Boston-headquartered Advent International has agreed to acquire up to a 10% per cent equity stake in YES BANK, its first investment in Indian banking sector.
The Advent stake is part of an overall US$1.1 billion capital fundraise by the Bank to bolster the capital adequacy and thereby providing growth capital for the core banking business.
Once approved, the Advent-YES Bank stake deal would be one of the largest private equity investments in the Indian banking sector.
This equity stake will also be Advent’s first investment in a banking entity in India.
Advent will have one nominee on the Bank’s Board following the transaction.
Commenting on the investment, Advent Managing Partner Shweta Jalan said, “We believe India’s banking sector is at an inflection point where tech-enabled banks like YES BANK have an advantage.
“This investment also demonstrates our commitment to the country’s banking and financial services industry, which is the core of India’s growth story.
“We think the YES Bank’s leadership team, led by Prashant Kumar, has done great work in reviving its performance over the last two years.
“We look forward to working with the Bank and to drawing on our sector expertise in supporting YES BANK in its next phase of sustained growth,” she said on 29 July 2022 from Mumbai.
YES BANK Managing Director and Chief Executive Officer Prashant Kumar said, “We are extremely pleased to onboard such pedigreed investors like Carlyle and Advent International as our partners, in fulfilling the long-term strategy of the Bank.
“This is a testimony to the inherent strength of the Bank’s franchise. We are excited about the incremental opportunities that this partnership creates for us and confident that both the investors will play a crucial role in the next growth phase of the Bank.”
Founded in 2004, the Mumbai-headquartered YES Bank has a strong pan-India footprint with over 1,140 branches across all 28 states and 9 Union Territories.
Advent has been investing in India since 2007 and founded its Mumbai office in 2009. Currently, it has invested and committed almost US$2.9 billion across 13 companies in sectors such as financial services, consumer products, healthcare, industrial and technology.
Globally, Advent has invested over US$12.5 billion across 82 companies in business and financial services. fiinews.com
