Guwahati, Jan. 31: YES Bank, India's fourth largest private sector bank, and International Finance Corporation (IFC), a member of the World Bank Group, today signed a memorandum of understanding for setting up a private equity fund for the Northeast which will focus on small and growth enterprises.
The fund corpus will primarily focus on investments in sectors like tourism and hospitality, food and agribusiness, infrastructure, healthcare, education and livelihood creation, and affordable housing.
YES Bank will deploy its expertise and resources while IFC will support and complement these efforts through a combination of investment and advisory services.
Both will explore joint programmes of technical assistance and advisory services to support private sector development in these identified sectors in the region.
The MoU was signed by Jin-Yong Cai, executive vice-president and CEO of IFC, and Rana Kapoor, managing director and CEO of YES Bank, in Delhi today.
Kapoor said the bank was extremely pleased to enter into the strategic agreement with IFC. He said there are untapped opportunities in the northeastern states that need to be honed by the private sector to create local livelihood opportunities, resulting in greater financial inclusion in the region.
Cai said at the meeting, "It is our constant endeavour to support inclusive and sustainable development in the country and joint efforts with leading organisations like IFC will help us leverage our respective capabilities to the fullest. I am certain that this partnership will go a long way in providing superior quality financial services to the Northeast." "IFC's work to increase access to capital for small entrepreneurs in the Northeast will help support inclusive growth in a low-income area, which is one of our top priorities," he added.
Last year, IFC provided $75-million loan to help YES Bank expand its network to reach small and medium enterprises and agricultural borrowers in the country to foster economic and social development.