With a paid up capital of Rs 200 crore (Rs 2 billion), YES Bank is expected to start operations by January and is planning an initial public offering by April 2004 to shore up its capital base.

"We are still going through the final stages of financial closure. The banking operations are likely to start by January 2004," Rabo India Finance CEO Rana Kapoor, one of the promoters, told reporters in New Delhi on Friday.

The Indian promoters (Rana Kapoor and Ashok Kapoor) would have 52 per cent stake in YES Bank, while three private equity investment players would have a total of 25 per cent stake; Rabo Group would have 20 per cent and the remaining three per cent would be given to the new directors of the greenfield bank.

Rana Kapoor did not reveal the names of the three private equity investment players.

He said the new bank would start with Rs 200 crore paid up capital. Rabo India Finance's net worth is about Rs 300 crore (Rs 3 billion).

On the IPO, he said, "We do want to have it" and it would bring down the Indian promoters stake to about 40 per cent and would shore up the capital base of the bank.