Yes Bank plans to accelerate its turnaround via boosting retail customer base by offering tech-enabled services. The Bank has recently shown a dramatic improvement in financial performance, growth in deposits, even after fully paying back RBI in advance.
Prashant Kumar, MD & CEO, YES BANK, has identified four focus areas to improve the Bank’s financial health.
“YES BANK’s top priority is to strengthen the bank’s retail base. Last month, we opened 60,000 accounts, till December-January we are aiming to reach 100,000 accounts per month. This not only increases our retail base, it also instils confidence in the bank.” said Prashant Kumar, MD & CEO, YES BANK
Recently, the Bank has fully paid back RBI’s special liquidity facility of Rs 50,000 crore and posted a net profit of Rs 129 crore for the July-September quarter. The net interest income of the bank increased 3.4 per cent on quarter on quarter basis to Rs 1,973 crore. Furthermore, the Bank has also successfully raised Rs 15,000 crore via further public offering (FPO).
Mr. Kumar said that the focus will be to facilitate more retail, MSME and personal loans.
“Earlier, there was a massive focus on corporate lending. Now, we are focusing on growing our retail and MSME portfolio. Auto, home and MSME loans have picked-up. We aim to facilitate this move by allocating Rs 10,000 crore towards financing this type of demand. The bank aims to change its lending mix and have corporate share at 40 per cent and increase the retail and MSME at 60 per cent over a period of time.” Kumar said.
In regards to the bank’s introduction of technology supplemented services, he said: “This is our strength area. We provide the personalised services to all our clientele, especially in the age of social distancing. During the lockdown phase these services came in very handy. These type of services have been hugely appreciated by our customers, especially the NRIs. We will continue to focus on introducing such services in the future as well. They provide a differentiated services experience than other larger players.”
Besides, Kumar pointed out the tech-enabled services has also allowed the bank to augment savings, thereby, improving the overall financial position. Furthermore, Kumar foresees the green shoots of economic revival in the country which will also buoy the bank’s prospects.