YES Bank to ramp up retail portfolio

YES Bank has firmed up plans to ramp up its retail banking portfolio, Pralay Mondal, Senior Group President, Retail & Business Banking, said.

Retail assets that currently constitute a third of the bank’s total advances, are set to touch 45 per cent in the next four years.

This will balance the pronounced tilt towards wholesale/corporate banking seen currently. As part of its retail development plans, the bank is also widening its bouquet of offerings and will be launching a credit card in the next quarter.

YES Bank expects to grow at between 25 and 30 per cent during the next four years and more than double its current market share to about 2.5 per cent, Pralay said.

As part of the plans to prepare for this ramp up, the bank’s branch network currently about 800 is set to treble and reach 2,500 branches by March 2020. Manpower working in retail currently numbering 11,000 out of 14,000 employees will double in the next 18 months, Pralay said.

He added, “We are investing significantly in infrastructure and technology. We have taken 7-8 lakh square feet area in Chennai (in Ambattur) to set up our central processing hub for handling all our back-end operations. We are investing significantly in building leadership at both HO and regional levels.”

With expansion and moving into deeper geographies, some of the bank’s key parameters will be further strengthened, Pralay said, citing the example of current and savings ratio (CASA).

He said CASA was expected to move up significantly from around 27 per cent of total deposits currently to 45 per cent in four years. Similarly, the total retail deposits (CASA plus term deposits) is expected to touch 75 per cent, from about 50 per cent now.

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