Yes Bank set for mega retail push

Yes Bank Ltd. | Bank - Private | BFSI | BSE: 532648 | NSE: YESBANK

01 Dec 2009 Evaluate

Yes Bank, the new-generation private sector bank, which will complete six years of operations in March 2010, has drawn up the broad contours of its next five-year plan, called Version II, which will see a big push into retail, which now comprises just 1 per cent of the total business.

The founder, Managing Director & Chief Eexcutive (CEO) of Yes Bank Mr Rana Kapoor says the bank will roll out the entire suite of retail asset products like educational loans, secured personal loans and of course, credit cards, by 2012. Retail broking and mutual funds are the other areas on the radar.

It is looking at a five-fold rise in its balance sheet to Rs 1,50,000 crore and becoming a mid-size bank by 2015. While corporate business will continue to be the bank’s bread and butter with constant innovations, Yes Bank proposes to step up lending to small and medium enterprises (SMEs) in a big way.

But the real focus will be the retail business where the bank proposes to prop up its net interest (NIM) margins. The target is to increase the current account and savings account deposit share from 9 per cent to 25 per cent by 2012. If it can do this, its NIM could go up from 3 per cent now to between 3.75 per cent and 4 per cent.

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