Yes Bank has planned to steadily increase its presence in retail business. Earlier bank has purposely maintained a low-key presence in the retail market, now is planning to increase exposure in this segment.
Rana Kapoor, managing director and chief executive officer, Yes Bank, stated, “At present, our core strength lies in financing to companies — large, mid-sized as well as small. As far as our retail portfolio is concerned, we deliberately kept it low as there are too many banks providing such services. But as our presence grows, we will start focusing on the retail portfolio”.
When asked is the bank planning to foray into housing loan and car loan segments, Kapoor replied, “We certainly plan to foray into these two segments of retail lending. But before we go for it, we will try to increase our presence in across the country.”
Currently Yes Bank is lending mainly to big companies followed by mid-size companies and the small-scale sector. At present bank’s retail portfolio is merely 1% of its total loan portfolio, including mainly personal loans. In the business segment Yes Bank main focus is on the transportation sector, including roads and railways; power sector, mainly renewable energy; telecom and agri-infrastructure among others.
The bank is also planning to tap the capital market within a year by ensuing public offer, mainly to collect funds for its expansion plan.
The bank is in the process of expansion of its branch network and proposes to open about 130 branches by the end of the next year. Currently bank is having 120 branches and plans to open around 400 more branches by the end of 2012. By 2015, Yes Bank wants to increase the number of branches to 750.
The bank has also decided to hire at least 900 people, including 500 as managerial staff in the present financial year, after which its total employee strength will increase to 3,600. By 2015, bank aims to increase its employee strength by 10,000.