YES Bank, a new generation bank is planning to foray into home, personal and education loan and credit card businesses soon, which will increase competition in retail banking.
The bank has worked out five-year growth plan in which it plans of doing business of Rs 1,50,000 crore by 2015, of which 20-25 per cent it plans to achieve from retail banking, said Somak Ghosh, group president for corporate finance and development banking, Yes Bank while speaking on the sidelines of a seminar.
By the end of financial year as on March 31, 2010, bank’s advances amounted at Rs 12,193 crore and deposits at Rs 26,979 crore.
He added, “We are aiming at a compounded annual growth rate of about 35 per cent and we are hopeful of achieving the target in the next five years.”
Ghosh said, currently is getting 90 per cent of the business from wholesale banking. The bank is planning to focus on professionals, like doctors, lawyers and accountants, among others, to bring out customized home loan products, especially for loans above Rs 25 lakh, he said.
“In the next five years, we will focus on retail loans like personal & home loans and credit cards in a big way. We will look at professionals like doctors, lawyers, accountants and travel agents for home loans. For loans to individuals, we will stick to those having corporate accounts with our bank,” he added.
Over the next five years bank will be opening 750 branches and 3,000 off-site ATMs to increase its retail business. Ghosh said, over the next five years, bank plans to achieve about 22 per cent of the total business from SME loans.