YES Bank will be increasing the strength of its employees as it is planning to expand its branch network. Managing Director Rana Kapoor pointed out as there is opportunity for growing business in corporate finance therefore it will be expanding its branch network.
In an interview Kapoor said the bank will be doubling its branch network to 250 by end 2010 and 750 by the end of 2015. Kapoor added, “We will also increase our staff count from the current 2,700 to 3,600 soon”.
Kapoor informed one of the major area at which bank is looking to increase count is the small and medium enterprise (SME) sector which severely needs good bankers.
Kapoor explained, “There is a compelling opportunity in the SME sector. Currently the SME segment accounts for 6 per cent of our loan book. I am hopeful that their share will reach 20 per cent in three years”.
Kapoor restate YES Bank is having indifference to the retail lending, because of enormous risks involved in that business.
Bank is having fewer branches, in comparison to the other private sector peers, might be also restricting plans to expand the retail lending business. At the end of the last financial year in March, YES Bank’s retail advances amounted to Rs 107 crore out of its total loan book of Rs 12,403 crore.
Kapoor further added that interest rates will probably remain stable for some time, or even ease a bit more.
He said, “But they will start inching up again in three to four months, once inflationary pressure begins to build up as a result of increase in prices of various asset classes”.
He informed YES Bank’s prime lending rate at present varies in a range of 7.5-12.5 per cent depending on the tenure of the loan.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment