YES Bank, which claims to be the country's fourth largest in the private sector, plans to grow its branch network to between 120 and 150 in the South by year 2015.
This is a sub-target set by the Version 2.0 growth mode that the bank has embarked on since year 2010, says Mr R. Ravichander, bank's Group President and Head Business Development - South.
VERTICAL CLIMB
The bank has been pushing retail business this year as part of Version 2.0. Rather than seek to negotiate a ‘gradient' in terms of achieving incremental targets, it has been bracing itself for a ‘vertical climb' and accomplished till date.
Mr Ravichander said this while speaking to newspersons on the occasion of the launch of the Thiruvananthapuram branch, second in the State after Kochi that opened three years ago.
Version 2.0 is valid for a period of five years from 2010 to 2015, and has mainly set three targets for the bank — growing balance sheet to a size of Rs 1.5 lakh crore (Rs 72,000 crore currently); expanding branch network to 750 (340); and number of employees to 12,000 (5,200).
SAVINGS BANK RATE
It also aims to grow its CASA (current accounts and savings account) from the 17-20 per cent range to 30 per cent by 2015. The bank was the first off the block to raise the savings bank rate to 6 per cent within an hour's time of the deregulation announced by the Reserve Bank.
It has since raised the rate to 7 per cent, and is a market leader. Also, a Yes Bank ATM cardholder is allowed unlimited access to his account, free of cost. The bank has also plans to enter the credit card business, Mr Ravichander said, without elaborating any further.
Uniquely positioned as a ‘knowledge bank' from launch, it has sought to promote what are considered growth/sunrise sectors of food and agri-business, life sciences, energy, infrastructure, media, entertainment and sustainable development.
KNOWLEDGE PARTNER
It has also acted in consort with various institutions and industry bodies such as CII, Ficci, Assocham in its status as knowledge partner and brought out many research papers.
It has looked to induct people from sectors that are critical to the economy to enable the bank to ‘speak the same language' as and when it transacted business with these very sectors.
This was a conscious decision on the part of the bank since it knew that turnaround times were getting shorter in a growingly competitive field.
The young age of the bank is also reflected in its average age of the employees, which is 28. It has also been among the highest recruiters from the B-schools. Last year saw 171 B-school graduates being placed with the bank.
Mr Ravichander said three more branches would be opened in Kerala by March-end.
These are at Changanassery, Malappuram and Kannur. The Version 2.0 mode envisions a branch network of not less than 15 in the State by year 2015, he said.
The State has a lot of business potential from the bank's point of view, with the remittance economy, the food and agriculture and SME/MSME sectors suggesting themselves as immediate choices for business.
The bank already has an impressive list of client list in the State. It is also looking to engage the State Government proactively and has developed tailor-made solutions to serve this sector. vinson@thehindu.co.in