Eyeing a growth rate of 30-35 per cent per annum for the next six years, Yes Bank plans to add 500 new recruits in the immediate future.
It intends to strengthen its SME and corporate focus, increase branch network from the current tally of 117 to 250 by December 2010 as well as enter the consumer financing business by 2011-12.
Yes Bank, which focuses primarily on lending to the large corporates and the small and medium term enterprises in the area of agriculture, infrastructure, engineering and others lacks presence in the consumer financing segment.
“With a good presence through our branch network, we would get into the consumer financing business by 2011-12,” said Rana Kapoor, managing director and CEO, Yes Bank.
Another area of focus would be the current and savings account deposit (CASA). The bank is looking to increase its CASA as a percentage of total deposits from less than 9 per cent to around 25 per cent by 2012.
“We have a strong focus on building strong, stable low cost CASA and if we do this our net interest margin should go up from 3 per cent now to between 3.75 per cent and 4 per cent,” said Kapoor.
However the bank’s focus continues to be the SME segment, which Kapoor feels, needs attention and feels that there could be rate cuts between 100 basis point and 150 basis points.
“I think the rate cuts should happen by September but it won’t be more than 1.5 percentage points as a cut in the policy rates do not seem likely,” said Kapoor.
While the interest rates are on a fall, Kapoor feels that inflation could just be round the corner.