Yes Bank, a leading Private Lender, is exploring the option for the potential bid for Citibank’s Indian Retail Assets. Yes bank with other potential bidders is eyeing the foreign bank’s local operations, including Credit Card and wealth Management in India. The foreign Bank is partially exiting 13 countries.
“We would definitely explore that opportunity; I think they are running a process. Once all of that is in the public domain, we would definitely like to explore not only credit cards but also wealth management and retail business. Then, depending on our appetite, we would take a call,” CEO Prashant Kumar stated in an interview.
Prashant Kumar further added that in the March quarter, the bank disbursed ₹15,000 crore in loans, of which ₹3,500 crore went to corporates, and the rest to retail and small business borrowers. “Even if you see this year, there would have been credit growth. It is not shown in the number because we have made accelerated provision, “said Kumar.
“Getting a growth of ₹50,000 crore (in FY22) is easily achievable for us. Post-recoveries, we will have a net growth of ₹30,000 crore, which is a little less than 20%,”He further explained.
But the point of worry is its NPA’s as with gross non-performing assets as a percentage of total loans hovering above 15%, their asset quality is under immense pressure. Kumar in an Interview said,” The bank will be able to survive the second covid wave, aided by buffers it has built for future impact. Its provision coverage ratio currently stands at 78.6%.”
It was in a nick of time that Yes bank was redeemed in early March 2020 ahead of COVID-19 pandemic by SBI with a Rs.10,000 Crore rescue act wherein the Central bank and the Indian Government played their move to bailout the leading lender.
“… if this decision had been delayed by even 15 days, I don’t know whether we would be able to see … whether we would be able to speak today,” CEO Prashant Kumar told PTI. He expressed his satisfaction with the way reconstruction was executed.
Kumar spoke for the very first time after the major bailout and acknowledged that the thread was very slender and the timing was very apt.
Kumar took the reins of Yes Bank in his hands in March 2020 after the regulators had seized the leading lender to prevent more collapse and his first task in hand was to regain depositors and raise capital. The Result of it was that they managed to raise the deposits to 55% opposed to 40% loss of the total prior to the major bailout.
CEO Prashant Kumar in an Interview with Bloomberg News said, “We have achieved our target for de risking our corporate book. Getting back on the front-foot of lending and accelerating our bad loan recoveries will be the key focus areas this year.”