Yes Bank eyes acquisitions for business expansion
Jan 30 2013 , Davos
Yes Bank's planning continues to be organic in terms of its 'Version 2.0' target, but it is open to possible acquisitions in banking, broking and asset management businesses, its founder and CEO Rana Kapoor told PTI in an interview.
Kapoor, who was here to attend the World Economic Forum Annual Meeting, said that Yes Bank has received RBI's approval to set up a retail broking business.
"We are in the process of establishing the subsidiary and building an organic business, primarily to complement our savings account offering to our retail customers. We will largely depend on the powerful ongoing retail customer acquisition of the Bank to leverage our broking business," Kapoor said.
"However, we will be open to looking at attractive opportunities in the retail broking space which will cut down the time to market our offerings and will attract high quality management talent," he added.
"We are also open to acquisition across banking, broking and asset management business. We now have a very strong top and senior management to execute organic and inorganic opportunities," he said.
Kapoor, however, added that the bank's planning continues to be organic in terms of execution of Version 2.0 goals of 12,750 employees, 2,000 ATMs, 900 branches, deposit base of Rs 1,25,000 crore, advances of Rs 1,00,000 crore and balance sheet size of Rs 1,50,000 crore.
Yes Bank had first announced its 'Version 2.0' goal in April 2010, wherein it set a target of 2015 to achieve 750 branches, 3,000 ATMs, 12,000 employees, Rs 1,25,000 crore deposit base, Rs 1,00,000 crore of loan book and Rs 1,50,000 crore of balance sheet. However, it revised the numbers in April 2012 to 900 branches, 2,000 ATMs and 12,750 employees.
At the close of last fiscal ended March 31, 2012, the bank had over 5,600 employees, loan book of about Rs 38,000 crore and deposits of close to Rs 49,000 crore. The bank currently has more than 400 branches and well above 650 ATMs, as per the information available on its website.
Asked about the bank's expansion plans, Kapoor said: "As our branch network expands, retail lending products are being offered from the branches which include a complete suite of products (auto loans, gold loans, home loans and credit cards).