Yes bank is going to close its 50 branches. Apart from this, the bank is also considering reducing the number of its ATMs. This is because under the new management, this private sector bank is running a target of 20 percent reduction in operating expenses in the current financial year 2020-21. Prashant Kumar, the new CEO and Managing Director of Yes Bank has said that the bank is returning the non-leased sites on lease. In addition, he is in talks to fix the rent rates in the rented places.
Kumar said that the big defaulters are going to the courts, due to which YES Bank is facing difficulties in loan recovery. During the tenure of Yes Bank co-founder and chief executive Rana Kapoor, Yes Bank was saved by infusing capital by a consortium of banks led by the State Bank of India after several malfunctions in the operation. In March, Kumar was appointed the new head of the bank. The bank’s operating profit fell by 21 per cent in the September quarter.
Kumar said that the unfortunate thing is that the bank has no control over the cost. A global consultant has suggested a step-by-step agenda to reduce operating expenses by 20 percent compared to 2019-20 in the current financial year. Kumar said that the bank has already left two floors at Indiabulls Finance Center in central Mumbai. Apart from this, the bank is negotiating afresh for all 1,100 branches. He said that due to this process, the bank expected to reduce the rent by about 20 percent.
