Yes Bank aims at doubling retail, SME and assets liabilities book by 2023: Rajan Pental, Global Head – Retail Banking

Rajan Pental, Global Head – Retail Banking, Yes Bank, talks about Yes Premia scheme, long-term strategy to double SME & Retail loan portfolio and home loans among others during an exclusive interview with Swati Khandelwal, Zee Business. Edited Excerpts:

Q: Yes Bank has launched ‘Yes Premia’ service to target senior citizens, salaried class people and small businessmen. Let us know more about the scheme and what is the strategy of the bank and the kind of growth is expected from it?

A: Our clear-cut strategy is to touch every customer and every category with banking products. We have launched a very unique programme. Most of the banks, normally, launches a programme and then fit all the segments of customers in it. So comparatively, we have launched an overall programme, in which we have curated or modified the product offerings for every segment according to their requirement. For instance, if there is a senior citizen then he more needs health products and medical advice, then these free services are available to them. Similarly, if there is a businessman, who has money in the current account than he has an auto-sweep facility in which he can put his money in savings or deposits on which he can earn interest. So, all the products that have been launched under Premia are based on the data of every customer that we have studied within our bank and in the industry and accordingly developed the propositions to provide the best suitable product to a particular customer. The bank will have a lot of focus on increasing this business because the bank can participate in the life cycle of this particular customer. Thus, whatever the requirement of this particular customer is whether it is about the loans or credit card or some other banking facility or family banking. So, as the customer will grow with the bank, the bank will also grow with him. Today, about 10% of the business comes from this particular segment and we want to increase it to 20%-25%, and this is our focus as well as strategy.

Q: From the long-term strategy you want to increase your SME and retail loan portfolio. So, let us know where these numbers will be by 2023 and do you feel that it is a safe business to be in?

A: We have been working on retail and SME for the last four-five years. We have worked a lot on our distribution, the process that is meant to process the customers’ proposition and technology and due to which, today, these two portfolios are the best portfolios of the industry. So, if you make a comparative study of these with any other player, then these portfolios are in a very good condition. And, we have very good distribution, whether it is the manufacturer who closely works with us, or dealers or distributors. So, we understand it well and now, when the bank is on the path of growth, then we see a very big opportunity in the market. And, it is the right time for the bank to grow these segments further because we are also a part of this ecosystem. Lastly, the strategy is to take the entire ecosystem of this product, whether it is as I said dealers or some of our associate players who are associated with us, to the next level.

As far as SME is concerned, we have a clear-cut strategy that if we can expand our business in the reference space of the customers who are working with us. So, we will have more focus on that aspect. Apart from this, the customers of the bank, who are associated with liabilities or any other category of assets but they have SME requirement then we would like to fulfil it. I believe that we can grow it very well and carefully with whatever experience we have and what is the way of operations at our place, we can grow them to a very good level. So, we have an objective to double our retail and SME businesses by 2023 from the current level. Along with this, I would like to tell you that retail and SME have around 45% contribution in our overall book of the bank and we are working to take it towards 60%. Similarly, we want to take the business of liabilities to 60% from the current 47%. So we want to take the contribution of both, retail and SME, retail assets & SME and liabilities business, towards 60%.  

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Q: What kind of exposure you will have in the home loan segment and going forward what is your outlook on it? Also, tell us about the demand condition in the segment and will you like to focus mainly on the affordable segment or you are also looking towards the luxurious houses?

A: There is a very good demand in the affordable home loan segment and the segment is growing well. At the same time, the segment is considered very safe but, if you have a look at the projects which are at the completion stage. So, since beginning our exposure has been on those projects where the reputation of the project is very good or the projects that are at the completion stage. And, I think, the segment will grow more in the coming times and we will push it aggressively. Apart from this, we will be very selective in the home loan segment and will do it mainly for the existing customers of the bank. But in the home loan segment, we will have a major focus on the affordable home loans. Currently, we are present in Tier-I cities and going forward we will also have a focus on Tier-II cities.