Intent is to reduce NPAs to zero by year end, says Yes Bank Prashant Kumar
Even as it cleans up, the bank aims to increase its business loan portfolio by 10% this fiscal year, as it seeks to expand its middleman business.
“We are targeting mid-sized companies, not very large companies or big project loans. We will be more granular, participating in working capital needs,” Kumar said. “With the type of lines that have already been put in place and not in use, achieving 10% (loan growth) on the company’s (book) is not a problem at all.”
On the large business front as well, Yes Bank will target growth through the working capital channel. With rising input costs, the demand for working capital is also expected to increase, Kumar said. Yes Bank will also seek to improve its relationships with businesses through its transactional banking services.
“Businesses today aren’t looking at a bank just from a lending perspective. They’re also looking for a bank that can provide solutions for their trade finance, cash management and banking transactions. I think it is. a piece we made, ”Kumar mentioned.
On its retail and micro, small and medium-sized businesses, Yes Bank had a target of 20% credit growth this year. According to Kumar, the growth of this part of the loan portfolio is now 29%.
As of September 30, the bank’s loan portfolio had grown 4% year-on-year to Rs 1.72 lakh crore. The portfolio of individuals and MSMEs has grown much faster than the portfolio of enterprises and now represents 54% of the total loan portfolio. During the quarter, the bank recorded gross retail disbursements worth Rs 8,478 crore, the highest in its history. He disbursed loans worth Rs 4,576 crore to small and medium-sized businesses.
The bank’s capital adequacy ratio was 17.6%, while Tier 1 capital was 11.5%. According to Kumar, while this is enough to increase the total loan volume by 15% this year, the bank may need to raise more capital next year. Yes, the bank’s board approved a Rs 10,000 crore fundraising plan in June.
Watch the full interview here: