Yes Bank’s new CEO and Managing Director Prashant Kumar told PTI that it would close 50 branches as part of a rational effort to reduce its total network to 21 in the financial year as there are no new openings.
Kumar took charge of the banking business in March. The bank said it had a 21 per cent cut in operating expenses in the September quarter.
Kumar said the bank has already surrendered two sites at its top Indiabulls financial center in central Mumbai, which has its corporate offices.
Besides, it aims to renegotiate lease agreements for all 1,100 branches.
Kumar said the bank aims to reduce the main functional overhead rents for lenders by providing training. Many branches are located too close to each other or are not financially feasible, he said. The Automated Teller Machine (ATM) network is also rationalized.
The bank will go for network expansion in fiscal 22, but the size of a branch will be much smaller than it is now, Kumar said, adding that the idea is to upgrade digital offerings to reduce the dependence on branches.
In the September quarter, Yes Bank converted 35 rural branches into business correspondents, he said, adding that such a move would reduce operating costs from Rs 2 lakh per month to Rs 35,000 per month.
As part of the recovery plan, the bank has committed to hiring all existing employees for at least a year.