Yes Bank, an Indian private sector lender, is aiming to increase the proportion of its retail deposits on its books to 60% in three years, as part of its strategy to better compete with its bigger rivals.
"India is a consumption story. Retail will remain a very important play there. Obviously, our wholesale franchise will continue to do well. But the scale you can get in retail; we will also leverage that," the bank’s senior group president of retail and business banking Pralay Mondal told news agency Reuters.
Mondal added that Yes Bank’s retail deposits, including low-cost current and savings accounts (CASA), contributed about 45% to total deposits in the previous quarter, which is more than double a level of 20% three years ago.
The bank will not rush its growth everywhere while raising the share of its retail deposits to account for up to 50% in the financial year 2015.
In an interview to Reuters, Mondal opined that the bank will continue to make up about 30% of the total book from loans to retail and small-and-medium enterprises until about 2018, after which the bank will be comfortable with more rapid expansion.
Yes Bank is also planning to offer credit cards to customers by the end of next financial year.