Yes, Bank MD, CEO Prashant Kumar
What are the synergies you see with SMBC?
First, if you see the presence of SMBC in India, it has three branches and branch of Gift City. The Gift City branch takes care of very large companies. Then it has a NBFC that has more than 1,000 points of sale in semi UBAN and rural areas, where they are in charge of the MSME, agricultural loans and retail loans of very small size. The missing piece is commercial banking, SMEs and liabilities. In addition, it is important to have the ability to meet corporate needs. Today you not only give a loan to a company. You must provide them with solutions for cash management, digital solutions, which cannot be sacrifice from now on. Then, after becoming the largest shareholder in Yes Bank, they will cover the entire financial spectrum in the industry. Just from large companies to the bottom of the pyramid.
How do the bank and the bank win?
More than 1,000 corporate clients are being handled, only on the loan side. Any service that is being offered is not offered through the branches of India, but through the location abroad. We are an Indian bank, and we are in a position to sacrifice services to corporate clients, which is mutually beneficial for both parties. Today I cannot deal with multinationals due to my qualifications. But if SMBC has a significant participation in our bank, whether our changes in rating or not, multinational doors are open for us, not for loans, as SMBC do, but we can take care of the service requirements of their customers. We can open the salary account of its employees. Loans per se is not a very profitable business, more profitable is an auxiliary business.
If SMBC becomes a promoter of Yes Bank, will SMFG merge his NBFC Indian arm with Yes Bank?
.. AAS According to my knowledge or regulatory standards, current standards say that if a single promoter has two entities in the same business line, they cannot continue with it …
Will growth plans change with new investors?
Not immediately. I think our growth plans would continue to be the same as now. Once they become part of the Board, we would definitely visit our strategy again and see any opportunity available to us. Credit growth would continue to be 12-15 percent in fiscal year 2016 and the growth of deposits would be slightly greater than credit growth.
Do you see the cost of financing the case in the medium term?
Every time our qualification improves, the financing cost decreases. Whatever the funds collected from corporate bonds and other roads, the cost decreases. With a better qualification, we will also have access to more companies, which also reduces the cost, since the dependency decreases in some entities.
Will you opt for a re -election as a bank manager?
As a regulated financial entity, it must go through a process when the time for re -election or the new appointment comes. The Board has to follow a particular process and we are following it. You should not read anything more than this. In 2020, the government of India had appointed a meeting of four members to administer Yes Bank. According to the bank’s reconstruction scheme, after a year, the Bank Board had to be reconstituted. Therefore, the Board was reconstituted in 2022 and now the Board has begun the process of my re -election or a new appointment. I always say that the most important thing we have achieved is to build a franchise. If you build a good franchise, you could deliver independently of whether you are there or not. I don’t think there should be anxiety in anyone’s mind if I am there or not. We have the legs capable of creating a stable institution that will meet the expectations of shareholders.
Posted on May 16, 2025
