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Friday, January 23, 2015

YES Bank to hire 1,500-2,000 people to push retail business; eyes MF foray

Private sector lender YES Bank is planning to hire between 1,500 and 2,000 people in the next one year in sync with its retail expansion plans and also plans to enter the mutual fund business.

Reports suggest that YES Bank is in talks with three AMC businesses, including a bid to acquire Deutsche Mutual Fund’s India business. The bank’s board has cleared a proposal to secure an asset management licence from the Securities and Exchange Board of India. It would require approvals from the Reserve Bank of India.

The deal is estimated to be between Rs200-250 crore (over $32 million).

Mumbai-based Deutsche Asset Management is an investment management division of Deutsche Bank AG, with average mutual fund assets of
Rs22,670 crore ($3.68 billion) for the October-December quarter, according to the latest data from the Association of Mutual Funds in India. “We are keen on the AMC (Asset Management Company) business and are open to buying out any existing set-up if a good opportunity comes our way…though we are not in a hurry,” Rajat Monga, Senior Group President – Financial Markets, YES Bank, said.

Hiring plans

At an analyst conference, after announcement of the bank’s results, Monga said: “The campus placements will take place and 1,500-2,000 will be hired this year at the branch and also some at mid-managerial level.” In FY2014, the bank had incurred an employee cost of
Rs784 crore, with an increase of 20 per cent over the previous fiscal year. The costs accounted for 45 per cent of the total operating costs of the bank. In a bid to survive competition and scale up its business, the mid-sized bank is focusing aggressively on its retail segment. Further, the bank is planning to enter the credit card business, the only retail product business it is not present in. “For the credit card business we need to have 1.5 million customers at least, but as of now we have just crossed one million customers,” said Pralay Mondal, Senior Group President – Retail and Business Banking, YES Bank.

The bank is also continuing its branch expansion by planning to add about 50 branches by March this year, As on December 31, 2014, the bank’s branch strength stood at about 600, and the ATMs a little over 1,150.

Source : Thehindubusinessline


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