'Recoveries may top FY25 target of ₹5,000 cr'

Aiming to expand its footprint across the country, Yes Bank plans to open 400 branches in the next five years. In an exclusive interaction, Prashant Kumar, managing director and CEO, tells Sachin Kumar about growth plans and the strategy to garner deposits at a time when the banking sector is struggling to raise low-cost funds,

Excerpts:

Yes Bank has been able to maintain a deposit growth higher than its credit growth. Do you expect this trend to continue?

I think the liability which we believe is like a raw material for banking. Our focus has been very clear that we need to continue to work on liabilities and the deposit growth has to be always higher than the loan growth. We have been maintaining it quarter after quarter. Going forward, we would continue to see that deposit growth stays higher than the credit growth.

At a time when the banking sector is witnessing a war for deposits, how has Yes Bank been able to grow deposits higher than credit growth?

Trust of the customer in the brand and the convenience provided to the customer through branches and digital channels play a crucial role in mobilising deposits. We have been working in all these areas for a very long time. If you offer quality services to customers and provide them with convenience through digital applications, garnering deposits A becomes easier as compared to offering a high rate.

What are your expectations for recoveries from bad loans?