Yes Bank to sharpen focus on emerging sectors to boost growth
New Delhi: Faced with a tough macroeconomic environment, private sector lender Yes Bank is sharpening its focus on emerging sectors such as life sciences, IT, education and healthcare to boost growth, according to a top official.
"Macro-economic environment is pretty tough. Yet there are sectors which are doing well and consciously the approach of the bank is...(to get growth from) emerging segments such as life sciences, IT, export focused businesses, education and healthcare," Yes Bank, Group President & Country Head Corporate and Institutional Banking, Amit Kumar said.
Kumar, who was speaking on the sidelines of BT-YES Bank Emerging Companies Excellence Awards, said rural markets are fairly strong and a lot of these sectors are getting the growth from under-penetrated markets.
"We continue to see a lot of companies which are managing the business very well in these sectors and there is a tremendous scope for the banks to really partner in their growth," he said.
He said the bank has identified these sectors which are largely driven by domestic consumption and such companies are very dedicated on consumption-bound growth.
However, Kumar said at this particular point of time, the growth strategy of the bank is very measured.
Kumar said the bank is focusing on the enhancing support to clients' business, which can drive P&L growth.
"So, our focus is to work on P&L. And even that if it means moderated growth, we are fine with that as long as we achieve our P&L. In our road map for the next five years, we have said that we will quadruple the size of the bank over these five years."
He said Yes Bank is on track in terms of growth strategy, which was charted out about three and half years ago.
In the first quarter ended June of 2013-14, the bank had reported 38.1 percent increase in its net profit at Rs 400.8 crore. The total income of the bank rose to Rs 2,839.9 crore as against Rs 2,174.4 crore in the first quarter (April-June) of last fiscal (2012-13).
The Indian economy grew at a four-year low of 4.4 percent in the April-June quarter. In 2012-13, it clocked a decade low level of growth at 5 percent.