As part of the network expansion plan, private sector lender YES Bank is planning to open 100 new branches across the country by the financial year 2025-26, says executive director Rajan Pental in a media interaction in Delhi today. The Mumbai-based bank added 85 branches in the fiscal year 2023-24, taking the total count to 1,234 across India.
“YES Bank continues solidifying its position as a key financial partner across north India by expanding its footprint and offering solutions tailored to regional needs. In FY25, the bank added eight new branches across the north region, significantly enhancing accessibility for customers in tier-2 and tier-3 cities,” he says.
“Going forward, YES Bank plans to add 100 new branches in FY26, further strengthening its presence, encouraging local economic growth, and advancing financial inclusion in underserved areas,” adds Pental.
According to Pental, the expansion is part of the bank’s strategy to bring it closer to its customers, supported by strong performance in the micro, small and medium enterprises (MSME) segment, where 36% of the overall MSME loan portfolio originates from the north. Additionally, the region accounted for 27.5% year-on-year (YoY) growth in deposits, with contributions of ₹70,593 crore from retail deposits.
He further says that the north region remains pivotal to YES Bank’s growth strategy, contributing significantly to its overall performance. The bank recorded ₹5,081 crore in MSME loan disbursements in this region during H1 FY25 and continues to foster entrepreneurship through programmes like the start-up accelerator programme.
“This start-up accelerator programme has supported 1,220 new businesses across the region, with a portfolio size of ₹2,500 crore. Additionally, dedicated start-up banking offerings such as YES Vyapari and YES Pay Next cater specifically to the needs of emerging businesses, enabling smoother cash flow and payment solutions,” he says.
For the second quarter ended September 30, 2024, the bank reported a 145.6% YoY increase in net profit to ₹553 crore, marking its highest profit since reconstruction. The bottom line was driven by rise in core lending income and a decline in provisions. Net interest income, the difference between the interest earned on loans and paid to depositors, rose 14.3% to ₹2,200 crore. The net interest margin rose to 2.4% from 2.30% a year earlier.
Total deposits grew by 18.3% YoY to ₹2,65,072 crore on the back of a robust CASA ratio of 32%, aided by 26% growth in current account deposits and 30% rise in savings deposits.
“As one of the few mid-sized banks to improve its Cost-to-Income (C/I) ratio, YES Bank continues to prioritise sustainable growth and financial stability, earning the trust of customers, regulators, and stakeholders alike,” says the bank’s executive director.
On the asset quality front, gross non-performing asset ratio improved to 1.6% in Q2 FY25, from 1.70% at the end of the previous three months. Provisions and contingencies, or funds kept aside for potential bad loans, declined by 41% to ₹297 crore.
