YES Bank is rolling out more than 3,000 ATMs on the outsourced model. The bank has already inked an agreement with the US-based payment processing company First Data Corporation for management and functioning of ATMs.
?We have talked to the Reserve bank of India regarding opening ATMs on outsourced model. Their main concern is security and reputation of the system. We will meet all those needs,? said Somak Ghosh, group president (corporate finance & development banking) of YES Bank.
Rolling out ATMs on an outsourced model has caught the fancy of smaller banks like YES Bank and Dhanalakshmi Bank after the economic downturn last year.
Bigger entities like the banking behemoth State Bank of India decided to roll out 500 ATMs with Tata Communications and C-Edge. Bank of Baroda had also expressed its interest to roll out ATMs on the similar model.
?While the management of ATMs will be with the US-based company, we will do the cash refilling,? Ghosh said. The bank plans to have 750 branches and 3,750 ATMs by March 2015. The bank is looking at increasing its retail business in the years to come and has set a target of growing retail portfolio to 40% of its assets in the next five years from 10% level at present. It has also set a target of 35% growth in the next five years to reach a business of Rs 1.50 lakh crore from Rs 22,800 crore at present.
“We are planning to introduce specialised retail solutions in the home loan and personal loan categories,” Ghosh said. “Now, banks do not offer tailor-made home loan products for different professions. We will concentrate on that category. For doctors, we may offer additional loans for their chambers and equipment, along with home loans,” he added.