Yes Bank to set up its retail-SME service centre in Chennai at Rs 125 crore

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Chennai | Published: September 9, 2015 5:57:43 PM

Private sector lender Yes Bank on Wednesday said that it will be setting up its largest service centre in Chennai to address the issues of retail banking consumers, and small and medium enterprises, across the country.

yes bankThe bank has leased out 4 lakh sq-ft of space in the first phase, at the heart of the city, and is planning to commence operations in next 3 to 4 months’ time with 1500 people, initially. (Reuters)

Private sector lender Yes Bank on Wednesday said that it will be setting up its largest service centre in Chennai to address the issues of retail banking consumers, and small and medium enterprises, across the country.

The centre be the single largest retail and SME service centre of the bank which will see an employment generation of 12,000 people by 2020 to manage all its customers under the retail and SME categories, which are currently scattered across the country, said Rana Kapoor, founder & chief executive , Yes Bank, who was in Chennai for the inauguration of Tamil Nadu’s first ever Global Investor Meet (GIM).

The bank has leased out 4 lakh sq-ft of space in the first phase, at the heart of the city, and is planning to commence operations in next 3 to 4 months’ time with 1500 people, initially.

“By 2018, the bank would have leased out 9 lakh sq-ft in total and by the time manpower size would be 7500 (people). This would be the centre of management excellence of the bank and would be an HR- driven set up on the lines of global companies such as Google and HP”, he said. The total investment on this would close to Rs 125 crore.

“Currently, we have 700 branches which is expected to go up to 1500 by March 2018 and then to 2500 by 2020,” he added.

One of the major reasons for setting up the new centre at Chennai is because retail and SME business contribute 30% to its total business currently. This is expected to rise to 45% by 2018 and then to 50% by 2020, Kapoor said. Since the bank has been undergoing technological upgradation , the new service centre will help Yes Bank to address customer issues in a better way.

On the question of changes in interest rates, Kapoor said that he expects the possibility of 0.5% to 1% cut in rates by March 2016, to benefit textiles and steel sectors. ” It is interesting to see that the WPI was down by 8% between January and July, 2015 as compared to the same period last year. Similarly , CPI was down by 3% in the same period as against the corresponding period of the last year,” he said.

According to Kapoor, the short-time concerns are Federal rates and the devaluation of Chinese currency Yuan. The RBI is monitoring the situation and the Federal Board meeting is expected to take place in near future. “We have to see the outcome of the Federal Bank reserve board meeting. As the festive season like Diwali around the corner, we hope that RBI will look into the interest part”, he added.

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