Private lender Yes Bank on April 30 denied management reshuffle plan and said the bank is looking at diversifying and sustaining healthy business growth by growing retail and SME sectors.
"One publication carried an article suggesting a revamp in senior management. The next day we sent a very strong rejoinder to that. I am out there, telling you right now that as far as the senior leadership of the bank is concerned, not only I am satisfied with them, I am very happy with them," said Ravneet Gill, CEO, Yes Bank.
"One of the upsides of the bank is the quality of management that we have and I would love to have the stability of the senior management that we have," Gill told CNBC-TV18.
Also read: Yes Bank plunges 27% on weak Q4 result; Macquarie, HSBC & Citi downgrade stock
Last week, media reports suggested that Gill wants to increase focus on compliance and governance, two critical areas in which his predecessor Rana Kapoor was found wanting to ensure that the bank is on the side of the banking regulator. The reports also said that Gill is planning to replace the entire top management of the bank, which includes some of ousted founder Rana Kapoor’s trusted aides.
Also read - YES Bank Q4: Ravneet Gill adopts calibrated approach
On shifting focus towards retail loans, Gill said the basic DNA of the bank is corporate and the management doesn't want to change that.
"I have repeatedly said there is no intention on our part to gravitate towards becoming a retail bank, absolutely not. What we are saying is that we want to diversify our revenue streams so that it becomes more granular, they become more predictable," he said.
"If you see between our transaction bank and between our retail bank, the revenues from those two businesses themselves are in excess of Rs 5,000 crore. Those are very significant businesses," Gill added.
The country's fifth-largest private sector lender on Friday reported a net loss of Rs 1,506.6 crore for the March 2019 quarter as provisions rose.
Higher provisions for possible reverses, including a massive Rs 2,100-crore contingency reserve, was the prime reason for the massive loss, the bank said.
The heavy quarterly loss crimped the full year profit at Rs 1,720 crore as against Rs 4,224 crore in FY18. Had it not been for a Rs 831-crore write-back, the private sector lender would have reported higher losses for the quarter.
Source: CNBC-TV18
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