Yes Bank today said it’s fully repaid Federal Reserve Bank of India (RBI) the whole Rs 50,000 crore of Special Liquidity Facility it had availed. The Chairman of the bank, Sunil Mehta, confirmed the event at the virtual Annual General Meeting of the shareholders persisted Thursday.
“We have fully repaid the whole sum of Rs 50,000 crores of SLF to RBI as on September 8,” Mehta told shareholders. The special liquidity line was extended to Yes Bank in March when it had been beginning of the moratorium to form up for any large deposit withdrawals. Its window was first given for a 3 month period and later extended till mid-September. The Chairman added that since Yes Bank’s reconstruction in March, it had received “strong customer liquidity inflows,” which deposits were accruing on a monthly basis now.
Addressing investor queries on whether the bank was getting to be merged with depository financial institution of India eventually, Mehta said that no such plans were afoot. He added that neither the bank nor any authority had discussed such a proposal as far as he knew.
Some investors at the bank raised concerns about the bank’s decision to freeze their stake for variety of years after its reconstruction. Prashant Kumar, the MD & CEO of the bank skilled that saying the choice to freeze shares for subsequent 3 years was taken keeping the larger interest of all shareholders in mind.
The CEO said that the bank was ready to bring down costs by almost 20 percent within the half-moon , and has now appointed a consultant to seem at medium and future cost rationalisation measures. Kumar alluded to the very fact that holding a virtual annual general meeting (AGM) had enabled the bank to save lots of the maximum amount as Rs 90 lakhs. “It cost us Rs 1 crore to carry the (physical) AGM last year, and this year it only cost us Rs 10 lakhs,” he said, adding that the bank would take guidance from its shareholders on whether to continue with this format.
Speaking about the bank’s financial performance, Prashant Kumar said that a fanatical team of 80 people was working only on recovery of legacy bad loans, and he hopes that a considerable portion of the book would are recovered over subsequent two to 3 years.
“We are working to expand the record size…We target to double the deposit base by end of subsequent fiscal year , and that we Want to extend the loan book by 10 percent during this fiscal year and 20 percent within the next fiscal year ,” he added. He said that the bank would target growing the retail book to 60 percent of the entire loan portfolio, from 45 percent currently.
“We will ensure we don’t commit mistakes of the past. many steps are taken to enhance risk management practices and credit underwriting skills at the bank,” he told shareholders.