Prashant Kumar the CEO of Yes Bank expects that the second half will be much better than the first half of this financial year. He expects the net interest margin to be around 3% because, the loan book for retail customers and small businesses hasn’t weakened despite the pandemic.
Earlier the bank was suffering from the adverse effects of COVID-19 such as weak governance, fund-raising challenges and declining deposits. The bank expects a good recovery in the second half of the year.
Seeing better demand from the market in terms of credit. Retail collection was at 89% & the MSME collection was at 83% in September. Kumar said, “With the fundamental issues taken care of, we want to control costs and increase profit to deal with any adverse impact on the credit due to the pandemic.”
Mr. Prashant Kumar expects that there will be a growth of 15% by the financial year 2021. It’s “very, very difficult to estimate the impact, with the fundamental issues are taken care of, we want to control costs and increase profit to deal with any adverse impact on the credit due to the pandemic,” he said, while the 5.5 % of loans amounting up to Rs 9,000 crore are yet to make the repayment. He said that he is not allowing any loans to get restructured and would like to absorb provisions out of operating profit only.
