Monday, 26 October 2020
YES Bank lacked a culture of cost control, and under the new management, the lender is targeting to reduce operational expenses (opex) by 20 per cent in FY21 by rationalising branches and ATMs, giving up unwanted leased spaces, and renegotiating rents, Chief Executive and Managing Director Prashant Kumar has said. The city-based lender is experiencing delays in loan recovery efforts as big defaulters are approaching courts, Kumar told PTI.He was asked to lead YES Bank in March after its rescue by a SBI-led consortium of lenders after alleged governance lapses under co-founder and CEO Rana Kapoor.
The bank reported a 21 per cent reduction in operating expenses in September quarter. “Unfortunately, there was no control on costs,” Kumar said, adding a global consultant had charted out a step-by-step agenda to reduce spending through which it aims to save 20 per cent on operating expenses in FY21 over FY20.