- Yes Bank, an Indian private sector bank is currently undergoing a restructuring phase, resulting in the layoffs of 500 employees.
- The primary goal of this initiative is to reduce costs and enhance operational efficiency to secure a more sustainable future for the bank.
- Here is what is happening.
Restructuring at Yes Bank
Yes Bank has begun a restructuring process that has led to the dismissal of at least 500 employees, according to a report in The Economic Times.
With more layoffs to come across different verticals, to cut operating expenses.
This shake-up has affected many areas, including:
- Wholesale and retail banking
- Branch banking segment was hit the hardest
Yes Bank has undertaken an internal restructuring initiative based on guidance from a multinational consultant, aimed at enhancing operational efficiency and lowering costs.
Why the layoffs?
Rising Costs and Efficiency Goals
Last year, Yes Bank’s operating expenses rose by 17%, spending Rs. 3,774 crore on its employees.
Despite these challenges, Yes Bank has been working to boost its profits.
By the end of FY24, the bank’s operating profit increased by 6.4% to Rs. 3,386 crore, up from Rs. 3,183 crore the previous year.
The bank has been under pressure to improve its financial performance following a rescue effort led by the Reserve Bank of India in 2020.
This improvement shows efforts to stabilize and strengthen the bank’s finances under its current leadership.
By the end of the last financial year, the bank had a workforce of 28,000 employees, with 23,000 in junior management roles.
Digital efforts
The private lender is shifting its focus from manual processes to digital banking as part of its cost-cutting efforts.
A spokesperson informed ET, “In our pursuit to become a nimble, forward-looking organization that is streamlined, agile, customer-centric, and operationally efficient, we regularly review our operational practices and optimize our workforce.”
They further stated, “We are dedicated to providing top-notch banking services to our customers and unlocking the full potential of the bank for our stakeholders.”
Severance Pay
All the affected employees have been given three months’ severance pay to help ease the transition during this difficult time.
Echoes of 2020
Yes Bank went through a similar restructuring in 2020 when Prashant Kumar became Managing Director after a rescue by the Reserve Bank of India.
Back then, several senior staff members left the bank as part of the changes.
About Yes Bank
Yes Bank, also known as YES BANK, is a leading private sector bank in India.
With its headquarters in Mumbai, it serves a wide range of customers including retail customers, MSMEs, and corporate clients.
The bank has an extensive network that spans 300 districts in India, with 1,198 branches, 193 BCBOs, and over 1,287 ATMs.
Leadership Team:
CEO: Prashant Kumar
CFO: Niranjan Banodkar
CIO: Sachin Raut
CMO: Nipun Kaushal
CDO: Naveen Chaluvadi
Wrapping up…
Yes Bank’s restructuring is a clear sign of the changing landscape in the banking industry.
While layoffs are tough, the focus on cutting costs and boosting efficiency is aimed at ensuring a more stable future for the bank.
And, as a small consolation, the affected employees receive three months of severance pay.
The head heavy team to be pruned because no one has full work .. The bank should be reorganized .. Deposit mobilisation to be curtailed ie high cost deposit not to be encouraged..
Professional ethics is lacking my personal account was hacked but none of the nodal team bothered to look into the matter fraudulent practice and forgery is part and parcel of this bank high time the bank be merged with some bank all employees should be terminated there is no need surveillance pay they don’t deserve unscrupulous official
Retail deposit should be encouraged but official are too logger head without any stuff fraudulent official especially compliance team law makers law brakers
My experience with branch banking is that there are few employees who are very good at their jobs and complete work load is by them. The branch Manager has hardly any work. YB must concentrate on skill enhancement of its inexperienced employees.