Yes Bank cuts 2,500 jobs, cites inefficiency, poor performance as reasons

Private sector lender Yes Bank has cut around 2,500 jobs which constitute more than 10 per cent of its workforce. The bank said it has a process of identifying bottom performers every year as part of its normal appraisal cycle.

According to a report in The Economic Times, Yes Bank has cited increased redundancy, poor performance and the impact of digitisation as main reasons for job cuts.

Earlier, India's largest private sector lender HDFC Bank had cut its workforce by around 11,000 over three quarters to March 2017.

"As part of the bank's regular human capital management practices, to ensure higher productivity and improved efficiencies, the bank undertakes some performance-linked actions on a periodic basis. We have a process of identifying bottom performers every year as part of our normal appraisal cycle. These actions are not any different from those being pursued by other leading private sector banks," the report quoted Yes Bank, as saying.

Yes Bank, however, referred to current job cuts similar to attrition rate in the banking industry. The Indian banking industry witnessed an annual attrition rate of 16-22 per cent, the report said.

Led by billionaire chief executive officer Rana Kapoor, Yes Bank reported a net profit of Rs 965.52 crore for the first quarter ended June 30. Its net profit rose 32 per cent compared to the year-ago period.

Yes Bank shares have more than doubled in the past year. The lender had 1,020 branches and plans to extend it to 1800 across the country

YES Bank reported a 44 per cent growth in net interest income to Rs 1,808.90 crore in the first quarter, driven by growth in advances and current account & savings accounts (CASA) deposits and steady expansion in net interest margin (NIM).