'Want to grow loans cautiously'

At a time when banks are struggling to mobilise deposits, Yes Bank has managed to grow its deposit base more effectively than many of its peers. PRASHANT KUMAR, managing director and chief executive officer of Yes Bank, discusses the bank's deposit strategy, loan growth trajectory, status of stake sale, and other key developments, in an interview with Subrata Panda in Mumbai. Edited excerpts:

- PRASHANT KUMAR MD & CEO, Yes Bank

Yes Bank has managed to grow its deposits at a better pace than the industry. Can the momentum be sustained?

Our deposit growth has been higher than most other banks for the last four to five quarters. There is always a discussion in terms of whether it is only the rate of interest that attracts the customer, but our belief is it's the service, and having a customer connect. Ultimately, all banks are offering almost the same thing, but the way you treat customers is something we focus on. We would like to continue this momentum. Our focus is more in terms of improving the CASA (current account savings account) deposits. We have a credit-deposit (CD) ratio of 85 per cent, so our deposit growth would also depend on loan growth. At whatever rate we are able to grow on the loan side, our deposit growth would be higher than that. If, for any reason, loan growth is slower, we would cut down on term deposits. But CASA growth would continue to happen. On the loan side, we want to grow cautiously.

You have calibrated growth in the retail segment. Why?