Yes Bank layoffs: Yes Bank has undertaken an internal restructuring exercise resulting in the layoff of 500 employees, with further layoffs expected in the coming weeks, according to media reports. The layoffs have affected personnel across various verticals, including wholesale and retail banking, with the branch banking segment experiencing a significant impact. According to reports, all the affected employees have been provided with three months' severance pay. This move comes at a time when most private lenders are expanding their workforce.
Last year, Yes Bank's operating expenses increased by 17 per cent, amounting to Rs. 3,774 crore spent on staff. By the end of the last financial year, the bank had a total of 28,000 employees, with a significant portion, 23,000, categorised under junior management. The restructuring reportedly aims to enhance efficiency and reduce operating costs for the private lender.
Similar restructuring process in 2020
Notably, Yes Bank previously underwent a similar restructuring process after the appointment of current Managing Director Prashant Kumar in 2020, following a rescue effort led by the Reserve Bank of India to prevent the bank from collapsing. During that period, several senior staff members departed from the bank.
Yes Bank, with State Bank of India as its largest shareholder, has been grappling with challenges to enhance its operating profits. However, by the end of FY24, the bank managed to achieve a 6.4 per cent increase in operating profit, amounting to Rs 3,386 crore, compared to Rs 3,183 crore in the previous year. This improvement in operating profit indicates efforts toward stabilizing and strengthening the bank's financial position under its current leadership.
Yes Bank founder Rana Kapoor gets bail
In April this year, Yes Bank founder Rana Kapoor was released from prison in Mumbai after being granted bail by a court in an alleged loan fraud case. Kapoor was first arrested in March 2020 in a money laundering case by the Enforcement Directorate. The ED and Central Bureau of Investigation (CBI) had registered a total of eight cases against him related to alleged frauds at Yes Bank. He was lodged at the Taloja jail in neighbouring Navi Mumbai.
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