Yes Bank is one of the players in the Indian Banking sector. However, it faced a huge crisis in 2020, as it was placed on a moratorium by the Reserve Bank of India (RBI).
The crisis led the bank to various bad loans, governance issues, and even loss of investor confidence. This has left the depositors and shareholders worried about the bank’s future. However, since then, Yes Bank has embarked on an unbelievable journey, where it has rebuilt its reputation and regained customers’ trust.
In this blog, we’ll discuss how the bank has planned to win back people’s trust and strengthen its position in the financial ecosystem. Without any delay, let’s begin!
5 Ways Yes Bank Has Regained People’s Trust
Here, we’ve mentioned five ways which can pave the way for Yes Bank to regain the people’s trust, which has clearly been reflected through increasing Yes Bank share price.
1. Strong Governance and Leadership
One of the primary steps taken by Yes Bank is to improve its governance and leadership structure.
The Board of Directors, with a proven record in the banking and financial sector, has emphasized transparency, ethical practices, and accountability as core principles of the bank’s operations.
Moreover, under the guidance of Prashant Kumar, CEO, Yes Bank has created a strong risk management framework to avoid the recurrence of past mistakes.
The leadership’s commitment to ethical banking practices has served as a foundation for regaining the trust of customers.
2. Strategic Investment from the Banking Consortium
The consortium of Indian banks, led by the State Bank of India (SBI), has invested a large amount of capital into Yes Bank to stabilize the bank during the crisis.
This bailout has shown the consolidated confidence of India’s financial institutions in the bank’s revival.
Such strategic backing has enabled Yes Bank with a strong foundation for the banks to rebuild its balance sheet and resume operations with vigor.
Moreover, the capital infusion has demonstrated a positive image to customers, ensuring the bank’s solvency and long-term viability.
3. Resolution of Non-Performing Assets (NPAs)
Another significant contributor to Yes Bank’s crisis was its high proportion of non-performing assets (NPAs). The bank has taken aggressive measures to clean up its books.
They have implemented a structured approach to recover bad loans and renegotiate terms with borrowers where feasible.
For instance, the creation of Asset Reconstruction Company (ARC) in partnership with JC Flowers was a strategic move to offload stressed assets.
This way, Yes Bank has not only improved its financial health but also shown its commitment to prudent lending practices in the future.
4. Digital Transformation
In this technology-dominated era, Yes Bank is investing heavily in digital transformation to enhance customer experience and operational efficiency.
Here, the bank has launched various digital products and platforms, such as AI-powered chatbots, seamless mobile banking apps, and advanced analytics tools.
This way, Yes Bank has attracted tech-savvy customers and streamlined banking processes. It has enabled banks to ensure convenience, transparency, and security, which has built robust customer support.
5. Focus on Customer-Centric Solutions
By focusing on customer-centric solutions, Yes Bank has introduced numerous products tailored specifically to meet customer’s specific needs.
The bank has its main focus on retail banking, SMEs, and corporate clients, offering competitive interest rates and innovative financial solutions.
Plus, the bank has also created dedicated helplines, grievance redressal mechanisms, and proactive communication to enhance customer service.
This step taken by Yes Bank clearly reflects its intent to place customers at the heart of its operations. This will also strengthen the bank’s position in the top penny stocks in India.
Conclusion
In summary, Yes Bank’s journey of rebuilding its reputation and regaining the customer’s trust is the result of its resilience and adaptability to India’s banking sector. The bank has mainly focused on digital innovation, governance, and customer-centric solutions to regain its position in the Indian financial landscape.