Private Sector BanksYes Bank has fired 500 of its employees. This information has been received from sources connected to the bank. According to sources, the bank has taken this step as part of the restructuring exercise. There is a possibility of further layoffs in the bank. According to the information received, the bank has fired employees from all its sectors. Those who have been fired have been given an allowance equal to three months’ salary. The news of layoffs from the bank does not have any significant impact on the stock. As of 12.30, the stock is trading at Rs 23.98, down 0.17%.
Preparations to reduce costs through digital banking
Experts say that the bank is trying to reduce its operational cost by increasing the use of digital banking. Let us tell you that the operational cost of the bank had increased by about 17% in the last financial year. This step is being seen in the direction of reducing operational costs. The bank, whose largest shareholder is State Bank of India, is struggling to improve operating profit. At the end of FY24, Yes Bank’s operating profit was Rs 3386 crore, up 6.4% from Rs 3183 crore a year ago.
Bank’s increased expenditure on employees
The bank’s expenditure on employees increased by more than 12% between FY 2024 and 2023. The bank spent Rs 3774 crore on employees at the end of FY 24. At the same time, Rs 3363 crore was spent on employees at the end of FY 23. The bank had about 28,000 employees at the end of FY 24. 484 people were appointed in a year. Out of the total employees, more than 23,000 employees are in the junior management category.
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