YES Bank cuts staff by almost 2,500, cites redundancies

Private lender YES Bank has gone in for "rationalisation" of workforce to address certain "redundancies", the company has said.

According to reports, the bank has reduced its workforce by nearly 2,500 on account of digitisation and automation.Although YES Bank did not put a specific number, it said digital transformation has created certain redundancies requiring rationalisation of workforce.

"With the bank's digital transformation, greater degree of automation and digitisation gaining momentum, not only will the bank start witnessing better productivity, cost efficiency and customer service in the short to medium term, but will also generate some redundancies in job roles which will require rationalisation efforts," it said in a statement.

As of June 2017, the staff strength of the bank stood at 20,851.

Asked about the reports that Yes Bank has retrenched 2,500 employees, the bank's spokesperson merely said the second quarter figures will have workforce details.

Additionally, the bank has undertaken some performance- linked actions periodically, it said, adding that this process of identifying bottom performers every year is "part of our normal appraisal cycle".

"There is also a natural attrition which largely includes frontline sales force and is in line with industry averages, but most importantly, the productivity/digitisation related impact has started to be seen and will further accelerate over time," it said.

The lender continues to hire in a need-based manner and most of the new employees will have modern competencies and focus on fintech and innovation, the spokesman said.