Ludhiana, December 02, 2024 (News Team): YES BANK, the sixth-largest private sector bank in India and a leader in MSME banking, is playing a pivotal role in fostering growth and innovation within North India's Micro, Small, and Medium Enterprises (MSME) sector. The region's MSMEs, particularly in states like Uttar Pradesh, Delhi-NCR, Punjab, and Haryana, are crucial contributors to India's economic trajectory towards its $5 trillion economy target, significantly impacting the national GDP. Uttar Pradesh alone boasts of 96 lakh MSMEs spread over 75 districts, while Delhi-NCR continues to be a major hub for diverse businesses ranging from manufacturing to services. Notably, the MSME sector in North India is projected to grow at a CAGR exceeding 9% by 2030, underscoring its immense potential.
The Bank also registered a 25.8% Y-o-Y increase in MSME advances, with a significant portion amounting to 36%, originating from the North, reflecting its commitment to driving local economic development. The bank has maintained a 59% share of retail and SME advances in its loan book, with 86% of the SME portfolio collateral-backed to ensure sustainability and stability. Additionally, the share of low-cost deposits (CASA) increased to 32.0% in September 2024, contributing to the bank’s overall deposits, which grew by 18.3% year-on-year to ₹2.77 trillion.
Dr. Rajan Pental, Executive Director, YES BANK stated, "Our commitment to enhancing financial inclusion and supporting economic growth in North India is unwavering. With 36% of our MSME loan portfolio originating from the region and a robust 27.5% Y-o-Y growth in deposits, the North continues to be a cornerstone of YES BANK’s strategic expansion. We opened eight new branches in Tier-2 and Tier-3 cities in FY25 and further aim to open 350 -400 new branches nationwide in the next 3-5 years. We disbursed Rs 5,000 crore in MSME loans during H1-FY25, driving accessibility and growth. Through initiatives like our Start-up Accelerator Programme, which has empowered over 1,200 start-ups in the region, we aim to further strengthen the North's entrepreneurial ecosystem and advance our vision of inclusive banking."
During H1-FY25, the Bank disbursed ₹5,081 crore in MSME loans in the region and supported 1,220 start-ups through its Start-up Accelerator Programme, with a portfolio size of ₹2,500 crore. The North also saw 27.5% year-on-year growth in deposits, reflecting significant regional economic activity and financial inclusion.
To cater to the unique needs of MSMEs, YES BANK offers tailored solutions such as YES Vyapari and YES Pay Next, which facilitate smoother cash flow and payment processes for businesses. In a significant step toward empowering women entrepreneurs, the bank recently launched the YES PowHER Up programme in partnership with FICCI. This initiative provides a comprehensive suite of offerings, including SME loans, current account benefits, credit card perks, and insurance products, fostering inclusivity and empowering women in business.
Furthermore, YES BANK acknowledges the regional diversity within North India. For instance, Uttar Pradesh's leather and handicraft sectors thrive on customised trade finance products. Punjab and Haryana's agri-businesses require specialized risk management services to navigate the complexities of seasonal demand and global markets.
YES BANK's focus on innovation, digital transformation, and sustainability positions it as a key partner in shaping the future of North India's MSME sector. As the MSME ecosystem in this region evolves, YES BANK remains committed to expanding its role, offering new digital solutions and green financing products to empower businesses to grow responsibly and sustainably. With a deep understanding of the region's unique economic landscape, YES BANK is set to propel North India's MSMEs towards greater success on both national and global stages. With a strong track record of providing financial and advisory services to government entities and PSUs for over 15 years, the group continues to contribute to the nation's economic growth.
As the MSME ecosystem evolves, YES BANK stands ready to propel North India's enterprises towards success on both national and global stages, reinforcing its commitment to fostering economic growth and inclusivity.