Mission:

“To build the finest quality brand in banking”

About the case
Differentiation in terms of service
Reforms in the Indian Banking Sector
Knowledge Banking
Technology
Human Resources
Promotion
Growth Story
Successful market entry
“Our mission is to build the finest
quality brand in banking. We don’t
want to be a production factory. We
want to be good distributors.”

- By Rana Kapoor
Founder, MD and CEO
Yes to Differentiation

Knowledge banking approach

Emphasis on technology
Human resources
Reforms in the Indian Banking Sector

Deregulation of interest rates

More functional liberty to the public
sector banks
Availability of credit to rural areas
Setting up of debt recovery tribunals
 YES BANK

Incorporated in November 2003

Founders arrived at the name after thorough
marketing research
Promoted by Rana Kapoor and his in-law
Went public in June 2005 through IPO
Offered a new value proposition
Yes bank was knowledge driven
Focused on corporate banking
Adopted international standards
Differentiating itself
New ideas in service side (customer
oriented), credit side (priority sectors) and
hedging side.

Strategy of outsourcing latest technology

to provide highly innovative solutions.

Fills significant gap in the market in

terms of service.

Knowledge driven approach through

specialized services and domain experts.
Exploring the power of information
technology

Skilled human resources to provide

superior customer services, reduce cost
and better core business activities.

Focus on agri-related sector.

It created a niche market for itself.

Winning HR practices like employee-

freedom to work in the field of interest,
encouraged new ideas etc.
• Food and Agribusiness
• Infrastructure development
• Life Sciences and Biotechnology
• Telecommunication
• Information Technology
• Media and Entertainment
• Real Estate
Technology
• A strategic tool to differentiate itself from its
competitors
• It had the latest technology using modern IT
solutions
• Introducing Flexcube – a universal banking
solution
• Outsourcing activities for core banking
• Use of cutting edge technologies to make
branches and offices wire free
• received awards on technology front
HUMAN RESOURCES

Retaining talented employees

Innovative performance management
5 % executive ownership clause
 Paid more than industry average
• Yes entrepreneur in action

• Yes professional entrepreneurship

program(YPEP)
• Yes retail entrepreneurship(YREP)

• Yes mentor

• Yes school of banking

• Yes university and school relations

 Successful Market Entry –
Yes Bank

• ‘Knowledge Banking’ approach

• Highly qualified human resources.

• Concentrating on the niche segment.

• The proper entry time to the market.

Outlook
• Bank expand mostly in small and medium
towns.
• As of 2007, bank launched all the products in
banking.
• Entered in to retail broking and micro
finance.
• In 2010 Yes Bank expected to open a KPO
unit.
• Bank expected to grow at a rate of 70-90% in
2010.
STRENGTH:
• Differentiated Strategy
• Superior service &customer oriented approach
• Choice and convenience to customers
• Outsourced latest foreign IT infrastructure
• HR practice
• Domain experts

WEAKNESS:
• New entrant, building customer’s faith
• Huge initial investment
OPPORTUNITY:
• Customers’ focus was missing in the market place.
• Breaking the stereotype image that banking is
merely a set of cold hi-tech assemblages & serious
looking bankers.
• Late entrant = flexibility in adopting latest
technology.

THREAT:
• Market was dominated by Public Sector Bank like
SBI & Pvt. Sector Banks like ICICI and HDFC
Bank.
• Easy entry to more private players.
• Competition.