Financial Services of Private Bank

FINANCIAL SERVICES
Financial Services are the economic services provided by the finance
industry, which encompasses a broad range of Organizations that
manage money, including credit
unions, banks, Credit card Companies, insurance companies, consumer
finance Companies, stock brokerages, investment funds and some
government sponsored
enterprises. As of 2004, the financial services industry represented 20%
of the
market capitalization of the S&P 500 in the United States.
The term "financial services became more prevalent in the United
States partly as a
result of the Gramm-Leach-Bliley Act of the late 1990s, which enabled
different types of companies operating in the U.S. financial services
industry at that time to merge.
Companies usually have two distinct approaches to this new type of
business. One
approach would be a bank which simply buys an insurance cost pany or
an
investinent bank, keeps the original brands of the acquired firit, and
adds the
acquisition to its holding company simply to diversify its earnings.
Outside the U.S. (e.g., in Japan), non-financial services conpanies are
perTInitted within the holding
company. In this scenario, each company still looks independent, and
has its own
Customers, etc. In the other style, a bank Would simply create its OWT
brokerage
division or insurance division and attempt to sell those products to its
own existing
customers, with incentives for combining all things with One
COITpany.

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COMPANY PROFILE OF YES BANK

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YES BANK

YES BANK has been recognized amongst the Top and Fastest Growing Banks
in various Indian Banking League Tables by prestigious media houses and
Global Advisory Firms, and has received several national and international
honours for our various Businesses including Corporate Investment
Banking, Treasury, Transaction Banking, and Sustainable practices through
Responsible Banking. YES BANK is steadily evolving as the Professionals’

Bank of India with the long term mission of “Building the Finest Quality

Bank of the World in India” by 2020.

OVERVIEW

YES BANK, India’s fifth largest private sector Bank, is an outcome of the
professional entrepreneurship of its Founder Rana Kapoor and his highly
competent top management team, to establish a high quality, customer
centric, service driven, bank catering to the “Sunrise Sector of India”. YES
BANK is the only Greenfield Bank license awarded by the RBI in the last two
decades, associated with the finest pedigree investors. YES BANK, a "Full

Service Commercial Bank”, has steadily built a Corporate, Retail & SME
Banking franchise, with a comprehensive product suite of Financial
Markets, Investment Banking, Corporate Finance, Branch Banking, Business
and Transaction Banking, and Wealth Management business lines across
the country.

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BRAND VISION AND MISSION

Brand Ethos
YES BANK has pursued a differentiated branding strategy in line with its
objective of building the Finest Quality Bank in India. The foundation of this

strategy lies in the name “YES”, which underlines the twin ethos of service
and trust and the promise to deliver a truly delightful and unprecedented
Banking experience to all customers.
Vision
To be the ‘Finest Quality Bank in India’ by 2020
Mission
To establish a high quality, customer centric, service driven, private Indian
Bank catering to the ‘Future Businesses of India’.

BRAND PILLARS

The YES BANK brand is built around key Brand Pillars, which epitomize
the growing strengths of the Bank. All communication and advertising has

been created around these key brand pillars.

Growth
YES BANK's core promise is growth for its internal and external
stakeholders symbolized in ‘Say YES to Growth!’
Trust

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Financial Services of Private Bank

YES BANK's Promoters, Investors, and Top Management team are all of the
highest pedigree with a demonstrated track record, thus inspiring and
establishing a Trust Mark – ‘Say YES to Trust!’

Human Capital
YES BANK has adopted a knowledge-driven, entrepreneurial management
approach and offers financial solutions beyond the traditional realm of
banking. YES BANK's top quality Human Capital represents the finest talent

in Indian banking, chosen from India and abroad.

Innovation & Technology
YES BANK is establishing the highest standards in customer service by
adopting cutting-edge, innovative Technology. The only thing constant
about technology used at YES BANK is Evolution.
Transparency
YES BANK considers Transparency and Accountability to be of utmost
importance. YES BANK has established one of the most stringent Corporate

Governance norms.
Responsible Banking
YES BANK has a vision to be the Benchmark Financial Institution for
Inclusivity and Sustainability. YES BANK’s mission is to link CSR and
Sustainable Development with stakeholder value creation through innovative
solutions and services & weave sustainability principles into its core
business strategy and processes.

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Financial Services of Private Bank

MILESTONES

2003
November
Incorporation of YES BANK Limited

2004
August
First branch at Mumbai & inclusion in second schedule of the RBI Act
Launch of Corporate & Business Banking
May
Capital infusion by promoters and key investors
March
Capital infusion by promoters and key

2005
November
Rana Kapoor, Founder, MD & CEO adjudged Start-up Entrepreneur of the
Year at the E&Y Entrepreneur Awards 2005
June
Maiden public offering of equity shares by the Bank
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February
ISO 9001:2000 certification for back office operations

2006
December
Launch of YES SAMPANN INDIA, our Financial Inclusion Initiative, in
partnership with ACCION International, USA
October
Raised INR 1.8 billion of long-term subordinated Tier II debt
April
YES BANK's Investment Banking Group was ranked #1 in M&A 'Outbound
Cross Border Transactions' in the Bloomberg League Tables
March
FY2006-First full year of commercial operations; Profit of INR 553 million,

ROA 2%

2007
September
Selected as a Founding Member of the Community of Global Growth
Companies at the World Economic Forum, Geneva
August
Launch of YES-International Banking

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February
Raised 1.98 billion of Upper Tier II capital

2008
June
Raised 3,640 million (USD 85 million) in a combination of Upper Tier II
Subordinated Debt and Hybrid Tier I Capital from Rabobank
YES BANK won the prestigious Emerging Markets Sustainable Bank of the
Year Award at the Financial Times/IFC, Washington Sustainable Banking
Awards held in London

2009
December
Received the Fastest Growing Bank award (balance sheet < 30,000 cr) at the
Business World Best Bank Awards 2009
July
Launched the Business Today - YES BANK SME Survey & Awards
March
Raised Hybrid Tier I Capital of 1,540 million

2010
December
Ranked as India's #1 Mid-Sized Bank (balancesheet < 50,000 cr) at the
Business Today-KPMG Best Bank Survey & Awards
April
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Announcement of Maiden Dividend at 15%

Launch of Version 2.0 - YES BANK’s NextPhase of Growth

January
Raised USD 65 million of Subordinated Lower Tier II Debt
Raised USD 225 million through a QIP

2011
December
Hiked Savings Deposit Rate to 7%p.a. and NRE Fixed Deposit Rates to a

peak of 9.6%p.a.
November
Launched the 1st FT-YES BANK International Banking Summit 2011 –
taking Indian Banking to the World
June
Received the prestigious “Sustainable Bank of the Year (Asia/Pacific)”
Award at FT/IFC Sustainable Finance Awards 2011, London

2012
December
Rated as Best Mid-Sized Bank , 2012 – Business Today KPMG Best Banks
Survey and Awards, and the Best Mid-Sized Bank, 2012 by Business World
PwC Best Banks Survey
August

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Financial Services of Private Bank

Raised USD 155 million & EUR 50 million by way of Dual Currency
Syndicated Loan Facility
June
Received the prestigious “Sustainable Bank of the Year (Asia/Pacific)”
Award - FT/IFC Sustainable Finance Awards 2012, London second year in
a row

2013
August
Recommends Dividend for FY 13 at 60%
June
Retail Banking footprint expands to 500 branches covering all 28 states and
7 Union Territories across India
March
Awarded the Best Managed Bank in India (2011-2013)by The Asian Banker

2014
December
Raised USD 200 mn Unsecured Loan from Asian Development Bank for
financing working capital & investment loans targeted towards small farm
households & rural women in SHGs
September
First Indian Bank to receive the “Global Performance Excellence Award-
2014” in the Services Category by APQO, Chicago, USA
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Financial Services of Private Bank

Received the 'Best Transaction Bank for Payments' by The Banker's

Transaction Banking Awards, London
May
Raised USD 500 million through a global QIP
March
Raised USD 500 Million in Longer Tenure FCY Loan and FCNR Funds in
FY 2013-14
FIRST bank in India to receive the Business Excellence trophy at the
prestigious IMC Ramkrishna Bajaj National Quality Awards

2015
April
YES BANK launched its first International representative office in Abu
Dhabi, UAE
March
YES BANK was added to NIFTY 50, the benchmark index of the National
Stock Exchange
February
Raised India’s FIRST Green Infrastructure Bonds for an amount of 1000
Crores (USD 160 million)

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Financial Services of Private Bank

COMPANY PROFILE OF HDFC BANK

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BACKGROUND

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an ‘in principle’ approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector, as part of RBI’s

liberalisation of the Indian Banking Industry in 1994. The bank was

incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.

PROMOTER

HDFC is India’s premier housing finance company and enjoys an

impeccable track record in India as well as in international markets. Since its
inception in 1977, the Corporation has maintained a consistent and healthy
growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, strong
market reputation, large shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is

to build sound customer franchises across distinct businesses so as to be the
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preferred provider of banking services for target retail and wholesale

customer segments, and to achieve healthy growth in profitability, consistent
with the bank’s risk appetite. The bank is committed to maintain the highest
level of ethical standards, professional integrity, corporate governance and
regulatory compliance. HDFC Bank’s business philosophy is based on five
core values: Operational Excellence, Customer Focus, Product Leadership,
People and Sustainability.

CAPITAL STRUCTURE

As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550
crore. The paid-up share capital of the Bank as on the said date is

Rs501,29,90,634/- ( 2506495317 ) equity shares of Rs. 2/- each). The

HDFC Group holds 21.67 % of the Bank's equity and about 18.87 % of the

equity is held by the ADS / GDR Depositories (in respect of the bank's
American Depository Shares (ADS) and Global Depository Receipts (GDR)

Issues). 32.57 % of the equity is held by Foreign Institutional Investors (FIIs)

and the Bank has 4,41,457 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. The Bank's American Depository
Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the

symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed
on Luxembourg Stock Exchange under ISIN No US40415F2002.

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DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s

distribution network was at 4,014 branches in 2,464 cities. All branches are
linked on an online real-time basis. Customers across India are also serviced
through multiple delivery channels such as Phone Banking, Net Banking,
Mobile Banking and SMS based banking. The Bank’s expansion plans take
into account the need to have a presence in all major industrial and
commercial centres, where its corporate customers are located, as well as the
need to build a strong retail customer base for both deposits and loan
products. Being a clearing / settlement bank to various leading stock

exchanges, the Bank has branches in centres where the NSE / BSE have a

strong and active member base.

The Bank also has a network of 11,766 ATMs across India. HDFC Bank’s

ATM network can be accessed by all domestic and international Visa /

MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express

Credit / Charge cardholders.

MANAGEMENT

Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a

CAIIB. Mrs. Gopinath has 39 years of experience in financial sector policy

formulation in different capacities at RBI. As Deputy Governor of RBI for
seven years and member of the Board. Mrs. Gopinath had been guiding and
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Financial Services of Private Bank

influencing the national policies in the diverse areas of financial sector

regulation and supervision, development and regulation of financial markets,
capital account management, management of government borrowings, forex
reserves management and payment and settlement systems.
The Managing Director, Mr. Aditya Puri, has been a professional banker for
over 25 years and before joining HDFC Bank in 1994 was heading
Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a

wealth of experience in public policy, administration, industry and
commercial banking. Senior executives representing HDFC are also on the

Board.

Senior banking professionals with substantial experience in India and abroad

head various businesses and functions and report to the Managing Director.
Given the professional expertise of the management team and the overall
focus on recruiting and retaining the best talent in the industry, the bank
believes that its people are a significant competitive strength.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of

information technology and communication systems. All the bank’s branches
have online connectivity, which enables the bank to offer speedy funds
transfer facilities to its customers. Multi-branch access is also provided to

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retail customers through the branch network and Automated Teller Machines
(ATMs).

The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world
class bank. In terms of core banking software, the Corporate Banking
business is supported by Flexcube, while the Retail Banking business by
Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and

web-enabled.
The Bank has prioritised its engagement in technology and the internet as
one of its key goals and has already made significant progress in web-
enabling its core businesses. In each of its businesses, the Bank has
succeeded in leveraging its market position, expertise and technology to
create a competitive advantage and build market share.
BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering commercial
and investment banking on the wholesale side and transactional / branch
banking on the retail side. The bank has three key business segments:
Wholesale Banking
The Bank’s target market is primarily large, blue-chip manufacturing
companies in the Indian corporate sector and to a lesser extent, small & mid-

sized corporates and agri-based businesses. For these customers, the Bank
provides a wide range of commercial and transactional banking services,
including working capital finance, trade services, transactional services, cash
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Financial Services of Private Bank

management, etc. The bank is also a leading provider of structured solutions,

which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong
customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporates including multinationals,
companies from the domestic business houses and prime public sector
companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.
Treasury
Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities. With the liberalisation of the financial markets in
India, corporates need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury

products are provided through the bank’s Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its
deposits in government securities. The Treasury business is responsible for

managing the returns and market risk on this investment portfolio.

Retail Banking
The objective of the Retail Bank is to provide its target market customers a
full range of financial products and banking services, giving the customer a
one-stop window for all his/her banking requirements. The products are
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backed by world-class service and delivered to customers through the

growing branch network, as well as through alternative delivery channels
like ATMs, Phone Banking, NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the
HDFC Bank Plus and the Investment Advisory Services programs have been
designed keeping in mind needs of customers who seek distinct financial
solutions, information and advice on various investment avenues. The Bank
also has a wide array of retail loan products including Auto Loans, Loans
against marketable securities, Personal Loans and Loans for Two-wheelers.
It is also a leading provider of Depository Participant (DP) services for retail
customers, providing customers the facility to hold their investments in
electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card
in association with VISA (VISA Electron) and issues the MasterCard
Maestro debit card as well. The Bank launched its credit card business in late

2001. By March 2015, the bank had a total card base (debit and credit cards)

of over 25 million. The Bank is also one of the leading players in the

“merchant acquiring” business with over 235,000 Point-of-sale (POS)

terminals for debit / credit cards acceptance at merchant establishments. The
Bank is well positioned as a leader in various net based B2C opportunities
including a wide range of internet banking services for Fixed Deposits,
Loans, Bill Payments, etc.

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Financial Services of Private Bank

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