Innovative Work Behaviour

Submitted To: Submitted By:-

Dr. Sateesh V. Shet Rajat Chawla A-010
Gaurang Gulati A-015
Shubham Jha A-021
Koustuk Prasad A-033
Yashasvi Tiwari A-043
YES Bank:
A YES to Innovation

“Success is nothing but building a nation, as a banker, I aspire to create the policies that can create
wonders by nurturing human welfare”

- Dr. Rana Kapoor, Founder, Former MD, and CEO, YES Bank

Liberalization, globalization, and privatization in the early 1990s, India went through a series of economic
reforms, which led to the introduction of private banks in the country, resulting in the flourishing of much
more innovative and competitive private sector in the country. The Reserve Bank of India, in 2001
published a set of guidelines catering to the needs of establishing new banks which can operate profitably
in a competitive market. After its incorporation in 2004, the YES Bank has been working very efficiently
with customer-centric ideology, in an attempt to become the world’s finest quality bank in India. While
aiming at being the zenith in financial performance, the YES Bank developed very strong relationships
and provided with extraordinary customer services. Driven with an entrepreneurial agenda, YES Bank
gave its entire management an authority to add a personal touch in order to achieve their professional
goals. Dr. Kapoor believed in an idea that it’s an end to end responsibility of both the frontline staff and
top management to deliver excellent customer service. Currently, YES Bank was founded by Rana
Kapoor and Ashok Kapur and its primary functions include Corporate and Retail Banking having Asset
Management as a Subsidiary function. Today YES Bank derives the majority of the revenue through
Corporate Banking. Its major operations occur in three major activities: YES Bank, YES Capita, and YES
Asset Management Services; which are further bifurcated as Corporate & Institutional Banking,
Commercial Banking, and Retail Banking[2].

Objective

YES Bank decided to apply long term PR strategies in an attempt to draw attention to its innovation in
retail banking. This communication strategy was used by Mr.Kapoor in order to bring in more customers,
which proved to be substantial in the company’s growth as the retail customer's growth increased by 76%.
Mr.Kapoor always emphasized on the fact that the key to achieving the customer’s attention was through
proficient and transparent communication.

In order to achieve its objectives, YES Bank formalized a code of conduct which the YES Banker’s
should stand up. Fair dealings were considered to be the most important aspect in YES Bank. The
executives should deal transparently with their customers, employees and even public authorities. They
should not be involved in any unfair means such as bribes, which may bring damage to the reputation of
the company. Another aspect which the executives had to follow was to identify any conflict of interest
which might occur leading to interfere in their decision making or fulfilling their duties. The executives
should be properly dressed and well groomed at all times, which was called the YES Personality. A
Whistle Blower Policy was enforced which allowed the executives to raise questions if they find that
there is a violation of the code of conduct, under any circumstances. YES Bank also opened trading of the
first Green Masala Bond in August 2015, which was worth 315 crores in collaboration with the
International Finance Corporation (IFC), Washington. The main aim of this bond was to finance the
various renewable energy infrastructure projects and also the energy efficiency projects such as solar
energy and wind energy projects.

Mr.Kapoor could see a rise in the net profit of the company during the last quarter of 2016. The bank
reported a net profit of 7.31bn, an impressive growth rate of 33%. The number of retail customers also
showed an increase of 76%, which depicted the company’s improved retail deposits portfolio. The market
capitalization of the bank also rose from Rs.325.23bn in January 2015 to Rs.465.94bn in June 2016. This
was considered to be a remarkable achievement for the company because this increase occurred during a
period when the Bombay Stock Exchange’s Bankex Index fell by 4.4%.

Methodology

This research is a part of a broader project called “competitive advantage of Innovative Work Behavior”.
The findings of the research were tested on a sample space by a self-administrated questionnaire survey
formulated to measure the effect of innovative work behavior inside the premise of the bank branch. For
our study, we have used the data collected from secondary sources such as the library database and the
company’s website.

Findings

YES Bank used a customer-centric strategy in an attempt to become the best quality bank of India. The
customer-centric process applied by provides the bank to make the existing relationships stronger and also
to provide exceptional service to the customers. Mr.Kapoor allowed its management an opportunity for
the entrepreneurial agenda to combine with the professional outcome, this decision helped to dismantle
the silo-mentality persisting in a departmental structure. Establishing itself as high quality, service driven
and customer-centric private bank in a very short duration of time, YES Bank believes that the process of
providing this kind of excellent serviceshould not be the responsibility of the frontline staff only but it
also needs constant support from the top management executives. It is believed by the YES Bankers that
the differentiator begins with its trust mark “YES”. The trust mark, by its name represents the true spirit
of the Bank’s positive nature[1]. Bank has the policy of 5Cs Employee Engagement Model consisting of
Culture, Care, Career, Communication, and Connect.

One of the greatest assets of YES Bank in achieving such a huge success in short duration of time is its
relationship management technique. The YES Money Plant, considered to be the first green mailer that
was sent by any organization, was developed as an obligation towards its customers[1]. The money plant is
considered to be a symbol of success, prosperity, and growth, which shows the YES Bank’s reflection of
core values, enabling them to partner with the growth of its customers. This was given to all the potential
and current customers as a gesture of well-being without actually making a direct sales pitch. Over
350,000 customers have received the money plant by the bank, till date. The Yes-Professional
Entrepreneurship Program (Y-PEP) and the YES School of Banking were some of the initiatives which
were introduced by the bank. Mr.Kapoor adopted a three bottom-line ethos; people, planet and profit. The
responsible banking was separated into two categories, Responsible banking in thought which incubated
ideas and identified sustainability markets to guide the bank’s overall approach; and Responsible banking
in action which is equipped with domain experts in order to create new market opportunities[1].

YES Bank has introduced a number of initiatives for the needs of “The Next Billion” customers as well as
its core initiatives. YES Money served a total number of 55,165 customers who were enrolled through
994 active correspondents, with a transaction value of Rs. 98.9 crores and the total number of transactions
were 172,582. YES Leap had two different self-help groups, a total of 218 saving linked self-help groups
with saving balance of nearly Rs.17 lakhs and a total of 203 credit linked self-help groups with a loan of
Rs.1.4 crores[1].

YES Bank uses social media as a medium to connect to the Indian consumer along with the traditional
mediums. One such initiative is #YESBankMaximum, The winner gets free match tickets for the IPL.
The user here has to log in via Facebook or Twitter for a much more personalized experience. The bank is
also active in posting the player stats, cricket facts, and match information.
The hashtag #YESBankMaximum has been proved as a masterstroke for the fans and the bank.

On the 69th Independence day of India, YES Bank initiated the campaign #RaisetheTricolour and then the
campaign #IndiaBoleYES was released. #RaisetheTricolour was a remarkably innovative initiative, If you
were to retweet this hashtag you would receive a link to a virtual Indian flag that you would have to raise
manually. This created a sense of being Indian and the sense of YES bank being their own bank, among
the consumers. These campaigns were initiated to celebrate the positive spirit imbibed in the culture of
India. The INDIAboleYES campaign was the debut of YES bank on social media and this was further
propagated to traditional ways of marketing such as TV, Print, Outdoor, and Digital.

The bank has now started using social media to manage the official grievances and make banking faster
for the customers. Through the YES Tag app, users can access all the banking transaction just by chatting
the AI based chatbot via 5 mediums, Facebook, Twitter, Messenger, Skype, and Wechat. Anything from
Enquiries regarding the bank statements to releasing and stopping fund transfers can be easily and quickly
done by the customer just by chatting through the YES TAG. YES Bank has now partnered with
‘Facebook at work’. This has led to the introduction of a unique and customized Facebook platform for all
employees. This step has particularly improved the productivity of the employees as the look and feel of
‘Facebook at Work’ is similar to conventional facebook.

YES Bank was a bit late in advancing towards social media and thus has lost the first mover advantage.
The above-discussed #YESTAG was recently launched while a similar app called pocket was already
launched by the ICICI bank way back in 2013. The fact of social media being a very personal space is
being misunderstood by YES bank. The official Facebook page is dominated by the articles about its
founder Mr. RanaKapoor. His thoughts, opinions are important from the point of view of Bank. But, this
is not the case with the general public. No one likes to be preached all the time. The bank could learn a lot
from the official page of ICICI Bank, Every post is targeted from the point of view of promoting the bank
through social media.

The bank was just a startup in 2004 and has now become the 5th largest bank with a market cap of 7
billion dollars. The bank has seen phenomenal growth in just 12 years. Although, they were a bit late in
the ‘Digital Hustle’, YES Bank is today the worlds most followed bank with over one million followers
on Twitter and over 3545170 fans on Facebook. The seriousness of the bank regarding social media can
be visualized from the launch of #YESTag and #IndiaboleYES brand campaign on Twitter.

Conclusion

Thus upon the analysis of the data collated using the resources available at our disposal be it the online
case studies or the data collected through social media platforms like the Twitter or Instagram profile of
YES Bank which reflected the trends and the behavior which led to the dismaying results in the
performance of the bank. Also upon accessing the website of YES Bank, the website seemed to be very
much user-friendly in its accessibility and all the banking operations can be carried out without any kind
of inconvenience. Over the period, YES Bank has received several Awards/Accolades, for its distinctive
performance, which was caused due to the innovative practices that it had carried out in the age when the
digital technology was bursting into the scene and the power of social media was rising drastically over
the years and with the advent of new technology, be it the 3G or the 4G technology, it proved of great
assistance to the growth of the organization which had resulted in a very much competitive environment
to grow and sustain in the long run. And as it is rightly said that Innovation is the calling card of the
future, so in order to sustain in the future Innovation should be done at every step and every level of the
organization.

References:

[1] Dhananjay Bapat, Asha Naik. “Customer centricity for growth-Yes Bank experience”, Emerald
Emerging Markets Case Studies, 2013

[2] https://www.yesbank.in/about-us

[3] https://www.yesbank.in/pdf/q3fy2018_19_press_release_cr_pdf
Exhibit 1:

Financial Performance
Exhibit 2:

Overall portfolio is well distributed with significant deployment in YES BANK focused knowledge
sectors where the Bank has developed considerable sectoral expertise with specialized Relationship,
Product and Risk Managers (3 Eye Relationship and Risk Management organizational framework)

Exhibit 3: