CHALLENGES

The challenge for a new entrant was to create a strategic differentiator that would make for a
compelling proposition for depositors and borrowers alike.

Key challenges for the bank initially was raising liabilities.

Growth

YES BANK grew at a blistering pace due to its strategic and management team focus on the four
pillars of Product Capital – Financial Markets, Investment Banking, Transaction Banking and
Corporate Finance. (supplemented by building relationships in Commercial Banking, Retail Banking
and Institutional Banking segments.

 In 2005, Bank had generated an early stage profitability with its assets amounting to $273.74
million.
 The Bank had issued an IPO which was oversubscribed 30 times.

DIFFERENTIATION
 YES BANK experienced growth because of the innovative and differentiated series of
business strategies carried out by the Bank.
 Such differentiated practices involve adapting differentiated human resource practices also
the Bank differentiated itself from other players in the industry through its unique
‘Knowledge Banking’ approach. The top mgt of YES BANK considered KB as the heart of all
their core businesses.
 Through this KB approach, YES BANK provided knowledge driven Banking solutions to their
commercial and corporate banking clients and this in turn helped the Bank in
institutionalizing strong customer relationships and also allowed the cross selling of products
more effectively, thereby generating fee-based revenues with lower capital requirements.
 Another major differentiator factor for YES BANK was its “Responsible Banking” concept.
This concept implies that promoting financially inclusive growth along with being selective
and investing only in those businesses that are socially and environmentally responsible.

OPERATIONS
 Operations - Introduced a new approach in its operations. As capital and operational
expenditures in technology account for a significant portion for the typical Indian Bank’s cost
structure, YES BANK in 2004 signed a 7-year agreement with Wipro Infotech.
 This resulted in Wipro in managing the entire non-core technological infrastructure
requirements of the Bank, including the IT infrastructure and hardware, networking and
managing a data centre on a build, own and operate basis.
 First contract of such sort in Indian Banking history. Many competing Banks have been
following the same suit.
