A BUSINESS REPORT

ON
YES BANK LIMITED
Submitted in partial fulfilment for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

V KRISHNA SAHITHI
22J41E0061

UNDER THE GUIDANCE OF

Ms.M. Ramya Sree
Assistant professor

MALLAREDDY ENGINEERING COLLEGE

(AUTONOMOUS)
Maisammaguda, Dhulapally(Post via Kompally).
Phone:040-65918418, Fax-040-23792153,
Email: principal@mrec.ac.in
 2022-2023

MALLA REDDY ENGINEERING COLLEGE (AUTONOMOUS)

(Sponsored by CMR Educational Society)

Approved by AICTE & Affiliated to JNTUH

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

CERTIFICATE

This is to certify that the project entitled ON YES BANK LIMITED

BUSINESS REPORT ON YES BANK LIMITED by V. KRISHNA SAHITHI bearing

22J41E0061 of the department of Master of Business Administration of this College has
done a bonafide work under my guidance as part of the course Curriculum requirement for
the partial fulfillment of Master of Business Administration.

Internal Guide Head of the Department

Place: Hyderabad
Date:

Maisammaguda, Dhulapally, (Post via Kompally), Secunderabad-500100.

Phone: 040-65918418, 64634234, Fax: 040-23792153
 INTRODUCTION TO YES BANK LIMITED

YES BANK : YOUTH ENTERPRISE SCHEME BANK LIMITED

TAG LINE: Experience Our Expertise

FOUNDERS: Rana Kapoor, Ashok Kapoor.

HEAD QUARTERS: Mumbai

INCORPORATED IN THE YEAR 2004.

 It is the fourth largest private sector bank in India. YES Bank has over 1,000 branches and over
5,000 ATMs across the country.

 YES Bank offers a wide range of banking and financial services, including retail and corporate
banking, investment banking, wealth management, insurance, working capital finance, and more.

 It also has a strong digital presence, with a mobile banking app and a digital banking platform.

 With its focus on innovation, YES Bank is committed to transforming the banking experience in
India.

 It has since grown to become one of India's leading banks with a customer base of more than 13
million customers.

 It also offers a range of digital banking services, including mobile banking, internet banking, and
UPI payments.

 YES Bank is committed to providing financial inclusion and helping to empower India's growing
middle class.

 The bank has a strong focus on customer service, technology, innovation, and sustainability.

 YES Bank is focused on customer service, technology, innovation, and sustainability. It is involved
in various initiatives such as YES Global Institute, YES Skill Academy, and YES Fintech
Accelerator to develop the banking sector and promote financial literacy in India.

 YES Bank also has partnerships with various organizations to provide customers with innovative
and convenient banking solutions.
 YES BANK POLICIES

Yes Bank's policies vary depending on the type of account, product, or service you are using. Generally, their
policies include the following:

 Protection of customer data and privacy: Yes Bank

ensures the safety and security of customer data, including
personal information and financial transactions. They also
have an opt-out policy for promotional emails and other
communications.

 Responsible banking practices: Yes Bank is committed to responsible banking practices and
works to ensure that its customers are protected from fraud, financial exploitation, and other forms
of abuse.

 Responsible lending: Yes Bank adheres to the principles of responsible lending and works to
ensure that its customers are protected from excessive borrowing and excessive fees.

 Financial education: Yes Bank offers financial education programs for its customers to help
them understand financial products and services and ensure responsible use of their accounts.

 Anti-money laundering: Yes Bank is committed to preventing money laundering and other
financial crime. They have a comprehensive anti-money laundering program in place.

 Customer service and complaints handling: Yes Bank is committed to providing excellent
customer service and has a dedicated team to handle customer complaints.

 Security measures: Yes Bank has in place a comprehensive security program to protect its
customers and their data. This includes encryption of data, multi-factor authentication, and account
monitoring.

 Risk management: Yes Bank is committed to managing risks associated with its products and
services and has in place a comprehensive risk management program.

 Regulatory compliance: Yes Bank is committed to complying with all applicable laws and
regulations.

 Corporate governance: Yes Bank has in place a comprehensive corporate governance program
to ensure that all its activities are conducted in an ethical and responsible manner.
 SWOT ANALYSIS

STRENGTHS:

 YES Bank has a strong network of 1,000+ branches

and 5,000+ ATMs across India.

 It has a strong presence in the digital banking space

with its ‘YES Mobile’ app and has launched a digital
wallet.

 It has a strong corporate governance structure and

robust risk management system.

 YES Bank has a strong focus on innovation and is

amongst the top 5 banks in India to develop
blockchain solutions.

 It has a strong track record of providing financial

services to small and medium-sized enterprises.

 YES Bank has a wide range of products and services that cater to a variety of customer segments.

WEAKNESSES:

• YES Bank has a weak asset quality and high non-performing loans.

• It has a low market share in the banking sector which indicates a lack of brand recognition.

• YES Bank has a limited presence in the rural market.

• It has a high cost to income ratio.

• Its stockgo on prices have been volatile in the past few years.

OPPORTUNITIES:

• YES Bank has the potential to increase its market share by expanding into new markets.

• It can leverage its strong digital banking platform to tap into the growing digital banking market.

• It can increase its presence in the rural market by providing tailored financial services.

THREATS:

• A decline due to the increasing competition in the banking sector.

• It can be affected by the government regulations and policies.

• YES Bank is exposed to cyber security threats.

• It can be affected by changes in the economic and political environment.

PROBLEM:
HIGH NPA’S

1. In 2014, the gross non-performing assets (NPAs) of the bank stood at 0.31 per cent. In 2017, the bank was
included in the BSE's benchmark index, Sensex. It was valued at over Rs 1 trillion.

2.The RBI in 2014 started a clean-up of the banking sector and started identifying the NPAs of lenders. It was
when the crisis at YES Bank came to light.

3.RBI found out that YES Bank's reported of NPAs and the central bank’s estimates didn’t match. The lender
was giving out loans to companies that were already under stress, like Anil Ambani group, and Dewan
Housing Finance Corporation Ltd (DHFL). The bank was asked to admit more NPAs to its balance sheet.

 However, the crisis spread after YES customers started withdrawing their deposits. Tirupati temple
trust, one of the biggest depositors of the bank, withdrew Rs 1,300 crore in 2019. According to a report
by the Indian Express, depositors withdrew Rs 18,000 crore from the bank between March 2019 and
September 2019. Rana Kapur stepped down as CEO in January 2019.

 On March 5, 2020, the RBI superseded the bank's Board of Directors and capped the withdrawals to Rs
50,000. It also asked the State Bank of India (SBI) to get a 49 per cent stake in the bank for
restructuring it.
SOLUTIONS:

Yes Bank is trying to tackle its high NPA issue by following a three-pronged strategy:

 Asset Quality Improvement: Yes Bank has identified loans that are at risk of becoming Non-
Performing Assets (NPAs) and has taken proactive steps such as providing additional
collateral and restructuring terms to prevent these loans from turning into NPAs.

 Capital Raising: Yes Bank has raised capital through a Rights Issue of ₹15,000 crore and is
in the process of raising additional capital of up to ₹10,000 crore through a Qualified
Institutional Placement (QIP). This additional capital will help the bank strengthen its balance
sheet and support future growth.

 Strengthening Governance and Risk Management: Yes Bank has taken steps to strengthen
its governance and risk management framework by introducing measures such as
strengthening the Board of Directors, appointing an independent Risk Management
Committee, and creating a separate Risk Management Department.

Steps to strengthen its governance and risk management:

 Strengthening the Board of Directors: The bank has appointed new independent directors to
the board and has also increased the number of board meetings to ensure better oversight and
governance.

 Appointing an independent Risk Management Committee: The bank has established an

independent Risk Management Committee to provide an independent view on the risk
management practices and processes of the bank.

 Creating a separate Risk Management Department: The bank has created a new Risk
Management Department to ensure effective monitoring of risk management processes.

 Increasing the number of internal and external audits: The bank has increased the number
of internal and external audits to ensure that all risk management processes are being followed
properly.

 Enhancing stress testing and scenario analysis: The bank has enhanced its stress testing and
scenario analysis to ensure that it is able to identify and manage potential risks in a timely
manner.

REFERENCE:

 YOUTUBE.

 GOOGLE.

 WIKIPEDIA.

 HINDUSTAN TIMES.

 NDTV.