CRITICALANALYSISOFRETAILBANKINGOFYESBANKLTD

AProjectSubmittedto
UniversityofMumbaiforthedegreeof
MASTEROFCOMMERCEINBUSINESSMANAGEMENT
SEMESTERIV

By
Mr.LoshanPhoolsingRathod

Roll.No:07

Undertheguidanceof
Prof.PoojaChodankar

S.S.&L.S.PATKARCOLLEGEOFARTS&SCIENCE
AND
V.P.VARDECOLLEGEOFCOMMERCE&ECONOMICS
(AUTONOMOUS-AFFILIATEDTOUNIVERSITYOFMUMBAI)
S.V.ROAD,GOREGAON(WEST),MUMBAI-400062

SEMESTERIV
(Academicyear2022-2023)

CRITICALANALYSISOFRETAILBANKINGOFYESBANKLTD

AProjectSubmittedto
UniversityofMumbaiforthedegreeof
BachelorinCommerce(Banking&Insurance)
UndertheFacultyofCommerce

1
 By
Mr.LoshanPhoolsingRathod

Roll.No:07

Undertheguidanceof
Prof.PoojaChodankar

S.S.&L.S.PATKARCOLLEGEOFARTS&SCIENCE
AND
V.P.VARDECOLLEGEOFCOMMERCE&ECONOMICS
(AUTONOMOUS-AFFILIATEDTOUNIVERSITYOFMUMBAI)
S.V.ROAD,GOREGAON(WEST),MUMBAI-400062

SEMESTERIV
(Academicyear2022-2023)

S.S.&L.S.PATKARCOLLEGEOFARTS&SCIENCE
AND
V.P.VARDECOLLEGEOFCOMMERCE&ECONOMICS
(AUTONOMOUS-AFFILIATEDTOUNIVERSITYOFMUMBAI)
S.V.ROAD,GOREGAON(WEST),MUMBAI-400062

2
 CERTIFICATE

ThisistocertifythatMr.LoshanPhoolsngRathodhasworkedanddulycompl
etedhisProjectWorkforthedegreeofMasterofCommerceinBusinessMan
agementundertheFacultyofCommerceandhisprojectisentitled,“Prof.Pooja
chodankar”undermysupervision.Ifurthercertifythattheentireworkhasbeend
onebythelearnerundermyguidanceandthatnopartofithasbeensubmittedpr
eviouslyforanyDegreeorDiplomaofanyUniversity.Itishisownworkandfactsr
eportedbyhispersonalfindingsandinvestigations.

_____________________________
SignatureofProf.PoojaChodankar

______________________________
SignatureofCourseCoordinator

_____________________________
SignatureofExternal

Guide:

DateofSubmission:

DECLARATION

ItheundersignedMr.LoshanPhoolsingRathodherebydeclarethattheworke
mbodiedinthisprojecttitled,“CRITICALANALYSISOfRETAILBANKINGO
FYESBANKLTD”formsmyowncontributiontotheresearchworkcarriedoutu
ndertheguidanceofProf.Poojachodankarandistheresultofmyownresearch
workandhasnotbeenpreviouslysubmittedtoanyotherUniversityforanyother
DegreetothisoranyotherUniversity.

Whereverreferencehasbeenmadetopreviousworksofothers,ithasbeenclea
rlyindicatedassuchandincludedinthebibliography.

3
I,herebyfurtherdeclarethatallinformationofthisdocumenthasbeenobtained
andpresentedinaccordancewithacademicrulesandethicalconduct.

_____________________________
Signatureof
Mr.LoshanPhoolsingRathod

Certifiedby

_________________________
SignatureofProf.PoojaChodankar

ACKNOWLEDGEMENT

Tolistwhoallhavehelpedmeisdifficultbecausetheyaresonumerousandthedepthissoenor
mous.

Iwouldliketoacknowledgethefollowingasbeingidealisticchannelsandfreshdimensionsin
thecompletionofthisproject.

ItakethisopportunitytothanktheUniversityofMumbaiforgivingmethechancetodothispr
oject.

IwouldliketothankmyPrincipalDr.partibhagaikwadforprovidingthenecessaryfacilitiesr
equiredforcompletionofthisproject.

4
ItakethisopportunitytothankourCoordinatorprof.swatitakkardongareforhermoralsupp
ortandguidance.

IwouldalsoliketoexpressmysinceregratitudetowardsmyprojectguideProf.Poojachoda
nkarwhoseguidanceandcaremadetheprojectsuccessful.

IwouldliketothankmyCollegeLibrary,forhavingprovidedvariousreferencebooksandma
gazinesrelatedtomyproject.

Lastly,Iwouldliketothankeachandeverypersonwhodirectlyorindirectlyhelpedmeintheco
mpletionoftheprojectespeciallymyParentsandPeerswhosupportedmethroughoutmypr
oject.

Loshanphoolsingrathod

INDEX

Chapter Sub Titleofthechapter Pageno.

no. Chapter

Executivesummary

1 Introduction 10-13

1.1 Industryprofile 13-15

1.2 Productservicesprofile 15-31

1.3 Workflowmodel 31-33

1.4 Mckensey7'smodel 33-40

5
 2 ResearchMethodology

2.1 Statementoftheproblem 40-41

2.2 Objectivesofthestudy 40-41

2.3 Limitations 41-42

2.4 Datacollection 42-43

2.5 Operationaldefinitions 43-44

2.6 SWOTAnalysis 44-45

2.7 Hypothesis 45-46

3 Literaturereview 46-49

4 DataAnalysis,InterpretationandPresentation 49-62

5 Summaryoffindings 62-63

6 Suggestions 63-64

7 Conclusion-futuregrowth 64-65

8 Learningexperience 65-66

9 Bibliography 66-67

EXECUTIVESUMMARY

TITLEOFPROJECT

"StudyOnRetailBankingOfYESBANK"

Globalizationandtheevolutionofknowledgebasedeconomieshaveledtodra
maticchangesinthecharacteristicsandfunctionsofHEIseverywhereashighe
reducationisseenindirectcorrelationin
achievingglobalcompetitiveness.Theminimumcompetencethresholdforbei
ngabletofunctionintheeconomyismovingupward.Therefore,itisbecomingin

6
creasinglydifficultforapersontoperformintheknowledgeeconomyifs/
hedoesnothavethenecessaryskillsandentrepreneurialcapacity.

Inlinewiththistrend,highereducationhasrecordedunprecedentedexpansion
duetotherealizationamongpeoplethathighereducationiscriticalforrealizings
ocioeconomicaspirations.Thisaspirationis
partlyfulfilledbytheemergenceofalargenumberofself-
financingprivatecollegesanduniversities.Globally,governmentshavecomm
ittedcolossalinvestmentstoexpandhighereducationtonurture
professionalswithhighlevelsofinnovationandcreativity.
Tomakethecomplexmixofpublicandprivatesectorinstitutionsdeliveronthepr
omiseofqualityeducation,alotofderegulationandresourcesareneeded.This
reformprocesshoweverhasbeengrosslyinadequate.MostHEIs,forinstance,
continuetosufferfromdeficienciesinresources,financialaswellasphysicalwh
ilethepressureofenrolmentshascontinuouslybeenrisingRecognizingthefac
tthatexpansionwithoutqualityimprovementserveslittlepurpose,thepolicypla
nnerswillhavetogiveoverridingemphasisonqualityandrelevanceofhighered
ucationprograms.FinancialconstraintsasconfrontedbyHEIshardlyallowthe
mtocopewiththechallengeofenhancingqualityofteaching,researchandcons
ultancyservices.
MarketFailuresinEducationFromaneconomicstandpoint,significantpositiv
e
externalitiesaccruetobeneficiariesfrompost-
secondaryeducation,mainlyundergraduateleveltechnicalandprofessional,t
hecostsofwhichshouldbefullyorpartlybornebythestudentsonthegrounds
ofeconomicequity,efficiencyandsocialjustice.Onthisreckoning,publicandpr
ivatepartnershipsineducation,requiringinpartfundingbythebeneficiarygrou
psandthegovernment,hasbeendeliberatelyencouragedtoimproveaccount
abilityoftheeducationsystem.Butthismixedsystemsuffers,everywhere,from
‘marketfailures’,whichisattributabletothelack
of:
i)Transparencyandeffectivecompetitioninmanagementandfinancingofedu
cationalinstitutions;and,

ii)Institutionalaccountabilityinassuringacceptablelevelofqualityofeducation
andtraining,whichineffectmaynotguaranteethefuturejobsandearningprosp
ects.

7
Eventually,thisleadstocreditmarketfailureand,attimes,lackofcollateralforba
nksperpetuatetheproblemsoffundingthrougheducationloans.Thereareele
mentsofthehighereducationsystemwhicharelinkedtoaspectsofmarketforce
s.Themarketforcesshouldleadtogreatercompetitionandhigherquality,while
thecostsofservicesaredrivendown.And,asaresult,wegetbetterqualityofedu
cationandwell-
qualifiedgraduatesforalesseramountofresourcesspentonthem.TheYESGl
obalInstitutehasproposedaseriesofstepstoaddressthemarketfailuressotha
tafunctionalcreditmarketforeducationcanbecreated.Thecorrespondingsha
reforhighereducationaroundonepercentofGDPwhichisgrosslyinadequatef
orempowering30millionpost-
secondaryyouthpursuinghighereducationinvariousuniversitiesandcollege
s.InIndiahowever,inspiteofoft-repeatedcommitments
madebythesuccessiveuniongovernmentsforallocationofsixpercentofGDPf
oreducation,thetotalexpenditurehashoveredaroundthreetofourpercent.Ino
rdertoimproveinternalandexternal
efficiency,theinstitutionsarerequiredto

1)Attractandretaincompetentfaculty,

2)Raiseteachingstandards,

3)Encouragecuttingedgeresearchandnurture
talent.

But,thisrequiresmassiveinvestmentintoqualityof
education,whichdependsonthenationaleffortsto
mobilizerequiredfinancialresourcesfromdiverse
sourcesformeetingtherisingcostsofeducation.

8
1.Introductiontoretailbanking:

BankinginIndiahascomeafullcirclefromthetimewhenyouhadtowaitinaqueuetocollectca
shtogettingitdeliveredatyourdoorstepatnoextracost.Addtothatserviceslikephonebankin
g,Internetbanking,24hourATM,draftdeliveryathome,etc.andyouhaveservicespeltwitha
capital.

Thoughthecontemporarybanks'serviceshavechangedalotoverthelastfewyears,thecore
functionhasremainedthesame.Bankshandledepositsandwithdrawalofmoney,providelo
ans,payapartofthesurplusasinterestandtherestiskeptbackforthesmoothfunctioningofth
ebankandprofitmaking.Abanks'functionscanbedividedintovariousdivisionslike:

Retail/PersonalBanking:
Thisdivisionprovidesarangeoffinancialservicestoindividualcustomersandsmallcompan
ies.Itoperatesmainlythroughbranchnetworks.Retailbankingincludesroutinetransaction
slikedepositsandwithdrawalsofmoney;moneytransfer;foreigncurrencyexchangeandtra
veler'schequeencashment.Theyalsodealwithpersonalandsmallloans,creditandmortga
ges;insurancepolicies;investmentschemes;pensionfunds;andadvicetocustomersonva

9
riousfinancialmatters.Apartfromofferinghomeloans,carloans,educationalloans,consu
merloans,etc.theyalsodevelopvariousdepositschemesandhelppeoplefilltheircoffers.

CorporateBanking:
Theydealwithmediumtolarge-
scalecompaniesandgovernmentagencies.Itcouldstartatthelocalbranchmanagerlevel,t
houghmorecomplexdealingsareroutedthroughcorporatedivisionsofclearingbanksandt
heirmerchantbankingsubsidiaries.Corporatebankingdealswithcreditandadvances,trad
efinance,foreignexchangemanagement,assetmanagement,leasefinancingofheavyeq
uipment,infrastructure,machinery,creditriskassessment,etc.Theyalsoadviseclientson
matterssuchascorporatemergersandacquisition,raisingcapitalandbusinessstrategyreg
ardingcompetitorsandoutsidefactors.

MerchantBanking:
Investmentmanagementistheprimaryactivityofthisgroup.Itcouldbeonbehalfofcorporate
clients,orinstitutionalinvestors-
likepensionfunds,investmenttrusts,orthoseinthesecuritiesbusiness.Thisgroupalsohan
dlespublicissueandmarketingofshares,debenturesandothersuchpapers.Itmayalsoincl
udeotherstockmarketfunctionslikedematerializationservices,investmentadvisoryservic
es,etc.Merchantbankingexecutivesresearchintothecapitalmarket,adviseandmanagefu
ndsofvariouscorporateandindividualcustomers.

Treasurygroup:
Thisgrouptakescareofthetotalfundsofabankincludingforeignexchangereserves.Respo
nsibilitiesincludebankportfoliomanagement,dealinginforeigncurrency,etc.ThereareFor
ex(foreignexchange)dealersinthisgroupwhoexclusivelydealwiththeforeignmarket.The
ybuyandsellforeignexchangeattheminimumexchangecosttherebyearningmaximumpro
fitfromthetransactions.

RuralBanking:
Thisgroupdealswiththebankingandcreditneedsofpeopleintheruralsector.Notallbanksh
avethisgroupandsomebankshaveseparatesubsidiarycompaniesforruralbanking.

ProductManagement:
Thisgroupconceptualizesvariousbankingservicesandthendevelops,implementsandmanagest
hem.Theyhavetheresponsibilityforabankingproduct(meaningserviceslikepersonalloans,homel
oans,creditcards,loansagainstshares,educationalloans,etc.)Apartfromthesemainfunctionalgro
ups,thereisanappraisalgrouptoanalyzeeconomicfeasibilityofindustrialprojects,thebank'sexpos
uretofinancialriskandlongtermreturns.Thereareinternalauditorswhoauditthebank'sinternalboo
ksofaccounts.Therearevariousgroupsofprofessionalslikelawyers,engineers,agriculturalscienti
stsandeconomistswhoworkinvariousdepartmentsinadvisorycapacities.Theyhelpmakedecision
sonissuesthatarelegal,technicaloreconomicinnature.Forexample,theeconomistadvisesvariou
sfunctionalgroupsontheimplicationsoftheUnionbudgetonthebusinessofthebanks,consumerbu
yingpattern,etc.

10
BANKINGINRETAIL:
WithajumpintheIndianeconomyfromamanufacturingsectorthatneverreallytookoff,toanascents
ervicesector,Bankingasawholeisundergoingachange.Alargeroptionfortheconsumerisgettingtr
anslatedintoalargerdemandforfinancialproductsandcustomizationofservicesisfastbecomingth
enormthanacompetitiveadvantage.WiththeRetailbankingsectorexpectedtogrowatarateof30%
[ChandaKochhar,ED,ICICIBank]playersarefocusingmoreandmoreonRetailandarewakinguptot
hepotentialofthissectorofbanking.Atthesametime,thebankingsectorasawholeisseeingstructura
lchangesinregulatoryframeworksandsecuritizationandstringentNPAnormsexpectedtobeinplac
eby2004meansthefasteroneadaptstothesechangingdynamics,thefasterisoneexpectedtogaint
headvantage.Inthisarticle,wetrytostudythereasonsbehindtheeuphemismregardingtheRetail-
focusoftheIndianbanksandtrytoassesshowmuchofitisworththeattentionthatitisattracting.

POTENTIALFORRETAILININDIA:ISSKYTHELIMIT
TheIndianplayersarebullishontheRetailbusinessandthisisnottotallyunfounded.Therearetwoma
inreasonsbehindthis.Firstly,itisnowundeniablethatthefaceoftheIndianconsumerischanging.Thi
sisreflectedinachangeintheurbanhouseholdincomepattern.Thedirectfalloutofsuchachangewill
betheconsumptionpatternsandhencethebankinghabitsofIndians,whichwillnowbeskewedtowar
dsRetailproducts.Atthesametime,Indiacomparesprettypoorlywiththeothereconomiesoftheworl
dthatarenowbecomingcomparableintermsofspendingpatternswiththeopeningupofoureconomy
.Forinstance,whilethetotaloutstandingRetailloansinTaiwanisaround41%ofGDP,thefigureinIndi
astandsatlessthan5%.ThecomparisonwiththeWestisevenmorestaggering.Anothercomparison
thatisnaturalwhencomparingRetailsectorsistheuseofcreditcards.Herealso,thepotentialliesinth
efactthatofalltheconsumerexpenditureinIndiain2001,lessthan1%wasthroughplastic,thecorres
pondingUSfigurestandingat18%.

Buthowcompetitivearetheplayers:
Thefactthatthestatisticsrevealahugepotentialalsobringswithitathreatthatistrueforanysectorofac
ountrythatisopeningup.Justhowcompetitiveareourbanks?
Isthethreatofgettingdrubbedbyforeigncompetitionreal?
Toanalyzethis,oneneedstogetintotheshoesoftheforeignbanks.Inotherwords,howdotheyseeus
?Arewegoodtakeovertargets?
Goingbyinternationalstandards,alargeportionoftheIndianpopulationissimplynot"bankable"taki
ngprofitabilityintoconsideration.Ontheotherhand,thefinancialservicesmarketishighlyover-
leveragedinIndia.Competitionisfierce,particularlyfromlocalprivatebankssuchasHDFCandICICI
,inthebusinessofhome,carandconsumerloans.There,preciselyliethepitfallsofsuchexplosivegro
wth.Allbanksaretargetingthefluffiestsegmenti.e.theupwardlymobileurbansalariedclass.Althoug
htheplayersarespreadingtheiroperationsintosegmentsliketheself-employedandthesemi-
urbanrich,itisanopensecretthatthebigcityIndianyuppiesformthemostprofitablesegment.Over-
dependenceonthesesegmentsisboundtobringininflexibilityinthebusiness.

WhataccordingtoyouwouldbethenextbigthingtohappenintheIndianretailbankingsector?

Outsourcing!
Ifyouareakeenobserverofthemarket,youwouldnoticethateverysector,includingbigindustrialsect

11
orslikecarmanufacturers,havegoneforoutsourcingtheirrequirements.Overaperiod,thoseplayer
swhohavegoneaggressiveonoutsourcinghavefoundthatitsavesthemnotonlycostandtimebuthel
psthemconcentrateontheircorebusinessarea,akeysurvivalnecessityinthesetimesofeconomicd
ownturns.

1.1.Industryprofile

BANKINGININDIA:

RetailcreditoutstandingasonMarch2,2023,amountedtoRs1,60,000crore.Accordingtoo
neestimate,theretailsegmentisexpectedtogrowat30-
40%inthecomingyears.MajorPlayers:StateBankofIndia,HDFCBank,UTIBank,IDBIBan
kandICICIBank.

Whatabouttheforeigngiants:
Theforeignbankshaveidentifiedthisproblembuttherearecertainsystematicrisksinvolvedi
noperatingintheRetailmarketforthem.Theseincluderegulatoryrestrictionsthatpreventth
emfromexpandingtheirbranchnetwork.

SothesebanksoftentaketheDirectSellingAgent(DSA)routewherebylow-
endjobslikesourcingortransactionprocessingareoutsourcedtosmallregionallayers.Son
owon,whenyouseealoanmelaoraroadshowshowcasingtheretailbouquetofaneliteMNC
giant,youknowthatasignificantcommissionearnedoutofanysuchbookinggetsplowedbac
ktoourowneconomy.Perhaps,oneofthebiggestimpedimentsinforeignplayersleveraging
theIndianmarketsistheabsenceofpositivecreditbureaus.Inthewesttheriskprofilecanbee
asilymappedtothingslikeSSNsandthisinformationcanbepubliclytraded.PANisastepinthi
sdirectionbutlotmoreworkneedtobedone.Whathasbeenapositivesteptowardsthisisane
gativefilesharingstartedbyaconsortiumof11banks.However,asaMcKinseystudypointso
utactualwrite-
offsonNPAsshowastrongnegativecorrelationwithsharingofpositiveinformation.Ontopof
this,thespend-now-pay-
later"creditculture"inIndiaisjustnotpickingup.Aswiftlegalprocedureagainst
consumerscreatingbaddebtisvirtuallynon-existent.Finally,thevastgeographical

andculturaldiversityofthecountrymakescreditpolicyformulationatoughjobanditsimplyca
nnotbedictatedfromaWallStreetoraSingaporeboardroom!
AlltheseadduptotheunattractivenessoftheIndianretailmarkettotheforeignplayers.Soov
erthepastfewyears,inspiteoftheentryofMNCsinmanyindustries,RetailBankinghasseen

12
aflurryofpanickyexits.Fewerthan40remaininIndiaandtheirshareoftotalbankassetscurre
ntly7.2%isfalling.ThosethatremainmightbethoughttobelikelybuyersofIndianbanks.Yet
Citibank,HSBCandStandardCharteredallinIndiaformorethanacentury,andwithrelativel
ylargeretailnetworksseemtohavenopressingneedtoacquirealocalbank.Establishedfore
ignbankshavepreferredtotakeovercustomersorbusinessesfromotherforeignbanksthat
wanttoleave.ThusHSBC,inrecentyears,haso-
Mitsubishi.ABNAmrotookoverBankofAmerica'sretailbusiness.

1.2.PRODUCT/SERVICESPROFILEOFYESBANK

1.Currentaccount
-CA30000
-CA70000
-CA200000
-CA500000

2.Savingsaccount
-Silversavingsaccount
-Goldsavingsaccount

3.FD
4.SmartSaver
5.SmartAccess
6.Nonresidentaccount(differentvariant)

CURRENTACCOUNTS
CurrentAccountisprimarilymeantforthepurposeoffacilitatingbusinesstransactions.

CurrentAccounts–Benefits
ThemainadvantageofCurrentAccountisitshighliquidityandalsoprovidessafetyoffundsto
thecustomer.CurrentaccountservesasalowcostoffundsfortheBank,providesanopportu
nityforcrosssellandcreatesstickiness/
engagementofthecustomerbecauseoftheirtransactionalnature.

CA30

Features
● Swift&ConvenientChequeCollectionsatYESBankLocationsaswellas2500Corre
spondentBankLocations

● AQT/AQBCriterionforevaluatingNon-MaintenanceCharges

● DoorstepBankingallowingpickupanddeliveryofcashandinstruments

13
 ● CMSServices

● CorporateNetBankingwithbulkuploadfacility

● FlatandaggressivetransactionchargesforPayOrders,DemandDrafts,RTGS,Onli
neRTGS,ForeignOutwardRemittances(non-trade)

CA70

Features

● Swift&ConvenientChequeCollectionsatYESBankLocationsaswellas2500Corre
spondentBankLocations

● AQT/AQBCriterionforevaluatingNon-MaintenanceCharges

● DoorstepBankingallowingpickupanddeliveryofcashandinstruments

● CMSServices

● CorporateNetBankingwithbulkuploadfacility
FlatandaggressivetransactionchargesforPayOrders,DemandDrafts,RTGS,OnlineRT
GS,ForeignOutwardRemittances(non-trade)

CA200

Features
● Swift&ConvenientChequeCollectionsatYESBankLocationsaswellas2500Corre
spondentBankLocations

● AQT/AQBCriterionforevaluatingNon-MaintenanceCharges

● DoorstepBankingallowingpickupanddeliveryofcashandinstruments

● CMSServices

● CorporateNetBankingwithbulkuploadfacility

● FlatandaggressivetransactionchargesforPayOrders,DemandDrafts,RTGS,Onli
neRTGS,ForeignOutwardRemittances(non-trade)

● YESBusinessGoldCardprovidingacashwithdrawallimitofRs1lacs

14
CA500

Features
● Swift&ConvenientChequeCollectionsatYESBankLocationsaswellas2500Corre
spondentBankLocations

● AQT/AQBCriterionforevaluatingNon-MaintenanceCharges

● FreePersonalizedPAPChequeBooks(limitsasperaccountvariant)

● DoorstepBankingallowingpickupanddeliveryofcashandinstruments

● CMSServices

● CorporateNetBankingwithbulkuploadfacility

● FlatandaggressivetransactionchargesforPayOrders,DemandDrafts,RTGS,Onli
neRTGS,ForeignOutwardRemittances(non-trade)

● YESBusinessGoldCardallowingacashwithdrawallimitofRs1lacs

15
SAVINGSACCOUNTS
SavingsBankAccountsaremeanttopromotethehabitofsavingamongthecitizenswhileallo
wingthemtousetheirfundswhenrequired.Savingsaccountsareopenedforthepurposeofp
ersonalbankingtransactions.

SavingsAccounts–Benefits
ThemainadvantageofSavingsBankAccountisitshighliquidityandsafety.Savingsaccount
servesasalowcostoffundsfortheBank,providesaplatformforcrosssellandcreatesstickine
ss/engagementofthecustomerbecauseofitstransactionalnature.

SILVERSAVINGSACCOUNT

Features:
● PersonalizedPayableAtParChequebook

● Morethan2500locationsforcollectionandmorethan640locationsforpaymentservi
ces

● FreeInstantMoneytransfer(RTGS/NEFT)toover54,000BankbranchesinIndia

● InternationalSilverDebitCardwithaccesstoover1.25millionATM'sworldwide&35,
000ATMsofCashtree/Maestro/NFSinIndia

● BillPayfacilitywithaccesstoover114Biller‘sinIndia

GOLDSAVINGSACCOUNT

Features
● FreeInstantMoneytransfer(RTGS/NEFT)toover54,000BankbranchesinIndia

● PersonalizedPayableAtParChequebook

● Morethan2500locationsforcollectionandmorethan640locationsforpaymentservi
ces

16
 ● InternationalGoldDebitCardprovidingFreeAccesstoover1.25millionATM‘sworld
wide&35,000ATMsofCashtree/Maestro/NFSinIndia

● FreeBillPaywithaccesstoover114Biller‘sinIndia

FIXEDDEPOSITS
InaFixedDepositAccount,acertainsumofmoneyisdepositedinthebankforaspecifiedtime
periodwithafixedrateofinterest.TherateofinterestforBankFixedDepositsdependsonthe
maturityperiod.

BankdepositsarefairlysafebecausebanksaresubjecttocontroloftheReserveBankofIndia
(RBI)withregardtoseveralpolicyandoperationalparameters.Thebanksarefreetooffervar
yinginterestsinfixeddepositsofdifferentmaturities.Interestiscompoundedonceaquarter,l
eadingtoahighereffectiverate.

17
Theminimumdepositamountvarieswitheachbank.TheminimumamountofFixeddepositt
hatcanbeplacedwithYESBankcanrangefromaslowasRs.10,000toanunlimitedamount.

LessthanINR15lacs Annualizedyield

7to14days 2.25% 2.25%

15to30days 2.50% 2.50%

31to45days 3.00% 3.00%

46to60days 3.50% 3.50%

61to90days 4.00% 4.00%

91to120days 4.50% 4.50%

121to180days 4.75% 4.75%

181to270days 6.00% 6.14%

270daystolessthan1year 6.00% 6.14%

1yearto13months 6.60% 6.77%

13monthsto1day 6.75% 6.92%

13months2daysto15month 6.60% 6.77%

s

15months1dayto18months 6.60% 6.77%

18months1dayto2years 7.10% 7.29%

2years1dayto25months 7.10% 7.29%

25months1day 7.25% 7.45%

25months2daysto3years 7.10% 7.29%

3years1dayto5years 7.50% 7.71%

Greaterthan5years 7.50% 7.71%

LessthanINR15lacs Annualisedyields

7to14days 2.75% 2.75%

15to30days 3.00% 3.00%

18
 31to45days 3.50% 3.50%

46to60days 4.00% 4.00%

61to90days 4.50% 4.50%

91to120days 5.00% 5.00%

121to180days 5.25% 5.25%

181to270days 6.50% 6.66%

270daystolessthan1year 6.50% 6.66%

1yearto13months 7.10% 7.29%

13monthsto1day 7.25% 7.45%

13months2daysto15month 7.10% 7.29%

s

15months1dayto18months 7.10% 7.29%

18months1dayto2years 7.60% 7.82%

2years1dayto25months 7.60% 7.82%

25months1day 7.75% 7.98%

25months2daysto3years 7.60% 7.82%

3years1dayto5years 8.00% 8.24%

Greaterthan5years 8.00% 8.24%

Returns
TherateofinterestforBankFixedDepositsdependsonthematurityperiod(duration)oftheF
Dandtheamountinvested.Interestratealsovariesbetweeneachbank.Somebankshaveaf
acilitytopayinteresteveryquarteroreverymonth,buttheinterestpaidmaybeatadiscounted
rateincaseofmonthlyinterest.TheInterestpayableonFixedDepositcanalsobetransferred
toSavingsBankorCurrentAccountofthecustomerorcouldbepaidbackbyaPO.

FDvalue(Rs) Minimumtenure Accounttype

19
 Rs200000 6months1day Goldaccount

Rs25000 6months1day Silveraccount

Taxsaverdeposit-

Productname Taxsaverdeposit

Productcodes 439-FD-5YrsTaxEfficientPayoutResident
(normalcitizens) 440-FD-5YrsTaxEfficientReinvestment

Productcodes 441-FD5YrsTaxEfficientPayoutSeniorCitizen
(seniorcitizens) 442-FD-5YrsTaxEfficientReinvestmentSeniorCitizen

Productcodes(No 443-FD-5YrsTaxEfficientPayoutNonResident
nResidents) 444-FD-5YrsTaxEfficientReinvestmentNonResident

Taxbenefit Taxbenefituptomax.Rs.1,00,000/-underSection80CofITAct

Tenure 5Years

EligibleforBenefit Individuals(BothResidents&Non-Residents)&HUF

JointHolders CouldbeSingleorJointholdersIncaseofjointaccounts,onlyfirsth
olderwouldbeeligiblefortaxdeduction

PanCard MandatoryforPrimaryholder

MinAmount Rs10,000/-(Depositcanbeinmultiple
ofRs1,000thereafter).

MaxAmount Rs.1,00,000/-inaFinancialYearwithallBanks

Depositdenominat MultiplesofRs1,000
ion

Interestoption Quaterlypayoutorreinvestmentonly
MonthlypayoutoptionNOTavailable

Prematurewithdrawal
Pre-
closureispermissibleonlyintheeventofdeathoftheprimaryac
countholder.Pre-
matwillhappenatcardrateforthetenureFDiskeptwiththeBank
.

20
 Nomination Onlyonenominationallowed

RECURRINGDEPOSIT

Giventhevolatilityandriskofcapitalandreturnacrossvariousinvestmentoptions,customer
slookforavenuestoparkfundswithassuredreturnsandsafetyofprincipal.RecurringDeposi
tschemeenablesthedepositortomakeafinancialprovisionbypayingequatedmonthlyinsta
llmentsforapre-
agreedperiod.Attheendofthepredeterminedperiodyouarepaidbackthelumpsumincludin
gtheprincipalandinterest.
FeaturesandbenefitsofRecurringDeposit

Featuresandbenefitsofrecurringaccount-
● OpenaRecurringDepositwithaminimummonthlyinstallmentofRs1,000
● Choosetheconvenienceofdurationbetweenminimum6monthstomaximum2year
s.
● Lockyourinterestratenowforfuturebookings(identicaltotheTermDepositinterestE
3rates).
● Seniorcitizensgetanextrabenefitintheinterestrates(extra50basispoints).
● Non-applicabilityofTaxDeductionatSource(TDS).
● Encouragessavingswithoutstressoncustomer‘sfinances.
● Easywayofpayingmonthlyinstallmentbyprovidingaonetimestandinginstructionfr
omcustomersYESBankSavingsAccount.

SMARTACCESS
MoneykeptintheSavingsAccountearnsalowerrateofinterestvisavisthesameifplacedasa
TermDeposit.MoneyintheSavingsaccountprovidesliquidityandcoverfordaytodayorimm
ediatelyforeseeableexpenses.SMARTACCESSaccountgivesyouflexibilitybylinkingyou
rtermdeposit(s)toyoursavingsorCurrentaccount.Wheneverthereisaneedoffunds,thesa
meissweptinfromthelinkedtermdeposittomeettherequirements.

Features&Benefits-

● EarnhighTermDepositinterestratesonyoursavings
● EnjoytheflexibilityofaYESBankSavingsAccountoraCurrentAccount.
● GeteasyaccesstoyoumoneywheneveryouneeditthroughaATMoranyYESBankb
ranch
● YourDepositisbrokeninmultiplesofRe1

21
 ● LinkmultipleTermDepositstoyouraccount.
● GetapersonalizedchequebookintheSavingsAccount
● Yourcompleteaccesstoyouraccountrelatedinformationonyourfingertipswithourp
honebankingservices.
● Noextrafeeorcostwillbechargedtothecustomerforthisfacility.TheSavings/
CurrentAccountAQBrequirementsaswellasassociatedservicechargeswillbeasp
erapplicableScheduleofCharges.

Debit/Atmcards

● FREEUnlimitedAccesstoover19000ATMsacrossIndia

● FreeUnlimitedAccesstoover1.25millionMasterCardATM‘sworldwideandover19,
000ATM‘sinIndia

● 1stIndiandebitcardtooffer0%surchargeonfuelpurchasesatanypetrolpumpinIndi
a-instant2.5%saving

● DailycashwithdrawallimitofRs.75,000&purchaselimitofRs.75,000

● InternationaltransactionsarealwaysreflectedinIndianRupees

● FreeaccesstoclipperloungesatAirportsinmajormetros

● FREEUnlimitedAccesstoover19000ATMs

● DailycashwithdrawallimitofRs.25,000&purchaselimitofRs.25,000

22
● Instantupdateofaccounttoreflectyourdebitcardtransactions.KeepingYouinthekn
ow,soyoucanmanageyourmoneybetter

● InternationaltransactionsarealwaysreflectedinIndianRupees

● AnnualfeeofonlyRs149

● India‘smosteconomicalUS$TravelCard:Lowfeesandcross-
currencyexchangemark-upnotapplicableintheU.S.

● FREEAccesstoover9000ChaseATMsintheU.S.

23
MOBILEBANKING

● YESBankisgoingtoprovideitscustomersaservicewheretheycantransfermoney,s
endmoneyandpayutilitybillsthroughtheirmobilephone.Thiswillbeanadditiontothe
existingMobilebankingfacility.

● TheYESBANKOBOPAYMobilePaymentSolutionisamobilepaymentservicebyY
ESBANKthatletsyouSend,SpendandGetMoneyto/
fromanyofthe240+millionmobilephonesinIndia(providedtheyareregisteredusers
ofthisserviceandhaveabankaccountwithYESBANKoranyofthepartnerbanks).

Processatthebranch-
● Forgettingregisteredontheobopaynetworkcustomerneedstofilluptheapplicationf
ormandsubmitthesameatthenearestyesbankbranch(applicationformattached)
● BranchwillverifythesignatureofthecustomeragainstthesignaturepresentintheFC
R.
● Postsignatureverificationbranchofficialswillaffixthedateandtimeofreceiptofappli
cantsalongwiththesignatures.
● VerifiedformswillbesenttothenocMumbaiattentiontoDBopsteamunderacovering
schedule.

ProcessatNOC
● DBopsonthereceiptoftheformswillenterthedatamanuallyintoanexcelsheetwhich
willbesenttoEfundsforvirtualcardgeneration.
● DatatobesenttoEfundswillcontainthecustomerdetaillikecustomerid,accountno.,
name,mobileno.,typeofcardtobeissued,etc.
● Efundswillgeneratethevirtualcardno.Alongwiththepinmailersandforwardthesam
etotheDBops.
● DBopswillthenreconcilethecarddatareceivedfromEfundsagainstthedataforward
edtoEfunds.
● Virtualcardno.Generatedwillbethenuploadedintheobopayadminmodulealongwit
hothercustomerdetails.

24
 (https://mtrainier.obopay.in/obopaymgmtconsole/login.do
Uploadedfiletobepreparedintheattachedform.

NETBANKING

NETBANKINGSETUPFORRETAILANDCORPORATE

RetailNetBankingSetup
RetailnetbankingsetupisdoneforthosecustomerswhohavenotoptedforaDebitCardbutwi
shtoavailaNetBankingfacility

ReceiptofData

● Accountopeningteamreceivestheformsfromthevariousbranchesforopeningthec
ustomeraccounts.

● DataforcustomerswhohavenotoptedforDebitCardbutwishtoavailaNetBankingfa
cilityiscollatedbytheaccountopeningteamonexcel.

● DatacollatedatDay0tillEODisforwardtoDBOpsteamviamail

● DBOpsonDay1utilizesthisdataforsettingupofRetailNetBankingFacilityforthecust
omerthroughFLEX@Retailadminmodule

● CustomerscanalsosubmitaletteratthebranchforavailingnetbankingfacilityBranc
hneedstoverifythesignatureandaffixthebranchstampontheletterwhichisthensent
acrosstoDBOps.

Processingofrequest

● RetailNetBankingSetupforthementionedcustomersisdonebyinputterintheretaila
dmin

● Afterthesetupiscompletedetailsofthecustomersareforwardedtotheauthoriser.
● Authorisercrosschecksdataprovidedbytheaccountopeningteamwiththedatainpu
tdoneinthedataretailmodule.
Properverificationofthedetaileddatainputdoneisauthorized.

1.3.WORKFLOWMODEL

25
26
1.4.MCKINSEY‟SSEVENSMODELASAPPLICABLETOTHATORGANIZ
ATION

27
TheSeven-
Ssisaframeworkforanalyzingorganizationsandtheireffectiveness.Itlooksatthesevenkey
elementsthatmaketheorganizationssuccessful,ornot:strategy;structure;systems;style;
skills;staff;andsharedvalues.
ConsultantsatMcKinsey&Companydevelopedthe7Smodelinthelate1970stohelpmana
gersaddressthedifficultiesoforganizationalchange.Themodelshowsthatorganizationali
mmunesystemsandthemanyinterconnectedvariablesinvolvedmakechangecomplex,an
dthataneffectivechangeeffortmustaddressmanyoftheseissuessimultaneously.

7-smodelasystematicapproachtoimproveorganization-
The7-
smodelisatoolformanagerialanalysisandactionthatprovidesastructurewithwhichtoconsi
deracompanyasawhole,sothattheorganization'sproblemmaybediagnosedandastrateg
ymaybedevelopedandimplemented.

28
The7sdiagramillustratesthemultiplicityinterconnectednessofelementsthatdefineanorg
anization'sabilitytochange.Thetheoryhelpedtochangemanager'sthinkingabouthowcom
paniescouldbeimproved.Itsaysthatitisjustnotamatterofdevisinganewstrategyandfollowi
ngitthrough.Nowitsamatterofsettingupanewsystemandlettingthemgenerateimproveme
nts.

"Sharedvalues"arecommonlyheldbeliefs,mindsetandassumptionsthatshapehowanorg
anizationbehaves-
itscorporateculture.Sharedvaluesarewhatengendertrust.Theyareaninterconnectingce
nterofthe7smodel.Valuesaretheidentitywhichacompanyisknownthroughoutitsbusiness
area,whattheorganizationstandsforandwhatitbelievesin,itscentralbeliefsandattitude,thi
svaluesmustbeexplicitlysyetatedasbothcorporateobjectivesandindividualvalues"strate
gy"areplansanorganizationformulatestoreachidentifiedgoalsandasetofdecisionandacti
onsaimedatgainingasustainableadvantageoverthecompetition."systems"definetheflo
wofactivitiesinvolvedinthedailyoperationofbusiness,includingitscoreprocessesanditss
upportsystem.Theyrefertotheprocedures,processesandroutinesthatareusetomanaget
heorganizationandcharacterizehowimportantworkistobedone."Style"referstothecultur
alstyleoftheorganization,howkeymanagersbehaveinachievingtheorganization'sgoals,
howmanagerscollectivelyspendtheirtimeandattention,andhowtheyusesymbolicbehavi
or.Howmanagementactsismoreimportantthanwhatmanagementsays."staff"referstoth
enumbersandtypesofpersonnelwithintheorganizationandhowcompaniesdevelopempl
oyeesandshapebasicvalues."Skills"refertothedominantdistinctivecapabilitiesandcomp
etenciesofthepersonneloroftheorganizationasawhole."Structure"
istheorganizationalchartandassociatedinformationthatshowswhoreportstowhomandh
owtasksarebothdividedupandintegrated.Inotherwords,structuresdescribethehierarchy
ofauthorityandaccountabilityinanorganization,thewaytheorganization'sunitsrelatetoea
chother:centralized,functionaldivisions(top-
down);decentralized(thetrendinlargerorganizations);matrix,network,holding,etc.These
relationshipsarefrequentlydiagrammedinorganizationalcharts.Mostorganizationsuses
omemixofstructures-pyramidal,matrixornetworkedones-toaccomplishtheirgoals.

Structureofboardofdirectors-

Mr.Ranakapoor ManagingdirectorandCEO YESbankltd

Mr.Sipkoschat Nonindependentdirector Memberexecutiveboard,vi

cechairmanofrabobankint
ernational

Mr.wouterkolff Independentdirector FormerViceChairman-

29
 ManagingBoard,Raboban
kInternational,Holland

Mr.BharatPatel IndependentDirector NonExecutiveChairman,P

Chairman- rocter&Gamble,India
InvestorRelationscommitt
eeChairman-
ServiceExcellenceCommit
tee

Mr.S.LKapur IndependentDirector FormerSecretary,Govern

Chairman- mentofIndia,Departmentof
Audit&ComplianceCommit SmallScaleIndustries&Agr
teeChairman- oandRuralIndustries
BoardRemunerationCom
mittee

Mr.ArunKMago IndependentDirector FormerChiefSecretary,Go

vernmentofMaharashtra

MsRadhaSingh IndependentDirector FormerUnionAgricultureS

ecretary,GovernmentofInd
ia

MrAjayVohra IndependentDirector ManagingPartneroftheCor

porate,TaxandBusinessA
dvisoryLawfirm,VaishAsso
ciates

SKILLS

Highlyskilledcandidatesarerecruitedatvariouslevelsacrosstheorganization.Skillscanbe
classifiedbroadlyintohighlyskilledandsemiskilledroutinework.Varioustrainingprograma
reorganizedregularlytoimparttrainingneedsoftheemployees.

STYLE/CULTURE
Thecultureoftheorganization,consistingoftwocomponents:

30
 ● Organizationalculture:
thedominantvaluesandbeliefs,
andnorms,whichdevelopover
timeandbecomerelatively
enduringfeaturesoforganization
life.

● ManagementStyle:
Morematterofwhatmanagersdo
thanwhattheysayhowdoa
company‘smanagersspendtheir
time?Whataretheyfocusing
attentionon?

Symbolism–
thecreationandmaintenance(orsometimesdeconstruction)ofmeaningisafundamentalre
sponsibilityofmanagers.Buildingahighperformancecultureisanotherkeyprerogativeofth
eHRfunction.YESbankenvisageacredibleandtransparentperformancemanagementpr
ocessthathelpsinaligningindividualgoalswithcorporateobjectives,bothquantitativeandq
ualitative,andencouragescrosssellandteamspirit.YESbankperformancemanagementp
rocesswillbesupportedbyarobustrewardsandrecognitionstrategyforeachbusinessanda
marketbasedcompensationstructurethatisflexible,responsiveandhelpsretentionthroug
hassetbuildingandwealthcreationfortopperformers.

STRATEGY

Beingoneoftheleadingbankinginstitutionswitharichcultureofprofessionalismthebankha
svariousstrategiestotacklethecompetitorsinthemarket.Withthestrongfundamentalsdow
nfromtheBritishbankthebankhasfollowedastrategyofFormulatingtailormadeschemesth
atsuitthecustomers.Thebankhasthestrategytomakeuseofthegrowingpotentialoftherura
lsectoraswellastheglobalacademy,thebusinesslandscapewillbechangingmagicallyand

31
sowillthefinancialserviceneed.Thebankhasthestrategytoenhancethereachofanytimea
ndanywherebanking.It
hastheATM‘salmostinallthecitiesandingoodnumbers.Withthegrowingof
thenetbankingthebankhasseveralnewproductsandfacilitieswithstate-of-the-
artfacilities,enablingyoutoconductallyourbankingactivitiesusingyourpersonalcomputer
,fromthecomfortofyourhomeoroffice.Thusprovidingyouwithsecure,24houraccesstoally
ouraccountsfromanywhereintheworld.

UniqueAdvantages:

● SingleAccessKey:
OurrevolutionarytechnologyallowsyoutoaccessyouraccountwithyourdebitcardPIN.Jus
tlogontoourwebsite,selectInternetBankingservicesandkeyinyourCustomerIDanddebitc
ardPIN.OnsuccessfulvalidationyouwillbeallowedtoselectanInternetpassword.It'sthate
asy.

● SecureTechnology:
ForthefirsttimeinIndia,ourTwoFactorAuthorizationallowsfor"OneTimePasswords"forInt
ernetBankingtransactionauthenticationtobedeliveredviaSMStoyourMobilePhone.This
passwordenhancesyourInternetBankingsecurityandallowsyouthefreedomofbankingwi
thoutrememberingmultiplepasswords.

● InstantPaymentSolutions:
OurRealTimeGrossSettlement(RTGS)PaymentandElectronicFundsTransfer(EFT)faci
litiesallowyoutotransferfundstoownorthirdpartyaccountsinstantly.Youcanalsorequestf
ormultipleDemandDraftsatvariouslocationsandsetupstandinginstructionsforyouraccou
nttoexecuteroutinepayments

● 128bitSSLEncryption:
AhighlevelofencryptionstandardisusedforallourInternetBankingtransactions.Ensuringt
hattheinformationexchangedbetweenyouandtheBankiscompletelysecure.

STAFF
Thepeople/humanresourcesmanagement–
processesusedtodevelopmanagers,socializationprocesses,waysofshapingbasicvalue
sofmanagementcadre,waysofintroducingyoungrecruitstothecompany,waysofhelpingt
omanagethecareersofemployees.
YesBankisoneofthemostaggressivebanksintheindustrywithstifftargetsfor
employees.YesBank‘stotalemployeestrengthstandsat3,150.Thebank‘sfourth
-quarterearningsjumped108.7%toRs64.5crorecomparedwithRs30.9croreayearago.

32
YesBankenvisagedthatforanindividualtoworkwiththeorganizationinperfectsynergy,his/
hergoalshadtobelinkedwiththegoalsoftheorganization.Thisprocessofaligningindividual
andorganizationalgoalswastermedastheperformancemanagementprocess.Themaino
bjectiveoftheseinnovativeperformancemanagementpracticeswastoencouragetheempl
oyeestothinkinnovatively.

SHAREDVALUE
Thebankaimedatbuildingaculturetoinculcateprofessionalentrepreneurshipinthemtoma
kethemselvesandtheshareholdersprosperous.ThepushforaperformancecultureatYes
BankcamerightfromthetopandwasreflectedinKapoor'sleadershipstyle.
YesBankhasplannedtosteadilyincreaseitspresenceinretailbusiness.Earlierbankhaspur
poselymaintainedalow-
keypresenceintheretailmarket,nowisplanningtoincreaseexposureinthissegment.When
askedisthebankplanningtoforayintohousingloanandcarloansegments,
Kapoorreplied,―Wecertainlyplantoforayintothesetwosegmentsofretaillending.Butbefo
rewegoforit,wewilltrytoincreaseourpresenceinacrossthe
country".
Thebankhadaggressiveplansforthefutureandplannedtohave150branchesby2010and4
00branchesby2012.ThereistremendousscopeforYesBank'sgrowthasitwastryingtotake
careofthelatentneedsofthecustomerswithhighlyskilledandinvolvedemployees.
CurrentlyYesBankislendingmainlytobigcompaniesfollowedbymid-
sizecompaniesandthesmall-
scalesector.Atpresentthebank'sretailportfolioismerely1%ofitstotalloanportfolio,includin
gmainlypersonalloans.InthebusinesssegmentYesBankmainfocusisonthetransportatio
nsector,includingroadsandrailways;powersector,mainlyrenewableenergy;telecomand
agri-infrastructureamongothers.

2.RESEARCHMETHODOLOGY

2.1.STATEMENTOFTHEPROBLEM

AsthereareimmenseopportunitiesofretailbankinginIndia.Thisprojectisontheissuesandchalleng
esintheretailbankingbecauseofthecompetitionofthevariousbanksandthecustomersatisfactiono
ftheserviceswhichthebanksareprovidingandatthesametimetosolvethecomplaintsofthecustome
randmaintainingthesoundrelationshipforthefutureandbythiswaytoestimatethefuturegrowthofth
eretailbanking.

2.2.OBJECTIVESOFSTUDY

1.Tostudytheissuesandchallengesinretailbanking.

2.Tostudytherecenttrendsinretailbanking.

33
3.Toensurehighsatisfactionlevelandreducethepercentageofcomplaintsofcustomersinretailban
king.

4.ToestimatethefuturegrowthofIndianretailbanking.

5.TounderstandOptimizationofretailbankingchannels.

6.TosuggeststrategiesforimprovementinCustomerService.

2.3.LIMITATIONS

1.Designingownandnewfinancialproductsisverycostlyandtimeconsumingforthebank.

2.Customersnow-a-
daysprefernetbankingtobranchbanking.Thebanksthatareslowinintroducingtechnology-
basedproducts,arefindingitdifficulttoretainthecustomerswhowishtooptfornetbanking.

3.Customersareattractedtowardsotherfinancialproductslikemutualfundsetc.

4.Thoughbanksareinvestingheavilyintechnology,theyarenotabletoexploitthesametothefullexte
nt.

34
5.Amajordisadvantageismonitoringandfollowupofhugevolumesofloanaccountsinducingbankst
ospendheavilyinthehumanresourcedepartment.

6.Longtermloanslikehousingloansduetoitslongrepaymenttermintheabsenceofproperfollow-
up,canbecomeNPAs.

7.Thevolumeofamountborrowedbyasinglecustomerisverylowascomparedtowholesalebanking
.Thisdoesnotallowbankstoexploittheadvantageofearninghugeprofitsfromsinglecustomersasin
caseofwholesalebanking.

2.4.DATACOLLECTION

Thereareseveralapproachestodatacollection.Theprimarysourcesofdatacollectionaredonethro
ugh–

Observation

Questionnaire:

35
Questionnaireisthemethodofdatacollection,whichisverymuchpopular,particularlyinbigcities.Dif
ferentmodesofquestionsareputuponthepaperandtheparticularuniverse,onwhichtheresearchis
conducted,areaskedtofilltheirresponsesTheSecondarysourceincludesdatacollectionthrough:

Magazines

CompanyWebsite

DATACOLLECTIONMETHOD

Thetwomainsourcesofdatacollectionare-

1.PrimaryData:
Thedataarecollecteddirectlyfromtheuniversebyconductinginterviews,etc.thesearetheoriginals
ourcesfromwhichtheresearcherdirectlygathersdatawhicharenotpreviouslyreferred.Allthepeopl
efromdifferentprofessionwerepersonallyvisitedandinterviewed.Theywerethemainsourceofpri
marydata.Themethodofcollectionofprimarydatawaspersonaldirectinterviewthroughastructured
questionnaire.
Theprimarydatawascollectedbymeansofsurvey.
QuestionnaireswerepreparedandcustomersofYESbankwereapproachedtofillupthesequestion
naires.Thefilledupinformationwaslateranalyzedtoobtaintherequiredinformation.

2.SecondaryData:
Thedataarecollectedfromthesecondarysourcessuchasmagazines,journals,etc.Thesesourcesc
onsistofalreadyvariabledataintheformofstatements,andreports,whichmayincludesensoryrepor
ts,financialstatementsofthecompany,reportsofgovernmentsdepartments,etc.

Itwascollectedfrominternalsources.Thesecondarydatawascollectedonthebasisoforganizationa
lfile,officialrecords,newspapers,magazines,
managementbooks,preservedinformationinthecompany‘sdatabaseandthe
websiteofthecompany.BothPrimaryandSecondarysourceswasusedfordatacollection.
Forprimarysource,Questionnairewasused.ForsecondarysourceInternet,Magazines,andNews
paperetcwereused.

2.5.OPERATIONALDEFINITION

Retailbankingreferstobankinginwhichbankinginstitutionsexecutetransacti
onsdirectlywithconsumers,ratherthancorporationsorotherbanks.Services
offeredinclude:savingsandcheckingaccounts,mortgages,personalloans,d
ebitcards,creditcards,andsoforth.Andto
knowaboutthecustomer‘sperceptionsaboutthe

36
differentproductsofthebanklikecurrentaccount,savingsaccount,FD,Smart
Saver,SmartAccessandothers.

2.6.SWOTANALYSIS

STRENGTHS:

● Ithasanextensivedistributionnetworkcomprising132branchesin88locations.

● TheBankhasastrongretaildepositorybase&hasgoodnumberofcustomers.

● Bankboastsofastrongbrandequity.

● ISO9001certificationforitsdepository&custodyoperations&foritsbackendproces
singofretailoperation&directbankingoperation.

● Thebankhasanearcompetitiveedgeinareaofoperations.

● Thebankhasamarketleaderincashsettlementserviceforthemajorstock
exchangesinitscountry.

● YESBankisoneofthelargestprivatesectorbankworkinginIndia.

● Ithasahighlyautomatedenvironmentintermsofinformationtechnology&communi
cationsystem.

● Infrastructureisbest.

● IthasmanyinnovativeproductslikekidsAdvantagescheme,NRIservices.

WEAKNESS:

● Sometimeaccountopeninganddeliveryofchequebooktakecomparativelymoreti
me.

● LackofavailabilityofdifferentcreditproductslikeCCLimit,Billdiscountingfacilities.

OPPORTUNITY:
● Branchexpansion

● Doorstepservices

37
 ● GreaterliberalizationinforeignownershipviaFDIinIndianPvt.SectorBanks.

● CC/OFFacilities.

● Infrastructureimprovements&bettersystemsfortrading&settlementinthegovt.sec
urities&foreignexchangemarkets.

THREATS:
● ThebankhasstartedfacingcompetitionfromplayerslikeSBI,PNBBankinthefinanc
emarketitself.Thisreducetheprofitmarginsinthefuture.

● SomePvt.Bankshave7daysbanking.

2.7.Hypothesis

Hypothesistestingisatechniquethroughwhichsomeclaimscanbeprovedordisproved.Itis
alogicaltestoffindingsandconclusions.Forthepresentstudythefollowinghypothesisarefo
rmulated.

Hypothesis-1
(NullHypothesis)H0–PeoplearenotsatisfiedwiththeexistingserviceofInternetBanking

(AlternativeHypothesis)H1–
PeoplearesatisfiedwiththeInternetBankingServicethattheyUse.

38
Hypothesis-2
(NullHypothesis)HO-
ThereisnoSignificantdifferencebetweenfinancialperformanceofyesbank.

(AlternativeHypothesis)H1-
ThereisSignificantdifferencebetweenfinancialperformanceofyesbank..

3.Literaturereview-
Josephm.Etal(1999)-
ThestudyinvestigatesroleoftechnologyonAustralianbankingsectorand300
customersweresurveyed.thefindingssuggestedthatexceptfromconvenienc
e/accuracyandefficiencye-
bankingservicesdidnotmatchwithimportanceratingspecifiedbycustomers.

Lassar,EtAl(2000)-
Thestudycomparedtwomodels,thatis,SERVQUALandtechnical/
functionalqualitymodeloftechnologyusing65bankcustomersusingSERPE
RFSCALE.Thefindingsrevealedthattechnical/
functionalqualitymodelwasbetterthanSERVQUALbecauselatterwaslackin
gtechnicaldimensions.2modelswere
havingdistinctanduniquestrengthformeasuringservicequalityaspects.

Bahia,KAndJNantel(2000)-
Thepapersuggestedanalternativescaleformeasuringservicequalityinretail
banking.thestudydevelopedascalecalledasbankingservicequalityscalewhi
chcontainedfactorslikeeffectivenessandassurance,access,price,tangibles
,serviceportfolioandreliability.thismodelwasfoundtobemorereliablethan
SERVQUAL.

Jamal.A.,Naser.K.,(2002)-
Thestudyexaminedkeydriversofcustomersatisfactionusing167customersa

39
nditwasfoundthatcoreandrelationalperformanceshadimpactoncustomersa
tisfactionandtherewasnegativerelationshipbetweencustomerexpertise
andcustomersatisfaction.

SureshchandarEtAl(2002).-
Thestudyexaminedrelationshipbetweenservicequalityandcustomersatisfa
ctioninindianbankingsector.thesewerefoundtobeindependentbutcloselyrel
ated.Bothconstructsvarysignificantlyincoreservices,humanelement,syste
matizationofservicedelivery,tangiblesandsocialresponsibility.
GaniA,MushtaqBhatt(2003)-
Thestudyisconductedtodoacomparativestudyof
servicequalityofcommercialbanksanditsdimensionsincommercialbanks.s
ervqualisusedandsamplesizewas800customers.thestudyfoundoutthatciti
bankandstandardcharteredbankaregoodintangibilityandinreliabilityalsoth
eyaregood.in
responsivenessparameterindianbanksareinferiortoforeignbanks.inassura
nceandempathyindianbanksareinferior.

NavdeepAggarwalAndMohitGupta(2003)-
Thisstudybasicallyfindsouttheprimarydimensionsandsubdimensionsofser
vicequality.informalstructuredinterviewsareconductedwithbranchmanager
sandacademicianstoformulateabankingservicequalitymodel.thestudyfoun
doutthatservicetimeandpersonalinteractionsareveryimportantalongwitha
mbienceforservicequality.

Zhou,L(2004)-
Thestudyanalysedimpactofservicequalityinbanksoncustomersatisfactioni
nchina’sretailbankinganditwasfoundoutthatreliabilityandassurancewereth
eprimarydriversofcustomersatisfaction.itwasalsofoundoutthatthereweresi
gnificantvariationsinexpectationsandperceptionsincustomers.

AroraS(2005)-
Thisstudyanalysedfactorsinfluencingcustomersatisfactioninpublicsector,p
rivatesectorandforeignbanksinnorthernindia.300customersweregivenque
stionnaireswhichreveledthatsignificantdifferencesexistincustomersatisfac
tionlevelofcustomersineachgroupofbanksregardingroutineoperationandsit
uational

40
andinteractivefactors.foreignbankswerefoundtobetheleadersinmechaniza
tionandautomation.

DebashisAndMishra(2005)-
Thestudyanalysedandmeasuredcustomersatisfactioninbranchservicespr
ovidedbynationalizedbanksinnorthernIndia.1200customersweregivenque
stionnairesanditwasfoundoutthatcomputerization,accuracyintransactions,
attitudeofstaffandavailabilityofstaffinfluencedcustomersatisfaction.
leastimportantfactorwaspromotionoftheproductsandvariousschemes.

MushtaqMBhat(2005)-
Thisstudyfindsoutservicequalityparametersinbankthroughservqualandinfl
uenceofdemographicvariables.thestudywaslimitedtoSBI,PNB,JammuAnd
Kashmirbankcitibankandstandardcharteredgrindlay’sbank.samplesizewa
s800andstudyfoundoutthatforeignbanksarebetterthanindianbanks.sbiwas
foundtoberelativelypooronreliabilityandresponsiveness.banksindelhiwere
comparativelybetterin-servicequality

41
4.DATAANALYSISANDINTERPRETATION-

Balancesheetofyesbankltd
Particulars(rsincr) 2023 2022 2021

Sourcesoffunds 2510.09 463.01 460.59

Sharecapital 19216.20 26441.19 25297.69
Reserves 21726.29 26904.20 25758.28
Totalshareholdersfunds 113790.50 108424.11 74893.58
Securedloans 105363.94 227610.19 200738.16
Unsecuredloans 219154.44 336034.30 275631.74
Totaldept 240880.73 362938.50 301390.02
Totalliabilities
Applicationoffunds 2108.23 1848.68 1561.08
Grossblock 293.36 49.98 71.56
Capitalworkinprogress 43914.83 89522.03 68398.94
Investments
Currentassets,loansandadva 0.00 0.00 0.00

42
nces
Inventories 0.00 0.00 0.00
Sundrydebtors 8383.01 26889.51 24734.37
Cashatbank 204520.00 263597.63 218479.91
Loansandadvances 212903.01 290487.14 243214.28
Totalcurrentassets
Currentliabilitiesandprovisio 16946.18 17887.68 11055.60
ns
Currentliabilities 0.00 0.00 0.00
Netcurrentassets 195956.83 272599.46 232158.68
Miscellaneousexpensesnotw 0.00 0.00 0.00
rittenoff
Deferredtaxasset N/A N/A N/A
Deferredtaxliability N/A N/A N/A
Netdeferredtax N/A N/A N/A
Otherassets 33076.71 22098.02 14946.04
Totalassets 240880.75 362938.49 301390.01

43
Profitandlossa/cofyesbankltd

Parameter Mar'23(incr) Mar'22(incr)

1.INCOME
Interestearned 29,624.75 20,267.42
Otherincome 4,590.15 5,223.83
Totalincome 34,214.90 25,491.25
2.EXPENDITURE
Interestexpended 19,815.72 12,530.36
Operatingexpenses 6,264.28 5,212.78
PBIT 8,134.91 7,748.11
ProvisionsandContingencies 5,777.56 1,553.80
ProfitBeforeTax 2,357.35 6,194.31
Taxes 637.07 1,969.75
Total 32,494.62 21,266.69
3.PROFIT&LOSS
PAT 1,720.28 4,224.56
ExtraordinaryItems 0.00 0.00

44
 Profitbroughtforward 10,375.30 7,933.39
AdjustedNetProfit 0.00 0.00
TotalProfit&Loss 1,720.28 4,224.56
Appropriations 12,095.58 12,157.96
EquityDividend(%) 100.00 135.00
EarningsPerShare(in₹) 7.43 18.34
BookValue(in₹) 116.22 111.85
PLANOFANALYSIS
Thedataobtainedfromthestructuredquestionnairewasinterpretedandrecor
ded.Thetableandgraphwereconstructedusingdatafromthequestionnaireth
roughsimpletechniqueslikeaverage,percentage,ratiosetc.whichwasthenu
sedforanalyzingtheacquireddata.

● Marketcapitalofyesbank

45
Interpretation-
Inthisfiguremarketcapitalofyesbankiscomparedwiththeotherbanks,thisdataisbasedont
he2018senses,asshownthecapitalofyesbankismorethanbandhanbank,bankofbarodaa
ndidbibank,butithaslesscapitalascomparedtohdfc,sbi,kotakmahindra,icici,indusindand
axisbank.Yesbankhadlesscapitalinthemarketasshownlessthan100000(crore).Itisthe7t
hlargestbankinIndia.In2018hdfcwasrankingatthe1stplaceasithadhighestcapitalinthem
arket.

● Moreservicesrequiredfromthebank

Interpretation-
Justsatisfiedneedmore 46%

Wellsatisfied 27%

Desiremorebenefits 27%

Asshowninthefig46%ofthecustomersrequiremoreservicesortheyarejustsatisfiedwithth
eservicesprovidedbythebank.Thereare27%whoaresatisfiedwiththebankintermsofretur
ns,services,etc,andalso27%ofthecustomerssaythattheyrequiremorebenefitsasbeingp
rovidedtothemearlier.

46
 ● Organizationmanagementstructure-

Interpretation-
Abovefigdescribesthestructureoftheorganizationoftheyesbank.Thetoplevelmanageme
ntconsistsof101peoplewhocanbecalledthemainpillarsofthecompany.Afterthemtheseni
orssectionconsistof221employees,themiddlesectionhas2,956staff,afterthemarethejun
iorstaffwhichconsistoflittleexperiencedperson,whoareawareoftheirduties,etc.Atlastthe
reisageneralsectionwherethenewcomersorthefreshersarerecruited.Itcanalsohavesale
s,marketing,fieldworktypesofpeople.Intotalthereare20,125peopleworkingfortheyesba
nk.

● Yesbankprogress-

47
Interpretation-
Theabovediagramdescribesthegrowthofbranchesoftheyesbankinaccordancetotheiroutreach.Ou
treachmeanstheactivityofprovidingservicestoanyotherpopulationthatmightnototherwisehaveac
cesstothoseservices.Intheperiodofoneyearithadahugegrowthintheiroutreachandalsotheyhadthe
irincreasingbranches.Aswecanseetheredlinegoingupwardsitdescribesthegrowthoftheyescomm
unity.

● Depositsofyesbank-

48
Interpretation-
Thisfigureshowshowthedepositsofyesbankincreasedascomparedtothepastyears.In20
10thedepositswereapproximately25(in'000cr)andin2017wecanseethatitreachedto200
(in'000cr).Injust7yearsithadagreatriseintheirdeposits.Asthecompanyhadstartedgainin
gtrustofthecustomerstherewerelotsofpublicwhomovedtheirwaytoyesbank.Duringthese
7yearsthecompanyneverhadadownfallbutconstantlyitwasgoingupwards.

49
Interpretation-
Fixeddeposits 64%

Currentdeposits 14%

Savingdeposits 22%

Thispiechartshowsthepercentageofdepositsdepositedbythecustomers.Thisfiguresho
wsthatthecompanyhadahugeamountoffixeddepositsascomparedtotheothertwo.Ithadl
essamountofcurrentdepositandalittlemorethancurrentassetswerethesavingsdeposits.

OPPORTUNITIESANDCHALLENGES

RetailbankinghasimmenseopportunitiesinagrowingeconomylikeIndia.Asthegrowthstor
yunfoldsinIndia,retailbankingisgoingtoemergeamajordriver.Howdoestheworldviewus?
TheBRICreportisviewingIndiaasaneconomicsuperpower.A.T.Kearney,aglobalmanage
ment-consultingfirm,
recentlyidentifiedIndiaasthe―secondmostattractiveretaildestination‖of30
emergentmarkets.TheriseoftheIndianmiddleclassisanimportantcontributoryfactorinthi
sregard.Thepercentageofmiddletohigh-
incomeIndianhouseholdsisexpectedtocontinuerising.Theyoungerpopulationnotonlywi
eldsincreasingpurchasingpower,butasfarasacquiringpersonaldebtisconcerned,theyar
eperhapsmorecomfortablethanpreviousgenerations.Improvingconsumerpurchasingp
ower,coupledwithmore
liberalattitudestowardspersonaldebt,iscontributingtoIndia‘sretailbanking
segment.Thecombinationofabovefactorspromisessubstantialgrowthintheretailsector,
whichatpresentisinthenascentstage.Duetobundlingofservicesanddeliverychannels,the
areasofpotentialconflictsofinteresttendtoincreaseinuniversalbanksandfinancialconglo
merates.Someofthekeypolicyissuesrelevanttotheretail-
bankingsectorare:financialinclusion,responsiblelending,andaccesstofinance,long-
termsavings,financialcapability,consumerprotection,regulationandfinancialcrimepreve
ntion.

Whatarethechallengesfortheindustryanditsstakeholders:

50
First,retentionofconsumersisgoingtobeamajorchallenge.AccordingtoaresearchbyRiec
hheldandSasserintheHarvardbusinessreview,5percentincreaseincustomerretentionca
nincreaseprofitabilityby35percentinbankingbusiness,50percentininsuranceandbroker
age,and125percentintheconsumercreditcardmarket.Thus,banksneedtoemphasizeonr
etainingconsumersandincreasingthemarketshare.

Second,risingindebtednesscouldturnouttobeacauseforconcerninthefuture.
India‘sposition,ofcourse,isnot
comparabletothatofthedevelopedworldwherehouseholddebtasaproportionofdisposabl
eincomeismuchhigher.Suchascenariocreateshighuncertainty.Expressingconcernsab
outthehighgrowthwitnessedinconsumercreditsegmentsthereservebankhas,asatempor
arymeasure,putinplaceriskcontainmentmeasuresandincreasedtheweightfrom100perc
entto125percentinthecaseofconsumercreditincludingpersonalloansandcreditcards.

Third,informationtechnologyposesbothopportunitiesandchallenges.EvenwithATMmac
hinesandInternetBanking,manyofthecustomersstillpreferthepersonaltouchoftheirneigh
borhoodbranchbank.Technologyhasmadeitpossibletodeliverservicesthroughoutthebr
anchnetwork,providinginstantupdatestocheckingaccountsandrapidmovementofmone
yforstocktransfers.However,this
dependencyonthenetworkhasbroughtITdepartment‘sadditionalresponsibilitiesandchal
lengesinmanaging,maintainingandoptimizingtheperformanceofretailbankingnetworks.

FUTUREOFRETAILBANKING

Howdoweseethefutureofretailbanking?
Whatarethemajorattributesoftheshapeofthingstocomeinthissector?

First,customerserviceshouldbethebe-allandend-
allofretailbanking.TheotherdayadocumentreleasedbytheBritishBankersAssociation,entitledU
KRetailBankingManifesto:addressingthechallengesthatlieaheadfortheindustryanditsstakehold
ersonSeptember29,2004cametomynotice.Thisdocumentanalyzedthekeypolicyissuesrelevantt
otheretailbankingsectorandhighlightedtheroleoffinancialinclusion,responsiblelending,accesst
ofinance,andconsumerprotection.Itisinthiscontextthatthatoneisremindedoftheneedstodevelop
thestandardsandcodesforbanking.ThecontributionoftheCommitteeonProcedure&Performanc
eAuditonPublicServices(CPPAPS)
(Chairman:ShriS.S.Tarapore)hasbeeninvaluableandhasprovidedgreatinsight.Basedontherec
ommendationoftheCPPAPS,theAnnualPolicyStatementfor2005-
06announcedthedecisiontosetupanindependentBankingCodes&StandardsBoardofIndiaonthe
modelofthemechanismintheUKinordertoensurethatcomprehensivecodeofconductforfairtreatm
entofcustomersisevolvedandadheredto.Thecodesandstandards,togetherwiththeinstitutionalm
echanismtomonitorthem,areexpectedtoenhancethequalityofcustomerservice,totheindividualc

51
ustomerinparticular.Thecodeswillbringaboutgreatertransparencyinthesystemandalsotackleth
eissueofinformationasymmetry.
TheBoardwouldfunctionasanindustry-
widewatchdogofthebankingcodeandensurethatthebankscomplywiththebankingcodes.Thecod
es
wouldestablishthebankingindustry‘skeycommitmentsandobligationsto
customersonstandardsofpractice,disclosureandprinciplesofconductfortheirbankingservices.T
heBoardwillmonitorcompliancewiththeCodesbytheaffiliatedbanks..

Second,sharingofinformationaboutthecredithistoryofhouseholdsisextremelyimportantasfarret
ailbankingisconcerned.Perhapsduetheconfidentialnatureofbanker-
customer,bankshaveatraditionalresistancetosharecreditinformationontheclient,notonlywithon
eanother,butalsoacrosssectors.Globally,CreditInformationBureaushave,therefore,beensetupt
ofunctionasarepositoryofcreditinformation-
bothcurrentandhistoricaldataonexistingandpotentialborrowers.Thedatabasemaintainedbythes
einstitutionscanbeaccessedbythelendinginstitutions.CreditBureaushavebeenestablishednoto
nlyincountrieswithdevelopedfinancialsystemsbutalsoincountrieswithrelativelylessdevelopedfi
nancialmarkets,suchas,SriLanka,Mexico,BangladeshandthePhilippines.InIndiancase,theCre
ditInformationBureau(India)Limited(CIBIL),incorporatedin2000,aimsatfulfillingtheneedofcredit
grantinginstitutionsforcomprehensivecreditinformationbycollecting,collatinganddisseminating
creditinformationpertainingtobothcommercialandconsumerborrowers.Atthesametimebanksm
ustexerciseduediligencebeforedeclaringaborrowerasdefaulter.

Third,outsourcinghasbecomeanimportantissueintherecentpast.Withtheincreasingmarketorien
tationofthefinancialsystemandtocopewiththecompetitionasalsotobenefitfromthetechnologicali
nnovationssuchas,e-
banking,thebanksaremakingincreasinguseof"outsourcing"asameansofbothreducingcostsand
achievingbetterefficiency.Whileoutsourcingdoeshavevariouscostadvantages,ithasthepotential
totransferrisk,managementandcompliancetothirdpartieswhomaynotberegulated.ArecentBISR
eporton―OutsourcinginFinancialServices‖developedsomehigh-
levelprinciples.Abasicrequirementinthiscontextisthataregulatedentityseekingtooutsourceactivi
tiesshouldhaveinplaceacomprehensivepolicyonoutsourcingincludingacomprehensiveoutsour
cingriskmanagementprogrammetoaddresstheoutsourcedactivitiesandtherelationshipwiththes
erviceprovider.ApplicationoftheseprinciplesintheIndiancontextisunderconsideration.

Finally,retailbankingdoesnotrefertolendingonly.Inthewholestoryofretailingoneshouldnotforgett
heroleplayedbyretaildepositors.Thehomemaker,theretailshopkeeper,thepensioners,self-
employedandthoseemployedinunorganizedsector-
allneedtogetaplaceinthebanks.ItisinthisbackdropthattheAnnualPolicyfor2005-
06pointedoutissuesrelatingtofinancialexclusionandhadannouncedthattheRBIwouldimplement
policiestoencouragebankswhichprovideextensiveserviceswhiledisincentivisingthosewhichare
notresponsivetothebankingneedsofthecommunity,includingtheunderprivileged.Furthermore,t
henature,scopeandcostofservicesneedtobemonitoredtoassesswhetherthereisanydenial,impli
citorexplicit,ofbasicbankingservicestothecommonpersonandbankshavebeenurgedtoreviewth
eirexistingpracticestoalignthemwiththeobjectiveoffinancialinclusion.

52
5.Summaryoffindings

● Infigno.1,yesbankisatthe7thpositionintheircapitalinvestmentinthemarket.
● Infigno.2,thecustomerswishforbetterservicesthanbeingprovided.
● Infigno.3,istheorganizationalstructureoftheyesbankwhichshowsthetotalnumber
ofworkingpeopleinthemainbank.I.e20,125*
● Infigno.4,thegrowthoftheyesbankbranchesistill1200anditsoutreachis3000000a
ndabove
● Infigno.5,thedepositsoftheyesbankisabout200(incrores).
● Infigno.6,fixeddepositsofyesbankwereatitspeakascomparedtocurrentandsavin
gs.

6.Suggestions

Suggestionsarealwaysconsideredtobethemostimportantpartofanyprojectr
eportbecauseforeveryprosthereareconsassociatedwithandtoreducetheeff
ectofthelatter,followingsuggestionsmustbetakenintoconsiderationinregard
toretailbanking.

● Withreferencetofig1themarketcapitalofyesbankislessascomparedto
otherbanks,itshouldbringmorecustomerbeneficiarypoliciessothatthe
ycangainmoreofcapital.

● Withreferencetofig2thebankshouldhavealookattheservicesbeingpro
videdtothecustomers,itcanbeabigreasonforprofitsofbanks.

● Withreferencetofig6itcanbeseenthatthecurrentdepositsareless,whic
hcanaffectcompanyincome,becausecurrentaccountsareforbusiness
purposesandtheyplayavitalroleinthemarket.

7.CONCLUSIONS–FUTUREGROWTH

53
TheprojectaimstostudytheretailbankingoperationsofYESBANK.Thestudywasveryfruitf
ul,ityieldedthedesiredresults,andhelpedmeunderstandretailbanking.Thestudyalsohelp
sinwhatarethecustomeropinionstowardsoperationsofbank&itsvariousproductandservi
ces.Anyseriousdiscussionofthefutureoftheretailbankingindustryeventuallyraisesabasi
cquestion:willfuturecustomersstillneedretailbanks?
Theanswer,itturnsout,dependsonbanksthemselves.Withtechnologyandnonblankbusin
essesprovidingnewoptionsforsafeguardingandmanagingtheirfinances,customerswillc
ontinuetodependonbanksonlyaslongasbankscanprovideserviceandvaluethatcannotb
efoundanywhereelse.Theneedtobecomehighlycustomerfocusedhasforcedtheslow-
movingpublicsectorbankstoadoptafasttrackapproach.Theunleashingofproductsandse
rvicesthroughthenethasgalvanizedplayersatalllevelsofthebankingandfinancialinstitutio
nsmarketgridtolookanewattheirexistingportfoliooffering.Conservativebankingpractices
allowed.IndianbankstobeinsulatedpartiallyfromtheAsiancurrencycrisis.Indianbanksare
nowquotingathighervaluationwhencomparedtobanksinotherAsianCountries(viz.Hong
Kong,Singapore,Philippinesetc.)thathavemajorproblemslinkedtohugeNonPerforming
Assets(NPAs)andpaymentdefaults.Co-
operativebanksarenimblefootedinapproachandarmedwithefficientbranchnetworks
focusprimarilyonthe"highrevenue"nicheretailsegments.

TheIndianbankinghasfinallyworkeduptothecompetitivedynamicsofthe"new"
Indianmarketandisaddressingtherelevantissuestotakeonthemultifariouschallengesofgl
obalization.BanksthatemployITsolutionsareperceivedtobe
"futuristic"andproactiveplayerscapableofmeetingthemultifariousrequirementsofthelarg
ecustomer‘sbase.YESBANKhasagreatopportunitytoincreasetheirmarketpotentialinthe
presentmarketsituation.

8.LEARNINGEXPERIENCE

54
TheDissertationistodefineretailbankingandregardingthegeneralservicesofabank.Thest
udywasveryfruitful,ityieldthedesiredresult,andhelpedmetounderstandthebankingservi
cesbetter.Thestudyalsoyieldwhatarethefactorsthatbankingarelookingforwardtoforthec
ustomer.TheIndianbankingindustryhascomealongwayfrombeingasleepybusinessinstit
utiontoahighlyproactiveanddynamicentity.Thistransformationhasbeenlargelybroughta
boutbythelargedoseofliberalizationandeconomicreformsthatallowedbankstoexplorene
wbusinessopportunitiesratherthangeneratingrevenuesfromconventionalstreams(i.e.b
orrowingandlending).ThebankinginIndiaishighlyfragmentedwith30bankingunitscontrib
utingtoalmost50%ofdepositsand60%ofadvances.Industryestimatesindicatethatoutof2
74commercialbanksoperatinginIndia,223banksareinthepublicsectorand51areinthepriv
atesector.Theprivatesectorbankgridalsoincludes24foreignbanksthathavestartedtheiro
perationshere.Undertheambitofthenationalizedbankscomethespecializedbankinginstit
utions.
thebankgivesgreatimportancetowardscustomersatisfaction.Theseniorstaffwiththeirbu
syscheduletrytoadvisethecustomeronhowtoinvestinabetterway.\
Theemployeesinthebankarewellbehavedandgiveagreatdealofsatisfactiontoseehowth
eyapproachtheircustomers.Thebankplaysanimportantrolenotonlytofulfilltheirdutiestow
ardscustomerbutalsotounderstandthembetterregardingwhattheywantandhowtomaxim
izethereturnontheinvestment.Thebankhassetupaseparatedepartmentfortheimparttrai
ningprogramfortheemployees.Thebiggestachievementistheimplementationofthecoreb
ankingsolution.

9.Bibliography

● http://economics.about.com/cs/finance/a/india_banking_2.htm

● http://www.expresscomputeronline.com/20020610/opinion2.shtml

● http://www.yesbank.com/citizen_charter.htm

● http://www.vyapaarasia.com/india/banks.asp

● http://www.indianexpress.com/ie/daily/20001222/focus10.htm

● http://www.peoplesmarch.com/archives/2001/feb2k1/banking.htm

● http://www.onlinebangalore.com/fina/pro_yes.html

● http://www.yesbank.com/loan.htm#yesSHELTER

● http://www.moneycontrol.com/

55
● http://www.yesbank.com/international_banking.htm#PRODUCTS

56