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Yes Bank: Differentiation in Over-Competitive Market

Rajnandan Patnaik*

Case Study

The bank has grand plans for the future. Our mission is to build the finest quality brand in banking. We don’t want to be a production factory. We want to be good distributors. – Rana Kapoor, Yes Bank’s Founder, MD and CEO (in 2007) Achieving Business Excellence through effective Relationship Management has been at the epicenter of our business strategy… Yes Bank will emerge even stronger in the future to become India’s best private, relationship-driven Banking organization, and steadily achieve our ultimate vision of developing into ‘The Best Quality Bank in the World in India’. – Rana Kapoor, Yes Bank’s Founder, MD and CEO (in 2009)

Yes to Banking Services in India
In 2009, Yes Bank was rated the #1 mid-sized bank (balance sheet less than 24,000 crore) at the Business Today in the KPMG India’s Best Bank Awards, 2009. It was also ranked the #1 fastest growing bank by Business Today and Financial Express and bagged the Fastest Growing Bank Award (balance sheet less than 30,000 crore) at the business world best bank awards. It also was rated #1 on credit quality by Financial Express and new economy rated Yes bank as the most innovative bank in India. Moreover, some of these awards and accolades seem to come every year to Yes bank, a ratification of good work that they do, by the industry (see Appendix 1 for more details). These achievements, year-on-year feels taller when one realizes that this bank started nearly a decade later than the other private sector banks. In 2000, when Yes Bank made its intentions clear of entering the Indian banking sector, many felt that the bank and its promoters are over-optimistic in a highly crowded and competitive Indian banking sector. Being a later entrant in a sector where large private and public sector banks ruled the roost, the bank had two choices—either to be a me-too bank that emulates and provides similar services that others on an aggregate do; or else to tread the difficult path of strong differentiation, where the services and offering of the bank are unique. The bank chose the later and this uniqueness was termed by the bank as the ‘knowledge banking approach’. The support for knowledge banking approach was to be leveraged on information technology and human resources. The bank decided to provide specialized critical services to high potential and growing industries through its own expert personnel. This required the bank to hire domain experts from the industry and leverage their services through efficient use of technology. Information technology was
* Faculty of Strategy, IBS, Hyderabad, India. E-mail: Case Study . All Rights Reserved. © 2011 IUP 61

VIII. to the point of providing independence to the employees towards new initiatives and projects. with lower coffers. the banks remained conservative in their services. but the socialistic development forced the Indian banking system to be there even in the remote part of the country. from 1969 to 1991. The Banking Companies Act was introduced in 1949. 2. Canara Bank and Bank of Mysore were created. in operation and subsequently banking was seen as a necessity for businesses or traders only. when banks played a major role in reconstruction and growth of the newly independent country. which some feel was the deciding factor in India’s growth. Subsequently. Indian Banking Sector The Indian banking sector might have started to provide banking for the industry and a few groups of elitists who mattered. and offer other innovative solutions. but the spread to 62 The IUP Journal of Business Strategy. The bank decided to outsource the information technology function but retained the human resources (domain experts). the decision of the government to further opening up of the sector to foreign multinational banks will create more pressure on the Indian banking sector and all the banks therein. Bank of Baroda. although banking was seen by people as a necessity. heighten security. Even after the banks were nationalized. the central banking regulatory and controlling authority. However. Although the bank had been noticed in the market.also used by the bank to be efficient in ease of transactions. The bank went on to adopt fair and employee-friendly human resource practices. but the services by the banks were never given importance. With the economic slowdown. The Nationalization of banks in 1969 also benefitted the economy at that time and subsequently with the opening up of the sector from 1991 showed the willingness of the government to change with the times. This ensured the spread and extensive reach of banking. from 1991 till now. it sure is testing time for smaller banks. Moreover. The year 1969 saw the nationalization of banks as the answer to the public sector and government support. which was later amended to the Banking Regulation Act in 1965. The establishment of three banks – Bank of Bengal. Impressive growth—when being small is much easier than when you are large. especially as a reaction to the failures of small banks. It was not until 1935 that the central bank—Reserve Bank of India was established. 2011 . Allahabad Bank. During this period. No. Bank of Bombay and Bank of Madras by the East India Company. giving the Reserve Bank of India. as consolidation in the industry seems to be the ‘writing on the wall’. Bank of India. Vol. Central Bank of India. lower costs. The General Bank of India. many felt that the bank has to go a long way before it becomes a formidable player to bigger private banks such as ICICI and to bigger public sector banks such as State Bank of India. the services went on more-or-less in the same pattern till post-independence. Indian Bank. were later combined to create the Imperial Bank of India (which later was turned to State Bank of India in 1955 and nationalized it). Punjab National Bank. The year 1786 saw the first bank. The Indian banking system has seen a few fundamental structural changes that can be termed as eras—from 1786 to 1969.

the services still remained poor. The other equity partners of Yes Bank initially were CVC Citigroup (a venture capital subdivision of Citi bank). and so on. After 1991. HDFC. with financial assistance from Rabobank (a cooperative bank in The Netherlands). raising the profitability and the health of the banks. and Yes Bank was quick to understand it all. Overall the promoters had experience in Rabobank. automated teller machines. the banking sector was opened to foreign banks that came in happily considering the vast scale and scope of the Indian business and market. especially 1993. It was not until 1975 when the regional rural banks came into being. Further. but ironically also saw few re-regulations or refined regulations being put in place by the controlling central bank. saw the 4/5th of the banking sector under direct government ownership. Yes Bank. became the minimum service levels for the banks. Kapur. his previous experience with Bank of America (leading commercial bank in the US) also made him a renowned banker in India. The result of reforms in the Indian banking sector was evidenced with the resilience it showed during the recent economic downturn. quick and efficient banking services. was the first Asian country head of ABN Amro Bank (of The Netherlands is one of the largest banks in Europe. based on Narasimhan Committee report. net-banking. and was also a well-known person in the Indian banking sector. With the major banks under government ownership. Kapoor has a deep experience of more than 25 years in the sector and his erstwhile association with Rabobank India (subsidiary of Rabobank) as its CEO helped securing the above said financial assistance. The other promoter. even the public sector banks were forced to raise their level of services. but the faith on the continuity and liquidity of banks became high. Slowly banks realized that their employees are essentially important to achieve operational efficiency or the high level of services. the strong capital adequacy control of the operating banks and the Reserve Bank of India made the Indian banking sector to be at par with international standards on capital adequacy. ANZ Grindlays and ABN Amro banks. with competition from foreign and Indian private banks. this phase saw the sector being freed from regulations. the non-performing assets that went high during the 1969-1991 period went down significantly. saw numerous Indian private banks. Further. The bank’s promoters Rana Kapoor and Ashok Kapur own the controlling stakes of the bank. AIF Capital (one of the largest private equity Case Study 63 . Nevertheless. such as ICICI. incorporated in 2003. With the first phase of nationalization of 14 banks in 1969 and second phase nationalization of seven more banks in 1980. Bank of America. This led to competition and subsequent addition and refinement to banking services. with worldwide operations).rural and other areas increased. Telephone banking. Moreover. Interestingly. Yes Bank Yes Bank. started its financial operations in the third quarter of 2004 in Mumbai as a private sector bank. This went on till the 1991 major reforms in banking sector towards liberalization. AXIS (previously UTI) and after some time. This phase.

each having an immaculate track record. 64 The IUP Journal of Business Strategy. the bank has said Yes to many things including: nd • Yes to sustainable growth through a balance approach towards profit and philanthropy. It was imperative for Yes Bank to differentiate itself from its established competitors to attract customers. it was ‘Yes’ to banking solutions that stood apart as a name. who hand picked the good top management team. through customized service offering. it is interesting to know how the bank finalized its name. and subsequently the overtly successful initial public offering in 2005 (see Appendix 2 for Yes Bank’s financial history). Over the years. and Chrys Capital (an investment firm of Mauritius). This required a clear value proposition that is critical to the customers. Exhibit 1: What Does Yes Stand For? Bill Clinton (42 President of US) congratulated Rana Kapoor for having a great name for a Bank.28 1. VIII.30 0. state-of-the-art technology.69 4. 2011 . • Yes to sustainable leadership through in-depth knowledge. and expert human resources (see Exhibit 1 for more details). Kapoor chose the value proposition to be ‘knowledge-driven’.90 18.yesbank. • Yes to sustainable partnerships through financial inclusion. as the center of the market already has so many established large private and public sector banks.62 18.firm of Hong Kong).88 4. it was Rana Kapoor.18 11. For the equity partners and their stakes in 2009 (Table 1).in as on September 30. it was imperative for the bank to look at the edges of the market.93 4. It was this track record of the management that helped Yes Bank to get license from the Reserve Bank of India. No. • Yes to responsible community engagement for a sustainable future. Table 1: Key Shareholders of Yes Bank Institution/Individuals Promoters Employees Rabobank Orient Global HSBC Financial Services Khazanah National Templeton MF New Vernon Other FIIs/FDIs/NRIs Others Holding (%) 31. An outcome of qualitative market research.12 4. The promoters wished to create a service-oriented banking philosophy that would have the ability to say yes to the customer requirements. Looking back. 2009 Operationally. Vol.10 Source: www. 2. Being a small player.

yesbank. Yes Bank could avoid this by looking at the mistakes that other banks did at entry and the opportunities that other Case Study 65 . The brand vision of the bank is “to build best quality bank of the world in India”. and a unique strategic position…” As Kapoor asserts “achieving business excellence through effective relationship management has been at the epicenter of our business strategy”. Engineering 18 Therefore. when early entrants had to do with undefined factors or immature markets. It is clear that Yes Bank wants to be a world-class Indian bank. The bank ensured sustainability by adapting to the triple bottom line on “nurturing people. viz. Focusing on the Lending niche segments would mean specialized and Sector (%) customized services that only lean can effectively Food and Agribusiness 18 provide and Yes Bank was ideally suited for this. technology. The brand is supported on five pillars that reflect the core values of the bank. Media and Telecom 18 enterprises happens to be one of those niches that Life-Sciences and Chemicals 9 Yes Bank chose to operate with. Table 2: Growth Sectors for Lending with Knowledge Bases Approach With the core strategy of the bank standing firm on transparency. Yes Bank focused Others 21 on some key growth sectors including.yesbank. infrastructure and logistics. human capital (knowledge driven.. instead of focusing on mass retail banking. that constitute about 4/5th of the total business (see Table 2 for more details). positive. Yes Signifies: attractive. and life-sciences and chemicals. engineering. serious. the bank focused on corporate banking by Infrastructure and Logistics 16 offering specialized services. Source: www.) • Yes to outstanding recognition through sustainable and from various sources The bank chose to target niches that were not adequately serviced by others. distinctive and agribusiness. and transparency and responsible banking (high accountability by focusing on sustainability and social responsibility with say Yes to good corporate governance practices). food and Source: www. smart. The world of business has numerous stories of ‘first-mover disadvantage’. entrepreneurial approach with say Yes to finest talent). trustworthy. trust and sustainability. and small and medium Technology. optimistic. Yes Bank established itself as one of the most efficient banks in the country by adopting international standards on factors of quality and efficiency. reliable.Exhibit 1 (Cont. planet and profit principles to create enduring value. Yes Bank did little on advertising and decided to acquire new clients through personal relations of its managers and employees. The bank claims that it “will continue to fulfill its promise through consistent communication under the brand positioning of ‘experience our expertise’. media and telecom. trust (build on past and reinforce with current action with ‘say Yes to Trust!’). efficient and universal. technology (innovative technology with say Yes to technology evolution). growth (core promise with ‘say Yes to Growth’). simple. • Yes towards ensuring transparency through responsible governance.

responsibility and transparency. One such opportunity is with technology advantage (technology leap-frog). mobile banking. have numerous technology enabled new ‘touch-points’ with customers. This was possible with the growth prospect it promised and delivered to those experts. driven efficiently by IT systems and processes. provide a stronger surveillance and security system for transactions. The bank’s HR policy is seen as one of the most employee friendly and the bank is treated as one of the most preferred place to work in the sector. This mitigates risks and ensures lower cost and higher quality of IT services. Responsible banking focuses on integrating corporate social responsibility and sustainability factors into its business model to increase trust. Knowledge banking is focused on the emerging sectors of Indian economy. Yes Bank looked at a differentiated approach of its offering through knowledge banking and responsible banking approaches. ATMs. The bank depends on capable service providers who provide established tried technology and processes that are integrated into the IT solutions that the bank needs. Yes Bank brought in latest state-of-the-art technology for ensuring its service. and use real-time environment for good disaster recovery process and back-up systems. who naturally chose to stick on with the company. Through IT outsourcing the bank strived to achieve higher efficiency through automation of numerous processes. quality and efficiency parameters. The promoters believe that sustainable competitive advantage can be achieved through highly effective human capital. phone banking. The bank edge over other players lies in the knowledge driven approach. . compounded by their information technology. Some such technology enabled channels are internet banking. The bank for the emerging sectors has institutionalized a development banking division to provide industry specific financial solutions. However. increase scope to cross sell products. a fund raising event for the empowerment of under-privileged children. the bank does not outsource their human resource requirements to outside companies. which involved expert advisory services towards specific solutions to clients. It treats its human resources as strategic assets. 2. and so on. No. 2011 .” Yes Bank uses the most modern IT solutions available in the banking sector. VIII. 66 The IUP Journal of Business Strategy. maintain centralized databases and processing for speedy retrieval of data. when other banks could only improve on their current information technology infrastructure. Vol. integrate front-middle-back office functions. provide leadership initiatives and a analytical approach towards product structuring. The bank has institutionalized a triple bottom line approach of peopleplanet-profit and supports social initiatives such as “save the children to support ARAAISH. and outsources most of its information technology to outside partners. The bank. right from its initial days hand-picked and developed expert talent and retained them. and their focus on growth sectors. With the economy during the 2000s growing at about 8-9% of GDP the bank seems to enjoy the good times.banks could not capitalize on. provides multiple technology-enabled channels for convenient access to its customers.

Yes retail entrepreneurship program (for developing cutting edge specialized skills). Yes professional entrepreneurship program (for developing the talent of its employees). Some of the talent management programs the bank introduced were: Yes entrepreneur in action (for allowing employees to work on their pet projects). consequent to difficult global developments. Future Growth The bank has had a healthy growth till now (see Appendix 3 for more details). the Yes school of banking (for training in banking and financial services). and its revenue model that is dependent on steady stream of fee income. The high growth rate of the economy was good for the banking sector and even new entrants like Yes Bank could initially tide over their inefficiencies. But with the current downturn and the slow recovery of the economy. Some others felt that the bank’s success has largely depended on its use of high-end technology and human resources. However. although the bank’s focus remains on small and medium enterprises. especially when the market pie is comparatively smaller? Will the bank remain as an urban bank or will it have a pan-India spread? Will it focus on retail banking. The bank introduced employee ownership and attracted highly talented employees with higher pay than industry average. microfinance and other profitable offerings like credit cards? Questions for Discussion • Was the Indian banking sector attractive when Yes Bank decided to venture? Outline the evolution of the sector keeping the environmental change and organizational change in mind. the bank seems to be doing well. Despite the financial challenges. corporate and institutional banking still accounts for more than two-thirds of its business. some felt that it was the small size of the bank that inhibited the bank towards large exposure to economic downturn. Yes University and school relations (for recruiting young talent straight from educational institutions) and Yes mentor (for individual coaching). Further. Case Study 67 . will be bank be efficient to compete with the bigger players in the Indian banking sector. and has had a highly satisfactory business and financial performance for financial year 2008-09. Yes Bank has continued its steady growth trajectory. clearly the most challenging year in the bank’s evolution.Yes Bank aligned the goals of the organization with personal goals of its individuals and encouraged employees to be entrepreneurial and innovative.” However. perhaps doing well with the good times. we have been able to effectively demonstrate our combined capabilities and competencies in managing and responding to the impact of the global crisis on the Indian financial sector and Yes Bank. “The Indian financial sector has experience a challenging business environment over the past one year. Yet the recent economic downturn led the bank to rethink their growth strategies. With the lowest NPA of less than 1% and a growth of more than 35 times on its total income (see Appendix 4 for more details). Kapoor seems upbeat with the bank’s performance over the years and its future prospects.

differentiator or nicher? Outline the various strategies that Yes Bank adopted for— 13. “Shawn Cole. 5. “Banking on 8. “Post-IPO. available at www. “Knowledge is Key”. Yes for Yes Bank”. (2005). 2011 . “A Dream Comes True”. 15. Abhijit V Banerjee (2005). Network Magazine (2006). Ryan Rodriguez (2007). The available at Anita Bhoir (2007). Business World. Rao N B. Quantum Information Services Private Limited Independent Investment Research.equitymaster. 17. “Resounding. available at www. No. “Positive Banking”. “Say Yes to Growth”. Gulf Business from www. HRM Congress – February (2005).hindu. Raghu Mohan (2007). “Banking the Emerging India”. available at www. “Yes Bank Limited”. Rabobank to Keep 20 pc Stake in Yes Bank”.com 3. available at www. 7. and Esther Duflo”.pdf 14. Vol. “The Yes Approach”. marketing and human resource. “Next Phase of Banking Reforms Under Way”. Literally”.• What position did Yes Bank chose to be—a challenger. 10. growth. Banking Reform in India.yesbank. “Gathering Pace”. Richard Nevins (2006). 2007 available at www. “Our NIM will be 3. available at www. Business India. Business India. 2. Deepika Sriraman (2005). Asia Money (2006). • Why did Yes Bank choose to outsource its information technology function but not its human resources? Outline the plausible benefits and demerits of each. 68 The IUP Journal of Business Strategy. Priya Kansara (2006). 16. 6. available at www. VIII.chennaionline. technology. “We Have a Subprime Problem Brewing in PLs”. Business India. Lalit Batra (2006). (2007).edu 2. Raghu Mohan (2005). Bibliography 1.ibef. available at www. “Saying Yes to Innovation”.5 Percent by 2010”. 12.thehindubusinessline. available at www. (2006). “Market Volatility May Continue”.tribune (2007). Gopalakrishna T R (2005).

22.pdf 23. available at 20. 25. 1 in 11 parameters amongst it peers with balance sheet size less than INR 24. available from www. Sunita Jyoti (2007).in (2007). 2008 (December 2008) Financial Times/IFC. Soutiman Das Gupta (2005). New Economy. “Call of the Wild” (2010). 24. 2006 (June 2008) Thomson Reuters (September 30. available at www. Washington Sustainable Banking Awards held in London. 2008) Financial Express-E&Y Survey of India’s Best Banks of 2007 (March 2008) Case Study . Vikas Kumar (2004). Ranked No. available at www.yesbank.19. available at www. 3 in the All Asian Securitized Bonds League (Ex Japan Ex-Australia) and ranked No. 5 in India Rupee Bond League for the period January 1. www. Yes Bank ranked No. “Yes Bank Wins Two Awards for Innovative Recruitment and HR Practices at the Asia Pacific. www. “Yes Bank Recognized for HR Strategy at the Employer Branding Awards 2007”.thehindubusinessline. Yes Bank ranked # 3 among New Private Sectors Banks.en. Yes Bank ranked No. ranked #1 amongst all banks (56 banks comprising nationalized banks.000 crore.yesbank. 2008 to September magazineindia.yesbank. “Wireless Banking Gets the Nod”. Appendix 1 A List of Awards and Recognition Received by Yes Bank New Economy First Annual Banking and Finance Awards 2008 ( (2010). Yes Bank won the prestigious Emerging Markets Sustainable Bank of the Year Award at the Financial Times/IFC. Washington-Sustainable Banking Awards. 2008 conducted by Thomson Reuters. 2008 held in London and were announced in the December 2008 issue of the International Magazine. 2008) Yes Bank was awarded the “Most Innovative Bank in India” at the New Economy First Annual Banking and Finance Awards. 27. The Economic Times. Yes bank was the only Indian bank to have received this accolade out of 182 entries from 129 institutions across 54 countries. (2005). old and new generation private sector banks and foreign banks in India) on credit quality. 69 Business Today – KPMG Best Banks Annual Survey. “A Matter of Strategy”.com 21. “Banking on Knowledge”. “Yes Banking on “Knowledge Approach”.intel. while being ranked #1 on growth in its category (#2 on growth overall). Additionally. Yes bank is the only Indian bank to have won this yes_bank. 1 in the Business Today – KPMG best banks Annual Survey 2008.

yesbank. The awards were instituted to recognize pursuit of excellence in HR across the Indian Corporate Sector. Yes bank was ranked #99 overall up 47 places from the ranking of #146 in 2006. 2. Vol.) BT-Cirrus Newsmakers Study (February 2008) Yes Bank was ranked #7 within the banking sector in the fifth BT-cirrus study on the leading newsmakers. Yes Bank received ‘The Most Improved Local Bank in Asian Currency Bond’ and the ‘Salesperson in Asian Currency Bond’ at the Asset Benchmark Survey for significant contributions in debt capital markets. Yes Bank received the “Best Corporate Social Responsibility Practice” award at the Social and Corporate Governance Awards 2007. No. Yes Bank ranked #2 among medium size banks and the fastest growing bank in its category. This was the first year of participation in the survey. Yes Bank received the ‘Global HR Excellence’ award and the ‘Employer Branding’ Award for continuous innovation in HR strategy at the Asia Pacific HRM Congress. Rana Kapoor. Yes Bank received the Financial Insights Innovation Award (FIIA) for the Most Innovative e-Payments Solution in Asia.Appendix 1 (Cont. MD and CEO. Yes Bank invited to be a founding member of the Community of Global Growth Companies. VIII. up from #14 in 2006. Yes Bank ranked #2 (upto $50 mn) and # 6 (upto $100 mn) in the Thomson Financial Rating for Top Book Runners of Indian Rupee Bonds 2007. in the Business Today-KPMG Survey of India’s best banks of 2007. These awards were instituted to recognize the need for new innovative strategies to implement the CSR practice within the business focus of the Indian corporate sector. 2011 . Yes bank is the only Indian bank to have been identified by The Forum as one of India's growing organizations on the way to becoming a global industry leader. Yes bank was the only Indian bank to receive this accolade from amongst 150 nominations across Asia Pacific. Yes Bank received the distinguished entrepreneurship Award at PHDCCI Annual Awards for Excellence 2007. Geneva (September 2007) The Times Ascent HR Excellence Awards 2007 (August 2007) US-India Business Council's (USIBC) (June 2007) Source: Partial List adapted from www. Yes bank received the CEO with HR orientation and other sources 70 The IUP Journal of Business Strategy. Yes bank included as a Chairman’s Circle Member of USIBC enabling the bank to participate in significant initiatives to enhance trade and investment opportunities between India and US/UK. HR Award (February 2008) Financial Insights Innovation Award (FIIA) (February 2008) Business Today-KPMG Survey of India’s Best Banks of 2007 (February 2008) BSE-NASSCOM Awards (December 2007) PHDCCI Annual Award (December 2007) Asset Benchmark Survey (September 2007) Thomson Financial Rating (September 2007) Community of Global Growth Companies at the World Economic Forum.

896 689 1.204 132.008 169.000 160.9 74.000 0 12.071 62.205 2.500 3.2 90.000 140.303 124.000 40.516 3.309 3.9 79.000 20.000 200.179 % Growth 37.857 4.000 80.5 59.355 1.000 500 0 –500 38 2003-05 Profit After Tax INR Million 3.968 6.000 100.000 2.000 50.104 82.980 2.5 65.599 1.000 80.212 1.031 3.118 H1FY09 2.049 1.000 40.000 0 6.1 75.500 1.Appendix 2 Yes Bank’s Financial History Balance Sheet INR Million 250.732 Deposits INR Million 161.000 20.226 918 2.yesbank.000 0 7.0 45.782 2003-05 2005-06 2006-07 2007-08 2008-09 41.2 68.6 74.197 1.095 123 336 636 % Growth 30.000 150.824 180.038 2.3 16.8 Case Study 71 .000 1.000 100.630 2003-05 2005-06 2006-07 2007-08 2008-09 29.089 2.160 2003-05 2005-06 2006-07 2007-08 2008-09 24.897 94.000 60.4 59.000 60.694 Advances INR Million 140.6 75.000 120.6 Source: www.000 944 553 2005-06 2006-07 2007-08 2008-09 Appendix 3 Yes Bank’s Financial Highlights in 2010 INR Million Net Interest Income Non Interest Income Total Net Income Operating Expenses Operating Profit Provisions and Contingencies Provision for Tax Net Profit After Tax Q2FY10 1.000 111.3 14.115 1.117 Q2FY09 1.500 2.237 2.034 100.6 H1FY10 3.918 234 567 1.232 431 622 1.144 1.000 120.626 229.

No. etc.00 0.00 782.74 7.11 13.384 % Growth 41.47 September 30.92 190.) Balance Sheet Growth INR Million Advances Investments Total Assets Shareholder’s Funds Tier I+Tier II Capital Deposits September 30.07 2. 2009 162.60 0.545 14.60 2.07 FY 05 5.1 Business Segment 7% 33% Financial Markets Transaction Banking Financial Advisory Others (3rd Party) Distribution.455 143.081 193.30 110.35 32.814 263.84 2.89 18. VIII.57 The IUP Journal of Business Strategy.651 Source: www.61 171.27 16.00 48.452 193.11 0.00 0.98 2. 2.40 86. 2008 115.701 18.00 0.83 336.59 2.72 301.yesbank.96 4.yesbank.35 190.4 35. Retail Fees.2 28.40 12.15 29.36 1310.13 15. 2011 .09 1665.60 0.43 0.149 51. 23% Source: www.98 28.88 13.443 36.943 69.5 37% Appendix 4 Yes Bank Consolidated Figures FY 08 Financial Leverage (x) Capital Adequacy Ratio (%) Gross NPA (%) Net NPA (%) Total Income ( cr) Interest Income ( cr) Net Interest Income ( cr) Fee Income ( cr) Net Interest Margin (%) Interest Income/Total Assets (%) Fee Income/Total Income (%) Fee Income/Net Interest Income (%) 72 FY 07 14.04 112.00 289.29 24.92 FY 06 7. Vol.72 18.11 89.18 85.Appendix 3 (Cont.57 33.2 31.18 587.81 0.7 36.383 27.79 5.

yahoo. EPS from India Earnings.50 21.34 29.26 54.02 –290.42 18.78 44.51 10.06 0.73 83.29 –1.) FY 08 Net Margin (%) Asset Turnover (x) Return on Assets (%) Return on Equity (%) Cost Efficiency (%) Historical Yearly Avg.12 1.83 28.10 1. CMP as on Mar 23.20 54.08 0.04 –0.72 0.04 4.04 Source: Yes Bank Annual Reports.59 9. 2009.71 1. Business Segment Source: http://in.42 FY 05 –7.52 44.76 FY 07 12.80 111. http://www.11 2. –0.03 14.NS&t=2y&1=on&z=1&q=1&c=%5EBSESN Reference # 33J-2011-06-05-02 Case Study 73 .finance.25 60.50 46. Yahoo Finance Historical Price Data.stock-picks-focus.37 7.24 17.81 0.11 3.48 FY 06 19.21 2.44 34.19 5.Appendix 4 (Cont.05 5./Current Market Price ( ) Book Value per Share ( ) EPS Historial/TTM ( ) P/BV (x) P/E Historical (TTM) (x) 12.

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