You are on page 1of 17

YES BANK

Prof. Shilpa Chadichal

Alliance Business Academy

OBJECTIVE
COMPETITIVE STRATEGY OF A LATE ENTRANT

VISION

Vision: To create a commercially viable financial institution that incorporates sustainable development within core business functions. MISSION: Mainstream sustainability through multi-stakeholder engagement both internally & externally Link shareholder value with sustainable development of India (Fourth Generation Sustainability) Engage in strategy development (in thought) and execution (in action)

YES BANK

Yes bank, one of the new generation private bank , entered Indian market in late 2004 when the banking sector in India was already overcrowded by no. of public bank But inspite of late entrant the bank grew up with such a fast pace that it drew the attention of analysist and extend its operations to all over the country

YES BANK
In dec 2006 the bank rated as third best private bank in India by business world and won many other awards Ranked second best private bank in financial express Ernst & young survey of Indias best for the year 2006 The bank has a AAA credit rating from the rating agencies Moody's (since 1981), Standard & Poor's (since 1981) and DBRS (since 2001). Global Finance currently ranks Rabobank 6th in its survey of the worlds safest banks.

YES BANK

The yes bank was promoted by Rana kapoor and Ashok Kapur with assistance from rabobank Kapoor and kapur together own 52.5 % of the initial promoters equity of 20 m While the Indian promoters had 39 % stake in the bank , rabobank had 20 % stake and FII held 20 % The bank went public in June 2005. IPO was over subscribed 30 times Yes Bank to launch mobile banking service in association with Nokia shortly. On August 14th, 2010.Mobile handset manufacturer, Nokia and Yes Bank have joined hands to launch mobile payment service in the country. The aim is to increase the financial inclusion campaign in the country.

YES BANK SEGMENTATION


Yes bank Corporate & institutional banking companies with turnover of over Rs. 7.5 bn

Business banking companies with turnover between Rs .5bn and Rs 7.5 bn

Retail banking Individual with annual turnover income between Rs.5bn and Rs 5mn

DIFFERENTIATION STRATEGY

The bank differentiated itself from other players in the industry through its unique knowledge banking approach , emphasizing on technology and human resource. The knowledge banking approach was its main pillar of differentiation and using it provided specialized service to various sunrise industries through domain expert.

DIFFERENTIATION
The success of yes bank can be attributed to its differentiating strategy The bank differentiated itself on three basic parameters Knowledge banking approach Emphasis on technology Human resource

KNOWLEDGE BANKING
Yes bank decided to follow an innovative approach to break into the heavily cluttered Indian commercial banking system. Knowledge banking--- a unique method of acquiring customer and retaining them. The bank provides specialized service to the emerging sectors of the economy through better understanding of its clients business and industry.

KNOWLEDGE BANKING
The

bank focused on providing the customer with specialized banking service depending upon their requirement. The bank identified some sectors of economy which had growth prospect:1. Food and agribusiness 2. Infrastructure business 3. Life science and biotechnology 4. Telecommunication 5. IT 6. Media and entertainment 7. Real estate

TECHNOLOGY
Yes bank was founded with the aim of providing the world class customer service to the customer using latest technology in the industry. The bank consider technology as a strategic tool to differentiate itself from other banks. Corporate internet banking ATMs Mobile banking Phone banking

TECHNOLOGY
The

bank entered into the strategic partnership with Gartner inc. to formulate and implement the bank IT policy. Price Water House Coopers to facilitate the confirmation of policies and process with ISO and six sigma norms. I-flex solution ltd. it used FLEXCUBE, a universal banking solution software, as its core banking system for retail as well as corporate banking. Yes bank use FLEXCUBE to provide key banking solution to its customers.

HUMAN RESOURCE
Top

management team very experienced. Higher pay to retain talent 5% executive ownership clause
Key initiatives by bank to recruit and train manpower

Yes 2. Yes 3. Yes 4. Yes 5. Yes


1.

entrepreneur in action professional entrepreneurship program mentor school of banking university and school relations

STATICS
Statistics

shows that the bank was primarily in metros and other places that provided them a sound customer base, who were knowledgeable and used latest technology. Yes bank had access to latest technology. Yes bank had good promoters. They had the ability to raise funds easily because of foreign shareholding. Outsourcing its non core business. Top management very experienced.

INDIA

Significant strengths in agriculture, horticulture, dairy, poultry, etc Agro-climatic diversity Production leadership in many areas Rapid urbanization Govt. according priority status Growth in Organized food retail

Indias share in global production

Indias prices as % of world prices

Thank you