Yes Bank Final | Small And Medium Sized Enterprises | Banks

Submitted To: Prof. S.V.

Bidwai Date: 7th September, 2010 College: IBS Mumbai Submitted By:

Ketaki Gondane Rachit Sharma Dr. Mehul Kumar Nishant Vora Prakash Krishnamoorthy Preha Sharma Pankaj Malhotra Hrishikesh Rao

09BS0001061 09BS0001742 09BS0000974 09BS0001462 09BS0001615 09BS0001667 09BS0001532 09BS0000894

FLOW OF PRESENTATION
INTRODUCTION Competitive strategy of late entrant Differentiation through knowledge banking

Banking system in an emerging market

Appreciation of human resource

Technology competitive advantage

CONCLUSION

Objective

COMPETITIVE STRATEGY OF A LATE ENTRANT

Rana Kapoor and his highly competent top management team. is an outcome of the professional entrepreneurship of its Founder. customer centric. India¶s new age private sector Bank. to establish a high quality.ABOUT YES BANK : YES BANK. service driven. private Indian Bank catering to the ³Future Businesses of India´. YES BANK has fructified into a ³full service´ commercial Bank .

Yes Bank was ranked as the third best bank in India by Businessworld and second among new age private sector banks in the country by Financial Express Vision: To create a commercially viable financial institution that incorporates sustainable development within core business functions .

The Bank has adopted international best practices KNOWLEDGE DRIVEN APPROACH  YES BANK is committed to support the sustainable growth and development of sunrise sectors in the country. by facilitating overall growth through strategic knowledge initiatives. BANK has formed a specialized µDevelopment and Knowledge Banking Division¶ .

YES BANK has invested in the best IT systems and practices in order to make its technology platform a strategic business tool for building a competitive advantage YES BANK has been recognized amongst the Top and the Fastest Growing Bank in various Indian Banking League Tables .

BACKGROUND NOTE Economic reforms in early 1990¶s ± Narasimham Committee Many important reforms were undertaken in the banking sector. Important private sector banks were set up in the wake of the banking reforms .

Several technological advancements had taken place. a second narasimhan committee was recommended in the banking sector. Other banks were also introduced in the banking sector. .Results of the reform in the banking sector was very impressive. The new generation private banks had revolutionized the sector. After the successful completion of the first phase of Narsimham committee .

STAKEHOLDERS Chart Title Pr ters Rab bank HSBC Financial Services Khazanah Nasi nal A erican Funds Insurance Series Gr wth Fund S allCap World Fund 3.64% R. F . Chandler ( for erly Orient Global) Deutsche securities CommonWealth Equity Fund 10% 30% 33% 1% 1% 2% 3% 3% 4% 4% 4%   ¡       ¡  ¡ ¡ 5% .

entered Indian market in late 2004 when the banking sector in india was already overcrowded by no of public bank ‡ But inspite of late enterent 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 . one of the new generation private bank .Yes bank ‡ Yes bank.

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 India¶s best for the year 2006 .

IPO was over subscribed 30 times .Yes bank ‡ The yes bank was promoted by Rana kapoor and Ashok Kapur with assistance from robobank ‡ 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 . robobank had 20 % stake and FII held 20 % ‡ The bank went public in june 2005.

Yes bank segmentation Yes bank o Niche market ‡ Corporate & institutional banking .

EXPOSURES IN DIFFERENT SECTORS Chart Title INFRASTRUCTURE AND LOGISTICS OT ERS ENGINEERING FOOD AND AGRICULTURE TMT EALT CARE 8% 19% 13% 22% 21% 17% .

Business strategy .

‡ This was one of the most successful ventures in India.1300million.THE GROWTH STORY ‡ In the first two quarters since it began operations in 2004-05 its balance sheet was standing at Rs. . ‡ It started its operations with 250 employees and 2 branches.

000 crores. a pan India branch network of 750 with a human capital base 12.000 by 2015. India's new age private sector Bank. to further accelerate its business growth with the objective to achieve a balance sheet size of INR 150. .the Take-off. ‡ Mr. Rana Kapoor. Founder/Managing Director & CEO. along with his top management team announced the roll-out of a strategic blueprint for the Bank. and launched the Bank's VERSION 2. has embarked on its journey into the next phase of growth.0 .‡ YES BANK.

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‡ Now the bank is performing above this level. . ‡ This was significantly higher than the growth reported by other private sector banks with the same background.‡ The bank¶s business size was Rs 800 million in December 2006.

Key Balance Sheet Items Advances Investments Shareholder¶s Fund Deposits Borrowings Business foot print 2010 2006 480 221.1 119.9 75.4 816.6 546.1 .

‡ Initially almost the entire emphasis of the bank was on lending to corporate clients. ‡ It forayed into retail banking and by April 2007 it had a base of 25000 customers. ‡ The bank focus mainly on business banking and SME¶s for its growth. ‡ The next focus area being wealth management. .

it was rated the 3rd best bank in India.‡ In december 2006. Rank 1 2 3 4 5 TOP 5 HDFC bank ICICI bank YES bank Indian Overseas Bank Kotak Mahindra Bank . ‡ The second best bank among new private sector banks.

5 on EFFICIENCY by The Economic Times .‡ Yes Bank has been ranked 7 amongst the top 10 Indian Banks. ‡ No. 2 on FINANCIAL STRENGTH ‡ No. ‡ while being ranked 1 on the parameter of GROWTH.

‡ This was indeed great achievement for a bank that had entered the Indian banking scenario so late. ‡ The market cap of the bank had grown from Rs.2 million in July. 424.2007. ‡ The bank was awarded the Financial Insights innovation Award for innovation in Business intelligence at the Asian Financial Services Congress . 164.2005 to Rs.3million in February.AWARDS AND RECOGNITION ‡ YES bank achieved many awards and recognition in this relatively short time frame.

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Founder / MD & CEO was ranked amongst the 100 most powerful CEOs in India YES BANK was ranked the 105th most valuable private sector company and the 7th most valuable bank in India Rana Kapoor.Corporate YES BANK was ranked amongst the 20 most technology wired companies A1+ rating for YES BANK¶s certificate of deposit programme in the second month of operations (current programme size . Founder / MD & CEO was adjudged the Start-up Entrepreneur of the Year YES BANK was awarded for contributions made through working in partnerships to improve the environment/quality of life for the people of Asia YES BANK was ranked second in the µBest for Currency Strategy¶ and µBest for Technical Analysis¶ categories under the Best Domestic FX providers .INR 12 billion) Asiamoney Foreign Exchange Poll for India (September 2005) Business Today technology wired companies (February 2005) ICRA (Moody's affiliate in India) (October 2004) . Economic Times (December 2005) Business Today most valuable companies (November 2005) Ernst & Young Entrepreneur Awards '05 (November 2005) Environment Leadership Award from USAID (October 2005) Rana Kapoor.Corporate Dossier.

New Economy. YES BANK ranked No. 2008 conducted by Thomson Reuters. Ranked No. 1 in the Business Today ± KPMG BEST BANKS Annual Survey 2008.1 in 11 parameters amongst it peers with Balance Sheet Size less than INR 24. YES BANK ranked No.000 crore YES BANK won the prestigious Emerging Markets Sustainable Bank of the Year Award at the Financial Times/IFC. 2008 to September 30. 2008) . 5 in India Rupee Bond League for the period January 1. YES BANK ranked No. YES BANK was the only Indian Bank to have received this accolade out of 182 entries from 129 institutions across 54 countries. Business Today . Washington Sustainable Banking Awards held in London.New Economy First Annual Banking and Finance Awards 2008 (Dec ± Jan 2008) YES BANK was awarded the ³Most Innovative Bank in India´ at the New Economy First Annual Banking and Finance Awards 2008 held in London and were announced in the December 2008 issue of the International Magazine.Sustainable Banking Awards 2006 (June 2008) Thomson Reuters (September 30. YES BANK is the only Indian Bank to have won this award.3 in the All Asian Securitized Bonds League (Ex Japan Ex-Australia) conducted by Thomson Reuters.KPMG BEST BANKS Annual Survey 2008 ( December 2008) Financial Times/IFC. Washington .

3% . Total Net income of Rs. 801.4 million in FY09 compared to Rs.9% ‡ Net Profit after Tax of Rs.Key Financial Highlights ‡ Net Profit after Tax of Rs. 3038. 9801. 1067.4 million in Q4FY08 representing an increase of 45.1 million in Q4FY09 compared to Rs. 2449.1 million in Q4FY08 representing an increase of 24. 1552.4% ‡ Total Net income (NII plus Non Interest Income) of Rs.4 million in FY08 representing an increase of 41.2 million in Q4FY08 representing an increase of 14.7 million in FY08 representing an increase of 54. 2143.6 million in FY09 compared to Rs.2 million in FY08 representing an increase of 51. 6912.2% ‡ Net interest income (NII) of Rs.2 million in Q4FY09 compared to Rs. 3305. 5111. NII of Rs. 645. 2000.8 million in Q4FY09 compared to Rs.6%.8 million in FY09 compared to Rs.8%.

4 million in Q4FY08 representing an increase of 27.1 million in FY09 compared to Rs.9% in FY09.5% yo-y ‡ Gross yield on advances of 12.‡ Operating Profit of Rs.7% in FY09. 2009.2% in Q4FY09 ‡ Advances at Rs. 37.8% in FY09. 161.8% yo-y ‡ Cost of funds of 9. ‡ Operating Profit of Rs.0 billion as at Mar 31. 3500.0% in Q4FY09 .4%.3% ‡ Non-interest income to total income ratio of 47. growth of 31.4 million in Q4FY09 compared to Rs.7 billion as at Mar 31.6% in Q4FY09 ‡ Cost to Income ratio of 42. 1209.0% in FY09.8 million in FY08 representing an increase of 60. 124. 5616. growth of 21. 1539. 2009. 3.8% in Q4FY09 ‡ Net Interest Margin of 2. 36. 8.0% in Q4FY09 ‡ Deposits at Rs. 13.8% in FY09.

33% to Net Advances as at Mar 31. 2. 2.7% in FY09. total loan loss provisions of Rs. 2009 . 2009 ‡ Basic EPS of Rs. 30.4 million in FY09. 2009 ‡ Loan loss provisions of Rs.67 billion as at Mar 31.‡ Gross NPA at 0. 2009 ‡ Total loan loss coverage ratio of 144.7%.50%) ‡ Return on Average Assets of 1. 2009 (Tier I at 9.67 for Q4FY09 ‡ Total headcount stands at 2671 as at Mar 31. 791.70 and Rs.24 and Diluted EPS of Rs. 20.2 million as at Mar 31. 1. 54.5% as at Mar 31.69 as at Mar 31. 2009 ‡ Net NPA at 0. Rs. 265.52% in FY09. 2009 ‡ Total Capital Funds (Tier I + Tier II) of Rs.14 for FY09. 2009 ‡ Basel II Capital Adequacy Ratio of 16. 10. 10.63% at Mar 31.2% (annualized) in Q4FY09 ‡ Book value per share of Rs.68% to Gross Advances as at Mar 31. Specific loan loss coverage ratio of 51.50% (annualized) in Q4FY09 ‡ Return on Equity of 20.

‡ FY09 FY08 Growth% Q4FY09 Q4FY08 Growth % .

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54 billion of Tier I Perpetual Capital Bonds during Q4FY09 (issue oversubscribe by 105%). Total capital funds stand at Rs. 2008). 2009.72 billion as at Mar 31. 2009 provide significant headroom for growth. . 2009). 10.6 billion (the highest since inception in the most challenging environment) including Rs. 30. During the fiscal year. the first by any Indian private sector Bank during FY09. 1.63% as at Mar 31.63% under Basel II as against 14.67 billion as at Mar 31.7% as at Mar 31. 20. 2009 (Rs. ‡ Strong Asset Quality: High quality corporate exposure (80% of the externally rated exposure rated µA¶ and above) resulted in 13% reduction of total RWA for the bank improving the CRAR to 16.Key Business Highlights ‡ Well capitalized for upturn: Basel II Tier I capital of 9. manageable Gross and Net NPA ratios coupled with prudent provisioning policy (total provisioning cover of 144. Bank mobilized capital funds of Rs.50% and CRAR of 16.53% under Basel I as at Mar 31.

9% in FY09 (2.‡ Sustainable NIM in a challenging macroenvironment driven by pricing power on Corporate loan book and re-pricing of a relatively higher proportion of interest sensitive liabilities.7% in FY08). ‡ Superior Shareholders¶ returns: Amongst the highest RoE (20.52%) in the Banking industry during FY09 signifying sustained and profitable revenue growth during a difficult year for the economy.7%) and RoA (1. . NIM of 2.

3% to Rs257. buoyed by loan growth and an increase in other income.70 crore for the quarter.90 crore.40 crore.20 crore.60 crore.7% from 13% and the cost of funds to 6.3% from 8. ‡ Transaction banking generated income of Rs43.8%.2% from 3%. ‡ Other income. ‡ The yield on advances fell to 9.10 crore as transaction banking and the financial advisory businesses grew. or that generated by activities other than its main business. and third-party distribution and retail fees stood at Rs11. . Operating profit rose 67. grew 68.10 crore from Rs95.3% to Rs160. from Rs153.‡ Private sector lender Yes Bank Ltd posted a 75% increase in net profit to Rs140 crore in the quarter ended 31 March. The net interest margin widened to 3. ‡ The financial markets business posted revenue of Rs47.80 crore. while that from financial advisory work was Rs57.

Till the end of March. 2010.500 crore to smaller firms. The bank is expected to recruit an additional 100 people in 2010-11. a panIndia branch network of 750 with a human capital base 12.YES Bank taps SMEs for inclusive growth ‡ To give a fillip to the small & medium enterprises (SME). ‡ The bank unveiled its five-year growth plan christened VERSION 2. ‡ Till October last year. But it has started such operations from 33 locations.000 crore to this space in the current year. helping the bank access more customers. the private sector lender had lent around Rs 1. .000 by 2015. YES Bank has been disbursing SME loans only from 13 branches. ‡ The bank aims to achieve a balance sheet size of Rs 1. ‡ On the hiring front. at least 50 locations would be equipped to disburse SME loans. YES Bank is allocating about Rs 4. By the end of the current year.000 crore.0±the Take-off.50. the bank¶s employee strength for the SME business has risen to 300 people as at the end of March 2010. from 82 people in October 2009.

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500 by the end of this fiscal that began on 1 April.7% to Rs26. . from Rs16.40 crore at the end of March 2009. the bank¶s capital adequacy ratio was 20.5% of ‡ At the end of March. deposits at the end of March 2011.169. Its deposit base rose 65.61%. Current and savings accounts stood at 10.798.06% against 0.68% at the end of the previous year. while net non-performing loans stood at 0. he said.60 crore.030 to 4.FUTURE GROWTH STRATEGY ‡ YES bank is also looking at increasing its workforce from 3.

from 150 now. The bank has headroom to raise hybrid capital of 15 billion rupees in FY11. ‡ It will spend 600-750 million rupees to expand branch network to 250 by June 2011.93 billion rupees as on March 31.Yes Bank targets loan growth of 4045 pct in FY11 To tap available hybrid capital headroom of 15 bln rupees Aims to maintain net interest margin of over 3 pct in FY11 To spend 600-750 mln rupees for branch expansion Private sector lender Yes Bank is targeting loan growth of 4045 percent and hopes to maintain net interest margin above 3 percent in 2010/11. to establish its retail footprint. a top official said on Tuesday. which can be tapped as and when required. ‡ The mid-sized lender has a capital adequacy ratio of 20.6 percent and a loan book of 221. ‡ ‡ ‡ ‡ .

‡ Earlier in the day. .2 percent on higher disbursements to corporate and trade finance.45 billion rupees for the quarter.4 billion rupees on higher lending. lagged street estimates of 1. from 3.50 rupees in the Mumbai market that was down 0. ‡ The profit.31 percent.030 now. it posted a 75 percent rise in JanMarch net profit to 1.‡ The bank also plans to raise its headcount to 4. however. mainly to corporate. ‡ Yes Bank's loans in the March quarter rose 78.500 in 2010/11. while interest margin was at 3.9 percent. ‡ Shares in the bank ended down 2. as it starts launching consumer loan products following a network expansion.1 percent at 275.

FINANCIAL ANALYSIS .

35 359.11 350.31 35.31 477.93 1.90 3.50 1916 1930 1938 1945 1985 1994 2003 .880.16 27.94 2.195.52 36.BANK Mkt Net Interest Last Price Capitalizatio Income n 587.706.60 786.693.00 349.64 3.232.74 21.40 298.38 464.195.83 10.757.88 3.71 Net Profit Total Assets Estb.382.99 2.50 824.52 8.37 4.170.00 207.24 37.369.27 6.147.26 38.23 3.22 512.55 561. Karur Vysya ING Vysya Bank JK Bank Federal Bank Kotak Mahindra IndusInd Bank Yes Bank 336.49 33.255.25 3.512.62 2.850.993.03 242.673.996.88 37.056.369.436.399.

C)Subordinate Term Debts = 1815 Risk weighted assets = (338+1815)/0.2010 to reduce cost of funds Gross NPA ratio was at 0. Net NPA ratio was at 0.YES BANK Quarter STATS Net Profit ± 75% of yoy for 4QFY 2010.9% = 338 TIER 2 CAPITAL -A)Undisclosed Reserves.6% Rs 1034cr raised in Jan.6% x CAR = Tier 1 capital + Tier 2 capital Risk Weighted Assets TIER 1 CAPITAL -A)Equity Capital. Loans increased by 18. B) Disclosed Reserves = 12. B)General Loss reserves.3%.1% CAR (Capital Adequacy Ratio) improved to 20.6% Deposits increased by 21.206 = 10451 .

1 Opened 18 branches in last quarter and moved to 150 branches and plans to open 70 more by 2011 .6 P/E ± 28.YES BANK Yearly STATS ‡ NII ± Increased from 511 to 779cr NII = (interest payments on assets) í (interest payments on liabilities) ‡ ‡ ‡ ‡ Net Profit ± Increased from 304 to 492cr EPS ± From Rs10.2 to Rs14.6 to 20.

STRATEGIESFocus on niche sectors DIFFERENTIATION Knowledge Banking Approach Outsourcing Information Technology to focus on core competency Strategic Partnerships Human resources as a competitive advantage Non conventional promotional strategy .

Providing specialized services to sunrise industries Focus on niche sector . financial restructuring.Providing wealth management solutions to affluent customers Corporate services like mergers and acquisitions . currency risk management.

Knowledge banking approach
A unique method of acquiring customers and retaining them by ± Speaking the ³language of clients´ Providing banking solutions through industry specialists Some sectors identified by YES BANK to offer specialized services areI. Food and agriculture II. Infrastructure development III. Life sciences and Biotechnology IV. Telecommunications V. Information Technology VI. Media and Entertainment VII.Real estates

Parameters used by YES BANK in choosing the Focus sectorsPotential to add value in providing banking products Recognition and appreciation of knowledge as a differentiator Growth potential of the sector Opportunities for banking products and competitor activity India¶s competitive position internationally in the sector

Sector Food and agriculture

Opportuinity Emergence of organized retail

Clientele Govt of India, Industry clientele

Services Publishing knowledge reports, Project implementation Joint venture agreements, Risk management, Project control Strategic and financial advisor Specialized services Non traditional form of banking services Fund raising, direct financing

Infrastructure development

Build-OperateTransfer schemes, Public private partnerships Networking, tie ups Govt policy, Consolidation Foreign currency

Govt of India

Life science and Biotechnology Telecommunicat ions IT

Govt of india Telecom industry Globe trottiing professionals

Media and Entertainment

Content Media houses production, content distribution

Strategic Initiatives & Advisory Government (SIG) Group It is the government advisory & development research arm within YES BANK. .

Outsourcing deal with Wipro InfoTech On Dec 2004 Seven year contract Total installation. operation and maintenance of IT assets of YES BANK would be handled by Wipro Infotech .

4)Best systems for integration of front . middle and back offices.CRITICAL AREAS IDENTIFIED ON THE TECH FRONT BY YES BANK 1) High level of efficiency through automation of operations 2)Centralized databases and processing for speedy recovery of data 3)Connectivity with customers and external agencies at various ³touch points´. 5)Adopting best surveillance and security systems 6)Using real time environment for good disaster recovery process and back up systems .

universal banking solution software Cash management solution provider Cash Tech Murex Risk management .STRATEGIC PARTNERSHIPS Partnership with Gartner Inc Importance To formulate and implement the bank¶s IT policy To facilitate the confirmation of policies and processes with ISO and Six Sigma PriceWaterhouseCoopers i-flex solutions ltd FLEXCUBE.

TECHNOLOGY ADVANTAGE YES BANK now delivers a complete banking platform comprisingCore banking Integrated Treasury & Risk management solutions Internet banking for Retail and Corporate ATMs & Switch Awards on the Technology fronta)NASSCOM award for µIT Innovation in Emerging India in 2006 b)µTechnology Innovation¶ award from AC Nielsen .

HUMAN RESOURCES .

Most preferred employer iii. Retaining talented employees ‡ Took several Initiatives in HR strategy ‡ Followed pfm process-aligning individual goal with that of organization .Human resources initiatives ‡ HR as a strategic asset ‡ HR policy objectivesi. Best employer in the sector ii.

‡ Aim-to encourage employess to think innovatively and inculcate professional entreneurship ‡ 5 % executive ownership clause-first such in the sector ‡ Key initiativesa) Yes entrepreneur in Action-program helped the employees of the bank to take a break from regular work and to focus on a project of his /her interest. -focused on developing the talent of the employees . .objective was to ensure that the bank had best managers in the middle and upper levels of the management to implement its strategic initiatives. b) Yes-professional entrepreneurship prg(YPEP): -Talent management initiative of the bank.

.helped the new employee to understand the organisation environment and goals of the organisation and thus better inegration into the organisation.involved assigning a senior and dynamis employee as a mentor to a new employee. .c) Yes-Retail entrepreneurship program(YREP): -yet another talent management initiative -prg aimed at inculcating the cutting edge skills in the employees in the latest developments of the sector to meet the bank¶s future requirements.had the futuristic vision and also expected to give big competitive edge over its competitors. . d) Yes Mentor-another imp. Initiative .

f) Yes University and school relations-since the bank recruited meritorious student directly from the university campuses./schools. -the institute was modelled on the values of yes bank to recruit and nurture the best talent in the banking sector. -this partnership went to the extent of preparing specialized courses for th student meeting its its specific requirements. this program focused on maintaining good relations with the univ. -incorporated to create a center of excellence for providing training in banking and other financial services in the country.e) Yes School of Banking. .Modelled on the lines of some of the centers of learning promoted by the corporate sector.

-This also focused on reverse contribution to the academia by by giving internship training to the selected students. ‡ Bank¶s Hr strategies won major awardsµContinuous Innovation in HR Strategy¶ award at the Indiatimes Mindscape Employer Branding Awards(2007) .

‡ µStaffing program¶ award at the RASBIC Awards(2006)and ‡ The µorganization with most innovative HR Practices¶ award at the Global HR Excellence Awards, as part of the Asia Pacific HRM Congress 2007 held in Mumbai.

‡ YES BANK wins 5 awards at Asia's Best Employer Brand Awards and the CMO Asia Awards for Excellence in Branding and Marketing- held at Sinagapore on Aug. 3, 2010. ‡ YES BANK was the only Indian private sector bank to receive these awards in the following categories: ‡ Best HR Strategy in Line with Business ‡ Excellence in HR Through Technology ‡ Continuous Innovation in HR Strategy at Work ‡ Innovation in Recruitment ‡ Award for Brand Excellence (Banking and Financial Services)

PROMOTION

‡ Reliance was not much on advertising but on management led client acquisition for corporate and wealth management clients. ‡ Probably the first bank to have a chief marketing officer. A roving ambassador ensures that anyone walking in should get immediate personal attention. ‡ Also strove to provide a delightful banking experience through the layout of branches and other services(lot of wall effects and flooring).Promotion ‡ Yes Bank also differentiated itself in the way it promoted itself. .

‡ Then there is also the private banking lounge ‡ Introductory TV ads-bank showed the growth stages of money plant Scindapsus Aureus² Roman word-Aureus -(gold coin) ‡ The plant.believed to bring wealth and happiness. .was used by the bank as a metaphor for ideas getting realized.insurane officers.‡ Also there are investment officers.etc.

the bank gifted ‡ 8000 money plant to its business clients. ‡ As part of the campaigns.‡ A perennial climber.instead of sending diaries. outdoor and online ad campaigns.this Yes Bank Money plant symbolised the bank¶s commitment to growth.calenders or sweets. . ‡ Also planned to launch radio. ‡ Also plans to focus on educating the customers on risk issues by organizing open house forums.

Employee Value Proposition .

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SELECT RESPONSIBLE BANKING INITIATIVES .

and milk as a lower cost.Malnutrition Matters (MM) YES BANK as Technology Transfer Agent  MM·s VitaGoat employs bicycle-powered grinders and variety of locally available fuels to prepare protein-rich soy products like soy yogurt. tofu. nutritious alternative to milk Results:  VitaGoat deployed at Buldana Urban Co-operative Credit Society run residential school since 2007  700 school children fed daily with soy milk/paneer  Expansion to Rajasthan with the delivery of first VitaGoat to Seva Mandir in Jan 2010  Expected to serve ~300-400 people per day Seva Mandir employee using VitaGoat to grind Soybeans .

appealing to a broad base of investors and lenders.Microfinance Institutions Group (MIG) Multiplier Effect: The Indirect Impact  Institutes specific transactions to position microfinance as a new asset class. expanding access to capital  FIRST Indian bank to undertake innovations in capital market products for microfinance: o Capital Market Products  Banks have been main source of debt funding for MFIs (term loans)  Term loans are relatively expensive they are illiquid  YES BANK arranged first rated bond issuance of an MFI in the world in the form of Commercial Paper & Non-Convertible Debentures of INR 2000 mn (USD 40 mn) Potential incremental access to capital for industry of USD 12-14bn annually. impacting 60-70mn clients .

Zameen Organic Overcoming the ¶last mile·  Fair trade supported company owned by Small Farmers· Organizations  Network of 6.000 small farmers producing organic cotton in the Vidharbha (Maharashtra) and Adilabad (Andhra Pradesh) regions  Provides vital processing and marketing linkage between organic farmers and branding companies  Unique concept of Premium: Farmer Premium and Community Premium YES BANK is Zameen·s Sole Banking Partner .

Sustainable Investment Bank Advisory to SME.16 mn clients. provides advisory services & facilitates growth capital for social & environment focused enterprises  Asmitha Microfinance Ltd ² raised USD 10mn for one of top five Indian MFI serving ~1. through private placement of equity  Gradatim IT Ventures . Social & Environment Sectors  Promotes investments.raised USD 3mn growth capital enabling MFI access to technological interventions that increase operational efficiencies and reduce costs .

‡One of the most successful ventures. balance sheet stranded Rs 1300 million. ‡First two quarters. .The Growth story ‡Grown at a tremendous pace. ‡Started operations with 250 employees and two branches.

.000 customers. ‡ Growth rate significantly higher than other private sector banks. ‡ October.2006 Business size was Rs. 800 million .3 million.263 employees. ‡ Market cap became Rs424. ‡ Base of 25.2007 operating with 60 branches and 3.Initial Growth ‡ December.

2007.Initial Growth Strategy ‡ Entire focus was on lending to corporate clients. ‡ Next focus area being wealth management ‡ Main focus on Business banking and small and medium enterprises. ‡ Forayed into rental banking by April. .

. Evolutionary Technology. Entrepreneurial leadership.Instruments of Growth ‡ ‡ ‡ ‡ ‡ A focused business strategy. Highly rated employees Best in class processes.

Top five new Private sector banks in 2006 (Ernst and Young Survey) NAME FINAL RANK STRENGHT GROW H&SOUND TH NESS 1 4 3 5 6 3 1 6 5 4 PROFI EFFICIE TABIL NCY ITY 5 3 1 2 4 1 3 4 2 5 CREDI T QUALI TY 2 1 5 6 3 ICICI Bank YES Bank HDFC Bank AXIS bank Kotak Mahindr a Bank 1 2 3 4 5 .

2006:Profitability-6 Size-32 Efficiency-1 Valuation-3 Safety-1 Growth-1 .December 4.Rank on various parameters ‡ Business world .

Top Ten Banks In India(Business World . Punjab National Bank 7. Kotak Mahindra Bank 6. Andhra Bank 8. ICICI Bank 3.2006) 1. December 4. Yes Bank 4. Indian Overseas Bank 5. Corporation Bank 9. Axis Bank . HDFC Bank 2. Allahabad Bank 10.

Ranked no. Ranked no.Milestones of YES bank May 2004 Dec 2006 Mar 2007 RBI license to commence banking business Ranked no. 3 in businessworld survey of India's best bank. 2 among new private sector banks in financial express survey. Won µBest CSR practice award 2007¶ . Won IT People award 2007¶. 3 new private sector bank in financial expressEarnest and Young survey Dec 2007 Dec 2007 Jan 2008 Mar 2008 . 60 operational branches across India.

6%. service driven private bank catering ³future industries of India´ Adopted international best practices. well capitalized. Strong technology. . customer centric. Capital adequacy ratio 16.SWOT ANALYSIS ‡ STRENGTH High quality.

Unknown brand. .‡ WEAKNESS Less wide network. Not in every state. Less promotional activity.

mutual fund). Wide scope in rural area. stock broking. . Other activity(insurance.‡ OPPORTUNITY Very wide market.

mutual fund.‡ THREAT Very high competition private bank as well as public sector. Rising rates. gold) Capital market slowdown. real estate. Other better saving options available (like insurance. . Government policy.

Recent Development .

The Growth History Grown at Tremendous pace since its inception One of the most successful ventures in India: Balance sheet satnding at 1300million in the first two quarters Started its operation with 250 employees & 2 branches .

6 546.3 379.The Growth Story Key Balance Sheet Items Advances Investments Shareholder's funds Deposits Borrowings Business footprint 900 800 700 600 500 400 300 200 100 0 Advances Investments Shareholder's funds Deposits Borrowings Business footprint 2006(Rs mn) 2005(Rs mn) Growth(%) 2006(Rs mn) 480 221.8 Growth(%) 151 91 37 207 229 115 .1 116.1 119.8 36.1 2005(Rs mn) 191.4 816.1 55.9 75.2 177.

1 22900.08 36382.94 339.86 .8 Growth(%) 78.02 296.67 26798.12 10209.9 43.45 14.37 65.9 58.98 16169.5 2009(in Rs Cr) 12403.42 2189.73 116.09 7117.57 4749.Recent Trend in Growth Key Balance Sheet Items Advances Investments Total share capital Deposits Borrowings Total assets 2010(in Rs Cr) 22193.

2%. NCR and Pune along with 2 National Processing Centers at Mumbai and Gurgaon as at Mar 31. 93 offsite ATM¶s in Mumbai. ‡ Foreign shareholding at 53% includes pedigree investors like Orient Global. ‡ Senior Management personnel effectively hold 7% while Rabobank as a Financial Investor holds 18. Rabobank. HSBC. . 2009. Franklin Tempelton among others.‡ YES BANK has 117 operational branches across 92 cities nationally.

is committed to focus on the Food and Agribusiness sector. ‡ The various initiatives that the Yes Bank has undertaken to transform business and finance of Agribusiness are: .Say Yes to Agribusiness ‡ YES Bank. as a bank for future industries of India. ‡ It has taken several initiatives: from µFarm Gate¶ to µFood Plate¶. through it¶s knowledge driven approach.

‡ Advisory to Corporate on Large scale Farming Initiatives towards enhancing Food Security. ‡ YES Bank's mobile money services .‡ End to End Advisory on developing India¶s First Agri SEZ ‡ Strategic and Financial Advisors to development of India¶s First of it¶s kind Agro Parks ‡ National Consultants to Union Ministry of Agriculture on development of Modern Terminal Markets.

Conclusion .

Major Instruments for Growth Focussed business strategy Entrepreneurial leadership Highly rated employees Best-in-class processes Evolutionary technology .

Reasons for Successful Market Entry Bank¶s competence in terms of using high-end technology Knowledge banking approach Emphasis on highly qualified human resources Catered to niche segment of the market with a differentiated strategy Yes Bank started its operations buring Retail boom .

Achievements  In December 2006. the third best bank in India in Business world¶s annual survey  The second best among the new private sector banks in the Financial Express-Ernst & Young Survey of India  Top ten banks in India on the basis of following parameters Profitability Efficiency Safety Size Valuation Growth .

‡ Yes Bank adopted the Differentiation strategy to gain Competitive Advantage. It followed the following approaches: ‡ Knowledge Banking  Food & Agribusiness  Infrastructure Development  Healthcare & Life Sciences  Communications & Technology  Environment & Renewable Energy  Education & Social Infrastructure .

Touch Points  Integrated operations  Surveillance & Security  Disaster recovery and Back Up .‡ Technology  Automation of operations  Connectivity.

‡ Human Capital ‡ Yes bank took various Initiatives in Human Resources Management: Retaining talented employees Inculcating innovating thinking Encouraging professional entrepreneurship .

if any. ‡ Kapoor perceives a growth rate of 70 to 90 % through 2010. .Looking Ahead ‡ Contemplating to offer stake in Yes Bank to a foreign Player. to tap foreign Markets ‡ Bank is seriously considering to proliferate in small and medium towns seeking immense growth potential. ‡ Expand retail banking and Microfinance.

Questions ‡ Has knowledge banking helped in differentiation? ‡ Will concentration on niche market help in long run? ‡ How far has focus of yes bank on advanced technology and competent human resource been useful to yes bank? .

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