BANKING IN INDIA

INTRODUCTION Immediately after Independence, the government of India initiated measures to play an active role in the economic life of the nation. In pursuance of this policy, government adopted Industrial Policy Resolution in 1948 in which it envisaged a mixed economy. From now onwards, government decided to play an active role in different segments of an economy including banking and finance. The Government of India, in a major step nationalized Reserve Bank of India in 1948. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India. Government in order to have firm grip over this sector nationalized the private banks first in 1969 and later in 1980. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. In the early 1990s the then Narsimha Rao government embarking on a policy of liberalisation, gave licenses to a small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks such as Global Trust Bank, UTI Bank, (now re-named as Axis Bank), ICICI Bank and HDFC Bank. This almost kick started the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. FDI in Banking Sector The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions.

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TYPES OF BANKS

A) Commercial Bank: Among the banking institution in the organized sector, the commercial banks are the oldest institutions having a wide network of branches. They were established as corporate bodies with share holdings by private individuals. They were mainly engaged in financing organized trade, commerce and industry.

1) Public Sector Banks: Public Sector in Indian banking reached its present position in three stages. 1. The conversion of the existing imperial bank of India into the State Bank of India in 1955. 2. The nationalization of 14 major commercial banks in 1969. 3. The nationalization of 6 more commercial banks in 1980 and one of them New Bank of India was later on merged with Punjab National Bank. Thus 27 banks constitute public sector in Indian commercial banking.

2) Private Sector Bank: The Narasimham Committee on Financial Sector (1991) recommended the establishment of Private Banks in India. The Reserve Bank of India provide guidance for the setting up of new private sector banks have been established mainly by the financial institution such as a UTI, ICICI, IDBI, HDFC,YES. They improve the image of new commercial banking system and to win confidence of the depositing public. B) Regional Rural Banks: Regional Rural Banks have been established by the Government of India in terms of the provisions of the Regional Rural Banks Act 1976. They grant loans & advances to artisans, small entrepreneurs and persons who are engaged in trade, commerce or industry or other productive activities.

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C) Co-Operative Banks: Registered under the Co-operative Societies Act of the Respective States, the banking related activities of the co-operative banks are also regulated by the Reserve Bank of India. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. The Co-operative banks are an important constituent of the Indian Financial System. The Co-operative movement originated in the West, but the importance that such banks have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important even today, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary cooperative banks. While the co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal finance, etc. along with some small scale industries and self-employment driven activities. The co-operative banks in urban areas mainly finance various categories of people for selfemployment, industries, small-scale units, home finance, Consumer finance, personal finance, etc. The co-operative banks have a three tier set up : The state co-operative banks. Central co-operative banks. Primary Credit Societies. The co-operative banks proceed on the principle of co-operation. Some of the co-operative banks are quite forward looking and have developed sufficient core competencies to challenge state and private sector banks. According to The National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) the total deposits & lending of cooperative banks is much more than Old Private Sector Banks & also the New Private Sector Banks. This exponential growth of Co-operative Banks is attributed mainly to their much better local reach, personal interaction with customers, and their ability to catch the nerve of the local clientele

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YES BANK Introduction YES BANK, Indias new age private sector Bank, is an outcome of the professional commitment of its Founder, Rana Kapoor and his highly competent top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to Emerging India. YES BANK is the only Greenfield license awarded by the RBI in the last 15 years, associated with the finest pedigree investors. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. A key strength and differentiating feature of YES BANK is its knowledge driven approach to banking and an unprecedented customer experience for its retail banking and wealth management clients. YES BANK has fructified into a full service commercial Bank that has steadily built Corporate and Institutional Banking, Financial Markets, Investment Banking, Corporate Finance, Business (Small & Medium Enterprises) and Transaction Banking, Retail and Wealth Management business lines across the country, and is well equipped to offer a range of products and services to corporate and retail customers. The Banks constant endeavor is to provide a delightful banking experience expressed with simplicity, empathy, and totality. Yes Bank understands the financial needs of the Government of India, in its progress and development role of a Growing India through Yes Banks Knowledge Banking approach and the objective of being the Bank for an Emerging India. YES BANK has received significant national and international recognitions which include Dr. Rana Kapoor, Founder, MD & CEO being recognised as the Entrepreneurial Banker of the Decade (20012010) by Bombay Management Association ; Business Standard Banker of the Year 2011 & 2012; Best Mid-Sized Bank 2012 - Business Today & Business World; Best Private Sector Bank 2012 - Money Today; YES BANK received certification for its 'Complaints Management System (ISO 10002:2004) by the British Standard's Institution (BSI) as on August 25, 2010. The Bank was also awarded the ISO 27001:2005 Certification for its 'Information Security Management System' by BSI.

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YES BANK is committed to its long-term vision of Building the Best Quality Bank of the World in India through utmost dedication, passion and commitment, backed by a highly differentiated financial and business model to achieve robust and sustained growth. Since inception in 2004, they crossed many significant milestones that stand testimony to Innovation and Excellence in creating a new paradigm in Indian Banking. On April 1, 2010, they embarked on an ambitious journey into the next phase of growth and launched YES BANK VERSION 2.0, which is clearly the most stimulating phase in the life cycle of YES BANK with an objective of establishing 900 branches, 2,000 ATMs, 12,750 employees, a 125,000 Crores deposit base, a 100,000 Crores loan book and a ` 150,000 Crores Balance Sheet size by 2015. 2012-13 marked the third year of an ambitious journey to achieve level-next growth. During the year, they have taken major strides to achieve our target, and are suitably positioned for another year of well balanced growth. Today, they have established 430 branches and over 950 ATMs and have an approximately ` 67,000 Crores deposit base, a ` 47,000 Crores loan book and a ` 100,000 Crores Balance Sheet, while maintaining pristine asset quality and class leading shareholder returns. YES represents true spirit of being service-oriented. This spirit is supported by key facets. These facets comprise knowledge, human capital, technology and responsibility. It is Indias fourth largest private sector bank. It have steadily built a full-service commercial bank with Corporate, Retail and SME Banking platforms, with a comprehensive product suite of Financial Markets, Investment Banking, Corporate Finance, Branch Banking, Business and Transaction Banking and Wealth Management.

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Stock Information Bombay Stock Exchange (BSE) BSE Code 532648 Brand Vision And Strategy Brand Ethos YES BANK has pursued a differentiated branding strategy in line with its objective of becoming the Best Quality Bank of the World in India. The foundation of this strategy lies in the name YES, which underlines the twin ethos of service and trust and the promise to deliver a truly delightful and unprecedented Banking experience to all customers The name YES In the words of Rana Kapoor The reason behind naming the Bank YES BANK was my firm belief that our Bank's differentiation begins with its service and trust mark 'YES'. 'YES' represents our true spirit of becoming a high quality, customer centric, service driven, Indian Bank. Brand Vision and Mission National Stock Exchange NSE Code YESBANK (NSE) ISIN INE528G01019

Vision
To be recognized as the Best Quality Bank of the World in India by 2015 To evolve as the Professionals Bank of India

Mission
To establish a high quality, customer centric, service driven, private Indian Bank catering to the Future Businesses of India. The Version 2.0 launched in April 2010 aims to achieve the following by March 2015: Human Capital 12,750 Branch Network 900 Balance Sheet INR 150,000 crore

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Brand Pillars
The YES BANK brand is built around 5 Key Brand Pillars, which epitomize the growing strengths of the Bank. All communication and advertising has been created around these key brand pillars. Growth: YES BANK's core promise is growth for its internal and external stakeholders symbolized in Say YES to Growth! Trust: YES BANK's Promoters, Investors, and Top Management team are all of the highest pedigree with a demonstrated track record, thus inspiring and establishing a Trust Mark Say YES to Trust! Human Capital: YES BANK has adopted a knowledge-driven, entrepreneurial management approach and offers financial solutions beyond the traditional realm of banking. YES BANK's top quality Human Capital represents the finest talent in Indian banking, chosen from India and abroad Technology: YES BANK is establishing the highest standards in customer service by adopting cutting-edge, innovative Technology. The only thing constant about technology used at YES BANK is Evolution Transparency & Responsible Banking : YES BANK considers Transparency and Accountability to be of utmost importance. YES BANK has established one of the most stringent Corporate Governance norms, and is committed to Responsible Banking by focusing on Sustainability and Social Responsibility YES Money Plant The money plant, Scindapsus Aureus, derives its name from the Roman word Aureus which means 'gold coin '. It is believed that the money plant brings wealth and happiness, and is most effective when shared with others. YES BANK has been conceived in much the same spirit. We believe in adopting a focused, knowledge-based approach to establish long-term partnerships; thereby enabling us to 'create and share value' that extends beyond the traditional realm of banking. A perennial climber, the money plant is characterized by growth. At YES BANK, it is our constant endeavor to partner the growth of our clients, while they gain from our expertise. Since its inception in 2004, YES BANK has sent over 400,000 money plants to our valued customers across India
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Key Differentiators
Knowledge Banking: YES BANK has adopted a Knowledge driven approach to offer financial solutions, which go beyond the traditional realm of banking. At YES BANK, we are committed to supporting the sustainable growth and development of sunrise sectors like Infrastructure, Food & Agribusiness, Telecommunications, Information Technology, Life sciences, Infrastructure, Renewable Energy, Media & Entertainment, Manufacturing and Textiles, among others. Human Capital: The Human Capital engagement practices at YES BANK are targeted at developing the YES BANK brand as an Employer of Choice. The Bank has focused on attracting and retaining the best talent from India and abroad. YES BANK aims to build a culture and environment that supports Professional Entrepreneurship, and is built on the core principle of Creating and Sharing Value. Some of the key initiatives to strengthen our human capital are: YES School of Banking: This program is initiated with a vision to create a centre of excellence for learning solutions in banking and related areas on values of Knowledge, Innovation, Excellence and Entrepreneurship. YES Professional Entrepreneurship Program (Y - PEP): This is designed around the concept of talent development, which aims to ensure the presence of an experienced, dynamic, energetic and driven team of professionals in junior, middle and upper management to implement various strategic and growth responsibilities of the Bank. Technology: YES BANK has invested in several state-of-the-art technology initiatives and successfully implemented them. Since inception, YES BANK has pursued outsourcing, as part of its strategy. The philosophy of the Bank has been to engage with select partner companies who are acknowledged leaders in their products or businesses in developing specific solutions for YES BANK, that are differentiators in the marketplace. Responsible Banking: YES BANK has a vision to champion 'Responsible Banking' in India, where the concepts of Corporate Social Responsibility (CSR) and Sustainability are integrated in its Business Focus. YES BANK is committed to adding long term value to society, to differentiate itself in the marketplace based on a strong 'sustainability mandate', and to build in flexibility and openness as part of its core strategy. The 'Triple Bottom Line' ethos concisely articulates our approach whereby we focus on nurturing People, Planet and Profit to create enduring value, and a unique strategic position for YES BANK in a competitive marketplace.

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Business Lines
YES BANK provides a comprehensive range of client-focused Corporate Banking and Commercial Banking Services, including Working Capital Finance, specialised Corporate Finance, Trade, Cash Management & Transactional Services, Treasury Services, Investment Banking Solutions and Liquidity Management Solutions to name a few. YES BANK is committed to provide innovative financial solutions by leveraging on superior product delivery. YES BANK covers the entire gamut of customers through the following 5 specialized relationship groups: Corporate & Institutional Banking The Corporate & Institutional Banking (C&IB) business at YES BANK provides comprehensive financial and risk management solutions to clients having a turnover of INR 1,000 crore and above. The relationship experts across this business unit, offer an array of services to the following categories of institutions: Large Indian Corporate, Multinational Companies, Financial Institutions and Banks, Public Sector Enterprises, Central and State Governments and Government Bodies. Government Relationship Management (GRM): The GRM Group at YES BANK understands the financial needs of the Union and State Government undertakings and agencies in their progress and development role of a Growing India through YES BANK's Knowledge Banking approach. This is further facilitated through YES BANK's Technology leadership delivering proven, easy-to-use solutions for Government Undertakings and Agencies. YES BANK has provided financial and advisory services to Ministries of the Union Government, State Governments, Central & State Public Sector Undertakings (PSU's) & Agencies. Emerging Corporates Banking By continuously evolving the sector-specific products and services, YES BANK paves the path for a brighter future for Emerging Corporates. At YES BANK, through the foresight and collective knowledge of many minds, Emerging Corporates Banking (ECB) has been institutionalized nationally to service the needs of today's growth focused, fast-paced enterprises with an annual turnover between INR 100 crore and INR 1,000 crore. ECB focuses on client companies in the high-octane middle market segment.

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Branch Banking YES BANK believes in providing a holistic banking experience to all its customers through its high quality, state-of-the-art branch network, using cutting-edge technology, a truly customer centric offering, and significantly differentiated marketing and branding strategies across major towns and cities in India. Branch Banking at YES BANK comprises of Business Banking & Retail Banking. Business Banking: Business Banking at YES BANK is a dedicated business unit to service SMEs in India. YES BANK caters to all the service requirements of these SME's across various product segments like Cash Management, Payment Solutions, Direct Banking, Liabilities and Investment Management, Trade services and advisory. YES BANK provides Fund based lending to SME's with an annual turnover between INR 10 crore and INR 100 crore. The core objective of Business Banking is to easily enable SME access to finance (including term finance), and business development services, thereby fostering growth, competitiveness and employment creation that are key to achieving economic growth. YES BANK has identified IT/ITES, Foreign Trade, Logistics, Travel/Tourism, Media and Entertainment, Gems and Jewellery, Trusts, Societies & NGOs, Realty, Professional Services and Others as Key Growth sectors of the Indian Economy and has develop a suite of specialized products for all their business needs. Retail Banking: Retail Banking caters to the banking & wealth management needs of individuals and small businesses. These customers are currently being served through an extensive branch network, comprising of over 430 branches across the country with 950+ ATMs, and Internet Banking capabilities. The Bank provides all its Retail Banking customers with novel solutions to meet all their financial needs, combined with a worldclass branch ambience, service culture and expertise that will create a Delightful Banking Experience. YES BANK categorizes its customers into three distinct categories which are YES PROSPERITY, YES FIRST and YES PRIVATE based on the relationship size. YES BANKs Global Indian Banking, an offering for the Non-Resident Indian community, provides experiential Banking to the Global Indians. The Bank focuses on providing complete 'Wealth Management Solutions', based on comprehensive Risk Profiling, Asset Allocation and Investment Monitoring Process. Indian Financial Institutions
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Indian Financial Institutions (IFI) help various relationship and product managers to offer a wide variety of products including Debt, Trade Finance, Guarantees, Treasury Services, Working Capital Finance, Cash Management & Transactional Services, Liabilities and Investment Management, and Liquidity Management Solutions to YES BANK's customers. The IFI team leads YES BANK's efforts for raising debt capital in the form of Tier I and Tier II bonds from various Indian Institutions and offers an array of services to: Domestic Banks (Govt. owned, Private and co-operatives), Mutual Funds, Insurance Companies, Non-Banking Finance Companies (NBFC), Private Equity Funds and Brokers (both Capital market and Commodity market). International Banking International Banking at YES BANK continues to further strengthen its international strategy with a clear focus on servicing the correspondent banks' businesses in India. Additionally, the division provides a suite of advisory services to international corporations eager to either expand or enter the Indian market under the aegis of a dedicated India Business Facilitation Desk (IBFD). International Banking at YES BANK caters to: Foreign Banks, Multilateral Agencies, Foreign Institutions such as US-EXIM, Coface, Euler Hermes amongst others, Private Equity Fund houses with a focus on India and NBFCs registered in India and backed by Foreign banks.

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Product and Services

Savings Accounts
YES BANK Savings Accounts have been designed specifically to take care of your banking requirements. Our innovative financial solutions, backed by expert advice, will provide you with a truly rewarding banking experience.Earn a higher return of 7% p.a.* on your YES BANK Savings Account for balance more than Rs. 1 lakh & 6% p.a.* for balance up to Rs. 1 lakhGrow your Saving Faster. VALUE FOR MONEY

Quarterly payout of Savings interest Free RTGS/NEFT payment facility through NetBanking Free Demand Draft issuance upto defined limits through Branch & NetBanking** Free utility bill payment facility through Net Banking for registered billers Free set-up of Standing Instruction facility Personal Accident Insurance, Lost Card Liability and Purchase Protection on your International Debit Card

SMART SALARY Account | A Zero Balance Savings Account

YES BANK Smart Salary Program is a power-packed offering that brings immense efficiencies to your organization by automating the entire salary processing cycle through flexible models, assured and faster reconciliation, dedicated corporate help-desk & a lot more. Combined with special privileges, best-in-industry savings deposit interest rate, & our uncompromising service commitment, this highly compelling proposition enables your employees to save more by gaining higher interest on their valuable savings. The program allows end-to-end integration with HR, ERP & payroll accounting systems with real time processing & confirmations at zero cost.
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Fixed Deposit
At YES BANK, we understand your need for security. Our secure Fixed Deposits provide you greater earnings, with the flexibility of maintaining your funds in accessible units so you don't need to break the entire deposit. Features of YES Fixed Deposits:

Wide range of tenures, ranging from 7 days to 10 years Best-in-class interest rates Senior citizens get an extra benefit on the interest rate (0.75% extra) Earn compounded interest by reinvesting the principal and interest* No penalty on premature withdrawal Withdraw your deposit in units as low as Re 1/Easy funds withdrawal through our sweep-in facility Avail of overdrafts against your deposits at competitive rates, giving you complete funds liquidity

Auto Renewal, ensuring that your Fixed Deposit will be rolled over for the existing period of the deposit, even if you forget to give instructions

Tax Saver Deposits - 5 years tax free Fixed Deposit (Interest Rates same as Regular Fixed Deposits)

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Recurring Deposits
The YES BANK Recurring Deposit is designed to help you prepare for the future. It enables you to make a financial provision by investing a fixed amount every month for a defined period. At the end of pre-defined period you are paid back the lump sum including the principal and interest. Features of YES Recurring Deposits:

Easy way of paying monthly installment by providing a one-time standing instruction from your YES BANK Savings Account

Interest rates similar to Fixed Deposit rates Senior citizens get an extra benefit in the interest rates (0.75% extra) Minimum monthly installment of Rs 1,000 and in multiples of Rs 100 thereof No upper cap on the maximum amount of monthly installment Minimum tenure of 6 months (and in multiples of 3 months thereafter) up to a maximum tenure of 10 years

No TDS for interest on Recurring Deposits.

Savings Account for Minors

Watch money grow in your child's piggy bank with My First YES Account, which gives you the benefit of higher returns along with an opportunity to guide your child to manage their savings. My First YES Account is the first step towards financial literacy for your child. This bank account gives your child the platform to learn the basics of banking and parents an avenue to save for their child's future in the form of Fixed Deposits and Recurring Deposits. The Debit Card with variable limits allows teenagers to an easy access to their pocket money. Earn a higher return of 7% p.a.* on your YES BANK Savings Account for balance more than Rs. 1 lakh & 6% p.a.* for balance up to Rs. 1 lakh

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YES Family
At YES BANK, we understand the importance of family. Presenting YES-FAMILY, yes banks unique offering that enables us to open accounts of all our family members and link them together, to enjoy flexibility on balance maintenance. we will also find it easy to manage all the accounts through a single screen.

Current Account for Business - Greater Profit for Business Growth

The YES BANK Current Account comes with an exhaustive range of benefits, designed to help business growth. Our cutting-edge banking technology, combined with our expert knowledgebased financial solutions, ensure not just efficient transactions but also greater profits for business growth. Key Features of YES BANK Current Accounts

A wide choice of variants allowing you to choose the type of Current Account which suits your business requirements and transaction requirements

Free Demand Drafts & Pay Orders through YES BANK and our correspondent bank's locations give access across more than 600 cities PAN India for payment transactions

At-Par cheques that are accepted as "local clearing" cheques across our branches, thus save on charges associated with ordering a demand draft

Flexible Cash Deposit limits.

Forex and Trade Finance Services

At YES BANK, we provide our customers with a comprehensive suite of Trade and Foreign Exchange Services which is backed by stringent Service Level Agreements (SLA's) and turnaround times. Our strategic tie-ups with international correspondent banks have helped us gain a global footprint.

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YES TOUCH Services

At YES BANK, our services are designed to suit your needs. Our technology-enabled banking services provide you with 24 hour access to your account, not only in India but also anywhere in the world. You can access your account from any of our 24-Hour ATMs, or avail of our stateof-the-art Netbanking and Phone Banking services. Ensuring that we work for you round-theclock, irrespective of whether youre at home, at work or on a holiday.

YES BANK Amex Credit Cards YES BANK in partnership with American Express is delighted to present a premium range of Cards that offers a host of benefits and privileges like never before. Value Added benefits offered on the Cards American Express Platinum Reserve Credit Card

Enjoy exclusive privileges on international and domestic flights and hotels Pay for travel directly with your Membership Rewards Points Relax with complimentary access to over 600 airport lounges around the world Tee off with complimentary golf at leading golf courses in India and abroad Leading Membership Rewards Programme Enjoy Platinum Concierge Services 24x7 for anything that you may need - dining reservations, delivering flowers and more

American Express Platinum Travel Credit Card

Enjoy the fastest way to complimentary travel complete with flight tickets aboard IndiGo and a luxury stay at the Taj Group

Receive your Welcome Gift* of 5,000 Bonus Membership Rewards Points redeemable for a Rs.4,000 IndiGo voucher

Experience the renowned American Express Platinum Service

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American Express Gold Card

Automatic enrolment into one of the most powerful programmes in the country - The Membership Rewards Programme

Earn 1,000 bonus Membership Rewards Points monthly for simply using your Card 4 times in a month*

Experience the Gold Standard of Service with Zero Lost Card Liability and Online Fraud Protection

YES Gift Card from YES BANK Suitable for all occasions The YES Gift Card is suitable for gifting for all purposes. So be it festivities like Diwali, Christmas or New Year or occasions like marriages, birthdays, anniversaries or special days like Mother's Day, Valentine's Day, etc, the YES Gift Card is the Perfect Gift. Great Acceptance The YES Gift Card is a MasterCard signature based card, which signifies the widest acceptance. It is accepted at over 500,000 MasterCard enabled merchant outlets across the country.

Payroll Card - YES TOUCH The YES BANK Payroll Card is a rupee denominated prepaid card for disbursing employees salaries in a more simpler and systematic manner. Pre-funded by the organization itself, the YES BANK Payroll Card lets the company issue payment by card instead of disbursing cash or cheques to its employees. By facilitating cash withdrawal at any ATM in India and point-of-sale transactions at all merchant outlets supporting MasterCard transactions, the Payroll Card eliminates the need for a separate salary account.

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International Travel Card YES BANK Travel Card aims to make traveling abroad a truly memorable experience. The Travel Card is a secure, convenient and hassle free way to carry money and make payments when in foreign shores. YES BANK Travel Card also gives you 24-hour access to your money. Withdraw funds in the local currency from any MasterCard ATM (Automated Teller Machine). Offers the Pin based security. YES BANK Travel Card for online purchases on websites hosted outside India and accepting payments in foreign currency. There are no charges for using your Travel Card for online shopping and you can easily track your expenses using our Internet Banking facility.

YES BANK MULTI CURRENCY TRAVEL CARD YES BANK MULTI CURRENCY TRAVEL CHIP CARD aims to make travelling abroad a truly memorable experience. The Multi Currency Travel Card is a fully secure, convenient and hassle free way to carry multiple currency in one card and make payments when in foreign shores.. Key Features & Benefits Carry multiple currencies in one card - (USD, EUR, GBP, SGD,AUD) Worldwide acceptance at any MasterCard accepting merchant POS, ATM and Online Reload your card at all YES BANK branches Travel safe with CHIP embedded card for enhanced security against fraud and misuse You may either use the balance in your card for your next trip or get it refunded Easily manage the your account online Complimentary access to airport lounges in India- (Clipper & Plaza lounges)** The validity of the card is 5 years 24/7 Customer Service to ensure support in case you need any help Instant SMS updates on all your transactions

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International Gold & Silver Debit Cards The YES BANK International Gold and Silver Debit Cards give the recognition and flexibility to carry account with you, wherever you go. Launched in partnership with MasterCard International, this global card gives unparalleled access to withdraw cash from innumerable ATMs and can be used to make cashless purchases in millions of establishments worldwide. shop online from home across every category including Apparels, Hotels, Gifts, Florists, Electronics, Lifestyle goods, Consumer goods, etc, all with YES BANK Debit Card. And whats more, be assured of the safety of transaction each time you purchase online. Internet Banking We provide you with state-of-the-art internet banking facilities, enabling you to conduct all your banking activities online using your personal computer, from the comfort of your home or office. Thus providing you with secure, 24 hour access to all your accounts from anywhere in the world. Mobile Banking YES BANK introduces MobileBanking Application to fulfill all your banking needs, while you are on the move. Now you can bank with YES BANK, in a convenient and hassle-free way, anytime and anywhere. Whats More! - This service is absolutely FREE

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Financial Statement Balance Sheet as at March 31, 2013 Schedules As at March 31, 2013 CAPITAL AND LIABILITIES Capital Reserves and surplus Deposits Borrowings Other liabilities and provisions TOTAL 1 2 3 4 5 3,586,223 54,490,482 669,555,852 209,221,472 54,187,245 991,041,274 3,529,874 43,236,486 491,517,050 141,564,874 56,408,508 736,256,792 1.6% 26.0% 36.2% 47.8% (3.9%) 34.6% As at March 31, 2012 % Change

ASSETS Cash and balances with Reserve Bank of India Balances with banks, money at call and short notice Investments Advances Fixed assets Other assets TOTAL 8 9 10 11 429,760,421 469,995,663 2,295,452 48,332,141 991,041,274 277,573,491 379,886,419 1,771,038 41,170,438 736,256,792 54.8% 23.7% 29.6% 15.8% 34.6% 7 7,270,011 12,529,966 (42.0%) 6 33,387,586 23,325,440 43.1%

Contingent liabilities Bills for collection Significant Accounting Policies and Notes to Accounts forming part of financial statements

12

2,478,043,530 6,773,965

1,614,270,735 4,020,545

53.5% 68.5%

18

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Profit and Loss Account for the year ended March 31, 2013 Schedules Year Ended March 31, 2013 I. INCOME 13 14 TOTAL II. EXPENDITURE 15 16 17 TOTAL III. PROFIT 13,006,807 16,583,936 TOTAL IV. APPROPRIATIONS 348,646 3,251,702 97,136 8,786 2,151,734 349,065 23,383,674 29,590,743 253,337 2,442,496 228 37.6% 33.1% 42503.5% 29,590,743 9,769,984 11,150,578 20,920,562 33.1% 48.7% 41.4% 60,752,092 13,345,367 8,410,051 82,507,510 46,917,212 9,325,343 5,632,248 61,874,803 29.5% 43.1% 49.3% 33.3% 82,939,991 12,574,326 95,514,317 63,073,581 8,571,206 71,644,787 31.5% 46.7% 33.3% Year Ended March 31, 2012 % Change

Interest earned Other income

Interest expended Operating expenses Provisions and contingencies

Net profit for the year Profit brought forward

Transfer to Capital Reserve Transfer to Statutory Reserve Transfer to Investment Reserve Dividend paid for last year and tax thereon Proposed Dividend Tax (including surcharge and education cess) on Dividend Balance carried over to balance sheet TOTAL Significant Accounting Policies and Notes to Accounts forming part of financial statements 18

(439) (2101.4%) 1,411,950 229,054 16,583,936 20,920,562 52.4% 52.4% 41.0% 41.4%

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Earning per share (Refer Sch.18.7.6) Basic ` Diluted ` (Face Value of Equity Share is ` 10/-) 36.53 35.55 27.87 27.13 31.1% 31.0%

Cash flow Year Ended March 31, 2013 Cash flow from operating activities Net profit before taxes Adjustment for Depreciation for the year Amortisation of premium on investments Provision for investments Provision for standard advances Provision/write off of non performing advances Other provisions Loss from sale of fixed assets 517,070 295,560 (29,910) 766,399 1,516,688 29,310 5,101 22,357,535 Adjustments for : Increase in Deposits Increase in Other Liabilities Increase in Investments Increase in Advances Increase in Other Assets 178,038,802 (3,998,530) (86,083,831) (91,625,933) (6,765,222) (10,434,714) Payment of direct taxes Net cash generated from operating activities (A) (6,516,441) 5,406,380 32,127,732 24,668,861 (42,006,422) (36,365,710) (13,624,469) (35,200,008) (5,149,891) (24,216,994) 454.2% (116.2%) 104.9% 152.0% (50.3%) (70.4%) 26.5% (122.3%) 408,197 308,137 160,152 406,989 115,677 219,262 14,339 16,132,905 26.7% (4.1%) (118.7%) 88.3% 1211.1% (86.6%) (64.4%) 38.6% 19,257,317 14,500,152 32.8% Year Ended March 31, 2013 % Change

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Cash flow from investing activities Purchase of Fixed Assets Proceeds from sale of Fixed Assets Changes in Capital Work- in Progress Changes in Held to Maturity Investment Net cash used in investing activities (B) (1,038,360) 22,310 (30,535) (66,368,749) (67,415,334) (904,106) 67,884 (51,338) (47,746,979) (48,634,539) 14.8% (67.1%) (40.5%) 39.0% 38.6%

Cash flow from financing activities Tier II Debt raised Increase in Borrowings Innovative Perpetual Debt raised Proceeds from issuance of Equity Shares Share Premium received thereon Dividend paid during the year Tax on dividend Net cash generated from financing activities (C) 17,638,000 48,618,598 1,400,000 56,349 756,774 (1,428,296) (230,280) 66,811,145 12,460,625 60,101,931 1,500,000 58,403 637,787 (870,375) (141,196) 73,747,175 41.5% -19.1% -6.7% -3.5% 18.7% 64.1% 63.1% (9.4%)

Net increase in cash and cash equivalents (A+B+C) Cash and cash equivalents as at April 1 Cash and cash equivalents as at March 31 Notes to the Cash flow statement: Cash and cash equivalents includes the following Cash and Balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice Cash and cash equivalents as at March 31

4,802,191 35,855,406 40,657,597

895,642 34,959,764 35,855,406

436.2% 2.6% 13.4%

33,387,586 7,270,011

23,325,440 12,529,966

43.1% (42.0%) 13.4%

40,657,597

35,855,406

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DATA ANALYSIS AND INTERPRETATION

YES BANK and its competitors Name HDFC Bank ICICI Bank Kotak Mahindra Axis Bank IndusInd Bank Yes Bank ING Vysya Bank JK Bank Federal Bank Karur Vysya South Ind Bk StanChart IDR CityUnion Bank Karnataka Bank DCB Lakshmi Vilas Dhanlaxmi Bank Goldman BEES Last Price 611.30 830.45 633.15 934.10 374.55 261.20 465.85 1,101.50 287.60 329.10 20.25 126.90 44.05 76.70 42.40 62.70 30.15 2,943.15 Market Cap. (Rs. cr.) 146,023.26 95,838.48 48,586.52 43,811.53 19,598.35 9,395.91 8,698.60 5,339.83 4,919.86 3,527.33 2,714.16 2,284.20 2,089.93 1,444.72 1,060.60 611.58 319.77 301.97 Net Interest Income 35,064.87 40,075.60 8,042.49 27,182.57 6,983.23 8,294.00 4,861.58 6,136.79 6,167.57 4,242.43 4,434.29 2,188.75 3,764.29 916.10 1,760.55 1,308.00 Net Profit 6,726.28 8,325.47 1,360.72 5,179.43 1,061.18 1,300.68 612.96 1,055.10 838.17 550.32 502.27 322.02 348.08 102.06 91.57 2.62 Total Assets 400,331.90 536,794.69 83,693.68 340,560.66 73,306.52 99,104.12 54,836.45 71,743.32 60,626.78 46,733.35 49,795.04 121,685.51 22,977.09 41,526.38 11,278.84 17,666.69 13,819.49 -

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Comparison with competitor Balance Sheet ------------------- in Rs. Cr. ------------------Yes Bank Mar '13 Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 358.62 358.62 0.00 0.00 5,449.05 0.00 5,807.67 475.88 475.88 0.00 0.00 35,738.26 0.00 36,214.14 1,153.64 1,153.64 4.48 0.00 65,547.84 0.00 66,705.96 373.30 373.30 0.00 0.00 9,091.19 0.00 9,464.49 467.95 467.95 0.00 0.00 32,639.91 0.00 33,107.86 HDFC Bank Mar '13 ICICI Bank Mar '13 Kotak Mahindra Mar '13 Axis Bank Mar '13

66,955.59 296,246.98 292,613.63 20,922.15 33,006.60 145,341.49

51,028.77 252,613.59 20,410.62 43,951.10

87,877.74 329,253.58 437,955.12 5,418.73 34,864.17 32,133.60

71,439.39 296,564.69 2,789.81 10,888.11

99,104.14 400,331.89 536,794.68

83,693.69 340,560.66

Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets 3,338.76 727.00 14,627.40 12,652.77 19,052.73 22,364.79 2,207.90 1,481.26 14,792.09 5,642.87

46,999.57 239,720.64 290,249.44 42,976.04 111,613.60 171,393.60 427.12 208.67 218.45 11.09 4,833.21 6,865.45 4,162.37 2,703.08 0.00 19,014.41 4,647.06 0.00 4,647.06 0.00 29,087.07

48,468.98 196,965.96 28,873.43 113,737.54 464.42 0.00 464.42 0.00 2,197.69 2,355.64 0.00 2,355.64 0.00 7,066.56

99,104.12 400,331.90 536,794.69

83,693.68 340,560.66
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Contingent Liabilities Bills for collection Book Value (Rs)

235,809.04 698,062.89 727,858.44 12,672.71 161.94 48,163.51 152.20 74,512.60 578.21

22,830.81 525,314.30 6,470.50 126.77 50,696.47 707.50

Profit & Loss account ------------------- in Rs. Cr. ------------------Yes Bank Mar '13 Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses 6,075.21 655.54 426.87 51.71 1,041.42 0.00 1,480.06 695.48 8,250.75 19,253.75 3,965.38 0.00 651.67 11,320.41 0.00 11,236.12 4,701.34 35,191.21 26,209.18 3,893.29 0.00 490.16 9,503.20 0.00 9,012.89 4,873.76 40,095.83 4,836.82 1,075.14 0.00 132.53 1,797.95 0.00 2,209.73 795.89 7,842.44 17,516.31 2,376.98 0.00 351.73 8,309.22 0.00 6,914.23 4,123.70 28,554.24 8,294.00 1,257.43 9,551.43 35,064.87 6,852.62 41,917.49 40,075.60 8,345.70 48,421.30 8,042.49 1,160.66 9,203.15 27,182.57 6,551.11 33,733.68 HDFC Bank Mar '13 ICICI Bank Mar '13 Kotak Mahindra Mar '13 Axis Bank Mar '13

Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised)

1,300.68 -0.88 1,658.39 2,958.19 0.00 215.17 34.91

6,726.28 -4.47 8,399.65 15,121.46 0.00 1,309.08 222.48

8,325.47 -0.25 7,054.23 15,379.45 0.00 2,307.23 292.16

1,360.72 0.00 2,162.79 3,523.51 0.00 52.38 7.29

5,179.43 0.00 7,329.45 12,508.88 0.00 846.40 140.84

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Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend / Transfer to Govt Balance c/f to Balance Sheet Total

36.27 60.00 161.94

28.27 275.00 152.20

72.17 200.00 578.21

18.23 14.00 126.77

110.68 180.00 707.50

369.75 0.00 250.08 2,338.37 2,958.20

1,785.08 672.63 1,531.56 11,132.18 15,121.45

2,877.78 0.00 2,599.39 9,902.29 15,379.46

379.20 68.04 59.67 3,016.60 3,523.51

1,492.38 0.00 987.24 10,029.26 12,508.88

Cash Flow ------------------- in Rs. Cr. ------------------Axis Bank Mar '13 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 7552.69 HDFC Bank Mar '13 12 mths 9973.37 ICICI Bank Mar '13 12 mths 11396.69 11102.01 Kotak Mahindra Mar '13 12 mths 1360.72 (1405.46) Yes Bank Mar '13 12 mths 1925.73 540.64

2719.04 (5844.44) (11160.18)

(909.07) (9431.56)

(1478.16) (6741.53)

14774.60

13105.25

2989.72

3938.23

6681.11

6501.04 13933.92 20434.96

6356.00 21175.16 27531.16

5188.21 36229.31 41417.52

1054.61 2634.55 3689.16

480.22 3585.54 4065.76

CASA Ratio
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The CASA (current and savings account) ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits A high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts. This means that the bank is getting money at low cost, since no interest is paid on the current accounts and the interest paid on savings account is usually low. Current and Saving Accounts are demand deposits and therefore pay lower interest rates compared to term deposits where the rates are higher. Thus higher CASA ratio means that more of the money deposited in the bank is in the demand deposits i.e. the CASA, thus bank is getting the money at lower cost. CASA Ratio (%) = CASA Deposits/Total Deposits =12687.5/66955.6 (values in cr) =18.9%

The first bank to offer differentiated rates on savings account following RBIs deregulation of savings account rates in October 2011. Also, the first bank to offer a 7% interest rate on savings account of balances above ` 100,000 and 6% for balances below ` 100,000. To provide a boost to our retail liabilities business, they have initiated efforts towards launching own Broking subsidiary. These initiatives have resulted in a balanced growth of our SME and Retail businesses across advances and deposits. CASA ratio improved from 15.0% in FY 2011-12 to 18.9% in FY 201213. In value terms, the CASA deposits have increased from ` 7,392.1 Crores in FY 2011-12 to ` 12,687.5 Crores in FY 2012-13. Our Retail products continue to perform well. CASA and Retail Banking term deposits improved from 32.7% of Total Deposits.

Capital Adequacy Ratio (CAR)

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Capital Adequacy Ratio (CAR) is the measure of a bank's capital and expressed in percentage term. In simple terms, this capital is set aside by banks to protect depositors. A lower CAR means a bank is prone to the risk of going burst in case of any crisis. However, a very high CAR means, the bank is not doing enough business. As at March 31, 2013 Tier-1 capital Tier-2 capital Total capital Credit Risk - Risk Weighted Assets (RWA) Market Risk RWA Operational Risk RWA Total risk weighted assets Tier-1 capital adequacy ratio (%) Tier-2 capital adequacy ratio (%) Total capital adequacy ratio (%) Amount raised by issue of IPDI* Amount raised by issue of Upper Tier II instruments* 63,761,509 59,190,103 122,951,612 553,470,237 87,829,562 31,023,599 672,323,398 9.5% 8.8% 18.3% 7,724,400 27,540,658 As at March 31, 2012 51,512,727 41,747,823 93,260,550 441,425,137 56,323,972 22,077,222 519,826,331 9.9% 8.0% 17.9% 6,324,400 20,499,658

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Capital Adequacy Ratio = Tier 1 capital + Tier 2 capital/Risk weighted assets Total Capital = (Tier 1 capital + Tier 2 capital) = 63,761,509+ 59,190,103 = 122,951,612 Total risk weighted assets = (Credit Risk +Market Risk +Operational Risk ) =553,470,237+ 87,829,562+ 31,023,599 = 672,323,398 Capital Adequacy Ratio =122,951,612/672,323,398 =18.3% Comment:

A bank with a higher capital adequacy is considered safer because if its loans go bad, it can make up for it from its net worth.

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Earning Per Share Earnings per share (EPS) are the amount of earnings of each outstanding share of a company's stock. The Financial Accounting Standards Board (FASB) requires companies' income statements to report EPS for each major category of the income statement: continuing operations, discontinued operations, extraordinary items and net income. Earnings Per Share=Profit/Weighted Average Common Shares Particular Basic (annualised) Weighted average no. of equity shares outstanding Net profit / (loss) (` 000) Basic earnings per share (` ) Diluted (annualised) Weighted average no. of equity shares outstanding Net profit / (loss) (` 000) Diluted earnings per share (` ) Nominal value per share (` ) Earnings Per Share 365,850,588 13,006,807 35.55 10.00 360,106,590 9,769,984 27.13 10.00 356,081,726 13,006,807 36.53 350,515,649 9,769,984 27.87 Year ended March 31, 2013 Year ended March 31, 2012

=Profit/Weighted Average Common Shares =13,006,807/356,081,726 =36.53

Comment: Yes Bank has comparatively high EPS than previous year this shows that yes bank has very large returns available to pay as equity dividend, large transfers to reserves, etc. Thus Yes bank has a very good price for equity share. If traded on stock exchange.

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Return on equity (ROE) Return on equity (ROE) measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE shows how well a company uses investment funds to generate earnings growth. ROEs between 15% and 20% are generally considered good ROE = Net Income / Average Shareholder Equity
=1300.7 / (5807.7+4676.6)/2 (values in cr) =24.8%

Comment: Yes bank ROE shows how well bank uses investment funds to generate earnings growth. For 2012-23 its 24.8% which is higher than standard.

Cost Income Ratio Cost/income ratio is the ratio between operating expenses and operating income. It is a measure of how costs are changing compared to income. It is one of the main key performance indicators of a bank's efficiency: the lower the ratio the more efficient the bank. Cost income Ratio = operating expenses operating income =1,334.5 /3,476.2 (values in cr) =38.4%

Comment: Yes Banks cost income ratio increased slightly as compare to last year. Which is not good for bank. It shows banks expenses increase in current year as compare to previous year and income decreased.

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Return on annual average assets An indicator used to assess the profitability of a firm's assets. It is most often used by banks and other financial institutions as a means to gauge their performance. As return on average assets (ROAA) is calculated at period ends (quarters, years, etc.), it does not reflect all of the highs/lows but is merely an average of the period. ROAA = Net Income/Average Total Assets =1300.7 / (99104+73626)/2 (values in cr) = 1.5%

The return on average assets is useful in measuring profits against the assets used by a company for generating profits. The ratio is an important indicator of the intensity of assets of a company. A lower ROAA ratio reflects a higher asset-intensity of the company, and vice versa. Besides, a more asset-intensive company requires a larger amount of money to continue producing revenue. Moreover, the return on average assets ratio is also useful for investors in assessing the financial strength and efficiency of a company for using its resources. It is also imperative for the management to determine the performance of a company against its planned business goals, or market competitors.

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Conclusion
Fiscal 2013 has been a challenging year for the Indian economy. Growth has slowed to levels lower than we have seen in a long time. The current account deficit has increased substantially, which along with other factors has put pressure on the currency. Credit and deposit growth have moderated, and interest rates remain high, albeit lower than a year ago. While policy measures by the Government during the second half of the year, most notably the reining in of the fiscal deficit, have begun to address the economic challenges, there continues to be widespread pessimism about Indias future economic prospects and to get back to 7% GDP growth. Savings rate deregulation by the RBI has offered YES Bank an opportunity to gain significant savings account market share by offering better rates and services to customers. Yes Banks had delivered RoA (annualised) at or above 1.5% over last 3 years and RoE (annualised) at or above 20% over last 5 years. Your Bank has always focused on maintaining the best asset quality resulting in one of the lowest Net NPA and Gross NPA Ratios. Yes Bank has also developed a strong standing in the market mainly due to its differentiated knowledge banking approach. On April 1, 2010, Yes bank embarked on an ambitious journey into the next phase of growth and launched YES BANK VERSION 2.0, which is clearly the most stimulating phase in the life cycle of YES BANK with an objective of establishing 900 branches, 2,000 ATMs, 12,750 employees, a ` 125,000 Crores deposit base, a ` 100,000 Crores loan book and a 150,000 Crores Balance Sheet size by 2015. 2012-13 marked the third year of an ambitious journey to achieve level-next growth. During the year, yes bank have taken major strides to achieve our target, and are suitably positioned for another year of well balanced growth.

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Bibliography
Website:www.rbi.org.in www.moneycontrol.com www.nseindia.com www.google.com www.yesbank.in Economic times Business world

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