Strategic Management

YES BANK Case Analysis

10/01/20
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Prepared by:
Harsh Vyas 212011
Kali Prasad Pandey
212013
Kavita Kharayat 212016
Kunal Nagpal 212017
Manish Sisodia 212018

YES BANK, one of the new generation private

sector banks, was set up in India after reforms
were introduced in the banking sector in the
1990s. Yes Bank entered the market in late
2004 when the banking space in India was already
overcrowded with a number of public sector banks,
private sector banks, and co-operative banks.
Foreign multinational banks, which were growth-constrained, were
also waiting eagerly for the sector to open up further in 2009 to make
a major foray into this emerging market. However, despite being a late
entrant, Yes Bank drew the attention of its competitors and analysts by
the speed at which it grew and by increasing its operations throughout
the country.

 Banking reforms started in early 1990s.

The reforms in the financial sector were based upon the
recommendations of the Narsimhan committee.
India was dominated by the public sector banks which nearly had
83 % of the banking business.
Reforms like deregulation of interest rates, better disclosure norms,
debt recovery tribunals, and new private sector banks were set up.
The second phase reforms took place in 2009 which included
reducing NPA to 3%, extending credit facilities to rural areas,
reducing higher rates of interest and giving more importance to
priority lending sectors etc.

Yes bank waspromoted by Rana kapoor

andAshok Kapur.

The bank went public in June 2005.

YES BANK is the only Greenfield license

awarded by the RBI in the last 15 years.

Vision: To be recognized as the Best Quality Bank of the World in

India by 2015 and 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:

Means: Trust, Growth, Technology,

Human Capital, Transparency and
Responsible Banking.
Ends: 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.

Political factor:
RBIs 1991 monetary policy and control systems
To enlist the confidence of global investors and International
market players
Number of legislative changes to enable competitive banking
systems
Economical factor
Economic Fluctuation -Delay in Indian Vision of 2020
Every year RBI declares its 6 monthly policies
If FDI limits are relaxed then more FDI are brought in India through
Banking channels

Socio Economic factor

Tradition maharaja Pratha
Change in Lifestyle
Literacy Rate
Population
Technological Factor
Foreign banking sectors entered in Indian market witb asserting
the technological based approach
ATM Machines
Credit Card Policies
IT services and Mobile Banking

Strength

Efficient Human capital

Top management very experienced.
High class technology
Client Knowledge database
Advanced risk management systems
Pioneer in usage of internet services
Ability to raise funds easily because offoreign shareholding

Opportunities

Building new client relationships

Expanding the advisory and Customized services offered to
clients, investors, and banks
Other competitor like ICICI bank has Primarily targets upper
middle class and upper class of the society. Expanding business to
the middle and lower income groups
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Once they identify a particular area, then they set up a specialized

business unit to create a viable business for the bank.

Porters Generic Strategies

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The success of yes bank can be attributed to its Differentiating

Strategy.

The bank differentiated itself from other players in the industry

through itsonthree basicparameters.
Knowledge banking approach
Emphasis on technology
Human resource

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A unique method of acquiring customers and retaining them.

The knowledge banking approach was its main pillar

ofdifferentiation and using it provided specialized service to
various sunrise industries through domain expert.

Yes bank decided to followan innovative approach tobreak into

the heavily cluttered Indian commercialbanking system.

The bankprovidesspecialized service tothe emerging sectors of

the economy through better understanding of its clients business
and industry.

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The bank focused on providing the customer with specialized

banking service depending upon their requirement.

Thebank identifiedsomesectorsof economywhichhad growth

prospect: Food and Agribusiness
Life Sciences
Telecom
IT
Media and Entertainment
Infrastructure

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We have made a calibrated decision to invest in the best IT

systems and practices in order to make its technology platform a
strategic business tool for building a competitive advantages
Srikrishan H ( Executive director)

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Yes bank was founded withthe aim ofproviding the world

classcustomer service tothe customer usinglatest technology
inthe industry.

The bank consider technology as a strategic tool to

differentiate itself from other banks.
Corporate internet banking
ATMs
Mobile banking
Phone banking

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The bank entered into the strategic partnership with

Gartner inc. to formulate and implement the bank ITpolicy.

Price Water House Coopersto facilitate theconfirmation of

policies and process with ISO and sixsigma norms.

It believed in outsourcing those activities that are not part

of its core competencies.

It entered into a total outsourcing deal with Wipro Infotech

in Dec 2004.

Achieving a high level of efficiency through the automation

of operations.

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Maintaining centralized database and centralized processing for

speedy retrieval of data.

Connectivity with customers and external agencies to provide a

consistent experience at various touch-points.

Using the best systems for seamless integration of front, middle,

and back offices.

Adopting the best inspection and security system to provide a

better comfort zone for customers of bank systems.

Using real-time environment for good disastrous recovery process

and back-up systems.

Wireless advances.

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Yes Bank ---Employeesare strategic asset for long term competitive

asset.
Main objective

To emerge as one ofthe best employers in the country & as most

preferred recruiter in the bankingsector.

Higher pay for Retention oftalented employees.

Performance management process.

Synergy at work.

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Yes entrepreneurin actionTake break from regular work to

focus onproject of his/herinteresttoachieveindividualgoal.

Yes-ProfessionalEntrepreneurship Program (YPEP)

Talent management initiative.
Talented middle &upper management forstrategic initiative.

Yes-retail Entrepreneurship programme (YREP)

To beat cutting edge skills oflatest development to meet
future needs.

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Yes Mentor : Assigning a senior and dynamic employee as

amentor to new employee

Yes school of banking: To create a center of excellence for

providing training in banking &otherfinancial services in the
banking .

Yes University and schoolRelations: Recruitment of

meritorious students from university campuses. Offering
internship to the students.

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Value Chain for a Differentiation Strategy of Yes Bank

Firm Infrastructure Money Monitor, Mobile payments, Two-factor
authentication, Mobile Banking , RFID, speech enabled IVR
IN
RG
MA

Human Resources: Higher pay, Performance Management Process,

Synergy at work, Yes entrepreneur in action, YPEP, YREP, Yes Mentor
Yes School of Banking, Yes University and School Relations

Technology: Outsourcing ATMs, Mobile Banking, Phone Banking,

Partnership for IT Policy, SIX Sigma Norms, Automation of Operations

Operations
Faster turn
around time.

Dedicated trade
Technology desk for
handling trade
High Skilled transactions
Human
capital
Specialized
advisory team
for catering to
SME

Outbound
Logistics
high quality customer
service.

Marketing
& Sales
Knowledge
Banking

Customized.
Products

Less
advertising
focus .

asset quality through

disciplined credit risk
management. and
address inefficiencies
in the Indian financial
sector.

Service
Knowledge
Banking
Sophisticated
& delighted
customer
service.
MA
RG
IN

Inbound
Logistics
Customer
Database

Yes Bank has positioned itself as a bank which gives higher

standard of services through product innovation for the diverse
need of individual & corporate clients. So they want to highlight
following points in their positioning segment :
Customer centric
Service oriented
Product innovation

Using TOWS matrix to generate alternative strategies

Strength

Efficient Human capital

Top management very experienced.
High class technology
Client Knowledge database
Advanced risk management systems
Pioneer in usage of internet services
Ability to raise funds easily because offoreign shareholding

Opportunities

Building new client relationships

Expanding the advisory and Customized services offered to
clients, investors, and banks
Other competitor like ICICI bank has Primarily targets upper
middle class and upper class of the society. Expanding business to
the middle and lower income groups
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Grown at a tremendous pace.

http://jainmatrix.com/2012/09/14/yes-bank/
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The Bank differentiated itself from other players through

Unique knowledge banking approach
Emphasis of high end technology to provide innovative solutions
Highly qualified human resources.
Rather than expanding very quickly, the bank focused on the
niche segments of the customers
The bank catered to a niche segment which helped it to avoid
price competition
Overall, it aimed at establishing itself as knowledge based and
technology driven bank that would cater to the needs of
emerging Indian economy

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Yes, the Business strategy implied by Yes Bank was a

runaway success.

Unrelenting efforts to provide world class service coupled

with steadfast maintenance of operational standards were
the prime reasons for banks phenomenal growth.

The growth was even impressive considering it came at a

time when the banking sector was on the verge of
consolidation phase

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December 2006 the bank rated as third best

privatebank in India by business world

Ranked second best private bank in financial

express - Ernst & young surveyof Indiasbest for
theyear 2006.

YES BANK has recently become the first Indian

Bankto become a signatory to the United
Nations Global Compact

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http://www.yesbank.in/
http://en.wikipedia.org/wiki/Yes_Bank
http://articles.economictimes.indiatimes.com/2013-1023/news/43326592_1_credit-growth-rajat-monga-profitgrowth
http://jainmatrix.com/2012/09/14/yes-bank/

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Thank you

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