ALIN GANGULY

CHANDAN SAHA
SHANKARSHAN SUDARSHAN
SHOVIT SINGH
Objective
COMPETITIVE
STRATEGY
OF A
LATE ENTRANT
Vision
• Vision: To create a commercially viable financial
institution that incorporates sustainable development
within core business functions
• Mainstream sustainability through multi-stakeholder
engagement both internally & externally
• Link shareholder value with sustainable development of
India (Fourth Generation Sustainability)
• Engage in strategy development (in thought) and
execution (in action)
Yes Bank
Yes bank, one of the new generation private bank , entered
Indian market in late 2004 when the banking sector in India
was already overcrowded by no of public bank
But inspite of late 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
Yes Bank
In December 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.
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. IPO was over subscribed
30 times
Some Facts
 YES BANK is the only Greenfield license awarded by the RBI in the
last 15 years.
 YES BANK has recently become the first Indian Bank to become a
signatory to the United Nations Global Compact.
 More than 125 branches over 100 locations across India as well as 93
off-site ATMs.
 YES BANK has been ranked # 3 in “The BW Banking Special 2006
– A Survey of India's Best Listed Public and Private Banks”.
Stack holders
Yes bank segmentation
Yes bank
Corporate & institutional banking
 Companies with turnover of over Rs. 7.5 bn
Business banking
 Companies with turnover between Rs .5bn and Rs 7.5 bn
Retail banking
Individual with annual turnover income between Rs.5bn and
Rs 5mn
Strategic Capability
“The adequacy and stability of the resources and competences
of an organization for it to survive and prosper.”
TANGIBLE AND INTAGIBLE.
1) PHYSICAL : Building or the production capacity.
2) FINANCIAL : Capital , cash, debtors and products.
3) HUMAN : Number of employees and skills.
4) Intellectual Capital : Patents , brands , business systems
and customer database
Corporate and Commercial Banking
Customer Segmentation
 Large Corporate with more than INR 10 billion turnover.
 Government companies and PSUs, Financial Institutions and
Banks, selected multinational corporations

Business Strategy
 Capitalize on current market conditions.

 Build long term, comprehensive relationships for these

Corporate.
Commercial Banking
Customer Segmentation
Emerging mid-Corporates of India with turnover between INR
1.0 billion and INR 10 billion
Business Strategy
Selectively identify emerging sectors & companies for long
term institutionalization of relationship capital.
 Become a privileged growth partner for these large Corporates
of tomorrow.
Performance
The bank growth as per the sensex…

Competition..

Growth speaks through figures.

Differentiation strategy
The bank differentiated itself from other players in the
industry through its unique “knowledge banking
approach” , emphasizing on technology and human
resource.
The knowledge banking approach was its main pillar of
differentiation and using it provided specialized service to
various sunrise industries through domain expert.
Differentiation
The success of yes bank can be attributed to its
differentiating strategy
The bank differentiated itself on three basic parameters
Knowledge banking approach
Emphasis on technology
Human resource
Knowledge Banking
Yes bank decided to follow an innovative approach to
break into the heavily cluttered Indian commercial
banking system.
Knowledge banking--- a unique method of acquiring
customer and retaining them.
The bank provides specialized service to the emerging
sectors of the economy through better understanding of its
clients business and industry.
Knowledge banking contd..
The bank focused on providing the customer with
specialized banking service depending upon their
requirement.
The bank identified some sectors of economy which had
growth prospect:-
1. Food and agribusiness
2. Infrastructure business
3. Life science and biotechnology
4. Telecommunication
5. IT
6. Media and entertainment
7. Real estate
Technology
Yes bank was founded with the aim of providing the
world class customer service to the customer using latest
technology in the industry.
The bank consider technology as a strategic tool to
differentiate itself from other banks.
Corporate internet banking
ATMs
Mobile banking
Phone banking
Technology
The bank entered into the strategic partnership with
Gartner inc. to formulate and implement the bank IT
policy.
Price Water House Coopers to facilitate the confirmation
of policies and process with ISO and six sigma norms.
I-flex solution ltd. it used FLEXCURE, a universal
banking solution software, as its core banking system for
retail as well as corporate banking.
Yes bank use FLEXCUBE to provide key banking
solution to its customers.
 HUMAN RESOURCE

 Yes Bank --- Employees are strategic asset for long term
competitive asset.

 Main objective

 To emerge as one of the best employers in the country &

as most preferred recruiter in the banking sector.

 Higher pay for Retention of talented employees.

 Performance management process  synergy at

work .
 Key initiatives by bank to recruit and train
manpower
1.Yes entrepreneur in action :
 Take break from regular work to focus on project of his/her
interest to achieve individual goal.

2. Yes-Professional Entrepreneurship Program (YPEP) :

Talent management initiative .
Talented middle & upper management for strategic initiative .

3. Yes-retail Entrepreneurship programme (YREP):

To inculcate cutting edge skills of latest development to meet
future needs.
4. Yes Mentor :
Assigning a senior and dynamic employee as a mentor to new employee.

5. Yes school of banking :

To create a center of excellence for providing training in banking & other
financial services in the banking .

6. Yes University and school Relations:

Recruitment of meritorious students from university campuses.
Offering internship to the students.
PROMOTIONS
Less advertising focus .

Sophisticated & delighted customer service.

Statics
Statistics shows that the bank was primarily in metros and
other places that provided them a sound customer base,
who were knowledgeable and used latest technology.
Yes bank had access to latest technology.
Yes bank had good promoters.
They had the ability to raise funds easily because of
foreign shareholding.
Outsourcing its non core business.
Top management very experienced.
India
Significant strengths in
India’s share in global production
agriculture, horticulture,
dairy, poultry, etc
Agro-climatic diversity
Production leadership in
many areas
Rapid urbanization
India’s prices as % of world prices
Govt. according priority
status
Growth in Organized food
retail
The Growth Story
Grown at a tremendous pace.
Contd…
First two quarters since it began operations in (2004-
2005) its balance sheet was standing at Rs.1,300 million,
which made it one of the most successful ventures in
India.
Started its operations with just 250 employees and two
branches.
October 2007, it was operating with 60 branches and
3,263 employees.
A Successful Market Entry
The that helped the bank to succeed are:
 high-end technology.
 'knowledge banking' approach.

 highly qualified human resources.

Knowledge banking initiative drew a lot of interest

The bank catered to a niche segment which helped it to
avoid price competition.
Conclusion
The high growth rates of the Indian economy provided
tremendous opportunities for the Indian banking sector,
the future also pose a challenge as foreign players enter
Indian market, the bank expected to expand mostly in the
small and medium towns, where it saw good growth
prospects. The opening up of the economy saw many
small towns becoming prosperous, but most of these
towns had still not been tapped by the private sector
banks.