1. YES BANK has reported its results for the quarter ended Dec '11.
Interest earned for the quarter was Rs 1,684.06 crore and net profit was Rs 254.09 crore.
For the quarter ended Dec 2010 the interest earned was Rs 1126.15 crore and net profit was Rs 191.12
crore.
YES BANK Hikes Savings Deposit Rate to 7%
For the first time, these rates are also applicable to domestic and NRI deposits
22-Dec-2011
December 22nd, 2011, Mumbai: YES BANK, India’s fourth largest private sector Bank, today
hiked its deposit Interest Rates for Resident & Non-resident customers. The Interest rate for
Resident Savings accounts, with balances over INR 1 Lakh, has been raised by 100 bps, to
7.0%. This is in addition to the existing 6% interest offered to customers for balances below Rs.
1 Lakh.
For the Non Resident Savings Accounts (NRE & NRO), YES BANK has raised the interest
rates by 200bps to 6% for balance up to Rs. 1 Lakh and by 300 bps to 7% for over Rs. 1
Lakh balance.
Further, the interest rates on NRE Fixed Deposits, which were earlier regulated & linked to
LIBOR, has also been increased to mirror the Resident Term Deposit Rates of 1 year and above,
with a peak rate of 9.60% currently. This is in response to the recent development where RBI
deregulated the Non Resident Deposit rates. This highly positive move will provide an attractive
opportunity for NRIs across global geographies to take advantage of the superior interest rates.
Speaking on the announcement, Dr. Rana Kapoor, Founder, Managing Director & CEO,
YES BANK said “In light of the current volatile global economic situation, we believe that the
new YES BANK deposit rates will be a highly beneficial and an attractive source of returns for
our customers.”
This latest announcement also provides a significant opportunity for YES BANK to leverage its
325 plus branch network to accelerate mobilization of granular retail deposits, one of the key
objectives of its Version 2.0 Strategy for building its Retail Banking franchise with
unprecedented service and innovative experience.
ABOUT YES BANK
YES BANK, India’s new age private sector Bank, is the outcome of the professional &
entrepreneurial commitment of its Promoter & Founder, Rana Kapoor and his top management
team, to establish a high quality, customer centric, service driven, private Indian Bank catering
to the Future Businesses of India. 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.

2. YES BANK has a knowledge driven approach to banking, and a superior customer experience
for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving
as the Professionals’ Bank of India with the long term mission of “Building the Best Quality
Bank of the World in India”.
Yes Bank's loan recall angers MFIs
Kolkata: The move made by Yes Bank to recall a part of its loans amounting to a few hundred
crores to the Micro-finance Institutions (MFIs) citing the recent crisis in the sector and the
resultant defaults by MFI borrowers has angered the MFIs which are in turn planning to take a
legal action against the bank. So that the bank withdraws its circular on loan recall, the
Microfinance Institutions Network (MFIN), the representative body of MFIs, has already written
to the Indian Banks Association a
nd the Reserve Bank of India on the issue.
"First, we will wait for the official response from YES Bank to our letter. If there is no response,
the MFIs will move the ombudsman individually. The MFIN will also write to them," said a
senior official of Spandana, an MFI based in Andhra Pradesh.
As the official cited, Yes Bank had raised the interest rate on the balance outstanding to about 17
per cent from the earlier 12 per cent. It also reduced the repayment tenure from 24 months to
about a year. This has resulted in the failure of repayments by borrowers from MFIs in Andhra
Pradesh to decline immediately against such a lending which resulted in prompting Yes Bank to
recall the loan. The major complaint of the MFI officials is the phrase used by Yes Bank which
states "reduction in facility amount" instead of using the term "recall." They opine that this step
has been taken by the bank to safeguard its reputation.
Even after the credit crunch the sector has faced, there has not been any default to the bank from
the MFIs. "We will take up the matter with the ombudsman. The MFIs have not defaulted, so the
action taken by YES Bank is completely irresponsible and hard," said Alok Prasad, CEO, MFIN.
As the system that directs the sector is mandatory to be reviewed, the Reserve Bank of India has
appointed a panel headed by Y.H. Malegam and their recommendations are to be expected by
mid of January.
Yes Bank (YESB.NS) raised its domestic savings deposit rates to 7
percent from 6 percent on Thursday, becoming the first bank to
raise rates twice this year as it takes advantage of recent
deregulation to help build up its retail business.
Yes Bank was the first bank to take advantage of the Reserve Bank of India's move to deregulate
savings interest rates, its last administered bank rates, when it raised rates for all savings
accounts by 200 basis points in October.

3. "It is more of a marketing strategy, a way of customer acquisition ... They hardly have any
savings (deposits)," said Vaibhav Agrawal, a banking analyst with Angel Broking.
"Going forward, the bank plans to increase its retail customer base. So far, it has been more of a
corporate or wholesale-based kind of a bank," Agrawal said.
The RBI's move to deregulate rates has provided a boost to smaller lenders, which moved
quickly to raise rates.
Savings deposits are a source of low-cost funds for banks, making up about 22 percent of their
total deposit base. Larger banks have traditionally dominated the sector, which also accounts for
about 13 percent of household savings.
Bigger banks such top lender State Bank of India (SBI.NS), ICICI Bank (ICBK.NS) and HDFC
Bank (HDBK.NS) have not even tried to match the rates being offered by smaller banks, given
their market dominance in both current and savings accounts.
"The market share and the distribution base of the bigger banks is beyond the reach of Yes
Bank," Agrawal said.
Yes Bank said also it raised its non-resident Indian savings account deposit rate by 200 basis
points to 6 percent for deposits up to 100,000 rupees. For balances above 100,000 rupees, it
raised the rate by 300 basis points to 7 percent.
Late on Wednesday, smaller lender Lakshmi Vilas Bank also raised its interest rates for non-
resident customers effective Thursday.
Shares of Yes Bank, which has a market capitalisation of about $1.7 billion, were up 0.94
percent at 252.70 rupees at 10:55 a.m. The BSE Sensex was down 0.9 percent.
YES Bank offers Business loans for SMEs
Yes Bank is a full service commercial bank that has steadily built its network across India. The
bank offers services like corporate and institutional banking, business banking, financial markets,
investment banking etc. The bank has a wide-spread offerings for the SME sector under business
banking which includes:
Business loans for SMEs:
Cash Credit/Over Draft, Term Loans, Bill Discounting Facilities, Export Finance, Buyers Credit,
Bank Guarantees, Letter of Credit etc.

4. Specialized business loans for small businesses:
Loans under CGTSME scheme
Channel finance
Warehouse receipt financing
Financial advice for Small Businesses: Knowledge-driven and industry-specific solutions for a
certain sunrise sectors with high growth potential such as Food and Agri-business, Life Sciences
& Biotechnology, Telecommunications and Information Technology.
Financial Management Services for Small Businesses:
Yes bank's perfect blend of technology and banking expertise helps in building efficiencies into
their customer’s business cycle through our highly commended Receivables Management and
Payables Management solutions.
Capital Markets and Escrow Account Services for Small and Medium Enterprises
The Capital Markets & Escrow Account Services under the Transaction Banking product suite
caters to the specialized banking requirements of corporate with regard to Equity/Debt
mobilization, Dividend / Interest Payout Management and Cash/Collateral Escrow Management.
Trade Finance for SMEs: Customized solutions to suit the customer’s financial supply chain like:
Credit backed structures
Channel Finance/ Vendor Financing/ Supplier Financing
Local bill discounting/ Invoice FinancingTrade services for SMEs/Remittance, Import/Export
and Domestic Trade
Yes Bank gets loan for SME funding
Mumbai, Nov 15, DHNS:
Private sector lender, YES Bank on Monday said that it has availed an $25-million term
loan from the US-based Wells Fargo Bank to finance its small-medium-enterprise (SME)
clients in India exclusively.
This loan is strictly specific to SME clients of the Bank in India and is being guaranteed by the
US Government through its agency, the Overseas Private Investment Corporation (OPIC), it
said.

5. Yes Bank stress on rural loans
VIVEK NAIR
Mumbai, July 17: Private sector lender Yes Bank plans to
consolidate its operations and is targeting a nearly 56 per cent jump
in priority sector loans this fiscal.
The bank is looking to disburse around Rs 14,000 crore to the
priority sector in 2011-12. Of this, agriculture is projected to
contribute around Rs 6,200 crore.
Last year, the lender disbursed close to Rs 9,000 crore in priority
sector loans of which farm lending contributed Rs 5,500 crore.
Bhat: Expansion drive As part of its consolidation move, Yes Bank is looking to roll out
low-cost branches in rural areas and focus on its commodity finance business, which was kicked
off early this year.
The bank has ventured into funding the developers of affordable housing projects and micro-
housing-finance companies, a move that will boost its overall priority sector lending targets.
Speaking to The Telegraph, Saurabh Bhat, president and managing director, corporate finance
and development banking, of Yes Bank, said the agriculture lending business, which had seen
zero NPAs, had been profitable so far. However, it is raising the strength of its crack team in the
agri-business to 50 from 34 over the next six months.
“Yes Bank has consistently achieved more than the priority sector targets not only on a overall
basis, but also in sub-segments such as agriculture despite having limited number of branches in
semi-urban and rural India,” Bhat pointed out.
The RBI requires banks to lend 40 per cent of their adjusted net credit to the priority sector,
which includes agriculture, small-scale industries and housing, loans to micro finance
companies.
Bhat said the bank initially began tapping the rural markets in an “indirect” or informal manner
through business correspondents, long before it was allowed by the central bank. It tapped the
farmers via corporate houses who had linkages with them and subsequently satisfied their crop
loan requirements.
While the bank may now look at formally appointing business correspondents, it is also set to
roll out few low-cost branches in rural areas. The facilities that will be offered by the bank in the
branches include no frill-savings accounts, overdrafts, remittance and kisan credit cards.
Separately, Yes Bank is looking to grow its commodity finance business. This business gives
small ticket loans to farmers and small manufacturing companies such as local rice mills against
stocks of farm products.

6. Yes Bank, Kotak Mahindra profits rise on demand for
loans
Kotak’s consolidated profit increased 16% to 384 crore, while Yes Bank’s profit rose 51.8% to 191.1 crore
Mumbai: Kotak Mahindra Bank Ltd and Yes Bank Ltd posted higher profit for the three months
ended December, riding on interest income largely due to loan demand from companies as well
as individuals.
However, net interest margin (NIM) contracted for both private banks as the cost of funds
increased and they could not fully pass on the rate hikes to customers.
Kotak’s consolidated profit rose 16% to Rs384 crore. It earned Rs1,277.60 crore as interest, up
41.26% from the Rs904.40 crore it earned in the same period last year.
Yes Bank’s profit rose 51.8% to Rs191.1 crore, the highest in 25 quarters since its inception, as
the bank’s core interest income rose 53.2% to Rs323.1 crore.
Yes Bank’s demand largely came from engineering, construction, healthcare, and agriculture
sectors while Kotak sold mortgages, auto loans and also financed commercial vehicles. Yes
Bank’s NIM dropped to 2.8% from 3.1% while Kotak’s dropped to 5.4% from 6% last year.
NIM is the difference between interest charged on loans and that paid on deposits.
Yes Bank managing director and chief executive officer Rana Kapoor called the drop in NIM
temporary because of recent interest rate changes as not all of its loans could be repriced.
“But 80% of our loan book is maturing in six months, so we expect NIM to reprice above 3% in
the next fiscal,” he said.
Chaitra Bhatt, analyst at LKP Securities Ltd, said Yes Bank’s results were in line with her
expectations.
“Only other income was higher than expected (Rs191 crore vs estimated Rs185 crore) due to
performance in financial markets. Profitability will remain steady next quarter,” she said.
Both banks expect NIM to remain under pressure next quarter.
Kotak Mahindra’s chief financial officer Jaimin Bhatt said the higher cost of funds and the lag in
passing this on to borrowers could impact NIM.
“The cost of funds has increased 75 to 100 basis points in the last year but for us, NIMs have
been hit because we have moved from high-yielding personal loans and credit cards towards
corporate loans,” he said.

7. An analyst with a foreign brokerage said, “Lower NIMs were not a surprise. I expect NIMs will
likely come off next quarter.”
Both banks hiked interest rates in the last quarter. Yes Bank raised both its base rate and prime
lending rate (PLR) by 1 percentage point, while Kotak hiked both rates by 0.25 percentage point.
For technical reasons, Indian banks have two loan rates. The PLR, theoretically meant for the
best customers of the bank, is still in vogue, even as the base rate, or the minimum lending rate,
came into effect in July.
All fresh loans are linked to the base rate whereas older customers are serviced through PLR.
The cost of funds for both Yes Bank and Kotak increased as both have a lower amount of current
and savings account deposits (Casa).
Casa is the cheapest source of deposits for banks as they do not pay any interest on current
accounts and only a minimum 3.5% interest on savings accounts. CASA constitutes only 10.2%
of Yes Bank’s deposits while for Kotak it is 28%.
A drop in provisions helped Kotak. The bank’s provisions dropped as it recovered more bad
loans than it added during the quarter.
“Provisions dropped to Rs42 crore from Rs119 crore last year while net non-performing loans
dropped by Rs15 crore as we went slow on personal loans, commercial vehicles and credit cards,
the segments where NPAs were coming from,” Bhatt from Kotak said.
Shares of Kotak rose 1.51% to close at Rs419.3, while that of Yes Bank rose 1.2% to close at
Rs273.1 on the Bombay Stock Exchange, even as the benchmark index, the Sensex, rose 0.36%
to close at 19,046.54 points.
NCMSL ties up with YES Bank
Our Bureau
Mumbai, Dec. 7
YES Bank has entered into a strategic partnership with National Collateral Management Services
(NCMSL) for collateral management and warehousing services.

8. YES Bank will also avail itself of NCMSL's premium services such as working capital financing
in commodity-based industries, especially agro-based.
The objective of these services will be to assist industries, traders and farmers in financing their
capital requirements at all stages of the supply chain, from pre-harvesting to marketing and
export stages.
Mr Rana Kapoor, Managing Director, YES Bank, said, “Since inception, YES Bank has adopted
a knowledge-driven approach with a focus on the emerging sectors of the Indian economy.”
“Food and agribusiness and agriculture infrastructure have been key focus areas and I truly
believe that this partnership with NCMSL will further deliver value to all our stakeholders.
The partnership will enable us to mitigate credit risk for our commodity finance product
offerings,” he added.
Mr Sanjay Kaul, Managing Director, NCMSL, said, “We are confident that this arrangement will
result in substantial new business across India.
This new arrangement with YES Bank will provide an opportunity to field functionaries to
extend finance against warehouse receipts.” YES Bank holds stake in NCMSL and has also fully
underwritten long-term funding requirements of NCMSL to add warehousing capacity across the
country.