Yes Bank aims to mainstream development into Indian banking through several initiatives. It focuses on agribusiness, rural and social banking, microfinance, and sustainable investment banking. For financial inclusion, Yes Bank partners with Nokia and Obopay to offer mobile banking services. It also uses business correspondents to expand rural banking through village-level agents. Overall, Yes Bank develops specialized business units to create viable development-focused businesses for the bank.

1. YES BANK:MAINSTREAMING DEVELOPMENT
INTO INDIAN BANKING
By:
Shivam
Kumar(A1802011101)
Taruna
Gulati(A1802011080)
AMITY UNIVERSITY

2. ABOUT YES BANK
 YES BANK is a full service commercial bank that offers
Corporate Banking, Investment Banking, and Personal
Banking services across India.
 India’s new age private sector Bank, is a state-of-the-art
high quality, customer-centric, service-driven Bank
catering to the “Future Businesses of India”
 Promoter & Founder-Dr. Rana Kapoor and his top
management team

3.  India’s fourth largest private sector bank (by balance
sheet dated March 31, 2012).
 YES BANK has a widespread branch network of over
380 branches across 275 cities, with 650+ ATMs and
2 National Operating Centres in Mumbai and
Gurgaon.
 Vision of ‘Building the Best Quality Bank of the
World in India’by 2015.

4.  The sustained growth of YES BANK is based on
the key pillars of Growth, Trust, Technology,
Human Capital, Transparency & Responsible
Banking.
 YES BANK has a knowledge driven approach to
banking, and a superior customer experience for its
retail, corporate and emerging corporate banking
clients.

5. HISTORY
 Founded in November 2003 by Rana Kapur and Ashok
Kapur.
 Initial capital of $45 million
 Growth at dramatic pace
 In 2010:153 branches,3024 employees,a balance sheet
of $8.1 billion,net income of $ 303.7 million and return
on equity of 23.7%
 Yes bank focus on 4 pillars:
 Financial markets,investment banking,transaction
banking and corporate finance.

6. INDIAN BANKING SECTOR
 Post Independence – Fundamental Reforms in
Banking Sector.
 Banking Regulation Act 1949 – RBI to supervise
and regulate all banking activities.
 Nationalization of Banks – 1969 – 14 Largest
commercial banks were nationalized.
 Third Major Reform 1977 – Branch licensing Policy
–To Expand Reach to the masses.

7.  1985-1997 : Branch network grew by 16 % in Rural
areas.
 Post 1991 Crisis – Deregulation of Financial Sector.
 2009-10 Survey – India has 76 Commerical banks(27
public sector , 22 Pvt Banks, 27 Foreign Banks).
 Public sector banks holdings 75% of financial sectors
assets. SBI – Largest bank , 9034 Branches, 1/5 of total
loans in 2010. Yes Bank - 6th largest Pvt sector Bank.
Largest - ICICI

8. DEVELOPMENT BANKING AT YES BANK
Divided into four parts-:
 Agribusiness, Rural and Social Banking
 Microfinance
 Sustainable Investment Banking
 Responsible Banking

9. AGRIBUSINESS, RURAL AND MICROFINANCE
 Objective was to fulfill RBI’s PSL requirement.
 without fulfilling PSL target they can’t expand their
business.
 tie up with Kashmir Apiaries Export (KAE) and
Jain Irrigation System Limited.

10. MICROFINANCE
 In 2007 bank decided to reach microfinance client
directly.
 initiative called YES SAMPANN.
 joint venture with ACCION
 At the end of 2009, It operated 4 branches and had
4495 active borrowers

11. PROBLEMS FACED BY DEVELOPMENT TEAM
 every time when YES SAMPANN wanted to open a
new branch they are required to get approval from
RBI.

12. SUSTAINABLE INVESTMENT BANKING
 Internally SIB group was called as “S3IB”
 Offered services to business which were either “small,
social or sustainable”
 Targeted social driven companies in the field of
education, energy, healthcare etc.
 In 2009 Yes bank approached Greenko which were the
producer of small hydro ,solar and windpower assets in
India.
 Greenko was looking for $8 million in debt , Yes Bank
offered to raise $90 million through mix of equity and
debt to finance 400 MW of fresh capacity , four times
company goal.

13.  By 2014 Greenko expected to generate 1000 MW
of renewal energy.
 Yes bank became the sole underwriter of Greenko.

14. STRATEGY OF YES BANK
“Once they identify a particular area, then they set up
a specialized business unit to create a viable
business for the bank”

15. FINANCIAL INCLUSION PROGRAM
MONEY MOBILE SERVICE (YES- MMS)
 Partnership with Nokia and Obopay
 Mobile banking in 2009
 “200 million bank accounts in India and we have
500 million mobile users”
 Yes-MMS , the program consisted of Nokia Cell
phone with the prembedded application.
 When customer buy cell phone at nokia distributor
with the sim card and the distributor use to open a
YES Bank account.
 So there was cross selling of products.

16.  Obopay received the fee according to the service
 Nokia profit was customer generation
 Transaction limit for mobile banking was resticted to
$1000 per year

17. FINANCIAL INCLUSION PROGRAM
RURAL BANKING THROUGH BUSINESS
CORRESPONDENT (BC) MODEL
 Bank identified target villages within 30 km radius of existing
rural/semi urban branches.
 Recruited potential parties that could serve as BC for Bank
 Bank paid BC on commission Basis
 BC includes non profit organizations, Individual shop
owners etc
 BC work was identification of borrowers, processing and
verification of loans applications and loan recovery
 Also includes credit and non credit products such as
remittances,saving acounts,micro finance