Presentation on YES BANK
Tenth Annual General Meeting
June 14, 2014
Important Notice
No representation or warranty, express or implied is made as to, and no reliance should be placed on, the
fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this
presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or
facts and may be “forward looking statements”, including those relating to the Bank’s general business plans and strategy, its future
financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment.
Actual results may differ materially from these forward
forward-looking
looking statements due to a number of factors, including future changes or
developments in the Bank’s business, its competitive environment and political, economic, legal and social conditions in India and
globally. This communication is for general information purpose only, without regard to specific objectives, financial situations and
needs of any particular person. This presentation does not constitute or form part of any offer or invitation or inducement to
purchase
h
or subscribe
b
b or solicitation
l
off any offer
ff to purchase
h
or subscribe
b
b for
f any securities in the
h Bank
B k and
d neither
h any part off it
shall form the basis of or be relied upon in connection with any contract or commitment therefore. The Bank may alter, modify or
otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes.
This p
presentation and its contents should not be distributed, p
published or reproduced
p
, in whole or in p
part, or disclosed by
y recipients
p
directly or indirectly to any other person. This presentation is not intended to be a prospectus (as defined under the Companies
Act, 1956) or offer document the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended.
2
Contents
Significant Developments : 2013-2014
QIP- Strategic Capital Raising
Key
y Financial Highlights
g g
for FY 2013-14
Superior Shareholder Returns & Rewards
Wealth Creation Journey
Board of Director
Human Capital
YES Bank Brand
A
Awards
d & Accolades
A l d
Sustainable & Responsible Banking Leadership
3
Significant Developments: 2013-2014
 Received “Best Managed
Bank in India” for the 3Year Period (2011 - 2013)
by Asian Banker in Jakarta
 Awarded Global Business
Excellence Award, 2013 in
Dubai – Golden Peacock
Global
l b l Convention
Apr-Jun 2013
Mr. Rana Kapoor was
awarded “Asian Banker
CEO Leadership
Achievement – India”, 2013
 Successfully raised
USD 255 million (USD
180 million and EUR
58 million) by way of
Dual Currency, Multitenor Syndicated
Foreign Currency
Loan Facility and
availed the RBI swap
facility
July - Sept 2013
 Crossed 500 braches
in August 2013 in
300+ Locations
 Awarded
Outstanding Business
Sustainability
Achievement at
Karlsruhe Sustainable
Finance Awards in
Germany - 2013

 Received an inprincipal approval
from the UAE
Central Bank for
setting up a

Representative
Office in Abu
Dhabi, UAE
Ranked Fourth by
Bloomberg and
Thomson Reuters in
Domestic League table
in CY 2013 for Loan
Syndications
Recognized as the
‘India Bond House’ by
IFR Asia
i Review
R
off the
h
Year 2013
Oct - Dec 2013
 Successfully
y raised USD 150 million
Multi Tenor Foreign Currency loan
from IFC. YES BANK is the first
institution globally to avail funds
from IFC through the MCPP Facility
and the first Bank in India to raise
loan under IFC’s A/B structure
 The funds under this facility were
swapped with RBI under its
concessional swap facility
 First Bank in India
to be awarded the
prestigious IMC
Ramkrishna Bajaj
Quality Award for
Business
Excellence in
Service Category
h 2014
Jan-March
 Awarded Best Bank
(Mid-sized), 2013 by
Business Today –
KPMG BEST Banks
Annual Survey
Dividend of ` 8 per Share (80%) recommended by Board & Management, up 33.3% over FY 2013
4
QIP – Strategic Capital Raising
16000
YES BANK successfully raised USD 500 million
14000
 Issued 5.35 cr shares at Rs. 550, at a premium to the
previous
i
d ’ closing
day’s
l i price
i (NSE – Rs.
R 548.15)
548 15)
 Well diversified investor representation:
 Overall allocation to FIIs is approximately 40%
from USA & Europe and 30% from Asia
10,993
,
12000
In ` Crores
 Oversubscription by over 5x, representing an
aggregate demand of over USD 2.5 billion
15,154
10000
10,033
7,122
8000
6000
4000
2000
0
31-Mar-14
p
and Mutual
 Domestic Insurance Companies
Fund accounted for the balance 30%
Shareholder Funds
Post QIP
Total Capital funds
Over 18%
Key Balance Sheet highlights
I
i th
ll Capital
C it l Adequacy
Ad
t over
 Increase
in
the overall
to
18.0% with Tier I Capital around 13.0%, post the
placement.
 Total Capital Funds stand at
pursuant to the QIP
Rs. 15,154 crs
 Shareholder’s funds stand at
pursuant to the QIP
Rs. 10,033 crs
 Post Issue Book Value of approximately Rs.
Rs 243
per share
14.4%
9.8%
31-Mar-14
Tier I Capital Ratio
Over 13%
Around
13%
Post QIP
Total CRAR
5
Financial Highlights for Full Year FY14
NET INTEREST INCOME
NON INTEREST INCOME
NET PROFIT
ADVANCES
DEPOSITS
` 2,716
,
Crores
` 1,722
,
Crores
` 1,618
,
Crores
` 55,633 Crores
` 74,192
,
Crores
22.4%
10 8%
10.8%
21.4%
18 4%
18.4%
15 4%
15.4%
COST/INCOME RATIO
ROA
GROSS NPA
CASA RATIO
NET INTEREST MARGIN
2.9%
1.6%
39.4%
0.31%
25.0%
0.05%
ROE
NET NPA
22.0%
Basic EPS of ` 44.92 and Diluted EPS of ` 44.35
B k Value
Book
V l off ` 197.5
197 5
Satisfactory
with
steady
NIM
strong
momentum
on31,
SA2014
continues
CASAgrowth
grew by
28.8%
y-o-y
to ` &
16,345
Crores
as at Mar
6
Key Financial Highlights – FY14
Balance Sheet growth
` Crores
%g
Mar 31, 2014
Mar 31, 2013
Advances
55,633
47,000
18.4%
Investments
40,950
42,976
-4.7%
Total Assets
109,016
99,104
10.0%
7,122
5,808
22.6%
Tier I & II Capital
10,993
12,295
NA
Deposits
74,192
66,956
10.8%
Shareholder's Funds
Commission,
Exchange &
Brokerage
28%
FY14
FY13
%g
Net Interest Income
2,716
2,219
22.4%
Non Interest Income
1,722
1,257
36.9%
Total Net Income
4,438
3,476
27.7%
Operating
p
g Expense
p
1,750
1,334
31.2%
%
Operating Profit
2,688
2,142
25.5%
Provisions & Contingencies
362
216
67.4%
Provision for Tax
709
625
13.4%
1,618
1,301
24 3%
24.3%
Net Profit after Tax
P&L on Sale of
P&L on
Investments
Exchanges
4%
Transactions
5%
Others
2%
Net Interest
Income
61%
Revenue and Profit growth
` Crores
Income
Specific loan loss coverage ratio of 85.1% as at March 31, 2014.
Total Excess Standard provision now stands at 0.4% of advances
Expenses
Depreciation Advertisement
& Publicity
4%
Insurance
3%
3%
Rent, Taxes &
Lighting
13%
Others
32%
Employee Cost
45%
Total restructured advances at 0.18% of Gross Advances down
from 0.31% as of March 31, 2013
Diversified revenue generating streams with contributions from all segments of the Bank
Robust growth in NII of 22.4% & Non-interest Income of 36.9% resulting in significant growth in PAT
7
Superior Shareholder Returns & Rewards
30.0%
Return on Assets (RoA)
1.8%
1.6%
Return on Equity (RoE)
25.0%
1.4%
20.0%
1.2%
1.0%
15.0%
0.8%
10 0%
10.0%
0 6%
0.6%
0.4%
5.0%
0.2%
0.0%
0.0%
FY10
FY11
FY12
FY13
FY10
FY14
FY11
FY12
FY13
FY14
DPS for Peers in their 10th Year of Operation
8.00
18.0%
7.00
16.0%
6.00
14.0%
12.0%
In `
5.00
10.0%
4.00
8.0%
3 00
3.00
6.0%
2.00
4.0%
1.00
2.0%
0.00
0.0%
FY10
FY11
FY12
Dividend Paid (LHS)
FY13
FY14
100.0%
80.0%
60.0%
40 0%
40.0%
20.0%
0.0%
YES Bank
HDFC Bank
Axis Bank
Indusind
Bank
Kotak Bank
Payout Ratio (RHS)
8
Sustained Balance Sheet growth with preservation of Asset Quality:
Apr 2008 – Mar 2014 (24 sequential quarters)
120,000
100,000
` Crores
80,000
60,000
40,000
20,000
Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2 FY14 Q3 FY14 Q4 FY14
Ad
Advances
0.80%
D
Deposits
it
T t l assets
Total
t
Gross NPA has been below 0.4% and NNPA below 0.1% for the past 4 years
Healthy Provision cover of over 85.1%, despite a challenging cycle.
0.70%
12.0%
10.0%
0.60%
8.0%
0.50%
6.0%
0.40%
0.30%
4.0%
0.20%
2.0%
0.10%
0.00%
0.0%
Gross NPA % (LHS)
Net NPA % (LHS)
Quarterly Growth Rate of Real GDP, India (RHS)
GDP Growth Data for India (y-o-y is taken from CIC database)
YES BANK has maintained stable growth of advances & deposits while maintaining best in class asset quality
9
Income Growth with consistent ROA & ROE ratios
Apr 2008 – Mar 2014 (24 sequential quarters)
800
500
700
450
400
350
500
300
400
250
300
200
150
200
100
100
50
-
-
Net Interest Income (LHS)
ROA
2.50%
` Crores
` Crores
600
Non Interest Income (LHS)
Net Profit (RHS)
RoE > 20% and RoA=>1.5% for past 6 years
ROE
30.00%
25.00%
2.00%
20.00%
1.50%
15.00%
1.00%
10.00%
0.50%
5.00%
0.00%
0.00%
Return on Assets (LHS)
Return on Equity (RHS)
Growth with quality, improving productivity and efficiency
10
Wealth Creation Journey
IPO
July 2005
Private
Placement
Dec 2006
Private
Placement
Dec 2007
QIP
Jan 2010
QIP
May 2014
Branches
2
24
60
132
560
Total
Assets*
` 1,278 Cr.
` 6,286 Cr.
` 13,326 Cr.
` 29,588 Cr.
` 1,09,016 Cr.
Book
Value**
` 19
` 27
` 43
` 91
` 243#
Price of
Issue
` 45
` 120
` 225
` 269.5
` 550
YES
BANK
Return
1x
2.7x
5.0x
6.0x
12.2x
Sensex
Return
1x
1.8x
2.7x
2.1x
3.2x
* Pertains to quarter end immediately preceding the issue | ** Pertains to quarter after the Issue | #After QIP based on expanded capital base
11
Distinguished Board
Name
Designation
Occupation
Areas of Overview
Ms. Radha Singh
Independent Director
Former Union Agriculture Secretary, GOI
Agriculture, Strategic Planning, Systems
M Ajay
Mr.
Aj Vohra
V h
I d
Independent
d t Director
Di t
Ma ag g Partner
Managing
at e o
of tthee Co
Corporate,
po ate, Tax
ax aand
d Business
us ess
Advisory Law firm, Vaish Associates
A
Accountancy,
t
L
Legall and
d Technology
T h l
Lt Gen (Retd.)
Mukesh Sabharwal
Independent Director
Former Lt General in Indian Army
Human Resource, Strategic Planning,
Systems
Mr. Diwan Arun
Nanda
I d
Independent
d t Director
Di t
Chairman & Managing
g g Directors - Rediffusion
Dentsu Young and Rubicam Private Limited
M k ti and
Marketing
d Advertisement
Ad ti
t
Mr. Brahm Dutt
Independent Director
Former Secretary, Ministry of Road Transport and
Highways, GOI
SSI, NBFC, Risk Management
Mr. Saurabh
Srivastava
I d
Independent
d t Director
Di t
Former Member of Advisory
y Board-Imperial
p
business
School, London. Chairman & Co-founder NASSCOM
IT St
Strategy
t
implementation,
i l
t ti
S
Systems
t
Mr. Vasant Gujrathi
Independent Director
Former Partner – Price Waterhouse
Audit, Risk Management, Regulatory
Compliance, Ethics Assessment, Advisory
M M.
Mr.
M R.
R Srinivasan
Si i
Non Independent
p
Director & Chairman
Former Chief General Manager
g in-Charge,
g , Dept
p of
Banking Operations & Development
Banking,
g, Risk Management,
g
, Systems,
y
,
Strategic Planning
Mr. Ravish Chopra
Non Independent
Director
Former Managing Director of HSBC Private Bank
(UK) Limited
Banking, Risk Management, Strategic
Planning, Treasury Operations
M Rana
Mr.
R
Kapoor
K
MD & CEO
P
Promoter/Professional
t /P f i
lE
Entrepreneur
t
Banking,
g, Strategic
g Planning,
g, Risk
Management,, Treasury, Systems
Board level sub-committees
 Audit Committee
 Risk Monitoring Committee
 Board Remuneration & Human
Capital Management Committee
 Nominations & Governance Committee
 Stakeholders Relationship Committee
 Capital Raising Committee
 Service Excellence Committee
 IT Strategy Committee
 Fraud Monitoring Committee
 Corporate Social Responsibility Committee
Pedigree Board ensuring transparency and highest standards of Corporate Governance
12
The “Professionals’ Bank” of India
Human Capital Strategy
 Ethos of Owner – Partner – Manager
Flat Organization Structure ( 5 levels)
Total: 8,960*
 Flagship Programs at YES BANK to Hire, Train
and Retain Talent:
 YES USRM : YES University & School Relations
Management Program across 250 Campuses
Y-PEP : YES BANK is the Preferred Employer of
Choice at Top B-Schools
 38 students from Top B-Schools in FY 2014
 Cl
Close tto 900 managementt professionals
f i
l over the
th
past 8 years
 LEAD WITH PASSION
 Say YES to G.R.A.C.E.
 YES CONNECT, YES WE CARE
 Y- FACTOR – Talent Recognition Program
Top: 82
Average Age
43
Senior:
326
37
Middle: 2,019
34
Junior: 2,705
30
General: 3,828
3 828
28
*As of May 30, 2014
Average Age – 30 years; Headcount increase of 1,936 in
FY14
Average vintage of 6 years for Top Management and
5 years for Senior Management in YES BANK
Wealth creation through ESOPs
Talent acquisition from Peer Private Sector & MNC Banks
13
The YES BANK Brand- Building a Trustmark
Young, vibrant and highly visible brand
Driven through Knowledge, Innovation & Technology
Brand with a heart and soul: Strongly instilled values of Trust, Transparency & Responsible Banking
Brand
Pillars
K
Knowledge
l d
Fi
Financial
i lT
Trustt
T
Transparency
Retail Brand built around YES Community program
T
Technology
h l
Responsible
B
Banking
ki
G
Growth
th
Financial inclusion
Financial literacy
Women empowerment
Environment conservation
14
C
it engagementt program run across all
ll
Community
YES BANK branches every month..
Integrates the Community
E i
Environment
t challenges
h ll
with
Social
&
Over 1000 YES COMMUNITY events conducted
every month across 550+ branches in all 29 states &
7 Union
U i
T it i across India
Territories
I di
Over 100,000 people touched each month
Building the Brand through Social & Digital Media
200,000 + followers
On Twitter
g Indian BFSI
Fastest Growing
Brand on Facebook & Twitter
2nd Fastest Growing BFSI
Brand on Facebook
IN THE WORLD
Social Bakers
May 2014
India’s
MOST
FOLLOWED
BANK
on Twitter
Bank
ICICI Bank
HDFC Bank
Axis Bank
YES BANK
Kotak
Number
29 lakhs
22 lakhs
22 lakhs
9.05 lakh
2.08 lakh
Twitter Followers
Bank
ICICI Bank
HDFC Bank
Axis Bank
YES BANK
Kotak
Undisputed leader on
Twitter
Simplify360
May 2014
Competitive growth
Across
c oss Categories
Catego es
Competitive
p
growth
g
– Banking
g Category
g y
Fastest Growing Bank on Facebook
FIRST in Share Of Voice on
Social Media
Number
13,869
13 559
13,559
8,162
2,13,000
1,00,050
Twitter Followers
Twitter Handles
YESBANK
Vodafone India
Pepsi India
Samsung Ind
HUL
Followers
212,641
190 373
190,373
111,670
32,442
20,491
*As on Ju
une 1, 2014
900 000 + fans on FB
900,000
15
May 2010 (150 Branches)
March 2014 (560 Branches)
Progress widely recognized by leading agencies
Institutional
Excellence
Corporate
Governance and
Business
Excellence
Human
Capital,
Innovation &
Service
17
Awards & Accolades of Mr. Rana Kapoor
2013
Previous
18
Sustainable & Responsible Banking
Leadership
p
First Indian banking
sector signatory
g
y
First Indian Banking
sector signatory
First Indian Banking
sector signatory
First Indian signatory
Responsible Banking Vision
“YES BANK - Be the Benchmark Financial Institution
for Sustainability”
Responsible
p
Banking
g Mission

Link Sustainable Development with stakeholder
value creation through innovative business
solutions and services

Weave sustainability principles into YES BANK’s
core business strategy and processes
19
Linking Sustainability with Stakeholder Value Creation
20
Working towards Financial Inclusion: Inclusive &
Social Banking
In FY 2013-14, through
innovative products like YES
Kisan Dairy Plus, YES LEAP
and YES Sahaj, the Bank
impacted 5.3 lac families across
India.
Through YES LEAP, the Bank
disbursed almost
` 857 crore to about 40,000
SHGs in a little over two years
of operations.
YES MONEY, the innovative
technology based remittance model
helped over 18 lac customers since
inception through more than 1
crore transactions, YES MONEY
revolutionized India’s domestic
remittance model.
One of the highlights of YES LEAP
was that all the SHGs linked with
YES BANK were women-based
SHGs, strengthening social
empowerment, rural development
and their financial security
21
Thank You
22