Investor Presentation Jan9 2008

7/27/2019 Investor Presentation Jan9 2008

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Presentation on YES BANK



2

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 Company’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-looking statements due to a number of factors, including

future changes or developments in the Company’s business, its competitive environment and political, economic, legal and

social conditions in India. 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 an offer or invitation to purchase or

subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with

any contract or commitment whatsoever. The Company 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 presentation can not be copied

and/or disseminated in any manner.



3

The only ‘Greenfield’ private sector bank to be set up in the last decade

Owner - Managers

Professional mgmt. team with the highest ownership levels among all banks

Knowledge Banking – key differentiator for Corporate & Business Banking

Integrated product offering with ‘One-Bank’ customer proposition

Founder/Managing Director & CEO awarded the

‘PHDCCI Distinguished Entrepreneurship Award 2007’

Consistent financial performance

Q3-FY08 PAT: INR 542.4 million; Q3-FY08 ROA: 1.53%

Unique Approach to Technology

Outsourced model enhancing scalability; cutt ing edge features driving Retail

Summary Update

Completed Preferential Equity Placement of 14.7 million Shares for

USD 84 million to Orient Global Tamarind Fund

Received the Best Corporate Social Responsible Practice Awardinstituted by NASSCOM and BSE



4

Infrastructure

TMT

Engineering

Life Sciences

Food & Agri

Knowledge

Sectors

Wind

Energy

IT/Telecom

Electriccomp.

Drugs

Agro

Chemicals

Adv isory

Services

Transaction

Banking

Group

Financial

Markets

Credit

products

Clients

segment

First Private Sector Bank to be selected to implement the first

‘Integrated Agro Foods Park’ in India in the state of Andhra Pradesh

Released a report on ‘Technological Innovations for Sustainable

Development’ at the CII-FCII 8th India-EU Business Summit

focusing on trends, initiatives and challenges

First Private Sector Bank to be appointed as an advisor for

improving the performance of 25 Agri Export Zones (AEZ)

Bancassurance partnership with Agricultural Insurance Company

for distribution of agriculture insurance products including crop

insurance products and weather derivatives

First Indian Bank to become a signatory with UNEPFI, a unique

global partnership between the UNEP and the private financial

sector, to launch their India initiative

Knowledge Enablers Cross Sell in focus sectors

Knowledge Initiatives

Institutionalize strong relationship management capital

Lowers entry barriers

Enable capturing of mind-space of owners/top management

Superior product structuring, delivery and risk management

One bank approach ensuring superior cross sell of products

Knowledge Banking – Creating mind space

Advances port folio (December 07)

Received the Environment Leadership Award from USAID for

outstanding contributions made through working in

partnerships to improve the environment and quality of life

for the people of Asia

Other; 20%

TMT; 8%Select

Engineering;

14%

Retailing &

Textiles; 9%

Lifescience; 4%

Infrastructure;

22%

Food &

Agribusiness;

24%



5

Performance highlights

Advances stood at INR 50.76 bn as at December 07

(growth of 68.72% over December 06)

Steady growth of C&IB liabilities – at INR 66.45 bn as at

December 07 (growth of 80.87% over December 06)

Array of vanil la and st ructured solutions on offer

including working capital finance, corporate finance,

transaction banking, treasury products, financial advisory

& wealth management

C&IB footprint across all major economic centers in India

CRM of over 800 target corporate customers and 450

target government owned institutions

Focus on knowledge based industries and comprehensive product users

Corporate & Institutional Banking – “ Bread & Butter”

Customer Segmentation

Large Corporates with more than INR 7.5 bn turnover

Select Multinational Corporation’s

Government companies & PSUs

Growth in C&IB Advances

-

10,000

20,000

30,000

40,000

50,000

60,000

31-Dec-06 31-Mar-07 30-Jun-07 30-Sep-07 31-Dec-07

R s m n

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

R s m n


Growth in C&IB Deposits



6

Customer Segmentation

Small / Emerging Corporates (turnover less than INR 7.5 bn)

Emerging Corporates (INR 1.0 bn to INR 7.5 bn)

Business Banking - SME (INR 0.05 bn to INR 1.0 bn)

Supply chain partners of C&IB clients


Loans stood at INR 34.03 bn as at December 07 (growth of

100.85% over December 06)

Key strategies/differentiators of the SME business:

Focus on supply chain linkages

Technology led innovative solutions (RTGS, EFT, etc)

Access to RMs / dedicated service staff avai lable 24x7

Branch centric – ‘One bank’ approach to cross sell

wealth management products to business owners

Dedicated focus on liability mobilization - deposits at INR

12.55 bn as at Dec. 07 (growth of 190.29% over Dec. 06) Key strategies for SME liability mobilization programmes:

Channel strategy (both RMs and FOS)

Superior current account offerings

High touch service and knowledge banking differentiation driving customer penetration

Business Banking – Key Value Driver

Growth in BB Advances

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000


R s m n

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

R s m n


Growth in BB Deposits



7

YES BANK Awarded ‘The Most Improved Local Bank in Asian Currency Bond’ and

‘Salesperson in Asian Currency Bond’ at The Asset Benchmark Survey, 2007


Working closely with relationship groups enabling

superior cross-sell

Array of products right from vani lla FX spot /forward to

structured currency/interest rate swaps and risk

solutions Ramp up in treasury sales – o/s derivatives at INR 656.81

bn as at Dec. 07 (growth of 64.38% over December 06)

Integrated sales team with single point contact for cl ients

A1 + Rating by ICRA (Moody’s aff il iate) for the Bank’s CD

program (current program size - INR 40 bn)

State of the art technology platform – ‘Murex’; pricing

and structuring capability at par with leading foreign

banks

First Indian Private sector Bank to launch the Electronic

FX Trading Service for corporate clients on the Reuters

Trading for Foreign Exchange (RTFX) platform. The Bankwill distribute its foreign exchange prices to its corporate

customers on the multi-bank portal.

Financial Markets

-

6.00

12.00

18.00

24.00

R s b n


Outstanding Certificate of Deposits

-

50.00

100.00

150.00

200.00

250.00

300.00

R s b n


Outstanding Derivative Contracts

Fx Swaps Options



8


Trade Finance

Ramp up in non-funded business. Outstanding LC’s,

BG’s, Trade Acceptances at INR 39.86 bn as at Dec. 07

Cash Management Services

Collections/payments mandates from leading corporates

Cash management through-put (collections / payments)

at INR 25.82 bn for Q3-FY08

Commodity Markets

NCDEX / MCX empanelment for acceptance of Base

Capital and Additional Base Capital through FD’s / BG’s

E Payments / Network Architecture

E Payments – Bulk RTGS through STP introduced

Unique ‘First in the Industry’ RTGS enabled ERP

integrated payment solu tion successfully launched

Capital Markets

Q3-FY08 ‘Capital Market Services’ col lections of INR 17.41

bn

RBI / YES BANK joint seminars showcasing YES BANK’s innovative corporate payment solutions

leveraged on its RTGS platform

Transaction Banking

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

R s m n


Growth in LCs, BGs, Acceptances

Acceptances LCs BGs

-

5,000

10,000

15,000

20,000

25,000

30,000

R s m n

Q3-FY07 Q4-FY07 Q1-FY08 Q2-FY08 Q3-FY08

Growth in CMS Thruputs

`



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Structured solutions to meet specialised and structured client requirements

Knowledge & product expertise in infrastructure, real estate, financial restruc turings, acquisitions & leveraged finance

Comprehensive role from pre-zero date advisory, taking meaningful exposure and syndication of balance requirements

Team of experienced professionals with substantial expertise in managing and consummating structured transactions

‘Corporate Finance’ – adding value through Knowledge based offerings

Infrastructure

BankingRealty

Banking

Structured &

Project FinanceProject Advisory &

Syndication

Financial

Restructurings

Only Indian Bank to be appointed as Country Advisors to the

Global Environment Fund (GEF), Washington DC

Corporate Finance

INR 900 Million

Mundra Port and

Special Economic

Zone Ltd

Infrastructure Finance -

Purchase of Dredger

USD 19.5 Million

Chennai Water

Desalination Ltd

Project Financing –

Water Desalination

Plant at Chennai

USD 40 Million

Cambridge

Solutions Ltd

Foreign currency loan

Financial Advisor and

Lead arranger

INR 300 Million

Noida Power Company

Limited

Project Finance Facility –

Development Power

Distribution Network

INR 500 Million

Alpha G Corp

Development Pvt.

Ltd.

Lead banker for retail

mall project at Amritsar



10

‘Trusted Advisor’ – working at every step of the capital growth life cycle

Private Equity

Venture CapitalMergers &

Acquis it ions

Distressed

AssetsPre IPO

financing

Merchant

Banking

Experienced and focused transaction advice

Deep market and segment expertise

High product volatility

Exceptional and consistent transaction track-record

Hired by top corporates primarily due to:

YES BANK Investment Bank consistently rated high on league tables of reputed agencies (Bloomberg), in

M&A ‘Outbound Cross Border Transactions’ in M&A ‘Overall’ categories

Healthy transaction origination (both inbounds & outbounds) in sectors that include textiles/apparel, engineering &auto components, pharmaceuticals, logistics

Financial Advisory

First FlightCouriers

Exclusive advisorfor raising private

equity fromTemasek Holdings

USD 25 mn

Sintex Industries

Acquisition of BrightBrothers Limited

INR 1.49 bn

Suzlon Energy

Co-BRLM for QIP

INR 21,826 mn

FCCB Offering

USD 200 mn

Sai Advantium

Investment by SequoiaCapital India

USD 12.8 mn

Spentex Industries

Acquisition ofSchoeller Litvinov k.s.,

Germany/CzechRepublic

Euro 25 mn



11

Customer Acquisition Strategy Develop ‘YES’ as a service mark

Offer Choice & Convenience

Build t rust to attract retail deposits

Regions with high CASA potential identified for

deep penetration

Strong distributed teams/ alliances

Target Client Base Initial focus is on ‘Mass Affluent’ segment (income

b/w INR 0.5 and INR 2.5 mil lion) in line with the

expansion of our branch network (YES PROSPERITY)

Subsequent focus is on ‘Affluent’ segment (income

b/w INR 2.5 mn and INR 20.0 mn) (YES FIRST)

Thereafter, FY09 onwards, focus on HNIs (INR 20 mn

upwards) (YES PRIVATE)

Immense Focus on

Liabilit ies & Distribution / Segmentation

Delivery

Channels

Received RBI license to operationalize 200 off -site ATMs

ATMs, Internet Banking, Telephone/Mobile Banking and Direct Sales Offices

Product

Suite

Retail liabilities, wealth management products inc luding distribution of Mutual Funds,

Insurance (tie-up with Max New York Life, Bajaj Allianz), selective loan products

60 Fully Operational Branches across 52 locations, 75 Offsite ATMs and 2 Central Processing Centres.

Received RBI License to operationalize 57 additional branches & 125 offsite ATMs –

Total Licensed Network: 117 Branches, 200 Offs ite ATMs

Retail Banking & Wealth Management – Key Value Driver



12

Launch of the world’s firs t wi-fi branch banking network in collaboration with IntelEnsures conduct of wireless banking in a fully secure environment

Single pin for all electronic channels

2 factor authentication for internet (enhanced security)

Consolidated view of all investments

Online NEFT & RTGS transfer of funds enabled

Launch of Online Sale/ Purchase of Mutual Funds

Retail Liabili ties increased by 122% over Q3-FY07

Funds worth INR 6.52 bn transacted through direct

banking channels (ATM/Net/Debit Cards) in Q3-FY08

Launched Depository Services nationally

Fully commissioned wealth management team

Retail Banking & Wealth Management – Key Value Driver

AUM (MF sales) at INR 8.9 bn as at December 07

Sum assured (life) grew 75% over December 06

Gradual introduction of retail loan products – home

equity and personal loans for business activit ies

Three liability mobi lization channels including Feet on

Street, Branch Sales team and Dedicated RMs

Launched first of its k ind 7:11 banking service in Andheri

Branch, Mumbai.

Technology – an enabler to attract customers

BRANCH LOCATIONS



13

New Entrant Advantage

No Legacy Systems

Latest technology

Customer FocusHigh Degree of Automation

Straight through processing

(STP) enabling improved

process accuracy and efficiency

First Mover – RTGS & NEFT via

Internet

Back off ice operations ISO

certified

Hardware

Efficient procurement

Most of the IT infrastructure remains

off balance sheet

Infrastructure ‘on demand’ from IBM

National Award for Data Centre

Outsourcing Approach

Strategic tie up with Wipro

IT infrastructure and network

management outsourced

Variable cost model – scalable based

on branch rollout/ JIT/ Pay by Use

YBL retains IP and know-how

Software

Partnership arrangements wi th

vendors, lowering cost and

enabling access to latest, more

efficient software Agreement wi th I-flex for core

banking solution, FundTech for

CMS and Murex for treasury,

FinnOne to offer Retail products

Unique, Scalable

Business Model

Unique, Scalable

Business Model

Unique Technology Proposit ion

‘IT People Award for innovation in Banking Sector 2007’ at the IT- People Awards for Excellence in IT



14

General Manager - ICRAGroup EVP & Global Head – International Banking Arun Agrawal

Head of HR - Bajaj Allianz Life InsurancePresident – Human CapitalDeodutta Kurane

Head of Corporate Credit - ICICI BankChief Risk Officer Subir Bisht

Executive Director and Country Head - Avigo Capital PartnersPresident – Business BankingVarun Tuli

Associate Director & Head (North) - Rabo IndiaCountry Head – Emerging Corporates BankingSumit Gupta

Managing Director - GE Commercial FinanceGroup President – Corporate & Institutional/ Emerging

Corporates Banking & Corporate Developement

Sunil Gulati

Executive Director, Head of Mergers & Acquisitions - Rabo IndiaManaging Director – Investment Banking Aditya Sanghi

Retail Head, West and South India - ABN Amro BankPresident – Retail Banking & Wealth ManagementSuhail Kazmi

Global Transaction Services Head - Caribbean, Central & Latin

America, Citibank N.A.

President –Transaction Banking GroupSuresh Sethi

Director – Project Advisory & Infrastructure Mgmt - Rabo IndiaPresident– Corporate Finance and Development BankingSomak Ghosh

Head of Treasury - Rabo IndiaChief Financial Officer Rajat Monga

Managing Director, Global Markets Group & Country Treasurer - Bank of

America

Group President – Financial Markets, Institutions and

Investment Management

Ajay Mahajan

Country Head – Transaction Banking & Operations - HDFC BankExecutive Director H. Srikrishnan

Managing Partner / CEO & Managing Director - Rabo IndiaManaging Director & CEORana Kapoor

Previous assignmentDesignationName

Senior management team drawn from top private sector and foreign banks in India and abroad

Support functions headed by highly experienced management

Rana Kapoor received the ‘PHDCCI Distinguished Entrepreneurship Award 2007’ at the PHDCCI Annual Awards for Excellence 2007.

Total employee strength at 3542 as on December 31, 2007 (2,161as on December 31, 2006)

Stock purchase / option plans enable senior management and employees to own substantial capital of the Bank at all times (‘Owner-Managers’ – currently own 7.59% on fully diluted basis)

Human Capital – execution focussed

‘CEO with HR Orientation' at the Times Ascent HR Excellence Awards, August 2007



15

Revenue and profit highlights

251.0

130.1

478.9

466.5

432.9

512.5

Q3-FY07

116.1%542.4Profit after tax

138.1%309.8Provision for tax

110.8%1009.4Operating Profit

90.6%889.2Operating exp

123.7%968.2Other income

81.5%930.4NII

Growth %Q3-FY08Rs. million

Balance sheet highlights

Performance highlights Net Prof it after Tax of INR 542.4 mn in Q3-FY08 compared

to a Net Profi t of INR 251.0 mn in Q3-FY07 (growth of116.1%)

RoA of 1.53% and RoE of 20.46% in Q3-FY08

Net Interest Margin at 2.9% for Q3-FY08

Yield on advances at 11.4%; yield on interest earningassets at 9.79% in Q3-FY08

Cost of funds at 8.3% for Q3-FY08

Cost to income ratio at 46.8% for Q3-FY08 (signif icantinvestments being made in branch expansion)

Advances at INR 85.98 bn (growth of 79.1% over Dec 06) Deposi ts at INR 111.29 bn (growth of 103.8% over Dec 06)

79.1%48,00285,980 Advances

103.8%54,609111,289Deposits

65.8%7,56212,533Owners Funds

Dec. 06 Growth %Dec. 07Rs. million

Strong financial performance

One-Bank approach resulting in Fee income being 51% of Total Income for Q3-FY08

Growth in Profitability

112.5 142.5 1 45 .0 1 53 .2

168.8

214.9251.0

309.04

360.05

452.83

539.54

-

100.0

200.0

300.0

400.0

500.0

600.0

Q 1 - F Y

0 6

Q 2 - F Y

0 6

Q 3 - F Y

0 6

Q 4 - F Y

0 6

Q 1 - F Y

0 7

Q 2 - F Y

0 7

Q 3 - F Y

0 7

Q 4 - F Y

0 7

Q 1 - F Y

0 8

Q 2 - F Y

0 8

Q 3 - F Y

0 8

R s m n



16


Business Banking (ELC & SME) advances constitute

39.6% of the Bank’s total advances as at December

31, 2007

Proport ion of low cost CASA at 8.04% of total

deposits as at December 31, 2007

Nil NPA - The Bank continues to maintain a clean

portfo lio with no NPAs as at December 31, 2007

CAR of 14.18% as at December 31, 2007 (Tier I CAR

at 8.86%)

Non Interest Income to total income ratio at 51% in

Q3-FY08

Non Interest Income for Q3-FY08 consti tutes the

following:

Financial Markets 54%

Financial Advisory 14%

Third Party Distribution 12% Transaction Banking 15%

Others 5%

Diversif ied revenue generating streams with contributions from all parts of the Bank

Strong financial performance

Crossed Market Capitalization of USD 1.75 billion

-

150

300

450

600

750

900

R s m n

Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008

Distribution of Total Income

Net Interest Income Non Interest Income

-

20,000

40,000

60,000

80,000

100,000

120,000

R s m n


Growth in Advances and Deposits

Advances Deposits



17

Thank You



18

Promoters

Successful entrepreneurial track record atRabo India

Held leadership positions at variousforeign banks

FII Investors Fidelity amongst large shareholders since

the IPO

Swiss Re currently holds 3.39%. Earlierplaced 3.57% in December 2006 through apreferential placement

Khazanah Nasional, the investment armof Malaysian Govt. hold 4.74%

Other investors include Arisaig, FranklinTempleton Mutual Fund, HSBC, AXA,CREF, Deutsche Securities, CitigroupGlobal, Morgan Stanley, GIC, JP Morgan,Prudential Asia Fund amongst others

FDI

Rabobank

AAA rated private bank and among top 15banks in the world

Lock-in of entire pre-IPO holding (13.57%post dilution) for a five year period

Total shareholding at 18.32%.

Private Equity

Held by Asia Infrastructure Fund since2004

Financial Investor

Placed 4.99% to Orient Global in December

2007 through a preferential placementShareholding pattern as at December 31, 2007

Annexure - Shareholding

Indian

Promoters

35%

FDI

24%

FII

27%

Mutual

Funds

4%NRI

1%

Employees

1%

Others

8%

Investor Presentation Jan9 2008

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