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INTRODUCTION

Since its inauguration by Mahatma Gandhi in 1919, the Union Bank of India has
grown to become one of the country’s largest public sector financial institutions.
With annual revenue of more than INR 6,000 crore (approximately US$1.3 billion),
the bank is more than fulfilling Gandhi’s directive that India “should have the ability
to carry on a big bank, to manage efficiently crores of rupees in the course of our
national activities.”
The Union Bank of India now operates more than 2,000 branches across India,
administered by approximately 80 offices, including 43 regional offices. To be the
first choice for customers by building beneficial and lasting relationships with
customers through continuous improvement, and in recent years the pursuit of this
vision has seen it embrace state-of-the-art banking technology, including online
banking and payment gateway solutions. As a result, the bank has earned a
reputation for being technology-savvy and customer service-focused.
Union Bank has ensured complete customer delight, living up to its image of,
“GOOD PEOPLE TO BANK WITH”. Anticipative banking- the ability to gauge the
customer's needs well ahead of real-time - forms the vital ingredient in value-based
services to effectively reduce the gap between expectations and deliverables.

The key to the success of any organisation liew with its people. No wonder, Union
Bank's unique family of about 26,000 qualified / skilled employees is and ever will
be dedicated and delighted to serve the discerning customer with professionalism
and wholeheartedness.

We have choosenthis bank due to its performance in banking sector. It is public

sector bank but from its efficiency it has proved the PSU are not inefficient . By
highest per employee out put & business generation it has made a stander of
efficiency in private banks also. Now we like to known what policys in Human
Resources they adopted to being efficient like this. through the frame work in HR
management and clear vision they made the work place goal oriented and
performance based.
CORPORATE MISSION
✔ A logical extension of the Vision Statement is the Mission of the Bank,which is
to gain market recognition in the chosen areas.
✔ To build a sizeable market share in each of the chosen areas of business
through effective strategies in terms of pricing, product packaging and
promoting the product in the market.
✔ To facilitate a process of restructuring of branches to support a greater
efficiency in the retail banking field.
✔ To sustain the mission objective through harnessing technology driven
banking and delivery channels.
✔ To promote confidence and commitment among the staff members, to
address the expectations of the customers efficiently and handle technology
banking with ease

ORGANISATIONS HUMAN RESORCE STRUCTURE

The success of any organization depends upon the structure of business control
and capecityto take best suited frame to develop a motivation to achive the goals.
We can see that it is a listed company and have well managed human planning.
Now we can focus over the flow of control within the organization.It has a lean
three-tier structure. The delegated powers have been enhanced. The decentralised
power structure has accelerated decision making process and there by Bank quickly
responds to changing needs of the customers and has also been able to adjust with
the changing environment.Bank has five General Manager Offices at Ahemedabad,
Lucknow, Delhi, Mumbai, Calcutta and Chennai which function as an extended arm
of corporate office. It also has two Zonal Offices at Bhopal and Pune. Tier 3
comprises of 43 Regional Offices at various geographical center of the country.

Chairman & MD

Executive Director
Joint Executive Director

• General Manager
CA Directore
• Divisional GM
Workman Director
• Assistant GM
Shareholder Director
• Chief Manager
• Branch Maneger
• Officers
• Clerk
• Sub Staffs

Selection and Recruitment

With so many employees, staff administration from the central office posed
numerous challenges,” said Laxman Rao Koka, deputy general manager, Human
Resource Management Department, Union Bank of India. “Whenever we needed to
manage any large-scale processes such as shifting of staff or promotions,

The recruitment is done on the basis of forecasting of HR department. the need is

decided on the basis of planning of expansion of branches and value added services
introduced by the banks. The whole process is done by HR department by own and
higher authority controls the official & Clark but the low end staff are recruited by
regional level in part time or full time basis.

Internal recruitment

The permutation based recruitment is done by the internal management for

fulfillment of vacancy due to retirement and new branches. The promotional exams
are taken for all levels in management and subordinates. The performance in
working and application based knowledge is asked in interviews while the written
exam is also taken for minimum qualification. The term performance appraisal is
taken for this. one more feature is that the promotion is also given on the basis of
seniority. While the candidates are send other zonal according staff needs.

External recruitment
When the required nos. are not fulfilled by internal recruitment bank makes process
for external recruitment. The bank belongs to PSU so that it has to follow the
guideline of Govt. For the purpose. The bank has to make a public advertisement
and disclose all facts, term & conditions. The selection is made on the basis of the
candidate’s performance
Candidates passing in both the Written Test and the Personal Interview be finally
ranked in a descending order on the basis of the aggregate marks obtained in the
Written Test &
Personal Interview under the respective GEN / SC / ST / OBC Category.

For the purpose they doesnot take any service of management consultant,
management institute, recommendation, deputation personal. The selection process
like (a) Job Analysis (b) Initial screaming (c) Application Bank (d) Test (e) Interview
(f) Refrence Check (g) Medical Final (h) Job Offers all are done by bank alone. The
lower end staffs can be directly taken by nodal office. I

Training and Development

Union bank has one of the best training systems in India. The training system of
Union Bank has been awarded the prestigious Golden Peacock National Training
Award instituted by the Institute of Directors, New Delhi for the best training system
in the Country. Presently the training structure consists of the Staff College at
Bangalore, and seven centers in various parts of the country. The training is
designed, delivered and assessed, based on systems suggested and put in place by
overseas consultants M/s. Vinstar Limited (AGL Group) of New Zealand. These
systems have been tested and refined by practical application. At Union Bank, the
training facilities offer an admirable approach to these opportunities.

In our pursuit of achieving higher standards they have further upgraded our
systems and sized up to 'international norms'. After a rigorous audit, in February
2001, the College is awarded ISO 9001 certification (for Design and Development of
Customized Training Programs) by Det Norske Veritas, of the Netherlands. They are
the only Bank to obtain ISO certification for the training system.

They have devised an outcome-oriented training process. Each and every module is
designed so that learning takes place through interaction. It is also ensured that this
learning is translated into action at the work place. There training programs
actually deliver value to the Organization. Post course surveys conducted by us
have confirmed this. . Physical, mental, spiritual and social upgradation of self for an
individual and building of teams of performers of outstanding Organizations take
place in the most natural way. Seldom has there been a time in which it has been
necessary for Organizations to attune Attitudes, upgrade Skills and kindle sparks of
Knowledge in their human force to the extent and with the rapidity required today.
Our 'facilitators' to learning - "Faculty" or "Trainers" in the common parlance- are
experienced bank officers with many years of exposure in the entire gamut of
banking. All the facilitators have been through an intensive orientation program on
adult learning processes drawn up by Vinstar of New Zealand. They are also
exposed periodically to updating of skills and awareness in leading institutions in
the country. Some have also been nurtured with professional training abroad at
premiere institutions like Columbia Business School, New York and the Manchester
Business School, England.

THE PROGRAMS Currently the College is running training programs in the

following disciplines: 1.International Banking 2.Credit 3.Information Technology
4.General Banking 5.Marketing and 6.Management and human resource
development. Union Bank is also organizing executive education programs in
association with Icfian Business School - an arm of the Institute of Chartered
Financial Analysts of India, Hyderabad. In this stream following programs are
offered:1.Finance for Non-Finance executives 2.Treasury and forex management
3.Software- project management 4.The Service edge - improving service quality

Motivation
What motivates people is an important consideration for captains of industry,
commerce and the public sector - in fact anyone who works with other people -
since people are central to the success of organizations. Leadership and Motivation
explores the subject in depth. What motivates people is an important consideration
for captains of industry, commerce, and the public sector -- in fact anyone in a
position of leadership. Leadership and Motivation explores the subject in depth.
Adair reassesses the theories of Herzberg and Maslow -- still the major contributors
to our understanding of motivation.

In mid-2003, as part of its corporate vision to promote confidence and commitment

among its 27,000-plus employees, Union Bank began a major review of its human
resources (HR) administration systems. Those goal was to provide an error-free,
user-friendly, simple, and 24/7-accessible ERP solution to the bank and also to the
employees, with a better MIS facility and employee self-service,” explained Rao.
“Such an ERP solution needed to be amenable for modification as required by the
users; it needed to have the facility to upload the data from the existing application
for interfacing with the bank’s financial package.” PeopleSoft Enterprise Human
Capital Management applications provided the answer. The system, known as
“Union Parivaar”, helps to identify human capital, measure its capability,

The structure given by the bank was like this. it clears the need of team work to
achieve the goal. The structure further help to make co-ordination between different
level of management and effective communication system also. A centralized
database vastly improved how common HR processes were managed. Employees
gained self-service access via a user-friendly Web interface, ensuring they could
quickly and accurately specify their HR needs and receive a timely response.

.Wages and salary

The money motivation is the biggest factor that comes under the basic for job. The
wages & salary are decided by banking authority generally. We find that wages are
given to daily based staffs. It is given to lower end staffs. The salary is decided by
authority, but the value added is the main features of the organization. The French
benefit and added services as maintenance as well as allowance are also given.

To find the salary & extras

Office wear allowance
Medical:- 75% of total expense to family ,100% to employee
Yearly Rs, 1000 check-up allowance

Fuel:- 2 wheeler- 15 liter of petrol

4 wheeler – 25 liter of petrol

HRA allowance:- 50% of basic pay max.

Depends upon class of town
Children education:- as per income tax limit up to 2 children

DR allowance:- accordance to real expense

The organization also offers its employees a trip within India in every 4 year. While
executives have options for world tour also. The salary depends upon these factors.
○ Rank within organization
○ Scale in management level
○ Nature of job
○ Working condition
○ Years of working
○ Retirement option choosen

Performance Appraisal
By the same token, appraisal results are used to identify the poorer performers who
may require some form of counseling, or in extreme cases, demotion, dismissal or
decreases in pay. (Organizations need to be aware of laws in their country that
might restrict their capacity to dismiss employees or decrease pay.)

Whether this is an appropriate use of performance appraisal - the assignment and

justification of rewards and penalties - is a very uncertain and contentious matter.
The advocates of this approach say that organizations must have a process by
which rewards - which are not an unlimited resource - may be openly and fairly
distributed to those most deserving on the basis of merit, effort and results. There is
a critical need for remunerative justice in organizations. Performance appraisal -
whatever its practical flaws - is the only process available to help achieve fair,
decent and consistent reward outcomes.
 Performance appraisal takes into account the past performance of the
employees and focuses on the improvement of the future performance of the
employees. attempt to provide an insight into the concept of performance
appraisal, the methods and approaches of performance appraisal, sample
performance appraisal forms and the appraisal software’s available etc. An
attempt has been made to study the current global trends in performance
appraisal.

They are well aware about fact about pay accordance the work. Here the
salary is fixed but promotion depends upon the performance book.

Think about everything that performance appraisals can achieve and

contribute to when they are properly managed, for example:
• performance measurement - transparent, short, medium and long term
• clarifying, defining, redefining priorities and objectives
• motivation through agreeing helpful aims and targets
• motivation though achievement and feedback
• training needs and learning desires - assessment and agreement
• identification of personal strengths and direction - including unused
hidden strengths
• career and succession planning - personal and organisational
• team roles clarification and team building
• organisational training needs assessment and analysis
• appraisee and manager mutual awareness, understanding and
relationship
• resolving confusions and misunderstandings
• reinforcing and cascading organisational philosophies, values, aims,
strategies, priorities, etc
• delegation, additional responsibilities, employee growth and
development
• counselling and feedback
• manager development - all good managers should be able to conduct
appraisals well - it's a fundamental process
• the list goes on..

Through out the prosier they judge for these qualities for appraisal
Commercial judgment
Product/technical knowledge
Time management
Planning, budgeting and forecasting
Reporting and administration
Communication skills
Delegation skills
IT/equipment/machinery skills
Meeting deadlines/commitments
Creativity
Problem-solving and decision-making
Team-working and developing others
Energy, determination and work-rate
Steadiness under pressure
Leadership and integrity
Adaptability, flexibility, and mobility
Personal appearance and image

The bank recognizes that customer’s expectation/ requirement/ grievances can be

better appreciated through personal interaction with customers by bank’s staff.
Customer Day will be observed by all our branches on 15th of every month where
customers can lodge their complaints personally and have their redressal on the
spot. Fortnightly, customer service committee meetings will be held in the branches
wherein customers can also voice their grievances/ suggestions for improvement in
customer service and on the spot redressal will be ensured by the branches. Many
of the complaints arise on account of lack of awareness among customers about
bank services and such interactions will help the customers appreciate banking
services better. For the bank the feedback from customers will be valuable input for
revising its product and services to meet customer requirements.

Introduction
YES BANK, India’s new age private sector Bank, is an outcome of the professional
entrepreneurship of its Founder and his highly competent top management team,
to establish a high quality, customer centric, service driven, private Indian Bank
catering to the “Future Industries of India”. YES BANK is the only Greenfield license
awarded by the RBI in the last 14 years, associated with the finest pedigree
investors. YES BANK has fructified into a “full service” commercial Bank that has
steadily built Corporate and Institutional Banking, Financial Markets, Investment
Banking, Corporate Finance, Business and Transaction Banking, Retail and Wealth
Management business lines across the country, and is well equipped to offer a
range of products and services to corporate and retail customers.
A key strength and differentiating feature of YES BANK is its knowledge driven
approach, which goes beyond the traditional realm of banking, and helps adoption
of a diagnostic and prescriptive approach towards superior product structuring.YES
BANK pursues a strong Employee Value Propositionof ‘Creating & Sharing Value’,
with a vision to build an organisation, driven by Professional Entrepreneurship,
where all YES BANK’ers truly partner to direct, manage and accelerate the
development of YES BANK as the Young and Dynamic Bank of“Emerging India”.

It is this untiring and relentless passion for Professional Entrepreneurship that has
resulted in YES BANK being recently ranked as the THIRD Best Bank in India by
Businessworld. YES BANK also received the Continuous Innovation in HR Strategy
award at The Indiatimes Mindscape Employer Branding Awards 2007. YES BANK
recognizes that the only real source of sustainable competitive advantage for an
organization is the power of its High Quality Human Capital. Therefore, we foster a
leadership mindset that embraces meritocracy as a vital force to reward
performance and exceptional competency.

The financial highlights of Yes Bank India are:

• Net Profit after Tax is of Rs.944 millions in the financial year 2007 as
compared to a Net Profit of Rs.553 millions in the financial year 2006. Total
income (Net Interest Income plus Non Interest Income) is of Rs.3,659 millions
in the financial year 2007 as compared to Rs. 1,852 millions in the financial
year 2006, representing an increase of 98% and Operating Profit is of
Rs.1,724 millions in the financial year 2007 as compared to Rs. 991 millions
in the financial year 2006, representing an increase of 74%.

• Yes Bank In India has been ranked second among the new private sector
banks and first on the key parameter of growth among sixty-four Private,
Public and Foreign Banks in India. Yes Bank India have adopted the globally
recognized Six Sigma and ISO service standards.

Vision
YES BANK has a vision to champion ‘Responsible Banking’ in India where the
concepts of Corporate Social Responsibility and Sustainability are embedded in the
DNA of the organization and integrated in its Business Focus. YES BANK is
committed to adding long term value to society, to differentiate itself in the
marketplace based on a strong 'sustainability mandate' and to build in flexibility and
openness as part of its core strategy.

Objective
• To build a strong employer brand.

• To attain a preferred employer status in the Banking and Financial Services

industry.
• To ensure that the Bank is able to attract, engage and retain high quality
human capital for its long-term success.
Building a high performance culture is another key prerogative of the HR function.
We envisage a credible and transparent performance management process that
helps in aligning individual goals with corporate objectives, both quantitative and
qualitative, and encourages cross sell and team spirit. Our performance
management process will be supported by a robust rewards and recognition
strategy for each business and a market based compensation structure that is
flexible, responsive and helps retention through asset building and wealth creation
for top performers. Our Promoters believe that a broad employee ownership of the
shares of the company has a positive impact on performance. Therefore, our stock
option scheme covers a large cross-section of our employees.
The Affirmative Mission
To acquire large corporate, niche middle-market and segment-based clients and
significant number of Retail customers within 5 years of operations.

The main feature that differentiates Yes Bank India in the banking industry is their
use of knowledge bankers who are industry experts in various sectors of Indian
economy thereby helping their valued customers with in-depth knowledge of these
sectors. In general the products and services offered by the Yes Bank are:
• Corporate and Institutional Banking
• Financial Markets
• Investment Banking
• Business and Transactional Banking
• Retail Banking
• Private Banking

Human resource
"We believe that high quality Human Capital is the biggest asset in an organization
and have been focused on attracting and retaining the best talent from India and
abroad. We believe that best performance can only be achieved through
empowered employees and therefore, we offer all YES BANKers an opportunity to
work in a growth environment with a young work force."

- Rana Kapoor, CEO and Managing Director, YES BANK, in 2007.

"The company believes that employees are the key to building a strategic,
comparative advantage and enabling its business strategy of knowledge-based
banking and service differentiation."4

- Financial Express5, in 2004.

The banks strongest point is its human capital. Because the bank believe to provide
the services of best professionals in industries. Our differentiated view of banking as
a knowledge-based industry has ensured that our Bankers are also industry experts
in sectors like Food & Agribusiness, Life Sciences, Telecommunications, Media &
Technology, Infrastructure, Retailing & Textiles and Select Engineering. These
Knowledge Bankers offer invaluable and in-depth insights into these sectors,
thereby helping our clients to develop great ideas and nurture them to fruition.

Yes Bank one of the new generation private sector banks and its unique Human
Capital initiatives which helped it attract and retain the best talent in the industry.
Despite being a late entrant in the Indian banking industry, Yes Bank had
established itself as a top bank in India. Yes Bank's unique 'knowledge banking'
approach and its emphasis on human capital helped it differentiate itself from its
competitors. The case also discusses Yes Bank's effort toward establishing a strong
employer brand and projecting itself as an 'aspiration' employer in the Indian
banking sector. Yes Bank's various innovative HR initiatives helped it institutionalize
a performance culture and entrepreneurial spirit in its employees. Yes Bank's focus
on human capital initiatives helped it in succeeding in establishing itself as a key
player in the Indian banking industry within a short span of time. . The knowledge
banking approach was its main pillar of differentiation and, using this, it provided
specialized services to various sunrise industries through domain experts.

HR CHALLENGES
Being a startup, it had to not only take care of infrastructure and lease agreements
for setting up branch offices, etc., but also of the recruitment of staff and
management, which in itself could be an overwhelming task. From an early stage,
the promoters of Yes Bank focused on human capital as an enabler of the bank's
business strategy of differentiating itself from its competitors...

Focus
The focus of the Human Resources function at YES BANK is to build a world-class
team, based on professional recruitment methodologies, and attract the best talent
in the industry.
While our immediate hiring has primarily been lateral, to bring the relevant skills,
competencies and experience into the organization, our focus is on building the
requisite talent bench strength to support the business plans of the Bank. We are
making a concerted effort towards building learning and development solutions that
continuously enhance employee value, in line with the growth plans of the Bank.
YES BANK pursues a strong Employee Value Propositionof ‘Creating & Sharing
Value’, with a vision to build an organisation, driven by Professional
Entrepreneurship, where all YES BANK’ers truly partner to direct, manage and
accelerate the development of YES BANK as the Young and Dynamic Bank
of“Emerging India”.

Workforce Profile
1. Gender Distribution @ YES BANK
Educational Qualifications:

2.

3.

4. Experience profile.

Age profile
The age profile captures the age range of employees
Sourcing Human Capital

The bank had aggressive plans for the future and planned to have 150 branches by
2010 and 400 branches by 2012. Kapoor contended that the banking industry in
India was 'over branched' and 'under serviced' and, as such, there was tremendous
scope for Yes Bank's growth as it was trying to take care of the latent needs of the
customers with highly skilled and involved employees. In keeping with its growth
plans, the bank expected to increase its employee strength to 10,000 by 2010. "In
the next five years [i.e. by 2012], my team and I want to build an institution and not
just a business...
Recruitment and selection
Being a startup, it had to not only take care of infrastructure and lease agreements
for setting up branch offices, etc., but also of the recruitment of staff and
management, which in itself could be an overwhelming task. From an early stage,
the promoters of Yes Bank focused on human capital as an enabler of the bank's
business strategy of differentiating itself from its competitors...

Initially, the company relied heavily on employee referrals, consultants, and web-
based hiring to source talent. The bank worked out its recruitment strategy with the
help of consultants Kom Ferry, ABC Consultants, Planman Associates, and Emmay
HR. Kapoor said, "As a start-up, the immediate deliverable of the HR team is to
attract high quality talent and build a strong Yes culture based on the core values of
the bank.
In the medium term, the focus will be to create an organization that is able to
engage and nurture top-notch human capital so that we are able to achieve industry
leadership through the quality of people who work at Yes Bank."

Yes Bank commissioned senior-level recruiting to Kom Ferry, but Kapoor involved
himself in the process from a very early stage to explain his vision to potential
recruits.

The bank sought to utilize the expertise of highly qualified and experienced
executives to oversee the bank's initiatives in various business segments..
Retaining talented employees in the organization was also one of its main focuses
because of the huge scarcity of talented employees in the financial services sector
in India. It realized that in order to achieve its objective of being a preferred
employer, it had to establish a strong employer brand
It, therefore, strove to build an enterprise based on its Employee Value Proposition
(EVP) of 'Creating and Sharing Value' that would help it emerge as the "Young and
Dynamic Bank" of the developing Indian economy.With this proposition, the bank
aimed to transmit its internal brand from its employees to the external brand i.e. to
its customers. The crux of this proposition was that the bank expected its
employees to absorb organizational values so that the same values were
communicated to the customers
The base of the whole selection process is to attract the best talent available. That
helps to expertise the services. The recruitment depends upon the need and
replacement of employees. Both internal and external sorces are taken in account
for the purpose. In external sorces they go to consultancy, advertisement , refrence,
and institutions.

Motivation
Yes Bank envisaged that for an individual to work with the organization in perfect
synergy, his/her goals had to be linked with the goals of the organization. This
process of aligning individual and organizational goals was termed as the
performance management process. The main objective of these innovative
performance management practices was to encourage the employees to think
innovatively
The bank also aimed at building a culture to inculcate professional entrepreneurship
in them to make themselves and the shareholders prosperous. The push for a
performance culture at Yes Bank came right from the top and was reflected in
Kapoor's leadership style.

"I follow an 'easy-tight' leadership style - 'easy' for innovation and 'tight' for
execution. And lastly, I believe in 'stretch' - driving the frontiers and inspiring on
moving ahead," said Kapoor Yes Bank urged people to join the bank on the basis of
its values of empowering employees. The logic behind this was that employee
ownership would lead to the success of the bank..It, therefore, strove to build an
enterprise based on its Employee Value Proposition (EVP) of 'Creating and Sharing
Value' that would help it emerge as the "Young and Dynamic Bank" of the
developing Indian economy.
The main motivational factor is the leadership within the organization and zeal
among managers to work with a bank of such kind. Who is known as most dynamic
& expect bank in industry. We will now try to understand the motivational factors by
chart.
Remuneration
The bank provides expertise services, so it need qualified persons. They try to
attract best brains. They provides comparative remuneration to its employees. We
will now discuss what method they adopt for the purpose of deciding the salary.

Calculation of worth of a job – they evaluate the impotence and responsibility

of job and decide the payment that should be offered. The ability factor also
taken care in deciding the salary.
Competitiveness – it is a major factored that decide the pay scale of
employee. While leading player like HDFC & ICICI is present in market the
bank decides a attractive package for his employees.
Values of French benefit – the employee whom the additional benefits are
high they are made lower pay package. While the research team are given
higher packages.
Basis of increase in salary—(a) the performance based salary is given to
staffs accordance to their output they are compensated (b) Length of
services is also a factor , the experienced gets more pay then fresher’s.
Perception of equity—the bank knows that if any employee finds that he is
discriminated on pay or getting same salary while generating same output he
will switch from job. So they evaluate the need of appraisals.

Retaining talented employees in the organization was also one of its main focuses
because of the huge scarcity of talented employees in the financial services sector
in India. It realized that in order to achieve its objective of being a preferred
employer, it had to establish a strong employer brand.

It becomes necessary to cope up with the other banks to be being updated for best
human resources supply and minds.
Performance Appraisal and bank prospects
At YES BANK, strongly believe that for an organization to appropriately convey its
External Brand values to its existing and potential customers, the same values must
translate into the Internal Brand, The image that employees have of the
organization as an employer. Thereby enabling employees to imbibe the core values
of the organization and adequately convey the same to its customers.
At YES BANK Employer Brand is represented as the Employee Value Proposition
(EVP). The EVP is integrally linked to the Bank's core values, and all HR systems and
processes are designed to convey the EVP to the Bank's employees.

Yes Bank envisaged that for an individual to work with the organization in perfect
synergy, his/her goals had to be linked with the goals of the organization. This
process of aligning individual and organizational goals was termed as the
performance management process. The main objective of these innovative
performance management practices was to encourage the employees to think
innovatively.
The bank also aimed at building a culture to inculcate professional entrepreneurship
in them to make themselves and the shareholders prosperous. The push for a
performance culture at Yes Bank came right from the top and was reflected in
Kapoor's leadership style.

"I follow an 'easy-tight' leadership style - 'easy' for innovation and 'tight' for
execution. And lastly, I believe in 'stretch' - driving the frontiers and inspiring on
moving ahead," said Kapoor Yes Bank urged people to join the bank on the basis of
its values of empowering employees. The logic behind this was that employee
ownership would lead to the success of the bank...

The bank had grown at a tremendous pace since its inception. In the first two
quarters since it began operations in (2004-2005) its balance sheet stood at
Rs.1,300 million, which made it one of the most successful ventures in India. Yes
Bank started its operations with just 250 employees and two branches. As of
October 2007, it was operating with 60 branches and 3,263 employees. The bank's
business size was Rs. 800 million in December 2006. This was significantly higher
than the growth reported by other private sector banks with the same background...
The bank had aggressive plans for the future and planned to have 150 branches by
2010 and 400 branches by 2012. Kapoor contended that the banking industry in
India was 'over branched' and 'under serviced' and, as such, there was tremendous
scope for Yes Bank's growth as it was trying to take care of the latent needs of the
customers with highly skilled and involved employees. In keeping with its growth
plans, the bank expected to increase its employee strength to 10,000 by 2010. "In
the next five years [i.e. by 2012], my team and I want to build an institution and not
just a business...