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Q2FY10 Update
Key Financial Highlights – Q2FY10 and H1FY10
Net Profit after Tax of Rs. 1,117.1 million in Q2FY10 Q2FY10 and H1FY10 - Revenue and Profit growth
compared to Rs. 636.2 million in Q2FY09 representing an Rs. million Q2FY10 Q2FY09 %g H1FY10 H1FY09 %g
increase of 75.6%; Net Profit after Tax of Rs. 2,117.8 million in Net Interest Income 1,599 1,226 30.5% 3,237 2,355 37.4%
H1FY10 compared to Rs. 1,179.5 million in H1FY09 Non Interest Income 1,516 918 65.0% 2,968 1,857 59.8%
representing an increase of 79.6%
Total Net Income 3,115 2,144 45.3% 6,205 4,212 47.3%
increase of 37.4% Net Profit after Tax 1,117 636 75.6% 2,118 1,179 79.6%
Total income (NII plus Non Interest Income) of Rs. 3,115.3 Non Interest income to Total Income ratio of 48.7% in Q2FY10;
million in Q2FY10 compared to Rs. 2,144.3 million in Q2FY09 47.8% in H1FY10
representing an increase of 45.3%; Total Income of Rs. 6,204 Cost to Income ratio of 38.4% in Q2FY10; 37.2% in H1FY10
million in H1FY10 compared to Rs. 4,212.9 million in H1FY09
Non Interest Income constitutes the following
representing an increase of 47.3%
Operating Profit of Rs. 1,918.0 million in Q2FY10 compared Business Segment Q2FY10
75.2%; Operating Profit of Rs. 3,896.0 million in H1FY10 Transaction Banking 23%
Robust growth in both NII and Non Interest Income; Q2FY10 PAT up by 75.6% y-o-y
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Key Financial Highlights – Q2FY10 and H1FY10
Advances at Rs. 162.9 billion as at Sep 30, 2009; Growth of 41.5% H1FY10 - Balance sheet growth
y-o-y
Rs. million Sep 30, 2009 Sep 30 2008 %g
Gross yield on advances of 11.1% in Q2FY10; 12.7% in Q2FY09 Advances 162,943 115,149 41.5%
Investments 69,814 51,452 35.7%
Deposits at Rs. 193.7 billion as at Sep 30, 2009; Growth of 35.1% y-
o-y Total Assets 263,701 193,545 36.2%
Shareholder's Funds 18,443 14,383 28.2%
Cost of funds of 7.2% in Q2FY10; 9.2% in Q2FY09 Tier I + Tier II Capital 36,081 27,455 31.4%
Deposits 193,651 143,384 35.1%
Net Interest Margin of 3.1% in Q2FY10; 2.9% in Q2FY09
Basic EPS of Rs. 3.76 and Diluted EPS of Rs. 3.68 for Q2 FY10
INR million
Resilient Non Interest Income streams 2,000 Net Interest Income Non Interest Income
Non Interest Income grew by 65.1% to Rs. 1,516 million in 1,500
Q2FY10 (48.7% of Total Income) compared to Rs. 918.4 million
in Q2FY09 (42.8% of Total Income). 1,000
500
Non interest income streams like Financial Advisory,
Transaction Banking, Financial Markets and Third party -
distribution, retail fees & others continued the upward trend Q2FY07 Q2FY08 Q2FY09 Q2FY10
showing impressive improvements y-o-y. INR million
2,500
Operating Profit Net Profit
Financial advisory income in particular for Q2FY10 grew by
2,000
over 100% as compared to Q2FY09
1,500
1,000
Superior Shareholders’ returns 500
Amongst the highest RoE (25.0% annualized) and RoA (1.86% -
annualized) in the banking industry during Q2FY10 Q2FY07 Q2FY08 Q2FY09 Q2FY10
Consistently generating superior shareholder returns - RoE of more than 20% for 4th consecutive quarter
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Key Business Highlights
Capital Funds
Total Capital Funds stand at Rs. 36.1 billion as at Sep 30, 2009 (Rs. 27.5 billion as at Sep 30, 2008)
Efficient processes and risk management procedures in place thus ensuring a high quality asset profile
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Knowledge Driven Banking
Food and
Focus on Growth sectors Others; 21%
Agribusiness;
Knowledge based approach to lending; Food and 18%
Agribusiness, Engineering, Infrastructure &
Logistics, TMT (Technology, Media & Telecom)
and Lifesciences & Chemicals constitute more than TMT; 18%
79% of total advances as at Sep 30, 2009
Infrastructure
& Logistics;
16%
Lifesciences
& Chemicals; Engineering;
9% 18%
Knowledge driven banking approach ensures a well diversified, highly resilient and a healthy portfolio mix
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Well-diversified Liability Franchise
Diversified, granular & sticky liabilities mix from Institutional
multiple sources CASA; 9.6% FD - Branch
Deposits;
Certificate of 10.7% Banking;
Steady growth in number of liability accounts (from both Deposits; 13.6%
retail and corporate segments); total deposits grew by 18.2%
35.1% y-o-y to Rs. 193.7 billion in Q2FY10
FD - Govt
Backed FD -
Continuous management focus on increasing CASA Institutions; Corporate
(9.6% of total deposits as on Sep 30, 2009) through 10.1% FD - and
increased branch penetration and cash management Commercial Institutional
products; CASA grew by 43.4% y-o-y to Rs. 18.5 billion Banking; Banking;
5.6% 32.2%
in Q2FY10
Number of operational branches stands at 126 across 100 200000 Number of Liability Accounts
locations as at Sep 30, 2009 180000
160000
Floats from multiple banking relationships across all 140000
three business segments 120000
100000
Granular and Relationship driven deposits continue to the bedrock of our Business Strategy
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KNOWLEDGE CAPITAL
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A Differentiated Approach to Banking
Knowledge Banking
Focuses on the sunrise sectors of the Indian economy
Institutionalized a Development & Knowledge Banking division
Provides industry specific financial solutions which facilitate superior
structuring and tailored financial solutions
One Bank approach ensuring superior cross sell of products
‘Money Doctor’ approach of diagnostic & prescriptive product
structuring
Thought leadership initiatives across emerging sectors – Food &
Agribusiness, Infrastructure, IT, Lifesciences among others
Quarterly Update – YES BANK launched a customized online solution
for the Travel and Tourism sector at the 58th Annual Congress
organized by the Travel Agents Association of India (TAAI) in Dubai.
YES BANK was the Sole Banking Partner to the TAAI convention. Economic principles
Responsible Banking
“Sustainability Zone” i.e.
Pure profit
Principles of Corporate Social Responsibility and Sustainability combined economic,
integrated as a key business driver environmental, social benefit
Triple Bottom Line approach of ‘People’, ‘Planet’, ‘Profit’
Quarterly Update - YES BANK partnered the 20th South Asian
International Fundraising Workshop (SAFRG) organized by the South
Asian Fund Raising Group (SAFRG) from August 8-11, 2009 in Jaipur. Social investments
YES BANK partnered Save The Children to support ARAAISH, a
fundraising event for the empowerment of underprivileged children. Pure philanthropy
Only Bank to receive the Emerging Markets Sustainable Bank of the Year award at the FT/IFC Sustainable
Banking Awards
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RELATIONSHIP CAPITAL
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Corporate and Commercial Banking
Corporate and Institutional Banking Commercial Banking
Business Highlights
Business Highlights
Suite of plain vanilla and structured solutions
Suite of structured and vanilla solutions including including working capital finance, transaction
working capital finance, transaction banking, banking, treasury and selective structured
treasury products, corporate finance & investment finance
banking
Advances at INR 31.4 billion as at Sep 30, 2009
Advances at INR 97.9 billion as at Sep 30, 2009 comprising 23.2% of non-PSL advances
comprising 72.3% of non-PSL advances
Business Strategy
Business Strategy
Selectively identify emerging sectors &
Capitalize on current market conditions to companies for long term institutionalization of
improve penetration in large and reputed business relationship capital by leveraging knowledge
houses to move up the value chain and increase banking approach
cross-sell
Become a privileged growth partner for these
Build long term, comprehensive relationships for large Corporates of tomorrow
these marquee Corporates
‘One Bank’ approach thereby offering complete suite of products to Wholesale and Commercial Banking clients
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Branch Banking (Business Banking and Retail)
Business Banking (SME) Retail Banking (Includes Small Businesses)
Product suite comprises fully secured, 43.4% y-o-y growth in CASA in Q2FY10
collateralized working capital credit in tandem
with liability products like Cash management 285% y-o-y growth in the total ATM
services and payment solutions transactions (Sep 30 2009)
Advances at INR 5.9 billion as at Sep 30, 2009 43% of the Bank’s Savings Account Customers
comprising 4.3% of non-PSL advances have Net Banking Account (Industry average is
only 15%)
Business Strategy
Focus on liabilities generation and transactional products
Service and Technology to be key differentiators for the Bank
Branch Banking to be a key value driver for the next level growth of the bank
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PRODUCT CAPITAL
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Transaction Banking
Number of Transactions
Payments Bank of India
LC BG BC
1000
Significant investment made in this gestationary business 800
since the inception of the Bank
600
400
Catering to Corporates, Domestic & International
Financial Institutions 200
0
Focus on creating financial efficiencies through Q2FY07 Q2FY08 Q2FY09 Q2FY10
Innovation
YES BANK won the Financial Insights Innovation Award (FIIA) for the Most Innovative e- Payments
Solution in Asia for two consecutive years, FY08 and FY09
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Financial Markets
DCM Deals for the Quarter
Product suite comprise Fixed income sales, Debt Capital Markets
(DCM), Fixed income trading and Balance Sheet Management
Superior relationships with domestic business houses and reach 2009 2009 2009
into AAA issuers and emerging mid sized Corporates for the
DCM desk
INR million
State of the art technology platform – ‘Murex’; pricing and 600 Income from Financial Markets
structuring capability at par with the best in the industry
500
400
Dedicated Research Economic Knowledge desk – Fundamental
and technical analysis and Macro Economic Analysis 300
200
Financial Advisors rather than just product & Service providers 100
-
Late night desk to cater to client deals in US time zone Q2FY07 Q2FY08 Q2FY09 Q2FY10
Consistently ranked among the 10 by Thomson Reuters in the Indian Rupee Bond League Tables
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Financial Advisory
Select Transactions for the quarter
Corporate Finance
YES BANK was the Exclusive Strategic and
Infrastructure Structured & Project Advisory & Realty Financial Advisor divestment of 100% equity
Banking Project Finance Syndication Banking ownership in Super Wind Project Private
Limited, a company owning and operating 45
Structured solutions to meet specialized client MW of wind turbines, to Techno Electric
requirements Engineering Company Limited.
Strong expertise in Financial Advisory practice demonstrated by a 135 % y-o-y increase in revenues
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Execution focused Human Capital
Name Designation Previous Assignment
Rana Kapoor Founder/ Managing Director & CEO Managing Partner / CEO & Managing Director - Rabo India, Bank of America(16 years)
Rajat Monga Group President – Financial Markets & Chief Financial Officer Head of Treasury - Rabo India
Sunil Gulati Group President – Corporate and Institutional Banking Managing Director - GE Commercial Finance
Varun Tuli Group President – Branch Banking Executive Director and Country Head - Avigo Capital Partners/ Bank of America
Sumit Gupta President – Commercial Banking Associate Director & Head (North) - Rabo India
Arun Agrawal President & Global Head – International Banking General Manager – ICRA
Surendra Jalan President – Indian Financial Institutions AGM, Corporate Banking - ICICI Bank
Suhail Kazmi President – Insurance and Wealth Management Retail Head, West and South India - ABN Amro Bank
Somak Ghosh Group President– Corporate Finance and Development Banking Director – Project Advisory & Infrastructure Mgmt - Rabo India
Aditya Sanghi President & Sr. Managing Director – Investment Banking Executive Director, Head of Mergers & Acquisitions - Rabo India
Kavita Venugopal Group President and Chief Risk Officer Executive Director, Investment Banking, Kotak Mahindra Capital Company
Deodutta Kurane President – Human Capital Head of HR - Bajaj Allianz Life Insurance
Devamalya Dey President – Audit & Compliance Vice President , Audit & Risk Review - Citigroup
Umesh Jain President & Chief Information Officer Citigroup IT Operations & Solutions ( CITOS)
Top management team drawn from top private sector and foreign banks in India and abroad
Rana Kapoor was adjudged the ‘Start up Entrepreneur of the Year’ at the E&Y Entrepreneur Awards 2005 & received the ‘PHDCCI Distinguished
Entrepreneurship Award 2007’ at the PHDCCI Awards for Excellence 2007
Stock purchase / option plans enable senior management and employees to own substantial capital of the Bank at all times
Awarded the Qimpro Best Prax Compass Award for Innovative Practices in Customer Service Channels
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Capital Structure
Promoter
Hybrid Tier I / Tier II Investors
Successful entrepreneurial track record at Rabobank India
Held leadership positions at Bank of America(16 years),
ANZ Grindlays(2.5 years) Pedigree domestic and foreign investors in Bank’s Hybrid
Tier I and Tier II capital (LIC, Public Sector Banks,
Shareholding Rabobank)
Others;
11.1% Promoter; YES BANK successfully raised INR 260 crore of
NRIs; 0.5% 31.3% subordinated Lower Tier II debt through private
placement issue to marquee investors like LIC, IFCI
Employees and GIC. The bonds have a maturity of 127 months
FDI; 18.3% 0.9% from the date of subscription.
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THANK YOU