Sumanta

Sushruth
Bangaru

Indian banking industry:

77 trillion INR (US$ 1.27
trillion)

Governed by the Banking

Regulation Act of India,
(1949) and is closely
monitored by the Reserve
Bank of India (RBI)

Public sector banks

account for 70 per cent
of the Indian banking
assets

3.5 ATMs and less than

seven bank branches per
100,000 people

->Rs 67,000 Crores deposit base

430 branches & over 950 ATMs

-> 47,000 crores loan book

-> Rs 1,00,000 crores balance sheet

Indias 4th largest

private bank

->Net income of Rs 9,551.43 Crores

-> Net profit of 1,300.68 Crores

7,024 employees

It has adopted B2B2C approach to build retail business.

CRM based approach towards managing relationship building.

37.3% growth in NII

46.7 % growth in non-interest income

net interest income is 86.83 % of total income.

Innovative products and service :

IMPS (Immediate Payment Service),
M-POS (mobile phone based merchant acquiring service),
Money Monitor (Asias first personal finance aggregation tool.)

140

FINANCIALS:

Credit-Deposit(%)

120
100
80
60
40

3000

Credit-

20

Deposit(%)

0
2500

1 2 3 4 5 6 7 8 9 10

2000

CASA ratio
Interest Income

1500
Non Interest
income
1000

25.00%

20.00%
15.00%
10.00%

CASA ratio

5.00%

500

0
1

9 10

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

0.00%

Net Profit (cr)

Net Interest Income (cr)

9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Net Profit (cr)

45000
40000
35000
30000
25000
20000
15000
10000
5000
0

Total Assets (cr)

600000
500000
400000
300000
200000
100000
0

Net Interest
Income (cr)

Gross Non Performing

4

Assets (%)

3
Total Assets (cr)

2
1

Gross Non

Performing
Assets (%)

Cost of advertising on 5 TV channels for a 12 month

period:

Points of

Yes Bank

AXIS Bank

Kotak Bank

HDFC Bank

Differentiation
Product
Price

Financial Products almost same but if we consider customer service as product then, Yes Bank
lags behind HDFC and AXIS bank as it has fewer ATMs as well as branches

Savings Acc

6-7%

4%

5.5-6%

4%

FD

6-9.85%

3.5-9.75%

4-9.73%

3.5-9.5%

Min Bal.

5000

10,000

Other charges

Low

Med

Low

High

Place

500 branches + 1050

ATMs

2225 branches
and11796 ATMs

500+ branches and

1000+ ATMs

3251 Branches +
11,177 ATMs

Major Promotion

Online, Hoardings

TV, online

TV

TV,online

Rural/SubUrban
Presence

Low

Med

Low

High

Strength

Cust. Service,Int Rate,

Tech, Knowledge
bank.
Less wide N/W, Low
visibility

Wide Network, Tech

Cust Service, Interest

rate

Wide N/w
Trusted Brand

Bad Image(UTI fraud),

High Cost

Less wide N/W, Low

visibility

High Cost

Weakness

STRENGTHS
Strong financial performance since inception.
Capital Adequacy ratio of bank is well above
min requirements
RoA at or above 1.5% over last 3 years and
RoE at or above 20% over last 5 years
One of the lowest net and gross NPA
Bank has unlocked the economies of scale
High profitability per employee
Differentiated standing in market through
knowledge banking approach
One of the finest human capital base
THREATS

Tight monetary policy by the RBI could

dampen corporate credit off take
RBI regulations requiring banks to set up a
higher number of rural branches
RBI awarding additional licenses to new banks
Regulatory changes like priority sector norms
and adoption of BASEL-III norms could result
in lower profitability
Expansion may lead to increase in cost and
reduction in operating profit

WEAKNESSES

Still occupies a relatively small space

in Indian banking
Network of branches is small leading
to low market share
Brand awareness among retail
customers is low
Rural presence is lower than large
banks
OPPORTUNITIES
YES bank has a license to open 700 plus
branches by next year.
Large middle class with increasing incomes
and banking needs
Huge unbanked population below the age of 25
Ability to use technology to profitably deliver
banking solutions
Savings rate deregulation by RBI offered an
opportunity to gain significant customers by
offering higher rates
Entry to new product/segment viz, retail assets
offers significant potential

SEGMENTATION:

Yes Bank like all other banks segments its customers on the basis of incomes and investment
amounts, but it has segregated its services in to the following verticals
Corporate and Institutional Banking
Companies with turnover more than 7.5 bn
Business Banking
Companies with turnover between 5bn and 7.5 bn
Retail Banking
Personal Banking for individuals.
It has also managed to carve a niche for itself in areas like cross-border deals and
currency strategies, where it has established itself as the market leader.

TARGETING:
The bank targets its customers mostly through the segments it has established according to its
operational sectors and products, hence for YES Bank, segmenting is almost unanimous with
targeting.

POSITIONING:

The

bank differentiates itself from

other players in the industry on the
basis of its unique Knowledge
Banking Approach emphasizing on

technology and human resource

Corporate
Banking

Corporate and Institutional Banking

Multi-national Corporate relationship Management
Government Relationship Management

Business Banking
Retail Banking

Branch Banking

Savings account, Salary account, Fixed Deposits

Loans, Insurance
Wealth Management, Portfolio investment schemes, Tax Solutions etc
Cards, Mobile Banking, online banking and more.

Transaction Banking

Product Capital

Financial Markets
Corporate Finance
Investment Banking

Core Product

Expected Product

Augmented Product

Potential Product

Deposits, Loans

Insurance, locker, ATMs etc

Discounts, goodies,etc

New schemes through net

banking, mobile banking etc

The rate of interest is regulated by the RBI and

other charges are controlled by IBA.
Yes Bank FD rates vary from 6% to 9.85%
depending on the time of deposit and age of
depositor.
Savings account rate is 7% for balance greater
than 1 lakh rupees else 6%.
Loans vary from person to person and business
to business, depending on risk associated and
credit ratings
Other charges include: cheque book, Card
charges, Other bank ATM Transaction charges
etc.

The services are sold through the branches, ATMs, Credit

card on the go, Online banking ( internet) etc. Yes Bank
has 430 branches, and over 950 ATMs

Yes Bank promote its brand through following means:

Advertising: Television, , Internet, radio, movies,
theatres
Print media: hoardings, newspaper, magazines
Publicity: road shows, campus visits, Sponsorship
Sales promotion: gifts, discount and commission,
incentives, etc.
Personal selling: Cross-sale (selling at competitors
place), personalized service

Scindapsus Aureus (Aureus-gold coin)

Perrineal climber (symbolised banks
commitment to growth)
Money plant (metaphor for ideas getting
realised)
8,000 money plants to employees (instead of
sweets, diaries, calendars)
Radio and outdoor campaigns

PEOPLE
Employee motivation programs, 8000 employees.
They must feel Ive made a difference.
HR as a source of competitive advantage
PHYSICAL EVIDENCE
Customer friendly physical layout.
Website
PROCESS:
Standardization
Customization
Simplicity
Customer involvement

The name YES signifies the essence of the brand and conveys all the values and
characteristics, the brand stands for :
Attractive
Smart
Simple
Serious
Reliable
Trustworthy

Optimistic
Positive
Efficient
Clutter breaking in the banking environment
Acceptance by target clients

Developed a very strong brand vision and commitment :

To be recognised as the Worlds Best Quality Bank In India

To provide a delightful banking experience to all its customers
To be a long term partner with all stakeholders particularly customers by
creating & sharing value
To be a solid and trusted financial trust mark backed by two professional
promoters and an exceptional management team.

Consistent brand communication through its Brand Slogans:

"Experience our Expertise
"YES for YOU"

YES Banks 5 key brand pillars.

All communication and advertising has been created around these
key brand pillars.

Key Brand Pillars

Growth

Trust

Core Promise
For both
internal &
external

Track Record
of Promoters
and top mgmt

Knowledge
driven Human
Capital

Beyond
traditional
banking
Finest talents

Technology

Transparency
& Responsible
Banking

Cutting edge
Corporate
governance
Evolution is
the only
Responsibility
constant thing
banking

Outsourcing
Knowledge Banking
Microfinance Direct
Futuristic Branch
Double Security
Honey Farming
Responsible Banking
Money Monitor
YES Assist: Bricks & Clicks Model

Focus on rural presence

Maintain the right balance of fee income
Strategies to reduce operating costs
healthy asset and liability mix to manage the
required pricing

Current number of branches: 470

Increase the number of branches to create
awareness and amongst retail customers.

Focus on quality of
service
The bank should start beefing up auto and
commercial vehicle loan which has huge
demand in the country.
open more number of branches in the
commercial and industrial areas

Form an alliance with other service providers

to offer new products. For example cobranding a credit card with health insurance
companies.