Presentation on YES BANK

Sixth Annual General Meeting

July 02, 2010
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.

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Contents

YES Bank – A differentiated approach

Significant Developments : 2009-2010
Board of Directors
Human Capital
Shareholding
Consistent Financial Performance over the years
Our Vision for 2015
The “Professionals” Bank of India
Creating the YES BANK Brand

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YES BANK – A Differentiated Approach

Professional
Owner–Manager–Partner Model
Entrepreneurship

Customer Centric Superior structuring capabilities leading to client focused

Approach solutions

Knowledge Focus on the sunrise sectors of the Indian economy

Banking Segmentation brings out higher focus

Creative Delivery of world-class banking solutions

Technology Outsourced model enhancing scalability
Cutting edge features driving Retail

Service Excellence Superior & Customized products & services

Responsible Mainstream sustainability within its business focus

Banking Triple Bottom-Line ethos of ‘People’, ‘Planet’ and ‘Profit’
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Significant Developments: 2009-2010

Strategic agreement
Awarded India's Rank #1 Mid
Board recommends

with PROPARCO to Sized Bank (balance sheet <
Launch of Maiden Dividend of
raise USD 20 million 24,000 cr) at the Business Mobile Money 15%
subordinated debt Today - KPMG India's Best Services by
Banks Awards 2009 YES BANK,
150 operational branches
powered by across over 100 locations,

Entered Into a
Fastest Growing Bank award

Entered into a loan Nokia in over 200 ATMs and 2
strategic alliance
agreement with DEG (balance sheet < 30,000 cr) at the Barcelona NOCs in Mumbai &
with FDC for Businessworld Best Bank
to borrow a 5 year Gurgaon
convenience ATMs Awards 2009
loan of EUR 20
million from DEG

July 2009 Sep 2009 Oct 2009 Dec 2009 Jan 2010 Feb 2010 March 2010

Launch of the
Launch of a
Launch of YES
Strategic partnership

Raised INR
Launch of YES BANK –
Business Today – customized FIRST for with Cordys to
1033.87 crore Businessworld
YES BANK SME Online Solution Women, a augment Business
through a Transformation Series 2010
Survey & for the Travel & premium Process Management
Qualified
Awards 2009 Tourism sector wealth Institutional
Launch of YES BANK –
at the 58th management
Received the
Placement Businessworld Young
Annual Travel product Financial Insights Entrepreneur Awards 2010
Congress in offering for Innovation Award

Raised INR 300
Dubai HNI women for Innovation in
crore of
Launch of YES SME, a
organized by Business Intelligence
Subordinated quarterly Knowledge
TAAI Singapore 2010
Lower Tier II debt Banking Publication from
YES BANK for SMEs

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Distinguished Board
Name Designation Occupation

Mr. S L Kapur Non Executive Chairman Former Secretary, Ministry of Industry, Ministry of Food
Processing Industries, Government of India
Mr. Wouter Kolff Independent Director Former Vice Chairman, Managing Board, Rabobank
International
Mr. Bharat Patel Independent Director Former Non-executive Chairman, Procter & Gamble, India

Mr. Arun K Mago Independent Director Former Chief Secretary, Government of Maharashtra

Ms. Radha Singh Independent Director Former Union Agriculture Secretary, GOI

Mr. Ajay Vohra Independent Director Managing Partner of the Corporate, Tax and Business
Advisory Law firm, Vaish Associates
Mr. Rana Kapoor Managing Director and CEO Promoter/Professional Entrepreneur

Board level sub-committees

Audit & Compliance Committee
Investor Relations (Shareholders’ Redressal) Committee

Risk Monitoring Committee
Service Excellence Committee

Nominations & Governance Committee
Fraud Monitoring Committee

Board Remuneration Committee
Capital Raising Committee ( Special Purpose Committee)

Pedigree Board ensuring transparency in dealing with all stakeholders

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 Execution focused Human Capital
Years at
Name Designation Previous Assignment
YBL
Rana Kapoor Founder/ Managing Director & CEO 6+ Managing Partner / CEO & Managing Director - Rabo India, Bank of America (16 years)

Group President – Financial Markets & Chief

Rajat Monga 6+ Head of Treasury - Rabo India
Financial Officer

Group President – Corporate & Institutional

Sunil Gulati 4+ Managing Director - GE Commercial Finance
Banking

Varun Tuli Group President – Branch Banking 3.5+ Executive Director and Country Head - Avigo Capital Partners/ Bank of America

Sumit Gupta President – Commercial Banking 6+ Associate Director & Head (North) - Rabo India

Arun Agrawal President & Global Head – International Banking 4.5+ General Manager – ICRA

Surendra Jalan President – Indian Financial Institutions 4.5+ AGM, Corporate Banking - ICICI Bank

Group President– Corporate Finance &

Somak Ghosh 6+ Director – Project Advisory & Infrastructure Mgmt - Rabo India
Development Banking
Group President –Transaction Banking Group,
Suresh Sethi 6+ Global Transaction Services Head - Caribbean, Central & Latin America, Citibank N.A.
International Banking, Liabilities Product Mgt.

Aditya Sanghi Sr. Managing Director – Investment Banking 6+ Executive Director, Head of Mergers & Acquisitions - Rabo India

Kavita Venugopal Group President and Chief Risk Officer 1.5+ Executive Director, Investment Banking, Kotak Mahindra Capital Company
Deodutta Kurane President – Human Capital 3+ Head of HR - Bajaj Allianz Life Insurance

Alok Rastogi President & Chief Operating Officer 3+ Citibank N.A.

Devamalya Dey President – Audit & Compliance 3.5+ Vice President , Audit & Risk Review – Citigroup

Anindya Datta President & Chief Marketing Officer 4+ Manager, Markets – KPMG
Umesh Jain President & Chief Information Officer 3+ Citigroup IT Operations & Solutions ( CITOS)

EVP & Country Head – Infrastructure &

Rajesh Gandhi 4.5+ Regional Portfolio Manager- India & South Asia , Standard Chartered Bank
Network Management

YES Bank received the Global HR Excellence Award FY 2009-10 for the “Organization with Innovative HR Practices”
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Capital Structure
Promoter Capital Raising – FY10
Successful entrepreneurial track record at YES BANK successfully raised Rs. 10,338.75
Rabo India Finance million (USD 225 million) in January 2010 by
Held leadership positions at Bank of way of Qualified Institution Placement . The
America (16 years), ANZ Grindlays (2.5 bank issued 38.36 million shares at Rs 269.5
years) to marquee investors across the globe.

Tier I & Tier II Placements : Successfully

Shareholding (*) raised
NRIs
 Rs. 820 million of Hybrid Tier I debt
Employees 0.5% through private placement in Q4FY10.
1.3%  Rs. 3,000 million of subordinated Lower
Others
Banks/Finan 10.4% Tier II debt through private placement
cial during January 2010 in Q4FY10
Institutions/ Promoters
27.0%  Rs 2,600 million of Lower Tier II debt
Insurance
through private placement in Q2FY10
Companies Mututal FDI
4.6% Funds
7.9%
 USD 20 million(Rs. 930 million) of Upper
5.5% Tier II Debt from Proparco, the private
sector investment arm of Agence
Française de Dévelopement (AFD), the
FIIs
leading French multilateral development
42.8%
finance agency.
* As at June 25, 2010

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Key Financial Highlights – FY10
Advances at Rs. 221.9 billion as at Mar 31, 2010; Growth of 78.9% FY10 - Balance sheet growth
y-o-y
Mar 31, Mar 31,
Rs. million %g
Gross yield on advances of 10.8% in FY10 (12.8% in FY09) 2010 2009
Advances 221,931 124,031 78.9%
Deposits at Rs. 268.0 billion as at Mar 31, 2010; Growth of 65.7% y-
o-y Investments 102,099 71,170 43.5%
Total Assets 363,825 229,008 58.9%
Cost of funds of 6.9% in FY10 (9.0% in FY09)
Shareholder's Funds 30,896 16,242 90.2%
Net Interest Margin of 3.1% in FY10 (2.9% in FY09) Tier I + Tier II
52,570 30,674 71.4%
Capital
Return on Average Assets of 1.60% in FY10 (1.5% in FY09)
Deposits 267,986 161,694 65.7%
Return on Equity of 23.7% in FY10 (20.6% in FY09)
Gross NPA at 0.27% to Gross Advances as at Mar
Basel II Capital Adequacy Ratio of 20.6% at Mar 31, 2010 (Tier I at 31, 2010
12.9%)
Net NPA at 0.06% to Net Advances as at Mar 31,
Total Capital Funds (Tier I + Tier II) of Rs. 52.6 billion as at Mar 2010
31, 2010 (Rs. 30.7 billion as at Mar 31, 2009)
Total loan loss coverage ratio of 274%; Specific loan
Book value per share of Rs. 90.96 as at Mar 31, 2010 loss coverage ratio of 78.4% as at Mar 31, 2010

Basic and Diluted EPS of Rs. 15.65 and Rs. 14.87 for FY10 Total restructured advances were Rs. 800 million
(0.36% of Gross Advances) as at Mar 31, 2010 from
CASA grew by 99.6% y-o-y to Rs. 28.2 billion in FY10 (10.5% of Rs. 1,340 million in Dec 31, 2009 (0.71% of Gross
deposits) Advances) showing a decline of Rs. 540 million

Maiden dividend of 15% per share recommended by the Board

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Key Financial Highlights – FY10
Revenue and Profit growth
Net Profit after Tax of Rs. 4,777 million in FY10
Rs. million FY10 FY09 %g
compared to Rs. 3,038 million in FY09
representing an increase of 57.2% Net Interest Income 7,880 5,093 54.7%
Non Interest Income 5,755 4,709 22.2%
Net Interest Income (NII )of Rs. 7,880 million in Total Net Income 13,635 9,802 39.1%
FY10 compared to Rs. 5,093 million in FY09
Operating Expense 5,002 4,185 19.5%
representing an increase of 54.7%
Operating Profit 8,633 5,616 53.7%
Total Net Income(NII plus Non Interest Income) Provisions &
1,369 957 43.0%
of Rs. 13,635 million in FY10 compared to Rs. Contingencies
9,802 million in FY09 representing an increase of Provision for Tax 2,487 1,621 53.5%
39.1%
Net Profit after Tax 4,777 3,038 57.2%

Operating Profit of Rs. 8,633 million in FY10 Breakup of Non Interest Income
compared to Rs. 5,616 million in FY09
representing an increase of 53.7% Business Segment FY10
Financial Markets 35%
Non Interest income to Total Income ratio of
Transaction Banking 24%
42.2% in FY10
Financial Advisory 34%
Cost to Income ratio of 36.7% in FY10 3rd Party Distribution, Retail Fees and
7%
Others
Note : Figures have been adjusted for similar period comparison, wherever applicable

Diversified revenue generating streams with contributions from all segments of the Bank
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Consistent Financial Performance over the past 5 years
74% CAGR in Advance & Deposits Generating superior Shareholder Returns
6000 25.0%
5000 20.0%
4000
15.0%
3000
Rs. Crores

Rs. Crores

5,257
10.0%

26,798
2000

22,193

3,109
1000 5.0%
0 0.0%
FY05 FY06 FY07 FY08 FY09 FY10
Shareholder funds Total Capital ROE

Resulting in Consistent Income streams with high profitability

CAGR FY 06-FY 10
Rs. Crores

Net Interest Income 74%

Non Interest Income 55%

Net Profit 71%

Share holders funds 53%

Consistent Performance across a complete economic cycle – Pre (‘05-’08), During (‘08 –’09 ) & Post(after ‘09)
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Our consistency has been appreciated by our
stakeholders
Ratings Upgrade
 ICRA, a Moodys affiliate , has upgraded the ratings to the outstanding Lower Tier II Bonds to LAA with a
stable outlook from LAA-
 ICRA, a Moodys affiliate has also upgraded the ratings on the Hybrid Tier I bonds and Upper Tier II bonds
to LAA- with a stable outlook from LA+

Expansion of Branch Network

 RBI recently granted YBL 91 additional branch licenses. These, coupled with the current network and
opening of some branches in Tier III/Tier IV cities is expected to take the branch network to over 250 by
June 2011
 Inauguration of YES BANK’s North East India and West Bengal operations on June 12, 2010 by Honourable
Shri Pranab Mukherjee, Union Finance Minister, Government of India.

Awards and Accolades

 YBL, along with Business Today organized 1st Business Today-YES BANK Best CFO Awards 2010 on April
14, 2010
 YBL is the first Indian Commercial and Retail Bank to receive certification for its "Quality Management
Framework (ISO 9001:2008)" across 100 branches in the country by Bureau Veritas (Global Leaders in ISO
Certification) as on 31st March 2010
 Mr. Rana Kapoor appointed Honorary Secretary of the Indian Banks' Association
 Mr. Rana Kapoor received the India Business Leader of the Year award at the Global Indian Business
Meeting, Madrid

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We have built the Foundation,
Our best is yet to come – YBL Version 2.0

12,000 employees

750 Branches 3000 ATMs

Advances – Rs. 100,000 Cr Deposit base – Rs. 125,000 Cr

Balance Sheet – Rs. 150,000 Cr

Target RoE : 22- 24%

Target RoA : 1.6 – 1.75%

Targeted growth through increased diversification and granularity of asset and liability franchise
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Diversified and Granular liability base through multiple
strategies
Granular Liability Base

Integrated Banking approach, a Pan India Hub & Cluster model

Current Account Liability Fixed Deposit Liability Savings Account Liability

(Knowledge based CRM Strategy)

Mining Corporate CRM
Corporate Salary Accounts,

Cooperative Banking Segment
YES FIRST (OPDT) strategy

“Top 3” Settlements Banker
NRI Banking Strategy

Key Alliances with leading Brokerage Houses

Tie ups – Bajaj Alliance Wellness cards, Mobile Money with Nokia, FDC

Online banking/ Direct Banking Platforms

Retail Broking business, Offshore Branch, Scaling up CD program

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 Diversification of Advances

Mainstreaming Corporate Relationships Business Banking (SME) & Retail Banking

Well segmented CRM strategy
Business Banking : Accelerated Growth

Retail Banking : Revive Growth

Focus on Key Sunrise Sectors – Food & Agri
Healthcare, Media & Entertainment, Infrastructure
Presence : Phase I – 30-40 cities
: Phase II – 75 -80 cities

Mainstreaming relationships with focus on Cross sell
 Current Cross Sell : 3.5 products, Target : 6-8
Complete suite of banking products (including
Working Capital, Term loans, CMS, liabilities,

Immense Opportunity to grow the business, given the Treasury, IB, Wealth etc.)
current levels of market penetration

Leverage YES First & YES Prosperity program to
provide superior service levels
CIB/GRM/IFI CB Penetration
Penetration < 10% < 8%
Adjacent strategies – Complete product suite by:
 Credit Cards
Existing
 CV loans, Equipment finance etc.
Targets
 Consumer loans/ Business loans

Complete product suite being launched in FY 11

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 The “Professionals’ Bank” of India

Human Capital Strategy High Pedigree Human Capital*

Educational back ground Work experience

Ethos of Owner – Partner – Manager
PG
Grad 7% MBA 2- 5 6 -10

Flagship Programs at YES BANK to Hire, Train 20%
uates 36% 59%
and Retain Employees 50%
 USRM – University & School Relations
 YPEP – YES Professional Entrepreneurship Program LLB 0-1 16 - 11-
CA/C >21
 YES School of Banking (YSB) 1% 16% 20 15
S %
1% 4%
 YES Personality/ YES Mentor 6% Average Age – 28 years

FY 10 – YES BANK has been Preferred Flat Organization Structure ( 4 levels)*
Employer of Choice at Top B-Schools in India
 153 students from Top B-Schools Level HO West North South East Total

YES BANK – BUSINESS WORLD Top 22 1 11 2 - 36

Transformation Series – Business Case Study Senior 52 4 33 6 2 97
Challenge Middle 164 96 230 66 19 575
Junior 131 156 391 79 30 787

Key Strengths – Execution & Project General 26 498 719 200 96 1,539
Management Skills, to achieve scalability Total 395 755 1,384 353 147 3,034
* As at March 31, 2010

Ability to achieve Scalability in Version 2.0

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Creating the YES BANK BRAND

Multi pronged Branding Strategy 3 Series TV Commercial

Direct Relationship Management with key stakeholders

Corporate
Knowledge participation in Key external Events
Banking
Joint properties with media houses and Industry associations
 Business Today – YES BANK – Best CFO Awards

Direct Relationship Management with key stakeholders

Business
Knowledge participation in Key external Events
Banking
Joint properties with media houses and Industry associations
(SME)
 Business Today – YES BANK Best SME Awards
 Business World – YES BANK Young Entrepreneurs Award

YES Community events

Branch events/ High footfall area activities (NEN Partnership)
Retail/

Investment / Tax planning sessions
Consumer

Joint properties with media houses and industry associations

Direct Marketing Initiatives & Communication– YES Money Plant
Supported by

Extensive Print and TV campaign

Outdoor advertising & Direct Marketing campaigns

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Thank You

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