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Yes Bank: Future Banking

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 Report
On
YES Bank

By
Dipak Kumar Singh (1410120010)
Aravind Mahendran (1410120008)

Gautam Budh Nagar, U.P., 201314

Preface
This report named “YES bank” is prepared and presented for academic purpose as a part of Blue
Ocean strategy course which is a part of curriculum for 2nd year MBA students at SME, SNU. It
would help us to understand the concepts learned in the Blue Ocean Strategy course and
practical application of various tools and techniques learned in the course in the Indian private
banking industry and YES bank.

Executive Summary
This report highlights about the blue ocean strategic decisions to be taken by 5th largest private
bank YES bank to out beat the intense competition in the banking industry by creating new
markets for banking services. Detailed analysis of the Indian banking industry, firm internal
analysis and competitive analysis on the 4P’s of marketing, financial performance, Human
capital specialization and Digital banking aspects of 4 private players. From the red ocean study,
we propose the organization to take a confident move for creating blue market. Blue Ocean
strategic analysis helps YES bank to realign its Value, Profit and People propositions. This report
covers a detailed analysis of various blue ocean strategic frameworks like 6 paths framework,
ERRC grid, Strategy canvas, 3 tiers of non-customers, PMS map, Buyer Utility Map, Tipping point
leadership and HR decision. Report highlights the blue ocean product and service
recommendations for YES bank. This report helps YES bank to break away from the bloody
market to unlock blue ocean potentials.

2
1 Contents
2 Introduction .......................................................................................................................................... 5
2.1 Objective of study ......................................................................................................................... 5
2.2 Assumptions and limitations......................................................................................................... 5
3 Company profile.................................................................................................................................... 5
3.1 Mission .......................................................................................................................................... 6
3.2 Vision............................................................................................................................................. 6
3.3 Values ............................................................................................................................................ 6
4 Strategic Analysis .................................................................................................................................. 6
4.1 Industry Analysis ........................................................................................................................... 6
4.1.1 PESTLEI Analysis .................................................................................................................... 6
4.1.2 Porter Five Forces analysis .................................................................................................... 7
4.1.3 Market Concentration Ratio ................................................................................................. 7
4.2 Internal analysis ............................................................................................................................ 7
4.2.1 TWOS Strategic Alternatives Matrix ..................................................................................... 7
4.2.2 Partnerships .......................................................................................................................... 7
4.3 Competitor analysis ...................................................................................................................... 8
4.3.1 Product Offerings .................................................................................................................. 8
4.3.2 Place of offerings .................................................................................................................. 8
4.3.3 Promotion ............................................................................................................................. 8
4.3.4 Financial Highlights ............................................................................................................... 8
4.3.5 Digital offerings ..................................................................................................................... 8
4.3.6 Human Capital....................................................................................................................... 9
4.4 “AS IS” Strategy Canvas................................................................................................................. 9
5 Blue Ocean analysis............................................................................................................................... 9
5.1 Value Propositions ...................................................................................................................... 10
5.1.1 Six Paths Framework ........................................................................................................... 10
5.1.2 ERRC grid ............................................................................................................................. 12
5.1.3 “TO BE” Strategy Canvas ..................................................................................................... 12
5.2 Profit Proposition ........................................................................................................................ 12
5.2.1 Three tiers of non-customers.............................................................................................. 12
5.2.2 Buyer Utility Map ................................................................................................................ 13

3
 5.2.3 Future Banking Reports ...................................................................................................... 14
5.2.4 PMS Map ............................................................................................................................. 15
5.3 People Proposition ...................................................................................................................... 16
5.3.1 Reskilling ............................................................................................................................. 16
5.3.2 Talent Induction .................................................................................................................. 16
5.3.3 Performance Plan................................................................................................................ 16
6 Recommendation................................................................................................................................ 17
6.1 Product strategy.......................................................................................................................... 17
6.2 Service strategy ........................................................................................................................... 17
6.3 Delivery Strategy ......................................................................................................................... 18
7 References .......................................................................................................................................... 18
8 .................................................................................................................................................................. 18
9 Exhibits ................................................................................................................................................ 19

List of Figures
Figure 1: PESTLI analysis ............................................................................................................................... 7
Figure 2 HHI Index, CR4, CR8 and Gini coefficient ........................................................................................ 7
Figure 3: “AS IS” Strategy Canvas.................................................................................................................. 9
Figure 4 Red Ocean vs Blue Ocean Mind .................................................................................................... 10
Figure 5 Six Paths Framework ..................................................................................................................... 11
Figure 6 ERRC Grid ...................................................................................................................................... 12
Figure 7 “TO BE” Strategy canvas ............................................................................................................... 12
Figure 8 3 tiers of non-customer ................................................................................................................ 13
Figure 9 Buyer Utility Map .......................................................................................................................... 14
Figure 10 Customer Pain Point- Survey ...................................................................................................... 14
Figure 11 Usage of Bank Channel and Transaction profile of customer 2020 ............................................ 15
Figure 12 PMS Map ..................................................................................................................................... 15
Figure 13 Reskilling Indian Bank Industry ................................................................................................... 16
Figure 14 Talent Induction Plan .................................................................................................................. 16
Figure 15 Performance Plan ........................................................................................................................ 17

4
2 Introduction
The Indian Banking industry is governed by “Banking Regulation Act of India, 1949” and tightly
regulated by the apex body Reserve bank of India [1]. Indian Banking industry faced many
challenges in the past decade, rules and regulations are developed to prevent all possible bank
failures. After 2008 world financial crisis, RBI insisted Indian banks to focus on adopting an
integrated approach to risk management [2]. Indian Banks had already implemented Basel II
supervision accord. RBI has set the deadline for Basel III on or before March 31, 2019 [3]. Most
of the banks are working on framework to meet capital requirements, asset-liability match,
credit and derivatives risk management. As a result, banking industry is very closely monitored
and banks need to follow stringent rules set by RBI.

2.1 Objective of study

In the tight banking industry, we had selected YES Bank from private sector for our study on
developing blue ocean strategy. This study helps us to implement the blue ocean strategy
frameworks and develop recommendations to turnaround the competitive market and unlock
the future potentials of industry.

2.2 Assumptions and limitations

Report is developed based on data available in the public domain and referenced to articles
published in standard newspapers, business journals, government agencies. Unless mentioned
separately, Bank related details are taken from annual reports, investor presentations and
corporate website and not referenced to have a good look of the report. We assume that data
published in those various sources are accurate and used the same for analysis. If sufficient
data is not available in secondary sources, we had made best assumptions based on
comparable banks.

3 Company profile
YES bank, India’s 5th largest private sector bank, founded by entrepreneurs Mr. Ashok Kapoor
(late) and Mr. Rana Kapoor in 2004 headquartered in LPID of Mumbai. YES bank is only green
field licensed bank in the last two decades in India and operate as a full service commercial
bank with corporate, retail and SME banking franchise. YES bank has adopted international best
practices, service quality and operational excellence to all its valued customers. YES bank was
awarded lot of accolades by eminent professional bodies like Asian Bankers, Economic Times,
Bajaj, etc. on various product categories [4].
“The reason behind naming the Bank ‘YES BANK’ was my firm belief that our Bank's
differentiation begins with its service and trust mark 'YES’. ‘YES' represents our true spirit of
becoming a high quality, customer centric, service driven, Indian Bank.” Rana Kapoor (CEO) [5]

5
3.1 Mission
YES CULTURE is committed to emerging as a patriotic promoter of Indian culture at both
Domestic and International levels, with a focus on driving positive socio-economic change in
our nation through the vibrant power of cultural unity, creativity and productivity.

YES bank shot term mission of Version 2.0 launched in April 2010 aimed to achieve the
following by March 2015 [6]:
 Human Capital - 12,750 (Achieved 10,810 only)
 Branch Network – 900 (Achieved 630 only)
 Balance Sheet - 150,000 crore (Achieved 136,170 crore)
3.2 Vision
YES CULTURE envisions creating a sustainable support ecosystem for the institutions and
people of our great nation to propagate Cultural Development and preservation of our Rich
Cultural Heritage and Traditions.

YES bank short term vision is

 To be recognized as the ‘Finest Quality Bank of the World in India’ by 2020
 To evolve as the Professionals’ Bank of India
3.3 Values
YES BANK strongly believes in its Values and strives to uphold them in order to further reinforce
the spirit of Professional Entrepreneurship & Execution.

 Integrity: Strive to maintain the highest standards while dealing with all our
stakeholders
 Pride: Take pride in YES BANK’s accomplishments
 Credibility: Ensure stakeholders’ faith in the Bank ensuring ethical and transparent
actions
 Respect: Respect the stakeholders & create value through sustainable relationships
 Ownership: Take ownership in keeping its Vision & Values at the forefront of decision
making
 Innovation: Set high standards of excellence by encouraging innovative ideas and
solutions
 Agility & Speed: Agility & Speed of execution sets the pace for achieving its goals
 Professionalism: Develop and enable its Human Capital by evolving its Institutional
Character

4 Strategic Analysis
We had done Industry, Internal and competitor analysis.

4.1 Industry Analysis

4.1.1 PESTLEI Analysis
We had analyzed the banking industry with a PESTLEI tool as shown in figure 1 and overall
impact of PESTLE analysis on banking industry is very high and for the long term.
6
Political factors: Economic factors: Socio cultural factors:
 Government Policies  Priority sector focus  Privatization is accepted
& Loan Waiver  7th pay commission  Easier Transactions
 IT savings  GDP - 7.4%  Electronic purchase
 RBI Control  CPI Inflation - 6%  Personalized
 Moody’s Positive rating  Entrepreneurship

Technological factors: Legal factors: Environmental factors: Innovations

 Credit facility  FDI restrictions • Monsoon- Agri  Payment Banks
 Anytime anywhere  Companies Act • Make In India  Credit Ratings
 Self-service counter  RBI Intervention • Service growth  IT Services
 Computerized  International Operations  Mobile Banking

Figure 1: PESTLI analysis

4.1.2 Porter Five Forces analysis

Using porter five forces analysis we had analyzed the airline industry and calculated the
industry attractiveness index as 2.1, since the index score is low, this industry is not so
attractive to remain in or new entrant to enter into this segment. Detailed industry analysis and
reference website are presented in Exhibit 1.
4.1.3 Market Concentration Ratio
We can broadly classify the banking structure into scheduled and unscheduled banks. As of Sep,
2015 there are 597 scheduled and 1539 unscheduled banks in India (Refer Exhibit 2). We
calculated the Lorentz curve (Refer Exhibit 3), HHI index, Gini coefficient and Concentration
ratio for private and publicly listed banks. We can infer from figure 2 that industry is moderately
concentrated, highly competitive and high inequality exists among the banks.
Private Listed Banks in BSE
Parameters HHI Index CR8 CR4 Gini Coefficient
Market Capitalization 2005.9 96.9 82.4 0.726
Revenues 1484.6 85.8 68.4 0.572
Public and Private Listed Banks in BSE
Market Capitalization 2005.9 96.9 82.4 0.726
Revenues 1484.6 85.8 68.4 0.572
Figure 2 HHI Index, CR4, CR8 and Gini coefficient

4.2 Internal analysis

4.2.1 TWOS Strategic Alternatives Matrix
By understanding the firm strengths and weakness, and equating to external opportunities and
threats, we had framed the TWOS matrix for YES bank. Alternative strategies at different
conditions are broadly explained in Exhibit 4.
4.2.2 Partnerships
In the past 5 years, YES bank had strategically partnered with service providers to gain
complimentary skills and sustain the competition in the industry (Refer exhibit 5). They had 30

7
partnerships/alliances with credit card agencies, insurance companies, telecom providers,
payment gateways, Point of Sale services, Risk management and security agencies, database
providers, government agencies and various digital companies to provide phone, mobile,
internet and ATM banking for their customers.

4.3 Competitor analysis

Key success factors for banking industry are 4Ps (Product, Place, Promotion, Price/cost), Human
capital and Digital services. On basis of 5 critical parameters like Market capitalization, Sales, Assets,
Earning per share, Cash balances as in balance sheet of March 2015, we took 4 competitors from Private
sector for our study (Refer exhibit 6). They are Axis, HDFC, IndusInd and Kotak Mahindra bank, let
us look into each factor one by one in following parts.
4.3.1 Product Offerings
Indian Banking industry is highly competitive in nature and banks currently provide lots of
offerings in various categories to reach all possible customer segments. Based on detailed study
(Refer exhibit 7), YES bank is on par with other banks in personal and MSME banking. They
respond satisfactory in NRI, Corporate, investment and agri banking. They have almost little
presence in wholesale, treasury and payment banking.
4.3.2 Place of offerings
Place (ways to bank), which bank offers to its customer is very critical for banking industry.
Most popular ways to carry out bank transaction are Branch, ATM, Point of Sales (POS)
counters, Debit/Credit cards and Mobile Application. All competitors had aggressively offered
their presence in all channels. Based on detailed analysis on exhibit 8, we can see that YES bank
is seriously lacking in all channels with comparable banks like IndusInd and Kotak Mahindra. We
can also see that Digital banking is getting more attention with more than 60% of the total bank
transaction.
4.3.3 Promotion
Promotion helps the bank to build brand image, goodwill and loyalty customer. We performed
detailed analysis on awareness building, Demand generation, product differentiation, brand
reinforcement of the bank management (refer exhibit 9) [7]. We conclude that YES bank can be
ranked satisfactory in the promoting the product.
4.3.4 Financial Highlights
As a bank customer, if we look into the fees and charges section we will surely faint. Pricing
structure is highly cumbersome and need expertise to understand the same. We look into the
cost factor through various financial ratios and measures as detailed in exhibit 10. YES bank is
exceeding the competitors with high EPS, book value, ROE, low CAR and NPA ratio. YES bank
need to take measures to improve CASA, cost to income and net interest income.
4.3.5 Digital offerings
Digitalization is an industry buzzword and organization around the globe have much scope in it.
We analyzed the competitors actions towards going digital based on Market ready solutions,

8
Channel innovation, Analytics and Big data, process redesign and product development (refer
exhibit 11). We can see that YES bank is way behind the competitors in all parameters.
4.3.6 Human Capital
Next generation business is highly depends on Intellectual assets like human capital. We
compared human capital based on number of employees, average age, income per employee,
and profit per employee and split up of head count in managerial cadres. We can see that YES
bank is able to generate higher profit with the least number of resources. Also resources split
up is in line with their knowledge banking services. (Refer exhibit 12)
4.4 “AS IS” Strategy Canvas
Based on the internal, external and competitive analysis, we developed the “AS IS” strategy
canvas of all players as shown in figure 3. We considered flexibility, reach, accessibility, ways to
bank, ease to use, customer friendly, design & layout friendliness, product offerings,
technological advancement and customer satisfaction. We can see that YES bank canvas in
running below the peers and trying to match up with industry standards.

AS IS STRATEGY CANVAS
9 Yes Bank Kotak HDFC Axis Indusland Bank
8
7
6
5
4
3
2
1
0
WAYS TO BANK

EASE OF USE

SATISFACTION
CUSTOMER

PRODUCTS AND

SERVICES
ACCESSIBILITY
FLEXIBILITY

DESIGN, LAYOUT

TECHNOLOGICAL
FRIENDLY

ADVANCEMENT
REACH AND

CUSTOMER
FRIENDLINESS

OFFERING
AND USER

Figure 3: “AS IS” Strategy Canvas

5 Blue Ocean analysis

As a result of red ocean strategic analysis, we may end up in a myth not doing better because of
cost, no low ticket items, high margin services, no risky loans, customers are financially illiterate
and local community support does not support for banking system. Blue ocean mind will think
of possible solutions to overcome every myth mentioned in figure 4.

9
 Figure 4 Red Ocean vs Blue Ocean Mind

5.1 Value Propositions

On relook into YES bank value proposition to its customers as a point of differentiators are:
1. Knowledge Banking: YES Bank’s commitment to support the sustainable growth and
development of sunrise sectors like Infrastructure, Food & Agri, Telecom, IT, etc.
2. Human Capital: To develop YES BANK brand as an ‘Employer of Choice’. Currently runs 2
extensive programs: YES School of Banking & YES – Professional Entrepreneurship
Program (Y-PEP).
3. Technology: The philosophy of the Bank has been to engage with select partner
companies who are acknowledged leaders & differentiators in the marketplace. YES
BANK has invested in several state-of-the-art technology initiatives and successfully
implemented them.
4. Responsible Banking: Focus on nurturing People, Planet and Profit to create enduring
value, and a unique strategic position. Committed to adding long term value to society,
to differentiate itself in the marketplace based on a strong ‘sustainability mandate’.

5.1.1 Six Paths Framework

To improve the value proposition, let us use six path framework to understand more about the
product
Path 1: Look across Alternative Industries
One of the alternative industries to banking can be wireless telecom industry. Functions like
checking balances, paying bills, moving money between accounts, and performing any routine
10
banking transaction is becoming easier and easier with wireless mobile phones and as the
technology advances these would become even easier.
Path 2: Look across Strategic Groups within Industry
Consumers: People who use regular banking services, their own savings or salary accounts.
Merchants & Retailers: Use banks for trading service, letter of credit, payment transfers, etc.
Companies & Institutions: This group also uses the banking services for many purposes like
collecting fees or revenue, payment to employees, filing taxes, etc.
Investment Groups: Use banks services and instruments like mutual funds, SIP’s, Demat trading
accounts, portfolio management etc.

Path 3: Look across the Chain of Buyers

Influencers: Experts, Agents, Family and Friends are the influencing group when people have to
take financial decisions for example taking a loan or investing or financial planning.,
Purchasers: The owners of the bank, those who earn and deposit money in the bank accounts
are the actual purchasers,
Actual Users: The beneficiaries of the financial decisions made are the actual users. Those who
get the benefit of the loans, these can be children, wives, parents, grandparents, etc.

Path 4: Look across Complementary Product & Service Offering

Bill Payments, Online Shopping, Funds Transfer, Trading, etc.

Path 5: Look across Functional-Emotional Appeal to Buyers

Banks these days focuses on a mix of both emotional and functional appeal like banking at your
doorstep, customized credit/debit cards, hassle free loans etc. Their messages are like ‘Khayal
Aapka’ (ICICI), ‘Badhti ka Naam Zindagi’ (Axis), etc.

Path 6: Look across Time

Time will come when there will be the demise of physical banks. Mobile banking, Tele-banking
and online banking are more convenient than visiting the branches. Hence paperless money
and paperless banking is the future of banking. A study reveals that in 2011 Bank of America
announced closure of 10% of its branches. [8]

Figure 5 Six Paths Framework

11
5.1.2 ERRC grid
We had developed the ERRC grid to eliminate, reduce, raise and create the following
factors shown in Table 3.

Figure 6 ERRC Grid

5.1.3 “TO BE” Strategy Canvas

From the ERRC grid and “as is” strategy, we propose the following “to be” strategy canvas shown in
figure 7.

Figure 7 “TO BE” Strategy canvas

5.2 Profit Proposition

5.2.1 Three tiers of non-customers
Tier 1: “Soon-to-be” noncustomers who are in the hedge on your market waiting to jump ship

12
The customer who lies in the first tier in the banking sector are: Newly Employed (Salaried),
Low Income People, College Students, NRI’s Family, Unscheduled Bank Customer. We have
selected them as they use the services and continuously looking for a better opportunity to
maximize their return and have better facilities

Tier 2: “Refusing” noncustomers who consciously choose against your market

The customer who lies in the second tier in the banking sector are: Small Contractor, Road Side
Vendors, Kirana Stores, Person of Indian Origin, Foreign Tourist, Chit Fund User. They avoid the
services as they feel the complete process is time consuming and too complex to understand.

Tier 3: “Unexplored” noncustomers who are in markets distant from yours

The customer who lies in the third tier for the banking sector are: Housewife, Rural People,
Unskilled Labor, Daily Wagers (Cash Payment), Migrants. These are the segments of the
noncustomer which are yet to be catered.

The 3-tier of non-consumers are pictorially shown in picture 8.

Figure 8 3 tiers of non-customer

5.2.2 Buyer Utility Map

The buyer utility Map helps in understanding the customer side delivery expectation and the
user experience with the service and product as shown in figure 9.

13
 Figure 9 Buyer Utility Map

Based on a study conducted with the low income customer of Africa by Vodafone [9], we proxy
the pain points to tier 3 non-customers. For understanding tier 1 and 2 pain points, we initiated
a quick survey in WhatsApp group. Results are summarized in figure 10.

Figure 10 Customer Pain Point- Survey

5.2.3 Future Banking Reports

Survey study done by BCG about the usage of bank channel and transaction profile in India
2020 are shown in figure 11. It is clearly evident that Mobile banking is going to bring a
revolutionary change in banking industry. Also study says that the number of rich people in

14
India is expected to increase 10X by 2020 which provides good scope for investment banking
opportunity.

Figure 11 Usage of Bank Channel and Transaction profile of customer 2020

5.2.4 PMS Map

Pioneer, Migrator, Settler for today and tomorrow banking industry are shown in figure 12

 Pioneer are the businesses that offer unprecedented value

 Migrator are business offerings better than most in the marketplace
 Settler are defined as me-too businesses

Figure 12 PMS Map

15
5.3 People Proposition
For a success of blue ocean strategy, people are more important.
5.3.1 Reskilling
Based on BCG report, banking industry is expected to drastically change their role and reskill to
enhance productivity as shown in figure 13.

Figure 13 Reskilling Indian Bank Industry

5.3.2 Talent Induction

We will target the middle and senior management staff with four E’s (Enrich, Empower, Enable,
and Engage) process as explained in figure 14.

Figure 14 Talent Induction Plan

5.3.3 Performance Plan

For a success in banking industry both discipline and motivation of employee is equally
important to encourage employees to work better. We propose the HR programs and route
mentioned in figure 15.

16
 Figure 15 Performance Plan

6 Recommendation
YES Bank is focused towards knowledge banking, so it should focus more in Product, Service,
Pricing and Delivery to attract consumer and to break away from the current fiercely fought
Red Ocean in banking.
6.1 Product strategy
The consumer of today looks for product that give value for money, are less complex, do not
carry any hidden charges, are simple and transparent. The focus for the future should
concentrate of the below factors to gain customer loyalty

 Social Banking Mobile App for better engagement

 Personalized service at branch/Store level
 Location based service for the customer
 Remove all the complex services
 All charges should be clearly mentioned and there should not be any hidden charges
 Has one single service/product for Personal and Commercial customer for retail and
investment banking

6.2 Service strategy

The service is what that will drive the future growth not only in banking but all major service
industry, so keeping service in focus, YES bank should follow the below strategy.

 The EMI should change as per season like less EMI during Festive season and high EMI
during Harvest season
 Monitor and use Social Media for customer engagement
 Give power of choice and decision making to consumer

17
6.3 Delivery Strategy
The delivery will play a major role in giving consumer experience that includes the look and feel
of various products and services. YES Bank should focus on below delivery strategy

 Have lounge for customers to create strong brand value & loyalty within branch
 Open Stores that RBI guidelines to give customer digital experience and support
 Reduce no of branches and have minimally no of branches to support Stores and act as
a customer experience center
 Go to complete Digitalization
 Bank on Wheel or Moving Bank for unreachable areas.
 MLM for banking (Incentive can be enhanced credit rating, loyalty enhancement)
 Take inspiration from FMCG and make partnership with them to reach rural market

7 References

[1] RBI. [Online]. Available: https://www.rbi.org.in/.

[2] M. S.Vishnuvarthani, "IndianMBA," [Online]. Available:

www.indianmba.com/Faculty_Column/FC1459/fc1459.html. [Accessed 2 12 2015].

[3] RBI. [Online]. Available: https://rbi.org.in/scripts/NotificationUser.aspx?Id=8806&Mode=0.

[4] Y. Bank. [Online]. Available: www.yesbank.in.

[5] YES. [Online]. Available: https://www.yesbank.in/about-us/brand-vision-strategy/the-name-

yes.html.

[6] "YES Bank Vision," [Online]. Available: https://www.yesbank.in/about-us/brand-vision-

strategy/brand-vision-commitment.html.

[7] Article. [Online]. Available: http://www.entrepreneurial-insights.com/promotion-four-ps-

marketing-mix/.

[8] AmericanBanker, "AmericanBanker," [Online]. Available:

http://www.americanbanker.com/bankthink/Are-bank-branches-becoming-obsolete-Brett-King-
Movenbank-1043219-1.html.

[9] Vodafone, "Banking South Africa".

18
[10] Strategy-Business, "Strategy-Business," [Online]. Available: http://www.strategy-
business.com/article/17163?gko=4cda6.

[11] Y. Bank, "YES Bank," [Online]. Available:

https://www.yesbank.in/images/all_pdf/YBL_Exec_summary_27_Jan_2014.pdf.

+ All Bank website, Annual report, Investor Presentation and Q2F2015 results.

9 Exhibits
Exhibit 1: Porter Five Forces Analysis

Detailed analysis with reference are in attached excel file

Microsoft Excel
97-2003 Worksheet

Exhibit 2: Indian Banking Industry Classification

19
 Category Number Few banks
of Banks
SBI and its associates 6 SBI, SBBJ, SBM, SBT, SBP, SBH
Sector
Public

Nationalized Bank 19 Bank of Baroda, PNB, Canara

Other Public Sector Banks 1 IDBI
Listed 17 HDFC, ICICI, Kotak Mahindra
Private
Sector

Unlisted 7 BOR, BOB, CSB (IPO filed), Nainital Bank, RBL, TMB,
SBICIB
Foreign Banks 43 HSBC, Deutsche, DBS
RRB’s 56 Sponsored by Public Banks
Cooperative Bank 448 Urban-51, State-31, DCCB’s-366
Unscheduled Bank 1539 Urban-1525, State-14
Total Banks 2136
Source: 1. https://rbi.org.in/commonman/English/Scripts/BanksInIndia.aspx#SBIA

2. http://www.nafcub.org/

Exhibit 3: Market Concentration

Private Sector: Thanks to online calculator, http://www.wessa.net/co.wasp

20
 Market Cap (27 Nov 2015) Sales (March 2015)

Private and public sector: Thanks to online calculator, http://www.wessa.net/co.wasp

ExhibitMarket CapStrategic
4: TOWS (27 Nov 2015)
Alternative Matrix Sales (March 2015)

21
Exhibit 5: YES Bank Partners

Source: YES bank website

Exhibit 6: Private Competitors for YES Bank

Parameter
Market Cap Sales Assets EPS Cash Balance
(Rank in sector)

Yes Bank 31,935.93 (6) 11,572.01(4) 115,379.84 (4) 53.75 (1) 7,557.15 (5)

IndusInd Bank 54,798.11 (5) 9,691.96 (7) 91,086.18 (6) 34.20 (4) 10,779.14 (4)

Axis Bank 111,997.08 (4) 35,478.60 (3) 400,884.50 (3) 33.53 (5) 36,099.03 (3)

Kotak Mahindra 127,623.63 (3) 9,719.87 (6) 92,930.54 (5) 9.56 (9) 6,262.36 (6)

HDFC 271,897.62 (1) 48,469.90 (2) 502,592.26 (2) 44.30 (2) 36,331.45 (2)
Source: MoneyControl.com

Exhibit 7: Product offerings

22
 1. Personal Banking covers savings accounts, deposits, Loans, Cards, Investments,
Insurance, MFs and Payments
2. NRI Banking covers Accounts, deposits, transfer money, NRI loans and
Investments.
3. Corporate banking covers salar y account, commercial clients, and business
services.
4. Privilege Banking covers priority service
5. Wealth management covers portfolio risk mgmt., research and analysis
6. SME covers overdraft services, working capital loans, dealer and trade finance,
7. Wholesale covers funded and non-funded project loans, treasury, investment
products
8. Government and Financial Institution services
9. Agri & Rural target
10. Bill collection and processing solutions
Source: Bank websites

Exhibit 8: Place of Offerings

Exhibit 9: Promotion

23
Exhibit 10: Financial Snapshot

Source: Annual reports 2014-15 and Investor presentation Q22015

Exhibit 11: Digital Banking

24
 Source: Digital Strategy Report

Exhibit 12: Human Capital

Source: Annual report 2014-15

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