Name of the student HARSHITH E

Group Number 31

Student Code 31 B

Name of the given organization YES Bank Ltd.

Section A
1.0 History of the organization

Brand Ethos:
To be the Professionals’ Bank of India

Vision:
Building the Finest Quality Large Bank of the World in India

Mission:
To establish a high-quality, customer-centric, service-driven, private Indian Bank catering to the
‘Future Businesses of India’

Yes Bank, incorporated in 2004 by Rana Kapoor and Late Ashok Kapur, is a new age private sector
bank. Since inception Yes Bank has fructified into a ‘“Full Service Commercial Bank” that has
steadily built Corporate and Institutional Banking, Financial Markets, Investment Banking, Corporate
Finance, Branch Banking, Business and Transaction Banking, 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.
YES BANK offers a full–range of client–focused corporate banking services, including working
capital finance, specialized corporate finance, trade and transactional services, treasury risk
management services, investment banking solutions and liquidity management solutions among
others to a highly focused client base.
The bank is part of global thought leadership forums like the Clinton Global Initiative (CGI), Triple
Bottom Line Investing (TBLI) and Tallberg Forum. Recently, it became the first Indian Bank to
become a signatory with the United Nations Environment Programme (Financial Initiative).
YES bank limited is an Indian fourth largest private investor by capitalization. The Bank is engaged in
providing banking services, together with company and institutional banking, wealth management,
money market branch banking finance etc. YES BANK’s branch network stood more than 1000
branches pan India and its ATM network stood at 1800 across all 29 states and 7 union territories.
As part of the differentiated strategy, Yes Bank has had a strong focus on Development Banking, as is
evident from the cutting–edge work that the Bank has done in the area of Food & Agribusiness,
Infrastructure, Microfinance, and Sustainability which in most cases has been first–of–its kind in
India.
Yes Bank has partnered with various companies for delivering quality products and services namely
Cash Tech, Cisco Systems, Gartner, Intel, i–flex, Reuters, VSNL, Wipro, De La Rue, Murex, Wincor
Nixdorf and Sanovi.

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YES Bank was incorporated on the Gregorian calendar month twenty one, 2003 Headquartered within
the lower parcel Innovation District (LPID) of urban centre. This bank Obtained certificate of
commencement of Business on January twenty one, 2004 at the side of Kotak Mahindra Bank and
also the bank obtained final application for banking licence section 22(1) of the Banking laws
Act, 1949 providing complete details of the capital structure, the composition of the Boards of
Director, Informational technology and financial statement of the bank.

In 2005 YES BANK launches International Gold and silver open-end credit. Within the same year
Affirmative bank non-heritable license of Initial public provide (IPO).
2006- YES Bank launches of affirmative SAMPANN Bharat, A survey of India’s Best Listed Public
and personal Banks.
2007-August YES BANK launched of YES- International Banking.
2009 This Bank launched the Business Today- YES BANK SME Survey & Award.
2011- YES BANK launched the first FT-YES BANK International Banking Summit 2011- taking
Indian Banking to the globe.
2015- YES BANK launched its initial International representative workplace in United Arab
Emirates capital, UAE.
This Bank raised India’s initial inexperienced infrastructure Bonds of associate quantity of a thousand
Crore (USD a hundred and sixty million).
2016- YES BANK signs MOU with IFC
It had been the Youngest Indian Company to be a part of the Forbes world 2000 list.
2018- YES BANK received final license from SEBI for shielded of Securities Business.
2019- MR. Ravneet Gill takes charge as MD&CEO, YES BANK.
Currently Reserve Bank of India (RBI) took control of Yes bank later reconstructed the board and
named Prashant Kumar, former chief financial officer and deputy managing director of State Bank of
India, as MD & CEO of Yes Bank along with Sunil Mehta, former non-executive chairman of Punjab
National Bank, as Yes Bank’s non-executive chairman.

2.0 Products / businesses of the organization

 Savings Account.
 Current Account.
 NRI Savings Account.
 Credit Card Services.
 Debit Card.
 Special Loan for Covid affected Tourism Service Sector.
 Personal Loan.
 Car Loan.

2.1 YES, PROSPERITY PURCHASE CREDIT CARD

YES, Prosperity Purchase Credit Card is designed to be your preferred mode of payment for all
central spends, offering enhanced control of your accounts payable and procurement processes
through robust spends controls and wide acceptance.

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2.2 LOANS

We understand the importance of your business, and how you want to drive it to success. Keeping this
very thought in mind, we are offering you financial solutions that are built to meet your unique
business needs.

 WORKING CAPITAL FINANCE
 STRUCTURED FINANCE
 CORPORATE FINANCE
 TEAM LEADING
 FOREGIN CURRENCY LOAN
 SUPPLY CHANIN BANKING

2.3 DIGITAL BANKING

We endeavour to make everyday transactions smooth, secure, and completely organized

 API BANKING
 SMART TRADE
 ERP INTEGRATION
 SLIM SIM BASED MOBILE PAYMENTS
 YES TRANSACT: ON THE GO
 CORPORATE NET BANKING
 YES FOREX
 SMART BOX
 DIGITAL WALLET

 Ability to originate transactions across the product suite, for a wide range of issuers including
Private Sector Corporates, PSUs, Central and State Government entities and many NBFCs,
who have repeatedly mandated YES BANK for their debt raising programs
 Awarded the prestigious Green Bond Pioneer award for being the ‘Pioneers in Emerging
Markets-India’ by the Climate Bonds Initiative in 2016
 Consistently ranked among the Top 10 by Bloomberg in the ‘India Domestic Bonds’
underwriting league tables since the last 4 years
 Successfully issued and placed India’s first-ever Green Infrastructure Bond in 2015

2.4 YES, FIRST Corporate Credit Card

YES, FIRST Corporate Credit Card is designed to be your preferred mode of payment across
categories like Air Travel, Hotel Stays, Dining, Car Rentals etc. The card is designed with class
leading features and user-friendly online tools which assist in authorizing, tracking, and processing
expense & payment data.

Businesses
Yes Bank has interests in Retail, MSME and Corporate banking. It has three subsidiaries – YES
Securities (India) Limited, YES Trustee Limited and YES Asset Management (India) Limited.
As of September 2018, Yes Bank had taken syndicated loans from eight large international entities
including ADB, OPIC, European investment bank, banks in Taiwan and Japan for amounts ranging
from US$30 million to US$410 million.

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Yes Bank provides (UPI) Unified Payments Interface facility to allow customers to easily and
securely perform various financial transactions from their mobile devices via third party app providers
like PhonePe and Yuva Pay.
According to the data shared by NPCI (National Payments Corporation of India), Yes Bank processed
25.94 million transactions amounting to INR 14811.73 crores through its own UPI app in July 2021.
Yes Bank acquired over 24.19% stake in Dish TV, India’s largest direct-to-home (DTH) company in
terms of subscribers, on 30 May 2020.

3.0 Perceived image of the organization (positive and negative) in the society

3.1 Positive Image of YES Bank

 Yes Bank is doing exactly the same things in 2021 what it was doing in 2018, 2019 and 2020
i.e. plain simple banking. Like every other bank.
 YES Bank's bad time is over since RBI took charge and restructure it. As MD& CEO
Prashant Kumar done well job since past two Quarter and Finally yes bank came in Profit
Zone.
 State Bank of India is currently the largest shareholder, with 30% of shares outstanding. As
Area of Management and Shareholders SBI, HDFC, AXIS, ICICI are the top shareholder.
YES Bank having well managed people on body. Also we seen High deposits growth and
Loan disbursal to MSME and other sector.
 So No doubt Yes bank will definitely grow in next 5 to 10 years span. We can invest here for
long term
 It also partnered with the US government based OPIC and with Wells Fargo to support
women entrepreneurs.
 Yes Bank provides (UPI) Unified Payments Interface facility to allow customers to easily and
securely perform various financial transactions from their mobile devices via third party app
providers like PhonePe and Yuva Pay.
 Yes Bank acquired over 24.19% stake in Dish TV, India’s largest direct-to-home (DTH)
company in terms of subscribers.
 YES BANK has endeavored to develop and implement unique, scalable and sustainable
models of social intervention to create shared value. From supporting our customers with
seamless banking services to creating large-scale social impact.
 Various CSR activities accomplished by YES Bank makes huge difference in various sectors
like Healthcare, Supplementary education, Household, and community toilets 39,397 received
assistance through 196 health camps Provided access to safe and clean drinking water to
45,000 people through household Filters and 17,500 people through community water
systems 4,085 students enrolled through 116 Community Knowledge Centers.
 The depository financial institution of Asian nation had allowed withdrawal of up to ₹5
large integer just in case of medical emergencies, education expenses, payment towards
wedding, alternative ceremonies and ineluctable emergencies.

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3.2 Negative Image of YES Bank

3.21 Financial Failure Factors of YES Bank

Yes Bank has not patented any new world class software in 2020–21.
Yes Bank has not invented and patented the corona-virus vaccine.
Yes Bank has not patented any seeds for some good cash crops.
Yes Bank is not running any online education company with high valuations.
There were a large number of bad loans given by banks and depositors have withdrawn large numbers
of amounts from the bank.
CBI books HDIL promoters Wadhawans for Rs 200-crore loan fraud in Yes Bank: Officials. It is
alleged the funds transferred to Mack Star by Yes Bank as loan were transferred to accounts of HDIL
group companies to repay its loan to the bank, officials said.
YES Bank saw an 81% decrease in its market stock cost during 2019 - 2020.
There was no balance between the loan sheet and the depositors' sheet. RBI put a 30 days moratorium
on Yes Bank to save it. Yes bank has lost its goodwill and trust.
As per the news report This Bank occupied with high-hazard loaning giving advances of the
Individuals who couldn't raise store somewhere else and which were battling in their organizations.
In April 2019, The bank had about ₹10,000 Crores of its openings, speaking to 4.1% of its all out
advance under watch list, as potential non-performing credits throughout the following 12 Month.
Finally, RBI granted Rs 50,000 Crores as emergency fund to the bank for its operations.

3.22 Bad loan

The most concerning issue for the bank began when the NPA (Non-performing resources) uniqueness
came to High light in 2018. The bank has been under detailing its terrible credits for 3 successive
years at this point. NPA of the any bank is the greatest disappointment factor. YES BANK offered
advance to a few organization like DHFL, IL& FS, Anil Ambani gathering. CG Powers Radius
Developers, Mantri Group Vardaraj Cement, Café Coffee Day and so forth. These organizations are
nearly bankruptcy.

3.23 Out flow of Liquidity

As per the specialists, the bank was confronting ordinary outpouring of liquidity which implies that
the bank was seeing withdrawal of stores from client. The bank had the store book of ₹2.09 lakh crore
to ₹1.37 lakh crore toward the finish of September 2019. Bank with frail monetary records are getting
affected as investors move to more grounded bank.

3.24 Corporate Governance

As confirmed by the run batted in, the governance of YES bank is incredibly abundant guilty. YES
BANK Janus-faced many governance problems that crystal rectifier to its decline. YES BANK fell
nearly seven-member throughout trade thanks to company fraud at CG powers and Industrial
solutions. YES BANK features an important stake in CG powers and Industrial solutions. YES
BANK shares listed half dozen.91% lower at Rs.71.40 a share, therefore suffers fatal accident
(reported in August 2019) involving quantity of fraud of regarding Rs.4000 cores.

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On Jan 10, freelance director UttamPrakesh Agrawal quit company governance standards and
compliance failure at the investor. As per what Prakash insinuated is in interview with
Economic Times corporate executive, He wasn't enclosed in capital raising choices by the
management. He was unbroken within the dark even when continuous follow-ups on disbursing
the main points regarding the plans of capital rising from the management. He additionally
mentioned that the bank is surpassing the management and not the board. So clearly company
Governance unsuccessful.

3.25 Low provisions

While bad loans piled up, YES BANK did not make enough provisions in its profits. It’s Provision
Coverage Ratio comparable banks. RBI says a PCR of > 70% is desirable.

4.0 Suggestion of the group to the organization for future development

During these Crises there's no correct separation of possession and management therefore we want to
own a correct and clear separation of possession and control; promoter holding isn't enough. It’s a
guarantee against misuse of power. Choice of Auditors must be through with rigorously affirmative
Bank’s Auditors couldn't fund the window-dressing the bank management was as well as in.

We suggest Yes bank to follow certain step where they can regain their original shape.
Build trust among the customers.

 Educate their customers about Yes Bank services & facilities.

 They can go with good marketing strategies to rebuild their Brand Image.
 Use latest technologies.
 There is would like for additional transparency.
 Responsible Banking – Yes Bank should mainly focus on controlling NPA.
 Avoiding large amounts of withdrawals.
 Start maintaining thin line security check to avoid future disasters.
 Growth – Recruiting and selecting right person who is capable of handling the high
prioritized risks as well maintain the thin line transparency.
 YES Bank can start use new high class software to avoid unnecessary risk.
 YES Bank can start investing in online education sectors to increase its valuation.
 YES Bank can start investing in importing of Crude oil.

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 Section B (MAA 2)

5.0 SWOT analysis

5.1 Strengths of Yes Bank

Strengths include the potential capabilities and available resources that a firm can utilize for its
growth. The following are the strengths of Yes Bank.

 Rising Net Cash Flow and Cash from Operating Activity: Yes bank’s cash flow from operating
activities has taken a huge leap to the positive side. Its core business activity improved drastically.
Potential for profitability is observed.
 Diversified Business: Yes Bank does business in a variety of sectors, including Commercial
Banking, Corporate, and Institutional Banking, Investment Banking, Corporate Finance, Financial
Marketing, and Retail Banking.
 High-End Technology: Yes Bank relies on cutting-edge technology to ensure the seamless operation
of its banking and financial services.
 Recognised Bank: Popularity among the people is one of the most advantageous strengths of Yes
Bank. It has also been a recipient of global and domestic awards such as ‘India’s Fastest Growing
Bank of the year’ in 2009 which creates a positive image in public. 
 Accessible to all: If there is one criterion that the general public observes while comparing banks, it is
how accessible the bank is to them. Digitization of the daily banking activities and a convenient and
efficient procedure in Yes Bank gives it an edge over many other banks.
 One of the largest Private Sector Bank: Yes Bank is one of the top private sector banks in India.
Recognized by powerful media houses and global advisory firms, this usually becomes a deciding
factor when people choose to invest in banks. 
 Strong marketing strategies: Yes Bank undertakes Ad campaigns in mainstream newspapers,
television advertisements, and print advertisements in its subsidiaries as its promotional activities.
Digital marketing is also being utilized, with social networking platforms like Facebook, Instagram,
Twitter, and YouTube being leveraged to reach clients.

 
5.2 Weaknesses of Yes Bank

Weaknesses are those elements that impede the company’s growth and prevent it from reaching its
objectives. Yes bank has a few deficiencies that must be addressed
 Security over Digital Media: Yes Bank’s banking and financial activities are conducted through
digital media, thus there is a greater risk of security in their corporate operations. Many people are
opposed to engaging money through digital means.

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 Use of Digital in Rural Area: The use of digital media for banking and financial purposes is not
widespread in most rural regions.
 Low Profitability: Yes bank is stuck in negative Return on Assets (RoA) for 2 consecutive years.
The negative returns on assets refer to the underutilization of its assets to generate sufficient profit.

 
5.3 Opportunities for Yes Bank
 
Opportunities are favorable conditions that offer a company a competitive edge over rival enterprises.
Following are the favorable opportunities for Yes Bank:
 Large Asset in one Client: Yes Bank has substantial assets per client, which provides tremendous
potential to serve them while also growing in the banking and financial services industries.
 Global Market: Yes Bank has a higher awareness in the global market and faces fewer restrictions.
This gives the bank the ability to go worldwide and achieve its commercial objectives.
 Expanding Services to Clients: Yes Bank provides clients, banks, shareholders, and investors with
enhanced advice and customized services. This will attempt to offer them an opportunity to improve
their business.
 Business goals towards middle and lower-income groups: Unlike other banks, which primarily
serve the upper-middle classes, Yes Bank has expanded its business to serve the medium and lower-
income groups of society as well.
 Awareness in Digital Media: People’s increased knowledge of digital media presents a significant
potential for the bank to serve more clients.
 Improving Provision Covering Ratio: Yes banks’ dependence on external sources of funding has
reduced as the Provision Coverage Ratio has seen a rise. This will provide more funds to be set aside
to cover bad loans and cushion them against potential losses.

 
5.4 Threats to Yes Bank 

External elements that might affect the firm are referred to as threats. These issues should be
addressed as quickly as possible to prevent severe harm to the organization. The threats to Yes Bank
are as follows:
 Security threats: If the bank encounters any security difficulties at any moment, it poses a severe
threat to the bank. In such circumstances, regaining client confidence would be challenging.
 High Fee: The bank’s clients’ strong fee negotiation power poses a significant danger to the bank’s
operations.
 Global Competitors: The presence of numerous global giants in banking and financial services poses
a significant threat to the bank’s ability to remain competitive in this industry.

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 Change in Laws and Regulations: Whenever the government changes the regulations and laws, it
might have an impact on the bank’s business operations.

5.05 Conclusion
Yes Bank has been growing exponentially with a jump in profit of about 74%. As we have studied the
SWOT Analysis of Yes Bank we have known that it has a rising net cash flow and cash from
operating activity with a diversified business and has a good opportunity in the global market.
However, some of the factors are potential drawbacks for the company.
With changing market conditions there is an increase in competition in the market and its returns in
assets are negative. It can tackle this problem by entering the global market and by the use of digital
marketing it can create a large customer base as in modern times most people are active on digital
platforms.

6.0 Risk factors affecting financial performance

The financial position of Yes Bank Ltd. (the bank) has undergone a steady decline largely due to
inability of the bank to raise capital to address potential loan losses and resultant downgrades,
triggering invocation of bond covenants by investors, and withdrawal of deposits. The bank has also
experienced serious governance issues and practices in the recent years which have led to steady
decline of the bank. The Reserve Bank has been in constant engagement with the bank’s management
to find ways to strengthen its balance sheet and liquidity. The bank management had indicated to the
Reserve Bank that it was in talks with various investors and they were likely to be successful. The
bank was also engaged with a few private equity firms for exploring opportunities to infuse capital as
per the filing in stock exchange dated February 12, 2020. These investors did hold discussions with
senior officials of the Reserve Bank but for various reasons eventually did not infuse any capital.
Since a bank and market led revival is a preferred option over a regulatory restructuring, the Reserve
Bank made all efforts to facilitate such a process and gave adequate opportunity to the bank’s
management to draw up a credible revival plan, which did not materialise. In the meantime, the bank
was facing regular outflow of liquidity.
After taking into consideration these developments, the Reserve Bank came to the conclusion that in
the absence of a credible revival plan, and in public interest and the interest of the bank’s depositors,
it had no alternative but to apply to the Central Government for imposing a moratorium under section
45 of the Banking Regulation Act, 1949. Accordingly, the Central Government has imposed
moratorium effective from today.
The Reserve Bank assures the depositors of the bank that their interest will be fully protected and
there is no need to panic. In terms of the provisions of the Banking Regulation Act, the Reserve Bank
will explore and draw up a scheme in the next few days for the bank’s reconstruction or amalgamation
and with the approval of the Central Government, put the same in place well before the period of
moratorium of thirty days ends so that the depositors are not put to hardship for a long period of time.
The Reserve Bank has also issued certain directions to the bank under section 35A of the Act ibid.

7.0 Future plans/Goals

A key focus area and one of the major growth parameters for the Bank has been current accounts and
savings accounts (CASA), which improved by 51.8% to Rs 42,587 crore in FY21 from Rs 28,063
crore from FY20. Furthermore, a YoY growth of 9% in net interest income (NII) owing to interest
reversals ordered by the SC makes the immediate future look positive for the Bank.

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The recapitalization drive at YES Bank generated ₹15,000 crore via follow-on public offers in July
2020. The compensation policies stand revised with a view to boost performance and bring down
operating expenses. The lender’s operating expenses went down by 14% YoY in FY21.
Along with this, YES Bank continued to sharpen its focus on digital payments, steadily improving its
market share in UPI and IMPS transactions.
Meanwhile, despite the pandemic, YES Bank has seen an increase in retail loans by 23%. More than
half of the Bank’s total loan book is comprised of retail and MSME advances, out of which only 1%
are NPAs. The mix of MSME and Retail now makes up 51% of the loan book. The Bank also
displayed the highest-ever income through retail fee in Q4FY21, at Rs 421 crore.
With a provision coverage ratio of almost 79%, the Bank is also ready to tackle the impact of bad
loans without risking the carry-forward of legacy issues into FY22.
The private lender is optimistic about growing its loan book this fiscal by at least 15%. The projected
ambitious growth target stems from the Bank’s CET, standing at 11% (300 bps more than required by
regulators), which gives the Bank enough capital cushion to back its growth targets for FY22. Kumar
also said the lender’s CRAR stands at 17.5%, leaving enough wiggle-room in case there are further
challenges posed by to the ongoing second wave of COVID-19.
The Bank is also inclined to achieve a 20% growth in lending to retailers with good asset quality.
Since the pandemic has reduced private sector investments, lending to corporates is not an option; and
investing in retailers shows high promise, according to Kumar. He also stressed that the Bank’s
corporate books have been de-risked, and the lender is now ready to shift focus to achieving a 10%
growth in these books. The lender has a comfortable liquidity pool of Rs 300 crore for such loans.
In a nutshell, with credit ratings moving up, focused customer outreach and collaborations with the
government, fintech platforms, etc., Yes Bank appears on track on regain a strong position in retail
and business segments.

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8.0 Financial Conditions

Particulars Mar'21 Mar'20 Mar'19

Liabilities 12 Months 12 Months 12 Months

Share Capital 5010.98 2510.09 463.01

Reserves & Surplus 28185.35 19216.20 26441.19

Net Worth 33196.33 21726.29 26904.20

Secured Loan 63949.08 113790.50 108424.11

Unsecured Loan 162946.64 105363.94 227610.18

TOTAL LIABILITIES 260092.06 240880.74 362938.49

Gross Block 2086.65 715.72 767.02

(-) Acc. Depreciation .00 .00 .00

Net Block 2086.65 715.72 767.02

Capital Work in Progress 61.88 293.36 49.98

Investments 43319.15 43914.83 89522.03

Inventories .00 .00 .00

Sundry Debtors .00 .00 .00

Cash and Bank 29308.73 8383.00 26889.51

Loans and Advances 198766.35 204520.01 263597.63

Total Current Assets 228075.09 212903.01 290487.14

Current Liabilities 13450.71 16946.18 17887.68

Provisions .00 .00 .00

Total Current Liabilities 13450.71 16946.18 17887.68

NET CURRENT ASSETS 214624.38 195956.83 272599.46

Misc. Expenses .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 260092.06 240880.74 362938.49

Rs (in Crores)

***********************

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