INVESTOR PRESENTATION

Q4FY10 & FY10 Update

Key Financial Highlights Q4FY10 & FY10
Net Profit after Tax of Rs. 1,400 million in Q4FY10
compared to Rs. 801 million in Q4FY09 representing an
increase of 74.8%; Net Profit after Tax of Rs. 4,777 million
in FY10 compared to Rs. 3,038 million in FY09
representing an increase of 57.2%
Net Interest Income (NII) of Rs. 2,442 million in Q4FY10
compared to Rs. 1,498 million in Q4FY09 representing an
increase of 62.9%; NII of Rs. 7,880 million in FY10
compared to Rs. 5,093 million in FY09 representing an
increase of 54.7%
Q4FY10 and FY10 - Revenue and Profit growth
Rs. million Q4FY10 Q4FY09 % g FY10 FY09 % g
Net Interest Income 2,442 1,498 62.9% 7,880 5,093 54.7%
Non Interest Income 1,601 951 68.3% 5,755 4,709 22.2%
Total Net Income 4,043 2,449 65.0% 13,635 9,802 39.1%
Operating Expense 1,467 910 61.2% 5,002 4,185 19.5%
Operating Profit 2,576 1,539 67.3% 8,633 5,616 53.7%
Provisions & Contingencies 426 322 32.2% 1,369 957 43.0%
Provision for Tax 750 416 80.0% 2,487 1,621 53.5%
Net Profit after Tax 1,400 801 74.8% 4,777 3,038 57.2%
2
increase of 54.7%
Total Net Income (NII plus Non Interest Income) of Rs.
4,043 million in Q4FY10 compared to Rs. 2,449 million in
Q4FY09 representing an increase of 65.0%; Total Net
Income of Rs. 13,635 million in FY10 compared to Rs.
9,802 million in FY09 representing an increase of 39.1%
Operating Profit of Rs. 2,576 million in Q4FY10 compared
to Rs. 1,539 million in Q4FY09 representing an increase of
67.3%; Operating Profit of Rs. 8,633 million in FY10
compared to Rs. 5,616 million in FY09 representing an
increase of 53.7%
Robust growth in NII for Q4FY10 by 62.9% y-o-y and Non Interest Income of 68.3% y-o-y
Non Interest income to Total Income ratio of 39.6% in Q4FY10;
42.2% in FY10
Cost to Income ratio of 36.3% in Q4FY10; 36.7% in FY10
Non Interest Income constitutes the following
Business Segment Q4FY10 FY10
Financial Markets 30% 35%
Transaction Banking 27% 24%
Financial Advisory 36% 34%
3
rd
Party Distribution, Retail Fees and Others 7% 7%
Note : Figures have been adjusted for similar period comparison, wherever applicable
Key Financial Highlights Q4FY10 & FY10
Advances at Rs. 221.9 billion as at Mar 31, 2010; Growth of 78.9% y-o-y
Gross yield on advances of 9.7% in Q4FY10 (13.0% in Q4FY09); 10.8% in
FY10 (12.8% in FY09)
Deposits at Rs. 268.0 billion as at Mar 31, 2010; Growth of 65.7% y-o-y
Cost of funds of 6.3% in Q4FY10 (8.8% in Q4FY09); 6.9% in FY10 (9.0%
in FY09)
Net Interest Margin of 3.2% in Q4FY10 (3.0% in Q4FY09); 3.1% in FY10
(2.9% in FY09)
Return on Average Assets of 1.7% (annualized) in Q4FY10 (1.5%
FY10 - Balance sheet growth
Rs. million Mar 31, 2010 Mar 31, 2009 % g
Advances 221,931 124,031 78.9%
Investments 102,099 71,170 43.5%
Total Assets 363,825 229,008 58.9%
Shareholder's Funds 30,896 16,242 90.2%
Tier I + Tier II Capital 52,570 30,674 71.4%
Deposits 267,986 161,694 65.7%
Gross NPA at 0.27% to Gross Advances as at Mar 31,
3
Return on Average Assets of 1.7% (annualized) in Q4FY10 (1.5%
annualized in Q4FY09); 1.60% in FY10 (1.5% in FY09)
Return on Equity of 20.4% (annualized) in Q4FY10 (20.2% annualized in
Q4FY09); 23.7% in FY10 (20.6% in FY09)
Basel II Capital Adequacy Ratio of 20.6% at Mar 31, 2010 (Tier I at
12.9%)
Total Capital Funds (Tier I + Tier II) of Rs. 52.6 billion as at Mar 31,
2010 (Rs. 30.7 billion as at Mar 31, 2009)
Book value per share of Rs. 90.96 as at Mar 31, 2010
Basic and Diluted EPS of Rs 4.25 and Rs. 4.07 for Q4FY10; Rs. 15.65 and
Rs. 14.87 for FY10
Exponential growth in CASA base of 99.6% y-o-y
Gross NPA at 0.27% to Gross Advances as at Mar 31,
2010
Net NPA at 0.06% to Net Advances as at Mar 31, 2010
Total loan loss coverage ratio of 274%; Specific loan loss
coverage ratio of 78.4% as at Mar 31, 2010
Total restructured advances were Rs. 800 million (0.36%
of Gross Advances) as at Mar 31, 2010 from Rs. 1,340
million in Dec 31, 2009 (0.71% of Gross Advances)
showing a decline of Rs. 540 million
Consistent Financial Performance over the past 5 years
74% CAGR in Advance & Deposits
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
10000
20000
30000
40000
50000
60000
FY05 FY06 FY07 FY08 FY09 FY10
Shareholder funds Total Capital ROE
Generating superior Shareholder Returns
2
2
,
1
9
3
0
50000
100000
150000
200000
250000
300000
FY06 FY07 FY08 FY09 FY10
Advances Deposits
INR million
INR million
4
Resulting in Consistent Income streams with high profitability
CAGR FY 06-FY 10
Net Interest Income 74%
Non Interest Income 55%
Net Profit 71%
Share holders funds 53%
553
944
2000
3038
4777
0
2000
4000
6000
8000
10000
12000
14000
16000
FY06 FY07 FY08 FY09 FY10
Non Interest Income Net Interest Income Net Profit
Shareholder funds Total Capital ROE
Advances Deposits
INR million
2,500
3,000
Net Interest Income Non Interest Income
Key Business Highlights
Steady growth in Net Interest Income (NII)
Steady growth in NII on account of growth in Advances &
Investments and improving margins
Advances grew by 78.9% y-o-y while Investments grew by
43.5% y-o-y.
NIM for Q4FY10 was 3.2%(3.1% in Q4FY09); NIM for FY10
increased to 3.1% from 2.9% in FY09
Non Interest Income streams gaining traction
Non Interest Income was up 68.3% y-o-y to Rs 1,601 million
during Q4FY10. For FY10 this income grew 22.2% y-o-y to Rs.
INR million
INR million
-
50,000
100,000
150,000
200,000
250,000
Q4FY07 Q4FY08 Q4FY09 Q4FY10
Advances Non-Funded Trade Exposure
5
-
500
1,000
1,500
2,000
2,500
Q4FY07 Q4FY08 Q4FY09 Q4FY10
-
500
1,000
1,500
2,000
2,500
3,000
Q4FY07 Q4FY08 Q4FY09 Q4FY10
Operating Profit Net Profit
during Q4FY10. For FY10 this income grew 22.2% y-o-y to Rs.
5,755 million and constituted 42.2% of the total income.
Financial Advisory and Transaction Banking income streams
continue to show tremendous traction sequentially and y-o-y.
Financial advisory income in particular was up 184.5% y-o-
y for Q4FY10 and for FY10, this income was up 116.5% y-o-
y
Transaction banking income increased by 51.6% to 1,406
million in FY10
Superior Shareholders returns
The Bank delivered an RoE of 23.7% for the year and RoA of
1.6% for the year. The ROE for the Q4 FY 10 was 20.4% and
ROA of 1.7%.
Consistently generating superior shareholder returns - RoE of more than 20% for 2 consecutive years
INR million
Key Business Highlights
Capital Funds
Healthy Capital Adequacy of 20.6% with Tier I of 12.9% as at Mar 31, 2010
Total Capital Funds stand at Rs. 52.6 billion as at Mar 31, 2010 (Rs. 30.7 billion as at Mar 31, 2009)
Healthy Asset Profile
The Bank continues to maintain near zero NPAs. Gross NPAs
reduced by 41 bps y-o-y to 0.27%(0.68% as on Mar 31,2009), Net
NPA reduced by 27 bps to 0.06%(0.33% as at Mar 31, 2009)
INR million
1200
1400
1600
Specific Provision General Loan Loss Provision Gross NPA
6
Best in class asset quality, a manifestation of strong risk management procedures
Adequate credit provisioning buffer; specific provision stands at
Rs. 472 million (78.4% of Gross NPA) while Total Loan Loss
Provision (Specific Provision + General Loan Loss Provision)
stands at Rs. 1,652 million (274% of Gross NPA)
Total restructured advances were Rs. 800 million (0.36% of Gross
Advances) as at Mar 31, 2010 down from Rs. 1,340 million in Dec
31, 2009 (0.71% of Gross Advances) showing a decline of Rs. 540
million
Efficient Cost Control
Continued management focus on cost control resulted in Cost to Income ratio of 36.7% in FY10 compared to 42.7% in FY09;
amongst the lowest in the industry
0
200
400
600
800
1000
1200
Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10
Knowledge Driven Banking
Focus on Growth sectors
Knowledge based approach to lending; Food and
Agribusiness, Engineering, Infrastructure &
Logistics, TMT (Technology, Media & Telecom)
and Healthcare constitute about 78% of total
advances as at Mar 31, 2010
Increased Diversity in the Advances Book
94.7% of non-Priority Sector Lending (non-PSL)
towards large (Wholesale Banking) and mid
(Commercial Banking) sized Corporate
Food and
Agribusiness
16.9%
Infrastructure
& Logistics
20.7%
Engineering
19.1%
Healthcare
8.0%
TMT
13.3%
Others
22.1%
7
Knowledge driven banking approach ensures a well diversified, highly resilient and a healthy portfolio mix
(Commercial Banking) sized Corporate
clients, with the share of Commercial banking
improving to 25.6% in March 31, 2010 as compared
to 23.0% in March 31, 2009
Fully collateralized SME portfolio constituted 5.2%
of non-PSL advances as at Mar 31, 2010. This share
increased from 4.3% at Dec 31,2009.
Granular exposures
Top 20 exposures constituted only 14.5% of the
total Banks exposure indicating a highly
diversified portfolio of assets.
19.1%
Corporate
and
Institutional
Banking
69.1%
Commercial
Banking
25.6%
Branch
Banking
5.3%
Well-diversified Liability Franchise
Diversified, granular & sticky liabilities mix from
multiple sources. The top 20 depositors contributed
18.8% of the total deposits profile as on Mar 31 2010.
Steady growth in number of liability accounts (from both
retail and corporate segments); total deposits grew by
65.7% y-o-y to Rs. 268.0 billion in FY10
Continuous management focus on increasing CASA
(10.5% of total deposits as on Mar 31, 2010) through
increased branch penetration and cash management
CASA
10.5% FD - Branch
Banking
11.3%
Certificate of
Deposits
17.3%
Institutional
Deposits
9.9%
8
increased branch penetration and cash management
products; CASA grew by 99.6% y-o-y to Rs. 28.2 billion
in FY10
Number of operational branches stands at 150 as at
Mar 31, 2010
Floats from multiple banking relationships across all
three business segments
The cost of funds reduced to 6.3% in Q4FY10 as
compared to 8.8% in Q4FY09 and 6.6% in Q3FY10. Cost
of funds was 6.9% in FY 10 down from 9% in FY09.
Granular and Relationship driven deposits continue to be the bedrock of our Business Strategy
FD -
Corporate
and
Institutional
Banking
35.1%
FD -
Commercial
Banking
6.3%
FD - Govt
Backed
Institutions
9.6%
RELATIONSHIP CAPITAL
9
RELATIONSHIP CAPITAL
Corporate and Commercial Banking
Customer Segmentation
Large Corporates with more than INR 10 billion
turnover, Government companies and
PSUs, Financial Institutions and Banks, select
multinational corporations
Typical exposure in the range of INR 300-1000 mn
Business Highlights
Suite of structured and vanilla solutions including
Customer Segmentation
Emerging mid-Corporates of India with
turnover between INR 1.0 billion and INR 10
billion
Typical exposure in the range INR 50-300 mn
Business Highlights
Suite of plain vanilla and structured solutions
Corporate and Institutional Banking
Commercial Banking
10
Suite of structured and vanilla solutions including
working capital finance, transaction
banking, treasury products, corporate finance &
investment banking
Non PSL Advances at INR 121.3 billion as at Mar
31, 2010 comprising 69.1% of non-PSL advances
Business Strategy
Capitalize on current market conditions to
improve penetration in large and reputed business
houses to move up the value chain and increase
cross-sell
Build long term, comprehensive relationships for
these marquee Corporates
One Bank approach thereby offering complete suite of products to Wholesale and Commercial Banking clients
Suite of plain vanilla and structured solutions
including working capital finance, transaction
banking, treasury and selective structured
finance
Non PSL Advances at INR 44.9 billion as at Mar
31, 2010 comprising 25.6% of non-PSL advances
Business Strategy
Selectively identify emerging sectors &
companies for long term institutionalization of
relationship capital by leveraging knowledge
banking approach
Become a privileged growth partner for these
large Corporates of tomorrow
Branch Banking (Business Banking and Retail)
Customer Segmentation
Small and Medium Enterprises (SMEs) with
turnover less than INR 1.0 billion (with a focus
on the INR 0.5 1.0 billion range)
Focus on supply chain partners of larger
Corporates
Typical exposure in the range INR 20-100 mn
Customer Segmentation
Current Account led Saving Account Strategy
with focus on 12 liability intensive segments
Focus in leveraging Corporate relationships for
corporate salary accounts, YES FIRST (OPDT)
accounts
Developing balances though key alliances -
Brokerage Houses, BAGIC, Nokia - YES Mobile
Business Banking (SME) Retail Banking (Includes Small Businesses)
11
Branch Banking to be a key value driver for the next level growth of the bank
Business Highlights
Product suite comprises fully
secured, collateralized working capital credit in
tandem with liability products like Cash
Management Services and Trade finance
Non PSL Advances at INR 9.1 billion as at Mar
31, 2010 comprising 5.2% of non-PSL advances
Brokerage Houses, BAGIC, Nokia - YES Mobile
Money etc.
Business Highlights
99.6% y-o-y growth in CASA in FY10
48% of the Banks Savings Account Customers
have Net Banking Account
New products being launched including loan
against property, loan against shares and
business loans
Business Strategy
Focus on liabilities generation and transactional products
Service and Technology to be key differentiators for the Bank
PRODUCT CAPITAL
12
PRODUCT CAPITAL
Transaction Banking
Payments Bank of India
Significant investment made in this gestationary business
since the inception of the Bank
Catering to Corporates, Domestic & International Financial
Institutions
Focus on creating financial efficiencies through Innovation
Pioneering Direct Banking Channel Innovations to create e-
Outstanding Liabilities as at end of FY
-
10,000
20,000
30,000
40,000
50,000
60,000
Mar 31 2007 Mar 31 2008 Mar 31 2009 Mar 31 2010
LC & Acceptances BG
INR million
13
Transaction Banking business gaining traction with increasing proportion in the non interest income
Pioneering Direct Banking Channel Innovations to create e-
Financial Supply Chain Solutions
Collections/payments mandates from leading Corporates
Launched the YES Money Mobile Service in Partnership
with Nokia
Revenues grew by 71.5% y-o-y for Q4FY10 and 51.6% y-o-y
for FY10
Proportion of transaction banking income in non-interest
income improved from 19.7% in FY09 to 24.4% in FY10
Income from Transaction Banking
Mar 31 2007 Mar 31 2008 Mar 31 2009 Mar 31 2010
-
300
600
900
1,200
1,500
2007 2008 2009 2010
Q4 FY
INR million
Financial Markets
Product suite comprises Foreign Exchange & Derivative
Sales, Debt Capital Markets (DCM), Fixed income trading and
Balance Sheet Management
Array of products right from vanilla FX spot/forward to
structured currency/interest rate swaps/fixed income products
and risk solutions
Focus on Wholesale and Commercial Banking clients; no
exposure to SME clients
Superior relationships with domestic business houses and reach
DCMDeals for the Quarter
14
Superior relationships with domestic business houses and reach
into AAA issuers and emerging mid sized Corporates for the
DCM desk
State of the art technology platform Murex; pricing and
structuring capability at par with the best in the industry
Dedicated Research Economic Knowledge desk Fundamental
and technical analysis and Macro Economic Analysis
Ranked 10 by Thomson Reuters in the Indian Rupee Bond League Tables for the calendar year 2009
Income from Financial Markets
-
500
1,000
1,500
2,000
2,500
2007 2008 2009 2010
Q4 FY
INR million
Financial Advisory
Structured solutions to meet specialized client
requirements
Knowledge & product expertise in infrastructure, real
estate, financial restructurings, acquisitions & leveraged
finance
Comprehensive role from pre-zero date advisory, taking
Infrastructure
Banking
Structured &
Project Finance
Project Advisory &
Syndication
Select Transactions for the quarter
Sole Structurer, Financial Advisor and Underwriter to the
Indian microfinance industrys first secondary market
transaction- Sale of Rs.1500 million of Non-Convertible
Debentures (NCD) and Commercial Paper (CP) to a
Nationalized Bank
Syndicate Member for the Initial Public Offering (IPO) of
DQ Entertainment (International) Limited.
Sole Underwriter and Lead Arranger of Senior Debt
aggregating to INR 16.00 Billion of three NHAI road
projects for Hindustan Construction Company.
Corporate Finance
Realty
Banking
15
Comprehensive role from pre-zero date advisory, taking
meaningful exposure and syndication of balance
requirements
Financial Advisory Income increased by 116.6% y-o-y for FY 10 and 184.5% y-o-y for Q4FY10
Investment Banking
projects for Hindustan Construction Company.
Private Equity
Syndication
M&A
Advisory
Healthy transaction origination (both inbound &
outbound)
Successfully executed over 100 PE and M&A deals during
the last 5 years
Consistently ranked amongst the top 10 in cross-border
outbound M&A Indian league tables by Bloomberg
Income fromFinancial Advisory
0
500
1,000
1,500
2,000
2,500
2007 2008 2009 2010
Q4 FY
INR million
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
Somak Ghosh Group President Corporate Finance and Development Banking Director Project Advisory & Infrastructure Mgmt - Rabo India
Suresh Sethi
Group President Transaction Banking Group, International
Banking, Liabilities Product Mgt.
Global Transaction Services Head - Caribbean, Central & Latin America, Citibank N.A.
Execution focused Human Capital
16
Suresh Sethi
Banking, Liabilities Product Mgt.
Global Transaction Services Head - Caribbean, Central & Latin America, Citibank N.A.
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
Alok Rastogi President & Chief Operating Officer Citibank N.A.
Devamalya Dey President Audit & Compliance Vice President , Audit & Risk Review Citigroup
Anindya Datta EVP & Chief Marketing Officer Manager, Markets KPMG
Umesh Jain President & Chief Information Officer Citigroup IT Operations & Solutions ( CITOS)
Rajesh Gandhi EVP & Country Head Infrastructure & Network Management Regional Portfolio Manager- India & South Asia , Standard Chartered Bank
YES Bank received the Global HR Excellence Award FY 2009-10 for the Organization with Innovative HR Practices
Top management team drawn from top private sector and foreign banks in India and abroad
Mr. Rana Kapoor, MD & CEO was appointed as a Member of the Board of Governors of the Indian Institute of Corporate Affairs, Ministry of Corporate Affairs
Stock purchase / option plans enable senior management and employees to own substantial capital of the Bank at all times
Capital Structure
Successful entrepreneurial track record at Rabo
India Finance
Held leadership positions at Bank of America (16
years), ANZ Grindlays (2.5 years)
Promoter
YES BANK successfully raised Rs. 10,338.75 million
(USD 225 million) in January 2010 by way of
Qualified Institution Placement . The bank issued
38.36 million shares at Rs 269.5 to marquee investors
Capital Raising Recent Updates
Shareholding (*)
Promoter
27.16%
Employees
1.17%
Mutual
FDI
14.81%
NRIs
0.47%
Others
10.99%
17
Key Shareholders (> 1%)(*)
38.36 million shares at Rs 269.5 to marquee investors
across the globe. The infusion resulted in a dilution
of 11.3% on the expanded capital base
YES BANK successfully completed Rs. 820 million
of Hybrid Tier I debt issuance through private
placement during March 2010. These are Perpetual
Bonds with a call option being available with YES
BANK at the end of 120 months from the date of
allotment
YES BANK successfully completed Rs. 3,000 million
of subordinated Lower Tier II debt issuance through
private placement during January 2010. The bonds
have a maturity of 120 months from the date of
allotment
* As on Mar 31 2010
Mutual
Funds
2.62%
FII
42.77%
Rabobank 15.90%
HSBC Financial Services 4.28%
Khazanah Nasional 4.11%
American Funds Insurance Series Growth Fund 3.88%
SmallCap World Fund 3.64%
R. F . Chandler ( formerly Orient Global) 3.04%
Deutsche securities 1.72%
CommonWealth Equity Fund 1.12%
Stichting Pensioenfunds ABP 1.07%
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 Companys 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 Companys 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
Important Notice
18
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whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation
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