INTRODUCTION

In last one decade the Indian Banking sector has witnessed a very high level of conceptual revolution in terms of organisation structure, business model, accounting, operations, control environment, customer interface, customer service, regulatory compliance, information dissemination and a whole lot. In todays time a bank is driven by IT, Processes and Products and it operates in fairly complex control, compliance and regulatory framework and environment. In terms of IT, the banking sector has rolled out highly sophisticated and complex IT systems. Majority of the banks today are functioning on Core Banking Solutions (CBS). CBS is an integrated software system that facilitates integrated and real time processing of data. In the Banking sector today, there is a constant challenge of addressing the various industry pressures in terms of global competition, regulation & compliance, customer expectations and efficiency of operations. Competition makes it difficult for banks to show differentiation and even harder to show profits. In this situation, competitive advantage will be derived by those banks that effectively leverage their processes and systems around customers and channels in order to deliver innovative products and services retain the customer and enhance lifetime value. Apart from just attaining the competitive edge, several new initiatives have been taken up by banks towards sustainable development encompassing environment friendly initiatives to rural initiatives for financial inclusion. Clearly, the traditional model of branch banking has undergone a sea change. Branches have moved on from being primarily service-oriented to sales and service outlets, with the focus on cross selling. The Customer walks into the branch to deposit some cash. He finishes his transaction and walks over to the personal banker's desk for an account detail query. Not only does the personal banker resolve the customer's query, but is in a position to cross-sell product and service options which the customer could avail of, at preferential rates, based on his account and transaction history. Welcome to the new-age branch of the modern bank, a one-stop financial supermarket to fulfil all the financial needs of the customer. However, a change in mindset and focus above is not enough. For the new model to succeed, the front-line employees have to be empowered enough to take important decisions and make preferential offers to customers in an instant. This would depend on the quality of information that the personal banker at the branch has at his/her fingertips. It is also necessary that the information be consistent across all branches and other direct access channels like ATMs, Phone Banking, Mobile Banking and Net Banking, throughout the country. Customers today have become more demanding and expect 24-hour access to their accounts at the bank through these various channels. In order to fulfil the requirements of the bank's employees as well as the customer, centralised processing with a data warehouse is a must. The management embarked on this journey when it implemented the data warehousing solution, which enables the managers to have a holistic view of all relationships of the customers, helping the bank understand them and their requirements better. The bank always had the data required to make informed decisions that would help it meet its business objective. Yet collecting and analysing this data was a lengthy and cumbersome process. It was stored in disparate sources and the task of compiling and analysing this took a lot of time. What was required was a system whereby the business teams could easily analyse customer transactions and banking behaviour in several permutations and combinations and make it available to customer-interfacing staff.

The bank can now know how many products a particular customer avails of, how frequently he uses the product, the transaction characteristics and his banking behaviour. The bank can also know the profitability of the customer which is critical in offering preferential pricing so that relationships can not only be sustained but ever enhanced. The profitability metrics are used extensively in service differentiation. Certain profitable customers are given "preferred'' status in service deliveries and pricing. The bank can now know which channels the profitable customers use so that it can step up its investment in those channels. In addition, the bank is now in a position to undertake database driven marketing efforts based on the banking behaviour of the customer. If he has used his card in an apparel shop, send him customised mailers incentivising him if he spends more in certain apparel shops or marketing programmes to merchants who facilitate usage of the bank's cards on the bank's terminals. On the retail risk management front, the warehouse offers immense decision-making capabilities. It provides a single platform wherein all lending activities are grouped together to help the bank understand the customer profile closely for each product. It also helps the credit manager in optimising the risk-reward ratio. It also helps the business in identifying newer segments and cross-sell opportunities so as to expand the business with low risk high reward ratio. The solution on one hand helps provide marketing inputs on product positioning and customer characteristics, while on the other it helps gauge the quality of the bank's appraisal mechanism by providing the behaviour of customers on the bank's books as well as the credit quality of the lending portfolio. By capturing the data on the lending portfolio across branches and products at one place, the data warehouse is able to look at the clientele across a host of parameters, to gather valuable information on: Factors that influence the business trends and pattern of various products Factors that contribute to the performance of each product vis-a-vis the others Customer behaviour Credit risk of lending portfolio Undoubtedly, going ahead, initiatives like these when implemented centrally, will be key to better customer service and consequent success. To use an analogy, it is like dropping a pebble in still water - a single act but the ripple effect affects the whole surface and beneath, though that remains unseen. Similarly, the data warehouse is one initiative, but the effects are far-reaching and substantial. The ripples enable the bank to understand its customers and their requirements better, empower its branch employees help it make prudent business decisions all leading to higher customer satisfaction. However, it must be emphasised that this is not a quick-fix solution. It is a long process that calls for total connectivity of all branches, all offices, all channels across the bank network. And, most importantly, it calls for the right attitude. Decreasing costs will, in the future, lead to technological parity among major players. Then, the differentiating factor would be how you derive maximum value from available technology so that it best serves both, the bank and the customer.

ABOUT YES BANK

Type Industry Founded Founder(s) Headquarters Products Public (BSE: 532648) Banking & financial services 2003-04 Ashok Kapur and Rana Kapoor Mumbai, India Corporate and Institutional Banking, Financial Markets, Investment Banking, Corporate Finance, Branch Banking, Business and Transaction Banking, and Wealth Management business lines Rs. 4,665.01 crore (US$1.04 billion) (2010-11) Rs. 1,190.38 crore (US$265.45 million) (2010-11) Rs. 727.13 crore (US$162.15 million) (2010-11) Rs. 363.8 billion at March 31, 2010 Rs. 30.7 billion at March 31, 2010 3,034 www.yesbank.in

Revenue Operating income Profit Total assets Total equity Employees Website

YES BANK is a state-of-the-art high quality, customer centric, service driven, private Indian Bank catering to the Future Businesses of India, and is an outcome of the professional & entrepreneurial commitment of Rana Kapoor, Founder, and Managing Director and CEO. As the Professionals Bank of India, YES BANK has exemplified creating and sharing value for all its stakeholders, and has created a differentiated Banking Paradigm. Since inception, YES BANK has tried to play a catalytic role in bridging the infrastructure and knowledge gap in various Sunrise sectors of the economy. 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. Our focus on Governance and Good Corporate Citizenship, actualized through YES BANKs Responsible Banking approach, stands evidence to YES BANKs strategic vision. Since inception in 2004, 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 also has a widespread branch network of over 250 branches across 164 cities, with over 250 ATM's and 2 National Operating Centres in Mumbai and Gurgaon. Since inception, YES BANK has adopted innovative and creative technologies that facilitate robust systems and processes and facilitate in the delivery of world-class banking solutions that significantly improve the business and financial efficiency of our clients. YES BANK has been recognized amongst the Top and the Fastest Growing Bank in various Indian Banking League Tables by prestigious media houses and Global Advisory Firms, and has received national and international honours for our various Businesses including Corporate Finance, Investment Banking, Treasury, Transaction Banking, and Sustainable practices through Responsible Banking. The Bank has received several recognitions for our world-class IT infrastructure, and payments solutions, as well as excellence in Human Capital. The sustained growth of YES BANK is based on the key pillars of Growth, Trust, Technology, Human Capital, Transparency and Responsible Banking. YES BANK is committed towards building the Best Quality Bank of the World in India resting on the strengths of its six key pillars and differentiation built through exemplary Customer Service, to ensure that it provides the finest Banking Experience to its customers. In 2010, the bank announced the roll-out of a strategic blueprint, named Version 2.0 of the bank, to further accelerate its business growth in the retail banking space, with the objective to achieve by 2015, a balance sheet size of Rs.1,50,000 crore, a pan India network of 750 branches and a human capital base 12,000 by 2015.

BRAND VISION & STRATEGY

YES BANK is pursuing a Brand strategy to build one of the finest financial brands in India. YES BANK believes that differentiation begins with its service and trust mark embedded in YES, which represents the Banks fundamental goal of being a highly service-oriented Financial Institution. The endeavour at YES BANK is to provide an unprecedented Delightful Banking Experience to all its customers.

The name YES signifies The essence of the brand completely by conveying all the values and characteristics Attractive, Smart, Simple, Serious, Reliable, Trustworthy, Optimistic, Positive, Efficient, Universal Clutter breaking in the banking environment, and affirmative with target clients across business and market segments

Brand Vision and Commitment To be recognised as the WORLDs BEST QUALITY BANK IN INDIA To provide a Delightful Banking Experience to all its customers To be a long term partner with all stakeholders particularly customers by creating & sharing value To be a solid and trusted financial trust mark backed by two professional promoters and an exceptional management team

Brand Pillars The YES BANK brand is being built around 6 Key Brand Pillars, which epitomise the growing strengths of the Bank. All communication and advertising has been created around these key Brand Pillars. Growth: YES BANK's core promise is growth, for its internal and external stakeholders symbolise in Say YES to Growth! Trust: YES BANK's Promoters, Investors and Top Management team, are all of the highest pedigree with a demonstrated track record, thus inspiring and establishing a Trust Mark - Say YES to Trust! Knowledge Driven Human Capital: YES BANK has adopted a knowledge driven entrepreneurial approach to Banking and offers Financial Solutions beyond the traditional realm of banking. YES BANK's top quality Human Capital represents the finest talents in Indian banking mobilised from India and abroad Technology: YES BANK is establishing the highest standards in customer service by adopting cutting-edge Innovative Technology. The only thing constant about YES BANK's Technology is Evolution Transparency and Responsible Banking: YES BANK holds Transparency and Accountability above all else. The Bank has established the most stringent Corporate Governance norms, and is also committed to Responsible Banking by focusing on Sustainability and Social Responsibility

ABOUT KOTAK MAHINDRA BANK

Type Traded as NSE: Industry Founded Headquarters Private BSE: 500247 KOTAKBANK Banking 1985 (as Kotak Mahindra Finance Ltd) Kotak Mahindra Bank Ltd., Nariman Bhawan, Nariman Point, Mumbai, India Key people Products Revenue Net income Website Mr. K.M. Gherda, Mr. Uday Kotak, Dr. Shankar Acharya Deposit accounts, Loans, Investment services, Business banking solutions, Treasury and fixed income products etc Rs. 10,963.74 crore (US$2.44 billion) (2011) Rs. 1,569.24 crore (US$349.94 million) (2011) www.kotak.com

The Kotak Mahindra group is a financial organization established in 1985 in India. It was previously known as the Kotak Mahindra Finance Limited, a non-banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank. Today it has more than 20,000 employees and Rs. 10,000 crore in revenue. The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. the customer base of this group is more than 14 lakh. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited.

It bought stressed assets from a number of banks, at full loan value of Rs 1,000 crore in 2005. In January 2011, the bank reported a 32% rise in net profit to Rs188 crore for the quarter ended December 2010 against Rs. 142 crore the corresponding quarter last year. Kotak Mahindra bank also reached the top 100 most trusted brands of India in The Brand Trust Report published by Trust Research Advisory in 2011.

VISION
1. The Global Indian Financial Services Brand Customers will enjoy the benefits of dealing with a global Indian brand that best understands their needs and delivers customized pragmatic solutions across multiple platforms. Kotak Mahindra will be a World class Indian financial services group. Our technology and best practices will be bench marked along international lines while our understanding of customers will be uniquely Indian. We will be more than a repository of our customers savings we, the Group, will be a single window to every financial service in a customers universe. 2. The most preferred employer in financial services A culture of empowerment and a spirit of enterprise attract bright minds with an entrepreneurial streak to join us and stay with us. Working with a home-grown, professionally-managed company which has partnerships with international leaders, gives our people a perspective that is universal as well as unique. 3. The most trusted financial services company We will create an ethos of trust across all our constituents. Adhering to high standards of compliance and corporate governance will be an integral part of building trust. 4. Value Creation Value creation rather than size alone will be over business driver.

Year

Milestone

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting 1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market 1990 The Auto Finance division is started The Investment Banking Division is started. Takes over FICOM, one of India's 1991 largest financial retail marketing networks 1992 Enters the Funds Syndication sector Brokerage and Distribution businesses incorporated into a separate company Securities. Investment Banking division incorporated into a separate company 1995 Kotak Mahindra Capital Company The Auto Finance Business is hived off into a separate company -Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services 1996 Limited marks the Group's entry into information distribution. Enters the mutual fund market with the launch of Kotak Mahindra Asset 1998 Management Company. 2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through 2000 setting up of Kotak Mahindra Venture Capital Fund. 2001 Matrix sold to Friday Corporation 2001 Launches Insurance Services Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian 2003 company to do so. 2004 Launches India Growth Fund, a private equity fund. Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit 2005 Mahindra. 2005 Launches a real estate fund Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital 2006 Company and Securities 2008 Launched a Pension Fund under the New Pension System 2009 Kotak Mahindra Bank Ltd. Opened a representative office in Dubai Ahmedabad Derivatives and Commodities Exchange, a Kotak anchored 2010 enterprise, became operational as a national commodity exchange.