YES Bank Annual Report and Strategy

YES Bank Annual Report for the financial year 2022-23 provides a comprehensive overview of the bank’s financial and non-financial performance. It highlights the bank’s progress in integrating Environmental, Social, and Governance (ESG) considerations into its operations and value chain. The report also mentions the bank’s facilities, subsidiaries, reporting standards, and principles.

Key points

• The report covers YES Bank’s facilities, including corporate offices, branches, ATMs, and international facilities.
• It mentions the bank’s subsidiary, Yes Securities (India) Limited, which is outside the purview of the report.
• The financial disclosures in the report are aligned with the reporting standards and frameworks prescribed by the Banking Regulation Act, Indian GAAP, RBI guidelines, and Companies Act.
• The report highlights specific initiatives undertaken by the bank to improve resource efficiency, reduce emissions, enhance energy efficiency, and promote sustainability.
• It mentions the bank’s business continuity and disaster management plan, emphasizing the importance of ensuring resiliency in its operations.
• The report provides an overview of YES Bank’s business journey, milestones achieved, and its transformation as a recapitalized and recalibrated organization.
• It mentions the bank’s total assets, deposits, and CASA ratio for the financial year 2022-23.
• The report highlights the bank’s commitment to good corporate governance and mentions various policies and codes adopted by the bank.
• It provides information on the utilization of funds raised through preferential allotment and the absence of funds raised through qualified institution placements.
• The report includes general shareholders’ information, such as the date, time, and venue of the annual general meeting, financial year details, dividend payment status, and listing on stock exchanges.
• It mentions the bank’s consolidated financial statements and provides significant accounting policies and notes related to the consolidated financial statements.
• The report highlights the availability of financial and other information on the websites of stock exchanges and the bank’s efforts to disseminate relevant information to stakeholders.
• It mentions the SEBI Complaints Redress System and the bank’s reminders to shareholders for claiming unclaimed dividends.
• The report provides details of the bank’s equity share capital and any changes in it during the financial year.

Strategy: Propelling Ahead and Delivering on Our Vision

YES BANK has articulated 10 Strategic Business Objectives (SBOs) for delivering on its vision. These objectives focus on various aspects such as accelerating growth of the liability franchise, deepening relationships with customers, driving retail assets growth, expanding distribution footprint, strategic investments for growth, and integrating ESG considerations into the business.

Accelerating growth of our liability franchise

The bank aims to grow and granularize its deposits base across savings accounts, current accounts, and term deposits. It plans to focus on accelerating current accounts growth, especially in the retail segment. The bank also aims to deepen its distribution network, improve digital support, and create joint propositions across assets and liabilities.

Deepening relationships with our customers

The bank aims to deepen relationships with existing customers and leverage its distribution strength to acquire new customers. It plans to expand its share of wallet and fee income through personalization, cross-selling of transaction banking and other solutions, and enhancement of self-service processes. The bank has launched customized offerings and propositions for different customer segments and has implemented analytics-driven customer relationship management tools.

Driving retail assets growth

The bank aims to drive growth in retail lending through digital lending journeys and digital propositions. It focuses on enhancing credit analytics, expanding product offerings, and improving customer digital journeys across sales, service, and operations.

Expanding our distribution footprint

The bank plans to grow through a phygital model, with a strong physical network of branches supported by digital servicing capabilities. It aims to expand its physical distribution in key micro markets for retail deposits and assets growth. The bank also emphasizes customer experience and plans to increase and nurture customer-centric distribution approaches.

Strategic investments for growth

The bank seeks inorganic growth opportunities to expand its market share, enter new segments, and acquire new capabilities. It actively partners with relevant start-ups and considers strategic investments in niche capability areas such as wealth management and analytics. The bank also explores strategic investments in the priority sector lending arena.

Focus on People, Processes, Technology, and ESG integration

The bank focuses on optimizing processes, leveraging technology, and integrating ESG considerations into its business. It invests in talent acquisition, skill building, and career progression. The bank also adopts a four-pronged ESG strategy to align with sustainable development frameworks, address key impacts, and enhance ESG disclosures.

Overall, YES BANK’s strategy aims to create value from its cards and digital banking franchise, deepen customer relationships, drive retail assets growth, expand distribution footprint, pursue strategic investments, and integrate ESG considerations into its business.

Performance of YES BANK Year-on-Year (YoY)

The performance of YES BANK has been strong and consistent year-on-year (YoY). In FY 2022-23, the Indian economy grew by 7.2%, and YES BANK maintained its status as one of the world’s fastest-growing economies. The banking sector remained strong and resilient, with credit growth of 12.3% YoY and deposit growth of 10.3% YoY. The Bank’s business performance improved across metrics on book quality, liquidity, and coverage. On the deposit side, the Bank grew its deposit base by 10.3% YoY to `2.18 lakh crore, with a CASA ratio of 30.8%. On the advances side, reported advances grew by 12.3% YoY. The Retail and SME segments saw significant growth, while there was a decline in the large corporate base. Overall, YES BANK’s performance reflects its strong underlying fundamentals and growth potential.

Ranking Among Peers

YES BANK has achieved several notable rankings and ratings among its peers in the banking industry.

• In the S&P Global Corporate Sustainability Assessment (CSA) 2022, YES BANK achieved the highest ESG score among Indian banks, with an absolute score of 68 out of 100. This assessment considers various aspects of ESG performance, such as climate strategy, operational eco-efficiency, financial inclusion, human capital development, and corporate governance.
• The Bank has been awarded an ‘A-‘ rating by the Carbon Disclosure Project (CDP) for its climate change disclosures. This rating makes YES BANK the highest-rated Indian bank for climate disclosures. The Bank earned the ‘Leadership Band’ (A/A-) in eight out of twelve climate-related disclosure categories, including climate governance, emission reporting, emission reduction initiatives, and risk management processes.
• Moody’s ESG Solutions ranked YES BANK 5th among 90 Retail & Specialized Banks in Emerging Markets, with an ESG score of 57 out of 100. Moody’s ESG Solutions is a leading provider of ESG ratings and assessments.
• YES BANK has also been recognized among the Top 50 in ‘India’s Best Workplaces in BFSI 2023’ rankings by the Great Place to Work® Institute. This recognition reflects the Bank’s commitment to creating an employee-centric and inclusive work environment.

These rankings and ratings highlight YES BANK’s strong performance in ESG practices, climate disclosures, and employee satisfaction, positioning it favorably among its peers in the banking industry.