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									Presentation on YES BANK


    UBS India Conference
      November 9, 2005
Important Notice
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 Company’s
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 Company’s 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 whatsoever. The Company may alter, modify or otherwise change in any manner the content of this
presentation, without obligation to notify any person of such revision or changes. This presentation can not be
copied and/or disseminated in any manner.




                                                                                                                          2
  YES BANK key milestones

                                              A1+ Rating by ICRA         Successful listing of       Second operating
                    RBI grants license to                                                               half year:
                                             (Moody’s affiliate) for      YES BANK scrip on
                         commence
Incorporation of                             the Bank’s Certificate    Indian bourses through         PAT: INR 255 mn
                    commercial banking
   the Bank                                  of Deposit programme       an IPO of INR 3.15 bn
                     Board of pedigree                                                                  ROE: 13.26%
                                             (Current size - INR 10      (issue subscribed 30
                    Directors established
                                                      bn)                     times over)               ROA: 2.95%




             Mar 10, 2004             Aug 23- Oct 14, 2004         Feb 17, 2005               August, 2005
   Nov 21, 2003             May 24, 2004               Oct, 2004              July 12, 2005              Sept, 2005




       Infusion of capital by         Launch of C&IB,
                                                               ISO 9001:2000           ADB Board approves
       promoters, Rabobank          business banking,
                                                               Certification for       Tier II facility of INR 1
         and private equity       financial markets and
                                                                 back office               bn (long term,
          investors (CVC,          transaction banking.
                                                               processes and                unsercured,
        ChrysCapital & AIF)          High quality mgmt
                                                                 operations             subordinated debt)
                                       team in place


                                                                                                                      3
Pedigree Investors –
With Long-term Commitment
     Private Equity Investors                                                                 Other Investors
Held by Citigroup Venture Capital,                                                  Fidelity & GIC among large FII shareholders
ChrysCapital II LLC and Asia Infrastructure
                                                                                    Invested through the maiden IPO at the top
Fund
                                                                                    end of the price band and have increased
Investment at premium of 25-40% prior to                                            stake through market purchases
receipt of banking license
                                                                                    Other key investors include Marshall Wace,
Three year lock-in of entire holding                                                NWI, ABN Amro, Norges Bank
                                              Original Private
                                                                 FIIs
                                                  Equity
                                                                 8%
                                                    19%
                                              Employees
                                                2%
                                                                          Indian
                                              Public/MFs                Promoters
                                                 14%                       38%


                                                     Rabobank
              Rabobank                                                                            Promoters
                                                       19%
AAA rated private bank and among top 15                                             Successful entrepreneurial track record at
banks in the world                                                                  Rabo India
Lock-in of entire pre-IPO holding (15% post                                         Ashok Kapur – Over 25 years at Grindlays
dilution) for a five year period                                                    Bank where he held a number of senior
                                                                                    positions, First Asian to be appointed
Increasing stake to 20% through market
                                                                                    “Country Manager”, ABN Amro Bank, India
purchases – RBI approval obtained for the
same                                                                                Rana Kapoor - 16 years at Bank of America
                                                                                    at various senior positions; Head of ANZ
                                                                                    Grindlays’ Investment Bank
                                                                                                                                  4
Human Capital – execution focussed
          Name                        Designation                              Previous assignment
Rana Kapoor                     Managing Director & CEO                CEO & Managing Director, Rabo India

H. Srikrishnan                      Executive Director                 Country Head – Transaction Banking &
                                                                              Operations, HDFC Bank
Anuratna Chadha            President – Corporate & Institutional   Head – Corporate Banking Business, Citibank,
                                        Banking                                   South Africa
Somak Ghosh                Country Head – Corporate Finance          Director – Project Advisory & Infrastructure
                                                                              Management, Rabo India
Subir Bisht               Country Head – Credit & Market Risk,          Head, Corporate Credit, ICICI Bank
                                      C&IB / FM
Munish Dayal                  President – Business Banking            Business Head – SME, Citibank, Europe,
                                                                               Middle-East & Africa
Pankaj Gupta                 Head – Business Banking Credit        Vice President & Risk Head, Western Region,
                                                                                      GECIS
Ajay Mahajan                  President – Financial Markets         Managing Director, Global Markets Group &
                                                                       Country Treasurer, Bank of America
Suresh Sethi               Country Head – Transaction Banking      Global Transaction Services Head – Caribbean,
                                                                       Central & Latin America, Citibank N.A.


                  Senior management team drawn from top private sector and foreign banks
                                          in India and abroad
                                                                                                                    5
Human Capital – execution focussed
          Name                      Designation                          Previous assignment
Aditya Sanghi           Country Head – Investment Banking         Executive Director, Head of Mergers &
                                                                        Acquisitions, Rabo India
Manoj Adlakha            Group EVP & Country Head – Retail    Vice President - Retail Financial Services and
                                     Banking                      Consumer Cards, American Express
Suhail Kazmi             Country Head – Private Client Mgmt   Retail Head, West and South India, ABN Amro
                                 (Domestic & NRI)                                Bank
Marina Kapur                   EVP - Private Banking          Assistant Head – Sales Development, Barclays
                                                                              Private Bank
B. Chandramouli                Chief Operating Officer          Head - Service Delivery, Branch Business,
                                                                               HDFC Bank
P Kumar                      Head – Business Services         Head – Business Solutions Group, HDFC Bank

Aditya Menon                  Chief Information Officer                   Group CIO, Mphasis

Yateesh Srivastava             Chief Marketing Officer        ED, Strategic Planning, Triton Communications

Archana Shiroor          Country Head – Human Resources       Head – Human Resources, Development Credit
                                                                               Bank


 Stock purchase and stock option plans to enable Senior management and employees to own more than 5%
                               of the share capital of the Bank at all times
                                                                                                               6
  YES Bank - Business & Market segmentation
                  Corporate & Institutional Banking                     Business Banking (Uniquely positioned)

            • Large Corporates with more than                       • Small & Emerging corporates with less
Customers     INR 5 billion turnover & MNCs                           than INR 5 billion turnover
            • Government companies & PSUs                           • Supply chain partners of C&IB clients

 Strategy                                  Knowledge Banking in Focus Sectors

                Lowers entry barriers
                Enables capturing of mind-space of owners/top management
                Strengthens relationships and facilitates cross-sell of products
                Superior product structuring and delivery
                Risk mitigation through early warning signals

Products        Financial Markets       Transaction Banking        Financial Advisory      Wealth Management

                YES BANK Financial Markets ranked second in the ‘Best for Currency Strategy’ and ‘Best for
                Technical Analysis’ categories at the ‘Asiamoney 2005 Foreign Exchange Poll for India’.
                RBI / YES BANK joint seminars showcasing YES BANKs innovative corporate payment solutions
                leveraged on its RTGS platform.

     Business Banking, our Key Value Driver along with our C&IB business will be the principle
                               revenue contributor in initial years
                                                                                                                 7
    Knowledge Banking
     A Key Differentiator (creating mind space)

              Knowledge Initiatives                        Knowledge Reports

   Advisors to the Government of Maharashtra on
   Bio Tech & Life Science parks in Mumbai
   Inducted on DBT’s working group for formulation
   of National Biotech Policy
   Set up of Indian Renewable Energy Enterprise
   Development Fund along with BTS & Rabo
   Marketing tie up with National institute of
   Agricultural Marketing
   Research reports on Emerging business trends in
   Film Financing along with FTPG
   Reports for IT & IT enabled services for the 3rd
   ASEAN summit
   Knowledge report on Investment opportunities in
   Eco/Rural tourism in India


Knowledge initiatives create the mind space that enables
                 cross sell of products


  High quality human capital, an enabler for effective
          knowledge initiatives with clients
                                                                               8
    Knowledge Banking
     A Key Differentiator (enabling cross sell)

     Bank’
‘One Bank’ approach and superior product structuring / delivery has                                     Asset Portfolio(1)
ensured cross sell of products

 Knowledge         Clients       Credit    Financial   Transaction   Advisory    Focus sectors identified on the following basis:
  Sectors         segment       products   Markets       Banking     Services
                                                                                      Growth potential of the sector
 Food & Agri     Beverages
                                                                                      Opportunity for banking products differentiated
                    Agro                                                              through knowledge
                  Chemicals
                                                                                      Competitiveness of India in these sectors
Life Sciences      Drugs

                 Health care

                                                                                                               TMT        Food & Agri
                   Pharma                                                                           Textiles
                                                                                                               11%             11%
                                                                                           Select       3%
Engineering        Electric                                                              Engineering
                   comp.
                                                                                            15%
                    Auto                                                                                                                Infrastructure
                                                                                            Retailing
                  ancillary                                                                                                                  31%
                                                                                               1%
    TMT          IT/Telecom                                                                          Others
                                                                                                                     Life Sciences
                                                                                                        19%
                                                                                                                          9%
                 IT services

                  Telecom

Infrastructure   Construction                                                   (1) As at September 30, 2005

                 Wind Energy
                                                                                                 roll-
                                                                                 Initial branch roll-out strategy driven by concentration
                    Port                                                                   of focus sectors in certain geographies
                                                                                                                                                         9
YES Bank (retail & wealth management)
                                                      Focus on
                                             Liabilities & Distribution


              Target Client Base                                           Customer Acquisition Strategy
Initial focus is on ‘Affluent’ segment (income b/w                   Develop ‘YES’ as a service mark
INR 2.5 mn and INR 5.0 mn)                                           Offer Choice & Convenience
Subsequent focus will be on ‘Mass Affluent’                          Build trust to attract retail deposits
segment (income b/w INR 0.5 and INR 2.5 million)                     Regions with high CASA potential identified for
in line with the expansion of our branch network                     deep penetration




   Product            Retail liabilities, wealth management products including distribution of Mutual Funds,
   Suite              Insurance (tie-up with Max New York Life, Bajaj Allianz), selective retail loan products


   Delivery                       First 30 branch licenses being operationalised in 25 locations
   Channels                ATMs, Internet Banking, Telephone/Mobile Banking and Direct Sales Agents



       Focused & cost effective model – providing ‘delightful experience’ to our customers
                                                                                                                       10
Focus on Liabilities & Distribution

     Retail resource mobilization strategy          Enablers to generate retail customer base

                                                    Single pin for all electronic channels
  Three liability mobilization channels:
                                                    2 factor authentication for internet gateway
    Feet on Street (FoS) – Contractual staff with
    variable incentives                             Total branch automation initiatives
    Branch sales team – CSM to convert walk-        Online RTGS transfer of funds enabled
    in’s                                            All banking queries/alerts on cellular phones
    Dedicated RM’s – To cater to affluent / HNI     Dedicated RM’s providing personalized service
    clients
                                                    Consolidated view of all investments
  Superior wealth management proposition –
  integrated product solution                       Customer Convenience to provide a delightful
                                                    experience
  Customers split into gold and silver for
  affluent and middle income groups
  YES FIRST as a service proposition to HNI
  clients



    30 fully automated branches at 25 locations in India to be operationalized by
                        March 2006 and 100 by March 2008.
                                                                                                    11
Unique technology proposition
                                                   New Entrant Advantage
                                                  No Legacy Systems
                                                  Latest technology




   Outsourcing Approach                                                               High Degree of Automation
  Strategic tie up with Wipro                                                          Straight through processing
   IT infrastructure and network                                                       (STP) enabling improved
  management outsourced                                                                process accuracy and efficiency
  Variable cost model that can be                     Unique, Scalable
                                                      Unique, Scalable                 Back office operations already
  scaled up based on branch                           Business Model
                                                       Business Model                  ISO certified
  rollout


                                       Software                                Hardware
                          Partnership arrangements with               Efficient procurement
                          vendors, lowering cost and
                                                                      Most of the hardware and IT
                          enabling access to latest, more
                                                                      infrastructure not assets on our
                          efficient software
                                                                      balance sheet
                          Agreement with I-flex for core
                                                                      Infrastructure ‘on demand’ from
                          banking solution, CashTech for
                                                                      IBM
                          CMS and Murex for treasury
                          solution

                                Ranked amongst India’s Top 20 Wired Companies#
                                                                                                                         12
   # Source: Business Today – February 13, 2005
Strong financial performance
Revenue and profit highlights                                                                   Performance highlights half year ended Sep 30, 2005
                                                                                                  Net Profit after Tax for H1-2006 Rs. 255.5 million
 Rs. mio                      H1-FY2006             H2-FY2005             H1-FY2005
                                                                                                  compared to a loss of Rs. 28.0 million for H1-FY2005
 NII                                  333.5                  154.1                   22.3
                                                                                                  Growth of 27.1% in Net Profit in Q2-FY2006 over Q1-
 Other income                         409.0                  147.3                   34.4         FY2006
 Operating exp                        348.9                  260.8                 119.0
                                                                                                  Return on Assets of approximately 3% and Return on
 Profit before tax                    393.6                   40.6                (62.3)          Equity of 13.3% in H1-FY2006
 Provisions/tax                       138.6                   34.5                (34.3)          Net Interest Margin maintained at 3.5% with a net
 Profit after tax                     255.0                     6.1               (28.0)          spread of more than 2%; yield on advances at 8.9%
                                                                                                  Cost of funds reduced marginally to 5.37% in H1-
Balance sheet highlights                                                                          FY2006
                                                                                                  Cost to income ratio down to 47% (significant
 Rs. mio                             Sep 05               June 05                Mar 05           investments in branch network expansion yet to be
                                                                                                  made)
 Balance sheet                        21,796              13,500 *                12,744
                                                                                                  Advances at Rs. 13.5 billion; Growth of 77% over
 Advances                             13,464                  8,744                 7,610         March 31, 2005
 Deposits                             11,014                  8,742                 6,630         Deposits at Rs. 11.0 billion; Growth of 66% over March
                                                                                                  31, 2005
 Networth                               5,362                 2,245                 2,132


    IPO subscribed 30 times over; funds of INR 3,150
           million available from July 5, 2005
                                                           Rs.
* Balance Sheet normalized for the one time collections of Rs. 16 billion in the YES BANK IPO                                                            13
   Strong financial performance
                       Grow th and mix of advances                                             Grow th in deposits                                                   Balance sheet gro w th

                                                                                  12,000
              10,000                                                                                                                                     25,000
                                                                                  10,000                                                                                                                   21,914
               8,000                                                                                                                                     20,000




                                                                     Rs million
 Rs million




                                                                                   8,000




                                                                                                                                            Rs million
               6,000                                                                                                                                     15,000
                                                                                   6,000                                                                                                         13,500
               4,000                                                                                                                                     10,000                    12,782
                                                                                   4,000
               2,000                                                                                                                                                    7,449
                                                                                   2,000                                                                  5,000
                 -
                                                                                      0                                                                     -
                        31-Mar-05    30-Jun-05     30-Sep-05
                                                                                           Dec-04    Mar-05          Jun-05     Sep-05                            31-Dec-04 31-Mar-05 30-Jun-05 30-Sep-05

          Corporate & Institutional Banking    Business Banking


              Business Banking advances constitute approximately 40% of the Bank’s total advances
              Proportion of low cost CASA improves to 5.5% of total deposits as at Sep 30, 2005 from 1% as at Mar 31, 2005

                       Non interest to interest income                                          Return on assets                                                            Return on equity


              300.00                                                                                                                                     27.90%                               Equity capital raised
                                                                                                                      Steady improvement
Rs million




              200.00                                                              2.72%
                                                                                                                                    2.19%                17.90%                               20.44%          14.58%
              100.00                                                              1.72%                                 2.09%
                 -                                                                                                                                        7.90%
                                                                                  0.72%                                                                                          1.75%
                          Q3-2004    Q4-2004     Q1-2005   Q2-2005                                      0.37%                                            -2.10%    -0.59%
                                                                                  -0.28% -0.27%
                                                                                     31-Dec-04 31-Mar-05        30-Jun-05       30-Sep-05                   31-Dec-04    31-Mar-05     30-Jun-05          30-Sep-05
                 Net interest income     Non interest income




              NPA ratio at 0.0% - The Bank continues to maintain a clean portfolio with no NPAs as of Sep 30, 2005
              Capital Adequacy Ratio (CAR) of 26.8% at Sep 30, 2005 as compared to 18.8% at Mar 31, 2005
                                                                                                                                                                                                               14
Thank You




            15

								
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