- YES Bank is a private bank founded in 2004 that has expanded rapidly, with the number of offices increasing from 118 to 428 and number of employees increasing from 2671 to 7024 from 2008-2013. - Financially, deposits increased 76% while investments and interest income increased around 84% and 76% respectively over the five-year period. Return on equity rose 27% showing increased profits. - Compared to other private and commercial banks, YES Bank has increased the number of offices and business per employee at a higher rate but has a lower increase in number of employees, possibly to control costs.

1. FSA
FINANCIAL ANALYSIS
YES BANK
This document carries the comprehensive of
YES Bank Corporation
Saurabh Kumar
FORTUNE INSTITUTTE OF INTERNATIONAL BUSINESS

2. INTODUCTION
Yes Bank is a “Full Service Commercial Bank”. It is a fourth largest private Banks in India.
This report will throw light on the financial performance of YES Bank of the last five years.
The report has been prepared based so the certain essential parameters which have seen
selected from the financial statements of the company. The reason of selection was they are
the most suitable parameter on which a bank can be analyzed comprehensively.
The history of banks dates back to the fourteenth century in the wealthy cities of the
renaissance Italy. Throughout history hundreds of banks came into existence however their
main objective has remained the same ‘to link together customers that have capital deficits
and customers with capital surpluses’. Based upon this principles banks have came up with
innovative products and services fulfilling the demands of time and coping with the changes
of globalization in the twentieth and twenty-first centuries.
The history of Yes Banks is that it was founded in 2004 by Rana Kapoor. Yes Bank is the
only Greenfield Bank licence awarded by the RBI in the last two decades. Yes Bank has
steadily built a Corporate, Retail & SME Banking franchise, Financial Markets, Investment
Banking, Corporate Finance, Branch Banking, Business and Transaction Banking, and
Wealth Management business lines across the country.
Yes Bank has been recognized amongst the Top and Fastest Growing Banks in various
Banking League Tables by prestigious media houses and Global Advisory Firms, and has
received several national and international honours for various business including Corporate
Investment Banking, Treasury, Transaction Banking, and Sustainable practices through
Responsible Banking.
Yes Bank provide our corporate clients with a complete suite of investment and Banking
Services both India and internationally, in collaboration with our financial partners. Yes Bank
is steadily evolving as the professionals, Bank of India with long term mission of “Building
the Finest Quality Bank of the World in India” by 2020.

3. FINANCIAL ANALYSIS
In the following analysis, YES Bank has been independently analyzed at first and then its
performance has been compared with all the Private Banks in India. YES Bank, being a
commercial bank has also been compared with rest of the commercial banks in India which
eventually made our conclusion more concrete. The consolidated statements consisting of
most significant parameter on which banks have been compared can be seen in the annexure
section. The data collected is of last 5 years i.e. from FY 2008-2013. The various parameters
have been sequentially explained below:
No of Banks: - The Number of Banks in the category Commercial Bank is highest amongst
all the different sector banks like Public Sector Bank, Private Sector Bank etc in India. The
no. of banks in the Commercial Sector stood at 89 in the FY 2013 as compared to 20 & 26 in
private sector banks and public sector banks respectively. Hence, we can infer that the
Commercial Sector banks are expanding at a much more rapid pace as compared to private
and public sector banks.
No of Offices: -
The number of offices of YES Bank in the last five years hasn’t experienced a substantial
increase. The number of offices in the year 2008 stood at 118 which got at 428 in year 2012-
13. As we are seeing that banks has been rapidly increasing offices .The fact is that company
is want to expand business in new region through great service.
80 81 81
87 89
27 27 26 26 26
22 22 21 20 20
0
20
40
60
80
100
2008-09 2009-10 2010-11 2011-12 2012-13
No of Banks
Commercial Banks
Public Sector Banks
Private Sector Banks

4. No of Employees: -
As we are seeing in the graph of Yes Bank in FY 2008-09 no of employees is 2671 to FY
2012-13 is 7024. Bank increased employee by 62% within five years. We see that company
has tryning to expend branches as well as employee.
Business per Employee: -
As seen from the table below, the business per employee has increased from year 2008-09 is
98.84 to year 2012-13 is177.74. In FY 2010-11 is business per employee is 222.03 but after
that business per employee has been reduced. When we compared last two year that company
has been increased some percentages now company is trying to increase branches along with
business per employee
2008-09 2009-10 2010-11 2011-12 2012-13
118 151 215
357 428
No of Offices
Yes Bank
0
1000
2000
3000
4000
5000
6000
7000
8000
2008-09 2009-10 2010-11 2011-12 2012-13
2671 2906
3929
5642
7024
Yes Bank

5. Profit per Employee:-
As seen from the table below, Profit per employee had been increased by 45% within year
2008-09 to 2010-11. In FY 2011-12 profits per employee has been decline approx 3% and in
year 2013 has been increased. Over all within five year company has been increase profit per
employee by 46%.
Capital and Reserves & Surplus: -
As seen from the table below, capital and reserve surplus increased in year 2009-10 by 48%.
In year 2010-11 to 2012-13 capital and reserve surplus has been increase consistently. This
shows that the company has been regularly putting the profits after distribution back into the
reserves and surplus. Within five year capital and reserve surplus increased by 73%.
0.00
50.00
100.00
150.00
200.00
250.00
2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 98.84 162.38 222.03 174.77 177.42
AxisTitle
Business per employee
0.00
0.50
1.00
1.50
2.00
2.50
2008-09 2009-10 2010-11 2011-12 2012-13
1.14
1.68
2.09 2.04 2.10
Yes Bank

6. Deposits: -
 As we seeing that deposits has been increased by 76% in within five years.
 In FY 2010-11 deposits have been increased rapidly that means 48%. After that in
year 2010-11 and 2011-12 has been increased by slightly that is 7%.
 In last year Deposits has been increased by 27%.
 As we know deposits forms the major part of Liability of the balance sheet for the
banks and it has been increased hugely.
2008-09 2009-10 2010-11 2011-12 2012-13
16242
30896
37941
46766
58077
Capital and Reserves& Surplus
Yes Bank
0
100000
200000
300000
400000
500000
600000
700000
2008-09 2009-10 2010-11 2011-12 2012-13
161694
267986
459389 491517
669556
Yes Bank

7. Investment:-
 As seen below in the chart, investment has been increased tremendously in within five
year.
 As we know yes bank is a new private banks, and it wants to expand business rapidly.
 Within five year investment has been increased by approx 84%.
 In last year 2012-13 investment has been by 35%.
Interest Income:-
 As seen from the table below interest income has been increase rapidly in within five
years.
 Interest Income is generally derived from the loans given to customers and
companies.
 In year 2002-09 to 2009-10 interest income has been increased slightly by 16%.
 In FY 2010-11 to 2012-13 interest income has been increased constantly in high ratio.
 Over all in within five years interest has been increased by 76%.
0
100000
200000
300000
400000
500000
2008-09 2009-10 2010-11 2011-12 2012-13
71170 102099
188288
277573
429760
Yes Bank

8. Other Income:-
 As seen from the table below, other income has been increasing.
 In three years 2008-2010 other income has been increased constantly.
 In last two years other income has been increased rapidly that is 51%.
 Over all in within five year other incomes growth is 66%.
Operating expenses:-
 As seen from the table below, we see that operating expenses has been increasing
constantly.
 In last year operating expenses has operating has been increased by 31%.
 Over all in within five year increased operating expenses by 69%.
 High operating expenses points towards inefficient management practices.
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2008-09 2009-10 2010-11 2011-12 2012-13
20014 23697
40417
63074
82940
Yes Bank
0
2000
4000
6000
8000
10000
12000
14000
2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 4369 5755 6233 8571 12574
AxisTitle
Yes Bank

9. Return on Equity:-
 As we seen below in the graph, Return on equity of yes Bank is increasing
consistently.
 As we know Return on Equity = Net Income/Shareholder's Equity.
 In within five years return on equity increased by approx 27%.
 Increasing return on equity is a good sign for the YES Bank.
0
2000
4000
6000
8000
10000
12000
14000
2008-09 2009-10 2010-11 2011-12 2012-13
4185 5002
6798
9325
13345
Yes Bank
0
5
10
15
20
25
2008-09 2009-10 2010-11 2011-12 2012-13
20.65 20.27 21.13 23.07 24.81
Yes Bank

10. Return on Assets:-
 As seen from the table below, ROA gives an idea as to how efficient management is
at using its assets to generate earnings. Calculated by dividing a company's annual
earnings by its total assets. ROA is displayed as a percentage.
 In year 2008-09 to 20009-10 ROA is increased by approx 21%.
 In last three years ROA has been decline.

Capital Reserve Adequacy Ratio:-
Capital Adequacy ratio is used to protect depositors and promote the stability and efficiency
of financial systems around the world. It determines the capacity of the bank in terms of
meeting the time liabilities and other risks such as credit risk, operational risk. We see that
over the years, CRAR has increased by 10.30% which implies the stability and efficiency of
the firm. But, looking at the trend of CRAR we infer that bank has become vulnerable to
meeting of liabilities.
1.45
1.50
1.55
1.60
1.65
1.70
1.75
1.80
2008-09 2009-10 2010-11 2011-12 2012-13
1.59
1.79
1.58 1.57 1.57
Yes Bank

11. Net NPA Ratio: -
As seen from the table below, NPA Ratio has decreased over the year which is a good sign
for the company. Once the borrower has failed to make interest or principal payments for 90
days the loan is considered to be a non-performing asset. The decline registered in the NPA
shows that the assets in the jeopardy of default has reduced over the years which also ensures
that company is no longer paying any extra interest or principal payment.
0.00
5.00
10.00
15.00
20.00
25.00
2008-09 2009-10 2010-11 2011-12 2012-13
16.60
20.60
16.50 17.90 18.30
Yes Bank
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
2008-09 2009-10 2010-11 2011-12 2012-13
0.33
0.06
0.03 0.05
0.01
Yes Bank

12. COMPARISON WITH PRIVATE BANKS
AND COMMERCIAL BANKS
Number of Offices
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 118 151 215 357 428
Private Banks 4336 5243 7007 8297 9718
Commercial Banks 67562 72906 78215 85262 92114
 The trend seen from the table above shows, the percentage increase in Number of
offices has been the 36% for commercial banks, 55.39% for private banks, and
72.73% for YES Banks.
 Hence, we can infer YES Bank expand its market as compared to other private banks
and the commercial banks.
 YES Bank currently is growing at a higher rate as compared to other competitive
banks
Number of Employees
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 51341 55052 55380 62589 66208
Private Banks 193578 188332 217953 248284 269941
Commercial Banks 954684 955990 1001096 1048520 1096984
118 151 215 357 4284336 5243 7007 8297 9718
67562 72906 78215
85262
92114
0
20000
40000
60000
80000
100000
2008-09 2009-10 2010-11 2011-12 2012-13
No of Offices
Yes Bank
Private Banks
Commercial Banks

13.  The trend seen from the table above shows, the percentage increase in Number of
employees has been the 67.67% for commercial banks, 29.29% for private banks, and
22.96% for YES Banks.
 Hence, we can infer YES Bank expands its market but no of employee as compared to
other private banks and the commercial banks is low.
 Here we can say that YES Bank is trying to reduce its costs.
Business per Employee
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 98.84 162.38 222.03 174.77 177.42
Private Banks 67.76 77.27 82.60 86.23 94.06
Commercial Banks 73.98 86.23 99.03 109.95 121.33
 The trend seen from the table above shows, the percentage increase in Business per
employee has been the 59.03% for commercial banks, 28% for private banks, and
44.30% for YES Banks.
 Hence, we infer that YES Bank is higher than private banks in Businees per employee
but in comparison to commercial is low.
 It also reflects that the employees of the company are profitable enough that they are
able to make significant contribution to it.
51341 55052 55380 62589 66208
193578 188332 217953 248284 269941
954684 955990 1001096 1048520 1096984
0
200000
400000
600000
800000
1000000
1200000
2008-09 2009-10 2010-11 2011-12 2012-13
No of Employees
Yes Bank
Private Banks
Commercial Banks
98.84
162.38
222.03
174.77 177.4267.76
77.27
82.60
86.23 94.0673.98
86.23
99.03 109.95 121.33
0.00
100.00
200.00
300.00
400.00
500.00
2008-09 2009-10 2010-11 2011-12 2012-13
Business per Employees
Commercial Banks
Private Banks
Yes Bank

14. Profit Per Employee
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 1.14 1.68 2.09 2.04 2.10
Private Banks 0.56 0.70 0.81 0.92 1.07
Commercial Banks 0.55 0.60 0.70 0.78 0.83
 As seen from the table & graph above, we the percentage increase registered is
47.67% in Private Bank, 45.72% in YES Bank and 50.9% in Commercial Banks.
 Hence , we infer that YES Bank is performing the below in comparison to
commercial Banks and Private Banks
Capital and Reserves & Surplus
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 16242 30896 37941 46766 58077
Private Banks 996686 1199839 1385664 1592952 1929461
Commercial Banks 3679473 4301613 5099192 6085618 7089300
1.14
1.68
2.09 2.04 2.10
0.56
0.70
0.81 0.92 1.07
0.55
0.60
0.70 0.78 0.83
0.00
1.00
2.00
3.00
4.00
5.00
2008-09 2009-10 2010-11 2011-12 2012-13
Profit per Employee
Commercial Banks
Private Banks
Yes Bank
16242 30896 37941 46766 58077
996686 11998391385664 1592952 1929461
3679473
4301613
5099192
6085618
7089300
0
2000000
4000000
6000000
8000000
10000000
2008-09 2009-10 2010-11 2011-12 2012-13
Capital & Reserve surplus
Commercial Banks
Private Banks
Yes Bank

15.  As seen from the table above, we infer that the Capital Reserves & Surplus has
increased for YES Bank is negligible.
 The percentage increase in Capital & Reserve surplus has been the 49.10% for
commercial banks, 48.34% for private banks, and 44.30% for YES Banks.
 Hence, we infer that increasing percentage is more or less same to commercial Banks
and Private Baks.

Interest Income
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 20014 23697 40417 63074 82940
Private Banks 850714 828064 967131 1345555 1664864
Commercial Banks 3884816 4151786 4913407 6552839 7636115
 As seen from the table above, we infer that the interest income earned by the banks
has increased consistently over the years. The rise in interest income suggests that the
banks have operated well and have very well maintained their customer base along
with increasing it. A lower interest income puts pressure on the profitability on the
customer since this is the major source of income for the banks.
 The increase amongst all three banks have been registered at 75.87% in YES Bank,
48.91% in Private Banks and 96.5% in commercial banks which suggests that
commercial banks have been the most successful amongst all the three.
Other Income
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 4369 5755 6233 8571 12574
Private Banks 178602 204231 208734 250480 297927
Commercial Banks 752204 792676 798501 863437 977866
20014 23697 40417 63074 82940
850714 828064 967131 1345555 1664864
3884816 4151786
4913407
6552839
7636115
0
2000000
4000000
6000000
8000000
10000000
2008-09 2009-10 2010-11 2011-12 2012-13
InterestIncome
Commercial Banks
Private Banks
Yes Bank

16.  As seen from the table above, we infer that the other income increase amongst all
three banks have been registered at 65% in YES Bank, 40% in Private Banks and 23%
in commercial banks.
 Hence , other income of commercial bank is very negligible and YES Bank’s other
income is higher among the three.
Operating Expenses
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 4185 5002 6798 9325 13345
Private Banks 217794 228510 276064 340301 404851
Commercial Banks 895814 1000279 1231403 1375720 1565855
 As seen from the above table, we see that the pattern of operating expenses as seen in
YES Bank is also followed by the industry. The operating expenses have increased by
68.64% in YES Bank, 46.30% in Private Banks and 74.71% in Commercial Banks.
 Hence, we infer that yes bank operating expenses is low among the industry
commercial Bank and Private Banks.
 That is good sign for company .
4369 5755 6233 8571 12574
178602 204231 208734 250480 297927
752204 792676 798501
863437
977866
0
500000
1000000
1500000
2008-09 2009-10 2010-11 2011-12 2012-13
Other Income
Commercial Banks
Private Banks
Yes Bank
4185 5002 6798 9325 13345
217794 228510 276064 340301 404851
895814 1000279
1231403
1375720
1565855
0
500000
1000000
1500000
2000000
2500000
2008-09 2009-10 2010-11 2011-12 2012-13
Operating Expenses
Commercial Banks
Private Banks
Yes Bank

17. Return on Equity
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 20.65 20.27 21.13 23.07 24.81
Private Banks 11.38 11.94 13.70 15.25 16.47
Commercial Banks 15.44 14.31 14.96 14.60 13.84
 As we know that, Return on Equity = Net Income/Shareholder's Equity, ROE for
Commercial Banks shows a decline in the past five years whereas the trend of HSBC
Bank and Foreign Banks shows a considerable increase over the year
 The decline in ROE suggests that Commercial Banks haven’t been able to sustain
their Net Income as a result
 As we see that YES Bank is among top among industry and private Banks.
Return on Assets
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 1.59 1.79 1.58 1.57 1.57
Private Banks 1.13 1.28 1.43 1.53 1.63
Commercial Banks 1.13 1.05 1.10 1.08 1.03
20.65 20.27 21.13 23.07 24.81
11.38 11.94 13.70 15.25 16.47
15.44 14.31 14.96 14.60 13.84
0
20
40
60
2008-09 2009-10 2010-11 2011-12 2012-13
Return on Equity
Commercial Banks
Private Banks
Yes Bank

18.  As we seeing above that ROA of YES Bank is decline overall in five years by 2%.
 ROA OF Private Banks is increased by 31% and commercial Banks is declining by
8.85%.
 Declining percentage in ROA means that the bank hasn’t been able to utilize its
assets.
Capital Reserve Adequacy Ratio
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 16.60 20.60 16.50 17.90 18.30
Private Banks 15.23 17.43 16.46 16.21 16.84
Commercial Banks 13.97 14.54 14.19 14.24 13.88
 Capital Adequacy ratio is used to protect depositors and promote the stability and
efficiency of financial systems around the world. It determines the capacity of the
bank in terms of meeting the time liabilities and other risks such as credit risk,
operational risk.
 We see that CRAR has increased for the Private Banks too along with YES Bank in
the last five years whereas it has shown a constant trend for Commercial Banks.
1.59 1.79 1.58 1.57 1.57
1.13
1.28 1.43 1.53 1.63
1.13 1.05 1.10 1.08 1.03
0.00
1.00
2.00
3.00
4.00
5.00
2008-09 2009-10 2010-11 2011-12 2012-13
Chart Title
Commercial Banks
Private Banks
Yes Bank
16.60
20.60
16.50
17.90 18.30
15.23
17.43 16.46 16.21 16.84
13.97 14.54 14.19 14.24 13.88
0.00
5.00
10.00
15.00
20.00
25.00
2008-09 2009-10 2010-11 2011-12 2012-13
CAAR
Yes Bank
Private Banks
Commercial Banks

19.  Thus, we infer that Private Banks are safer to invest in as compared to the commercial
banks since their risk of default is relatively high.
Net NPA Ratio
Items 2008-09 2009-10 2010-11 2011-12 2012-13
Yes Bank 0.33 0.06 0.03 0.05 0.01
Private Banks 1.29 1.04 0.56 0.46 0.52
Commercial Banks 1.05 1.12 0.97 1.28 1.68
 Once the borrower has failed to make interest or principal payments for 90 days the
loan is considered to be a non-performing asset.
 As also explained above, YES Bank has done exceptionally well in maintaining the
NPA ratio. Also, Private Banks have also done a good job in reducing the NPA in the
last five years. Since NPA’s becomes a liability on the banks end, thus it becomes
necessary to get rid of them.
 The percentage decrease registered in all the three banks over the last five years is
59.69% in private Banks, 320% in YES Bank. On the other hand, it has increased for
commercial banks by 60% which is a sign of threat.
 Also, it shows that commercial banks must be making lot of losses because of bad
debts caused due to non-payment of loans which the borrowers have taken from them.
0.33
0.06 0.03 0.05 0.01
1.29
1.04
0.56
0.46 0.52
1.05 1.12
0.97
1.28
1.68
0.00
0.50
1.00
1.50
2.00
2008-09 2009-10 2010-11 2011-12 2012-13
Net NPA Ratio
Yes Bank
Private Banks
Commercial Banks