MANAGERIAL PERSPECTIVES

A

PROJECT STUDY REPORT ONTraining Undertaken atMARKETING ANALYSIS OF PERSONAL LOANS AND ITS OPEARTIONS

AT

2013-2014Submitted to the Partial Fulfillment of the Award of degree of

Bachelor of Business Administration

S.S.JAIN SUBODH P.G. COLLEGE, JAIPURSubmitted By: - Mr .

Submitted To:- BBA III year

Acknowledgement

It is with great of gratitude and happiness that I present a thoroughly made project on the Comparative Market Analysis of Personal Loans and its day to day operations offered by YES BANK and other major players in this sector.

This project is an insight into the current banking scenario of country in Personal LoanDivision. In the completion of the project many people have worked with me to carry forward my project. I express my deep sense of gratitude to all that have directly or indirectly helped in the successful completion of the project.

I would like to thanks whose guidance provide me to experience the practical working and understanding, and all the YES Bank staff for their interest, untiring efforts, unfailing courtesy, encouragement and cooperation in making a project a success.

I would also like to give my sincere gratitude to my Faculty Guide or Mentor, and all for providing the precious knowledge in regard of my project.

There can possibly be no claim to the perfection in the project. In the case I request to bear with any errors, omissions or discrepancies that may have crept in despite due care and caution on my part.

Executive summary

Real estate in India is currently one of the hottest investments options in Asia. A recent survey of the real estate scenario acknowledge the Indian metropolis of Mumbai, Bangalore and New Delhi as the top three investors' choices for real estate investment in Asia. But there were concerns mainly related to the availability of necessary funds for investment and in the more recent times, the boom in the real estate market opened the doors for a host of realty funds from financial institutions. Prior to five years, the real estate segment in India was neither organized nor were there too many large institutions in the construction industry. But now with an organized finance sector and with the increase in transparency levels, it has become easier to create financing vehicles.

The decrease in personal loan interest rates and an increase of disposable income has contributed largely to an increased demand in the residential segment. In spite of a rise in

Personal Loans interest rates and qualitative sanctions being levied by the RBI on banks, buying interest has not waned because Personal Loans are still cheaper than ten years ago. The retail markets are also undergoing a defining change with the introduction of larger retailing formats. The financial institutions also wasted no opportunity in tapping the fund requirement catering to the inflow of potential buyers in the retail sector. While most funds were initially floated by financial Institutions or banks such as SBI, LIC, HDFC, ICICI Bank, AXIS Bank and IDBI Bank, and even retailers have now entered the real estate sector for creating more retail facilities and have been hugely successful.

As the realty prices in India skyrockets, housing complexes mushrooming and city landscapes becoming unrecognizable, the growth across all real estate segments and experts estimate that demand will remain steady at the currently high levels because of the improving economic environment and the real estate sector is expected to grow 30% every year. This rising property prices encourage banks and financial institutions to lend more with the increase in collateral values. Although the Personal Loanproviders have hiked their rates twice in less than three months, Personal loans continue to be nearly 45 per cent cheaper than what they were in early 20011. Because if statistics are referred to, the interest rates which now range between 10-12 per cent, are still much lower than what they were ten years ago, at 16-17 per cent.

In addition to funds being raised by the Indian financial institutions like HDFC, ICICI and IDFC abroad, the money could be used to develop business and IT parks and townships. A study has revealed that as many as one million homes are financed every year in India now with an estimated home mortgages market of US$ 10.7 billion - contributing to India's phenomenal realty prospect.

Table of contents

Page No.

TITLE.............................................................................................................................................................. 1

CERTIFICATES...

AUTHENTICATION CERTIFICATE 2

TRAINING ORGANIZATIONS CERTIFIACTE 3

MENTORS CERTIFICATE 4

ACKNOWLEDGEMENT............................................................................................................................. 5

EXECUTIVE SUMMARY............................................................................................................................ 6

TABLE OF CONTENTS............................................................................................................................... 8

1. INTRODUCTION................................................................................................................................... 9

1.1 ABOUT YES BANK.................................................................................................................. 9

1.2 MISSION AND CORE VALUES............................................................................................... 1.3 KEY MANAGEMENT.........12

1.4 Corporate Partners 13

1.5 BOARD OF DIRECTORS15

1.6 MILESTONES...16

2. INDUSTRY SCENARIO........................................................................................................................ 18

2.1 PERSONAL LOANIN INDIA. 18

2.2 TYPES OF HOME LOANS. 20

2.3 TAX BENEFITS ON HOME LOANS. 23

3. YES BANK POWER HOME. 26

3.1 OVERVIEW. 26

3.2 LOAN PURPOSES... 27

3.3 ELIGIBILITY... 28

3.4 DOCUMENTATION... 29

3.5 LOAN AMOUNT. 33

3.6 TERMS AND CONDITION 34

3.7 FAIR PRACTICE CODE FOR LENDERS. 35

4. OPERATION FLOW OF HOME LOANS 40

4.1 ELIGIBILITY CALCULATION.. 41

4.2 EMI CALCULATION.. 42

4.3 LOAN TO VALUE TABLE......... 43

4.4 HIERARCHY OF OPERATIONS44

5. COMPARATIVE ANALYSIS OF PERSONAL LOANS ....45

5.1 FEATURES OFFERED BY OTHER BANKS.46

6. ANALYSIS AND FINDINGS...53

7. RECOMMENDATIONS AND SUGGESTIONS...54

8. SUMMARY AND CONCLUSION..55

9. REFERNCES AND BIBLIOGRAPHY...58

10. APPENDIXES..59

Overview of YES Bank

About YES BANK

YES BANK, Indias new age private sector Bank, is a state-of-the-art high quality, customer-centric, service-driven Bank catering to the Future Businesses of India. An outcome of the professional & entrepreneurial commitment of its Promoter & Founder, Dr. Rana Kapoor and his top management team, YES BANK is Indias fourth largest private sector bank (by balance sheet dated March 31, 2012).

Since its 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 has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. Today, YES BANK has a widespread branch network of over 380 branches across 275 cities, with 650+ ATMs and 2 National Operating Centres in Mumbai and Gurgaon.YES BANK has been recognized amongst the Top and Fastest Growing Banks in various Indian Banking League Tables by prestigious media houses and Global Advisory Firms, and has received several 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 numerous recognitions for its 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 & Responsible Banking. YES BANK has a knowledge driven approach to banking, and a superior customer experience for its retail, corporate and emerging corporate banking clients. 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 with the vision of Building the Best Quality Bank of the World in Indiaby 2015.

Brand Vision & Strategy

YES BANK is pursuing a Brand strategy to build one of the finest financial services 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 endeavor at YES BANK is to deliver an unprecedented Delightful Banking Experience to all its customers.

The name YES signifies

The essence of the brand 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 Best Quality Bank of the World in India To provide a Superior and Consistent 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 built around 5 Key Brand Pillars, which epitomize 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 symbolised 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! Human Capital: YES BANK has adopted a knowledge-driven, entrepreneurial management approach and offers financial solutions beyond the traditional realm of banking. YES BANK's top quality Human Capital represents the finest talent in Indian banking, chosen 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 & Responsible Banking: YES BANK considers Transparency and Accountability to be of utmost importance. YES BANK has established the most stringent Corporate Governance norms, and is committed to Responsible Banking by focusing on Sustainability and Social Responsibility.

The YES Money PlantThe money plant, Scindapsus Aurous, derives its name from the Roman word Aureus which means 'gold coin'. It is believed that the money plant brings wealth and happiness, and is most effective when shared with others.

YES BANK has been conceived in much the same spirit. We believe in adopting a focused, knowledge-based approach to establish long-term partnerships; thereby enabling us to 'create and share value' that extends beyond the traditional realm of banking.

A perennial climber, the money plant is characterized by growth. At YES BANK, it is our constant endeavor to partner the growth of our clients, while they gain from our expertise.

Since its inception in 2004, YES BANK has sent over 350,000 money plants to our valued customers across India.

Key Management

Top of Form

Dr. Rana Kapoor

Founder, Managing Director & CEOView Profile

Bottom of Form

Top of Form

Mr. Aalok Gupta

EVP & Country Head-Retail BankingRisk ManagementView Profile

Bottom of Form

Top of Form

Mr. Aditya Sanghi

President & Senior Managing Director - Investment BankingView Profile

Bottom of Form

YES BANK's Corporate Partners

YES BANK has formed strategic relationships with eminent Indian and global companies. These partnerships not only widen business platforms but also lay the foundation for a sustainable future.

AGS Transact TechnologiesATM Deployment partners

ATOM Technologies Mobile Banking Services

Atos Wordline Merchant acquiring

Bill Desk (Indiaideas.com) Online Bill Payment Facility

Bajaj Allianz General Insurance

Bharti Airtel Telecom Connectivity

FundTechCash Management and Financial Supply Chain Solutions

CISCO Technology Innovation and Infrastructure

CMCBack Office IT Solutions

Cognizant Technology Solutions Application Development Business Process Management Platform

CordysBusiness Process Management Suite

De La RueTeller Automation and Cash Dispenser Machines

Easy Bill Internet Banking Security Solutions

FIS Debit Card & Switching Services

IBMTechnology Hardware

Intel Technologies Wireless Fidelity (Wi - Fi) Branch Banking Solutions

MasterCard International International Debit Cards and Prepaid Cards

Max Life Life Insurance

Microsoft Enterprise Agreement for Servers, Desktops and other products

MurexIntegrated Risk Management and Treasury Solution

NABARD / NABCONSStrategic Advisory for Food and Agribusiness Sector

NCMSL Collateral Management & Warehousing Services

NewGen Software Technologies Cheque Truncation Solution

NSICFinancial Solutions and Advisory for Small Scale Industries

NuanceSpeech Recognition Solution - Contact Centre

Nucleus SoftwareE - Retail Assets Platform

Oracle Financial Services Core Banking and Internet Banking Solution

PortWise Internet Banking Security Solutions

Prizm Payments Services ATM Deployment Partners

Reliance Infocomm Telecom Connectivity, WAN MPLS Backbone and Data Centre Hosting

ReutersDealing Solution and Online Forex Trading Platform

Servion Global Integration Partners for Contact Centre Phone Banking Services

SIDBI Financial Solutions for SMEs

Sify Communications Redundant WAN MPLS Backbone , ATM Connectivity and Data Centre Hosting

Span Across Online Tax Return Filing Solution

TATA Teleservices Telecom Connectivity

TCS Hosted Cheque Truncation Solution

Visa International Debit Cards

Virtusa Application Development Business Process Management Platform

Wincor Nixdorf Self Service Solutions: Automated Teller Machines (ATM) and FinancialKiosks

Wipro Total Technology Outsourcing

Yodlee Inc Online Personal Finance Management

YSE Prepaid Cards

Share Capital of YES Bank

Authorized Share Capital : Rs. 300 Crores

Paid Up Share Capital : Rs. 232.86 Crores

Shareholding Pattern (As on 30/06/2012)

Sr. No.Name of the ShareholdersNo. of Shares Held% Stake to Total

A.Promoter Shareholding

1.Administrator of the Specified Undertaking of the Unit Trust of India -UTI - I (SUUTI)9,72,24,37327.11

2.Life Insurance Corporation of India3,71,95,83110.37

3.General Insurance Corporation of India81,23,3312.27

4.The New India Assurance Company Limited38,06,4431.06

5.National Insurance Company Limited26,81,7400.75

6.United India Insurance Company Limited16,16,4150.45

7.The Oriental Insurance Company Limited14,89,1180.42

Total Promoter Shareholding A15,21,37,25142.43

B.Non-Promoter Holding

8.Indian Financial Institutions (IFIs)37,23,8191.04

9.Mutual Funds2,90,63,3768.11

10.Others (Individuals/Corporate Bodies/HUF/Trusts/Banks) 4,24,54,67611.84

Total Non-Promoter Indian Shareholding B7,52,41,87120.99

C. Foreign Shareholding

11.FDI Route - GDRs Issue (2005 & 2007)1,36,72,0283.64

12.Foreign Financial Institutions (FIIs) 11,19,02,72033.90

13.NRIs/OCBs/FBD56,10,6611.56

Total Non-Promoter Foreign Shareholding C13,11,85,40936.58

Total A + B + C35,85,64,531100.00

Shareholding

Share Capital - Rs. 358.56 crores

Net Worth - Rs. 8,741.76 crores

Book Value per share - Rs. 254.42

Market Price as on 11/7/08 - Rs. 665.25

Market Cap as on 11/7/08 - Rs. 23,856 crores (US $ 5.56 billion)

Board of Directors

Top of Form

Dr. Rana Kapoor

Founder, Managing Director & CEOYES BANK LTD.Chairman - Nominations & Governance CommitteeChairman - Fraud Monitoring CommitteeChairman Capital Raising Committee

Bottom of Form

Top of Form

Mr. S.L Kapur

Promoter Nominee Non Independent DirectorFormer Secretary, Government of India, Ministry of Food Processing & Small Scale Industries

Bottom of Form

Top of Form

Mr. Arun K Mago

Independent DirectorChairman Board Remuneration CommitteeChairman Risk Monitoring CommitteeFormer Chief Secretary, Government of Maharashtra

Bottom of Form

INDUSTRY OVERVIEW

Personal Loans in India

The Personal Loansector in India is the pi-vital role player in the growth of the real estate scenario in India. With tax incentives given to the housing finance sector in the annual budget, transactions related to buying and selling of residential properties increased considerably and was much higher as compared to previous years.

Since the new class of buyers are relatively younger set of customers who are more aware about legal documentation and approvals, buyers are now more 'end-users' rather than investors; the property market in India undergoes transformation to align itself with global standards with an increased emphasis on quality & cost control and documentation methods. In the current economy of India, the real estate sector has the maximum propensity to generate income and demand for materials, equipment and services. It can be said that housing finance companies were formed for co-existing with buyer's requirements of housing loans for investing in properties. Personal Loansare made available by financial institutions to both Indian and NRI customers at floating and fixed rate of interest and also at attractive EMI options.

For construction or buying a new home

For home repairs and renovations

For purchase of plots

Against mortgage of property

No tax benefits are available for NRI customers unless you file returns and thereby become eligible to avail of the tax benefits.

Besides home loans, Commercial property loans are also available and different financial institutions in India provide commercial loans at different rates and different upper limits.

Real estate loans are available to builders, promoters and real estate developers. The experience and financial standing of the builders is taken into account before the loan is granted which is to be returned with the minimum installments.

Today, the amount of money that a city dweller spends on rent is roughly the same, or only slightly less than the amount he pays as an EMI on a housing loan. Earlier the Personal Loan sector in India was solely dependent on nationalized and public sector banks, but the entry of public sector banks into the housing finance business marked the beginning of the first round of interest rate cuts. And this reduction in interest rates has enhanced the borrowing power of customers. Moreover, HFCs are offering incentives to attract investors like

Some companies sanction the housing loan without requiring you to identify property as a pre-requisite for eligibility

Free accident insurance & property insurance

Waiving of pre-payment penalty

Waiving of processing fee

The realty boom in India has given a new dimension to the finance sector in India - both in Personal Loans and Home Insurance segments. This has not only given a competitive edge to the finance companies to provide attractive options to customers but has also contributed to the increased investments in the real estate sector. This has resulted in 13 new institutions foraying into the housing finance business in the last three years.

Major Personal LoanProviders

Banks & Public Sector Housing Finance Companies And Financial InstitutionsState Bank of India, Bank of Baroda Housing Finance, LIC Housing Finance, PNB Housing Finance, SBI Home Finance, HDFC, ICICI Bank Ltd, Standard Chartered- Grind lays, IDBI Bank Ltd, etc.

Types of Personal Loans

A person seeking investments for house or a property opts for Personal Loans for a variety of purposes ranging from construction to renovation. The Housing Finance Companies (HFCs) now offer individuals with various alternatives to choose from while buying a home loan. And the availability of Home Loans offered is as varied as their requirements.

Personal Purchase Loans

Personal Construction Loans

Personal Improvement Loans

Personal Extension Loans

Personal Conversion Loans

Land Purchase Loans

Stamp Duty Loans

Balance Transfer Loans

Refinance Loans

Loans to NRIs

Personal Purchase Loans:This is the basic home loan for the purchase of a new home.

Personal Construction Loans:

This loan is available for the construction of a new home on a said property. The documents that are required in such a case are slightly different from the ones you submit for a normal Housing Loan. If you have purchased this plot within a period of one year before you started

Construction of your house, most HFCs will include the land cost as a component, to value the total cost of the property. In cases where the period from the date of purchase of land to the date of application has exceeded a year, the land cost will not be included in the total cost of property while calculating eligibility.

Personal Improvement Loans:

These loans are given for implementing repair works and renovations in a home that has already been purchased, for external works like structural repairs, waterproofing or internal work like tiling and flooring, plumbing, electrical work, painting, etc. One can avail of such a loan facility of a home improvement loan, after obtaining the requisite approvals from the relevant building authority.

Personal Extension Loans:

An extension loan is one which helps you to meet the expenses of any alteration to the existing building like extension/ modification of an existing home; for example addition of an extra room etc. One can avail of such a loan facility of a home extension loan, after obtaining the requisite approvals from the relevant municipal corporation.

Personal Conversion Loans:

This is available for those who have financed the present home with a Personal Loan and wish to purchase and move to another home for which some extra funds are required. Through a home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need for pre-payment of the previous loan.

Land Purchase Loans:

This loan is available for purchase of land for both home construction or investment purposes

Stamp Duty Loans:

This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.

Balance-Transfer Loans:

Balance Transfer is the transfer of the balance of an existing Personal Loanthat you availed at a higher rate of interest (ROI) to either the same HFC or another HFC at the current ROI a lower rate of interest.

Re-finance Loans:

Refinance loans are taken in case when a loan for your house from a HFI at a particular ROI you have taken drops over the years and you stand to lose. In such cases you may opt to swap your loan. This could be done from either the same HFI or another HFI at the current rates of interest, which is lower.

NRI Home Loans:

This is tailored for the requirements of Non-Resident Indians who wish to build or buy a home or property in India. The HFCs offer attractive housing finance plans for NRI investors with suitable repayment options.

Tax Benefits on Personal Loans

As the Indian real estate market makes an upward swing, and investors opt for housing finance or home loans, tax benefits obtained from them is a lucrative option. Customers availing of Home Loans can claim a certain portion of the interest and principal that they pay towards the loan installments for reducing tax liability. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Moreover, an added tax benefits under Sec 80 C on repayment of principal amount up to Rs. 1,00,000 p.a. can be availed that can further reduce your tax liability by about Rs. 30,000 p.a.

Tax benefits can be claimed on both the principal and interest components of the Personal Loan as per the Income Tax Act, 1961. These deductions are available to assesses, who have taken a loan to either buy or build a house, under Section 24(b). Interest on borrowed capital is deductible up to Rs 150,000 if the following conditions are satisfied:

Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property.

The acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed.

The person, extending the loan, certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house

A loan for refinance of the principle amount outstanding under an earlier loan taken for such acquisition or construction.

If the conditions stated above are not fulfilled, then the interest on borrowed capital is deductible up to Rs 30,000 though the following conditions have to be satisfied:

Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property.

Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property.

If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed.

In addition to the above, principal repayment of the loan/capital borrowed is eligible for a deduction of up to Rs 100,000 under Section 80C from assessment year 2006-07.

Terms and conditions for availing Tax benefits on Personal Loans1. Tax deductions can be claimed on housing loan interest payments, subject to an upper limit of Rs 150,000 for a financial year. Interest on the fresh loan can be claimed as a deduction, subject o the stated upper limit.

2. An additional loan for extension/addition to the same house and the person's deductions on the existing loan are less than Rs 150,000; he can claim further benefits from the additional loan taken, subject to the upper limit of Rs 150,000 for a financial year.

3. Tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only when the payment is made. If a person fails to make EMI payments, he cannot claim tax benefits for the same.

4. According to the Income Tax Act, only the person who has taken the loan can claim tax rebates.

5. The interest on Personal Loanstaken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs 150,000.

6. A husband and wife, both of whom are tax-payers with independent income sources, get tax deduction benefits, with respect to the same housing loan; to the extent of the amount of loan taken in their own respective name.

7. If a person buys a house and sells it within the same year/after 3 years, and if any profit is made, then a capital gains tax liability arises on the same for which the individual is liable to pay short-term capital gains tax since the sale took place in the same year. But, if the sale had taken place after 3 years, then a long-term capital gains tax liability would have arisen.

8. If it is proved that the Personal Loanis simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax benefits, then tax benefits will not be allowed and benefits, previously claimed, will be clubbed to the income and taxed accordingly.

9. Tax benefits on interest on housing loans are allowable only for the original loan and for a second loan taken to repay the first loan and not for subsequent loans. This means that if you have already availed of one loan to refinance the original loan and want to now avail a third loan to refinance the second loan, tax rebate on interest payments will not be permissible. This is because the Section 24 (1) only talks of the second loan and not of subsequent loans. Even if you take the second loan at a rate of interest higher than the original loan, you will be eligible for a tax rebate on the second loan.

YES BANK

Quick and easy home loans

Overview:

YES Bank's Power Home puts an end to your Real Estate troubles. Augment your reach and buy the house that you've set your heart on

Features

Attractive interest rates

Balance Transfer facility

Doorstep service

Option to choose from floating rate or fixed rateBenefits given by YES Bank:

Free personal accidental & property insurance.

No Prepayment charges.

Power Personal Loan Purposes

You can apply for Power Home for the following purposes -

Purchase of a plot of land and construction of a house thereon

Construction of a house on plot of land already owned

Purchase of a new house or flat

Residual age of the property should not be less than 30 years old (Home Acquisition Plan)

Extension or renovation or repair of a house or flat already owned by self (improvement or extension plan)

Take-over of existing Housing Loan (Balance Transfer)

Pre-allotment booking finance

Loan takeover with additional refinance (Balance Transfer + top up)

Loan to NRI for purchase of ready residential property only

Purchase of residential plots only

Power Personal loan: Eligibility

Salaried Individuals

Any individual who is in permanent service in Government or reputed companies.

The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to the age of superannuation.

Professionals

Professionals (ie, doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, management consultants only) can apply.

The applicant should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity.

Self Employed Individuals

Any individual filing Income Tax returns can apply.

The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity.

Power Home: Documentation

Documents Required

The following documents are required along with your loan application

In Society Cases

Society Allotment Letter.

Site Plan

Society Receipt.

Development Charges (Rs. 10/Squre yard).

In Case of Housing Board

Allotment Letter.

Possession letter.

Regularization cum NO dues Certificate.

Convenience Deed (for structure).

Perpetual Lease Deed (for Land).

In case of Development Authority

Site Plan.

DA Registered Lease Deed.

In Case of Industrial Corporation

Allotment Letter.

Site Plan.

File DocumentationPurposeSalariedOthers

Proof of identityVoter's ID card or driving license or PAN card or photo credit card or employees ID card or defense or police or government department ID cardVoter's ID card or driving license or PAN card or photo credit card

Proof of

IncomeLatest salary slip showing all deductions or Form 16 along with recent salary certificateIT returns for the last 2 years and computation of income for the last 2 years certified by a CA

Proof of residenceBank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or latest LIC policy or insurance premium receipt or employers letter certifying the current mailing address or latest NSC or other similar instruments indicating the address or existing house lease agreementBank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or latest LIC policy or insurance premium receipt or latest NSC or other similar instruments indicating the address

Bank statement or Pass Book where salary or income is credited Last 6 months Last 6 months

Guarantor formOptionalOptional

PROPIETORSHIP FIRM

Last three yrs. Saral form.

Computation of income.

Trading &P&L a/c.

Balance sheet.

PARTNERSHIP FIRM

The above Documents +

Partners Capital a/c.

Partnership Deed.

COMPANY

Memorandum &Articles of Association.

Board Resolution.

COMMON DOCUMENTS Six Months Saving Bank statements.

Last one year Statement in case of Current A/C.

Address proof.

Photo ID.

IF Customer is already taken any other Loan than Track Record of that loan.

Note:

With these Documents we also take a blank cheque of Processing fee. (That is Max.1%of loan amount)Power Personal: Loan Amount

The limits on the loan

Minimum Rs.1lac

Maximum No Limit

Margin

15% in the case of Personal Loans 25% in case of improvement or renovation loans

Power Home: Terms and Conditions

Repayment

Repayment period for Personal Loansshall not exceed 20 years

Repayment period of pre-allotment bookings of housing loans shall not exceed 1 year

Repayment period of improvement or renovation or extension of existing property shall not exceed 10 years

Security

Equitable mortgage of the property to be financed by way of deposit of title deeds.

Disbursement

The loan will be disbursed in full or in suitable installments, taking into account the requirement of funds and progress of construction, as assessed by the Bank directly to seller or builder or local development authority or supplier of materials etc.

Processing charges or admission fee

Processing fee equivalent to 1% of the loan amount (applied for) will be collected along with the application form (taxes as applicable).

Penalty for early closure

2% of the principle outstanding in case of takeover by other bank or HFC, otherwise nil.

Other Conditions

Bank reserves the right to reject any application without assigning reasons thereof

The applicant will undertake to inform the Bank as and when there is a change in address or employment

The terms and conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion.

Power Home: Fair Practice Code for Lenders

As directed by the Reserve Bank of India, vide circular DBOD.No.Leg.No. BC.65/ 09.07.005/2006-07 dated March 6, 2007; the Bank has adopted modified Fair Practice Code for lenders as approved by the Board of Directors. The salient features of the same are:

Applications for Loan

In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any payable for processing and amount of such fees refundable in case of non acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories of loans, irrespective of the amount of loan sought by them.

Processing

The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.

The Bank shall verify the loan application and if additional details / documents are required, these will be sought from the applicant.

For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for rejection within one month.

Loan Appraisal and Terms and Conditions

The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer.

All the terms and conditions and other caveats will be duly communicated by an authorized official of the Bank to the customer in writing.

The acceptance of the customer will be obtained on the sanction letter with the customer's signature under the caption "I/WE ACCEPT ALL THE TERMS AND CONDITIONS WHICH HAVE BEEN READ AND UNDERSTOOD BY ME/US".

A copy of the loan agreement along with all the enclosures quoted in the loan agreement will be furnished to the customer at the time of issue of the sanction letter.

The sanction letter / loan agreement will clearly state that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the discretion of the Bank.

i) Drawings beyond the drawing power / sanctioned limits.

ii) Honoring of cheques issued for the purpose other than specifically stipulated in the sanction.

iii) Drawings in an account once it is classified as NPA.

iv) No drawings will be allowed in case of non-compliance of the terms and conditions by the borrower.

v) Meeting further requirements of the borrower on account of growth in business will be subject to proper review of the credit limits.

Disbursement of loans including changes in terms & conditions

The disbursement will be done immediately on compliance of all the terms and conditions of the sanction by the borrower and the branches need not refer to the sanctioning authority for disbursement.

Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes.

Any changes in interest rate and charges will be effected only prospectively after giving due notice to the borrower.

Post disbursement supervision

The post disbursement supervision, such as submission of periodical reports and periodic inspection, will be stipulated at the time of issue of the sanction letter. The sanction letter would also mention whether the Bank or the borrower will bear the cost of inspection.

The Bank will issue notices to the borrowers in advance in case the Bank decides to recall the advance / accelerate the payment / accelerate the performance under the loan agreement. Or seek additional securities.

The Bank shall release all securities on receiving payment of loan. However, the Bank may decide to exercise the right to set off any legitimate right or lien for any other claim against borrower. In case the Bank decides to retain the security, the borrower will be notified about the remaining claims and the documents under which the Bank is entitled to retain the security till the relevant claim is paid / settled.

Others

The Bank will not interference in the affairs of the borrowers except where provided for in the terms and conditions of the loan sanction documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks and book debts, and scrutiny of QIS statements.

In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and initiate action to protect its interest.

While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending.

In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power.

In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks / FIs which propose to take over the loan, the Banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request.

Grievance Redressal

Though the sanction of the loans will be at the sole discretion of the Bank, borrowers will have an opportunity to appeal against the decision of the Bank's functionaries. Any such grievance received from the borrower will be heard and disposed of by the next higher authority. For this purpose the following review structure is available to the borrower,

Grievance against decision ofReviewing Authority

Branch HeadZonal Head

VP / AVP Zonal Head

Zonal HeadPresident (Credit) for corporate advancesPresident (Merchant Banking) for capital-market related advances andSenior Vice President (Retail Banking) for retail advances.

Corporate Credit & Retail Loans (under Retail Banking)Executive Director

All othersChairman and CEO

Operation Flow of Personal Loansin YES BANK

Details:

Login of Files: Details related to customer is stored in Excel Sheet.

Field Investigation: Income Documents of customer is verified.

Credit Appraisal Sheet: At this stage preparation of loan eligibility and calculation of EMI take place.

Calculation of Eligibility

IIR Income to installment rates

FOIR Fixed obligation installment rate

%SalariedSelf EmployedSelf Employed (professional)

45%If net salary is7500 to9999 If net income is 8000 to9999If net income is 7500 to9999

50%If net salary is 10000 to 19999If net salary is 10000 to 19999If net salary is 10000 to 19999

55%If net salary is 20000 above.If net salary is 20000 above.If net salary is 20000 above.

For Example

Salary (pm) = 10,000

Then, applicable FOIR = 10,000 * 45%

= 4,500/969

= 4.64 lacs

Now, a max. limit of loan to be provided is 4.64 lacs

* For Self Employed 2 years average of Net Profit is considered.Calculation of Net Salary

In case of salaried person we calculate the average of the six months pay slip.(If Net Salary is variable)

In case of self employed we use the following formula-

Net income = net profit +depreciation (upto 150% of NP) + 50% of income

from other sources +100% rental income + 20 % of

agriculture income (if cont for last 3 years)

EMI Calculation

P * r/12 (1 + r/12) n * 12

EMI =

(1 + r/12) n *12 1

Here:

P = Principal Amount

R = Rate of interest

N = No. of years

Amortization

For Example - 1, 00,000 @ 10% for 20 years

Interest = 1, 00,000 * 10 % = 10,000

Interest per month = 10,000 / 12 = 900 Rs.

Principal amount = EMI Interest

= 969 900

= 69 Rs.

Loan Kit Signature: Loan agreement is signed by customer and PDCs is taken

from customer.

Loan to Value (Funding)Table

Types of LoansLTVMax.Years

Construction85%20

Purchase85%20

Plot/Land Purchase75%10

Repair/Extension 75%10

Land Purchase + Construction85%20

Balance Transfer85%20

NRI

Land Purchase

House Purchase10

15

Loan Tenure

S.No.CategoryTenure

1.SalariedUp to retirement/20 yrs.

(whichever is earlier)

2.Self EmployeeMaximum 15 yrs /subject to65 yrs(whichever is earlier)

3.ProfessionalMaximum 20 yrs/subject to 65 yrs(whichever is earlier)

Mode of Payment

PDCs (Post dated checks). S.I.(Standard Institution)

ECS (Electronic Clearance)

Hierarchy of Operations

Comparative Analysis of Personal LoansComparative Chart on Personal LoanInterest Rates

Financial InstitutionsTenure (in years)Rate of Interest FixedRate of Interest FloatingProcessing Charges

State Bank of India0-20 years2% to loan amount

ICICI0-25 years14%11.%2% to loan amount

LIC Housing Finance Ltd.0-20 years-10.75%2% to loan amount

HDFC0-20 years13.25%10.25%2% to loan amount

IDBI0-25 years12.00% - 12.25%10.5%1 % of Loan Amount

YES Bank0-20 years13.25%10%0%

Note:

LTV 85%

Minimum Return 1.20 lacFeatures Offered By Other Banks

SBI

Unique features:

Provision for on the spot "In principle" approval.

Loan sanctioned within 6 days of submission ofrequired documents.

Option to avail Personal Loanas a Term Loan or as an Overdraft facility to save on interest and maximize gains (see SBI MaxGain in the following sections).

Option to club income of your spouse and children to compute eligible loan amount.

Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount.

Provision to finance cost of furnishing and consumer durables as part of project cost.

Repayment permitted upto 70 years of age.

Free personal accident insurance covers upto Rs.40 Lac.

Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost).

Interest calculatedon daily reducingbalance basis, and starts from the date of disbursement.

Plus schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers,Employees in Public Sector Oil Companies.

Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat.

Option to avail loan at the place of employment or at the place of construction.

Package of exclusive benefits:

Complimentary international ATM-Debit card

Complimentary SBI Classic/ International Credit Card.

Option for internet-banking

Concessional package under Credit Khazana for prospectiveAuto Loan,Student Loan, Personal Loanborrowers whose accounts are conducted satisfactorily

50% concession in charges in respect of all personal remittances/ collection of outstation cheques

Personal loan at attractive rates under SBI Home Plus scheme tailored exclusively for SBI Personal Loancustomers.

ICICI

Some of the special offers we have are:

Attractive loan interest rates

Personal Loanamounts suited to your needs

Personal Loantenure upto 25 years

Simplified Documentation

Doorstep Delivery of Personal Loanpapers

Sanction approval without having selected a property.

Free Personal Accident Insurance (Terms & Conditions)

Insurance options for your Personal Loanat attractive premium

No matter what the requirement, we have an appropriate plan for you, though most of our Personal Loanplans are for salaried/self-employed Resident Indians. Get the best deals ever, and finance the perfect home, only from ICICI Bank.LIC Housing Finance

Special Features:

Loan amount from Rs. 1 Lakh onwards Low interest rates No hidden costs Easy application & quick approvals Largest Network Tax Benefit A financially strong and stable company we have already sanctioned loans to over 5 lakhapplicants.With a network of more than 100 officesin the country we are always accessible toyou,wherever you may be.

HDFC

Personal Loan- Personal Loansfor individuals to purchase (fresh / resale) or construct houses. Application can be made individually or jointly. HDFC finances up to 85% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges).

Home Improvement Loan - HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminum windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers).

Home Extension Loan - HEL facilitates the extension of an existing dwelling unit. All the terms are the same as applicable to Home Loan.

Land Purchase Loan - Be it land for a dream house, or just an investment for the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land.

HDFC finances up to 70% of the cost of the land (Conditions Apply). Repayment of the loan can be done over a maximum period of 10 years.

Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly Fixed or Partly Floating.

Flexible repayment options to suit your individual needs.

Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd. offers an insurance plan*, which is designed to ensure that life's uncertainties do not affect your

family's interests and your precious home. LCTAP provides a lump-sum payment on the unfortunate demise of the life assured.

This pure risk plan is designed in a way that the cover decreases as you repay your Personal Loanmaking it a low cost premium insurance plan.

*Insurance is the subject matter of solicitation.

Automated Repayment of Personal LoanEMI - You can give us standing instructions to repay your Personal LoanEMIs directly from your HDFC Bank Savings Account, thus, saving you the trouble of procuring, signing and tracking post-dated cheques.

HDFC also offers In-house scrutiny of Property documents for your complete peace of mind.

Customer privileges - If you are an existing HDFC Personal Loancustomer, you can avail of other loans (such as Personal Loans, Car Loans, Two-wheeler Loans and Loan against securities) at lower interest rates.

IDBI

Advantages of IDBI Ultra Flexible Home Loans:

Maximum Funding

Flexibility of choosing between Floating or Fixed interest rate

Attractive rate of interest

EMI on daily reducing balance

Personalized doorstep service

Simple documentation

Legal and technical assistance

Balance transfer facility

Reassessment and adjustment of applicant's loan eligibility in case of change of income and residence status

Special insurance cover for you

You can avail of a special insurance cover on your Personal Loanfor a small premium.

Features

Tenure of a Personal Loancan be up to 25 years for a resident individual whereas for NRIs the maximum tenure is 15 years subject to maximum age of 60 years at maturity.

Loan can be applied for a maximum of 90% of the property value subject to credit discretion.

Security for the loan is a first mortgage of the property to be financed, normally by way of deposit of the title deeds or such collateral security as may be necessary.

Title to the property should be clear and free from encumbrance, i.e., without any pending legal litigation adversely affecting the ownership of the property.

Other parameters considered include an account of your age, income, number of dependents, financial stability and co-applicants income.

Personal LoanWith Life Insurance You can include your spouse/parents/children as co-applicant if you require higher eligibility subject to maximum of three applicants.

The maximum possible tenure for a Resident Indian is 25 years if employed and 15 years if self employed. While the same for an NRI is 15 years. In the event of your opting to pre-pay the Personal Loanwith us, a nominal fee of 2% is payable in case, it is transferred to another bank or housing finance company. However, no charges are applicable if you prepay from your own sources after 6 months of commencement of EMI.

Analysis and Findings

Mortgage Market Growth. As Indias housing market continues to grow and mature, it

will be important to monitor the market. During the rapid expansion of the mortgage market from about 2003 to 2008, many commercial banks eased their lending standards as they pursued heightened demand in the market spurred by low interest rates and rising personal incomes.

With demand outpacing housing supply, property prices in urban areas doubled in some

neighborhoods. Prices were also bolstered by some speculative activity in the market in from mid-2005 to about early 2008. Thus, some commercial banks pursued aggressive growth strategies, offering loans as high as 100% of the cost of the property.

Retail Asset Products - While working on the project I found out and analysis that

Retail advances of YES BANK grew from Rs. 8,928 crores as at end March'07 to Rs. 13,592 crores as at end March'08, a growth of 52% yoy. Retail Advances account for 23% of the total Advances of the Bank as at end March'08. The Bank has set up Retail Asset Centres (RACs) at 70 towns and cities for focused retail lending. Lessons and Recommendations

Commercial Viability of Underserved Segments: One of the most important lessons that can be learned from the Project is that mortgages for customers in the Low-Middle Income segments can be commercially viable. This borrower segment can be more risky, but, if underwritten and priced appropriately, the risks can be adequately contained.

New Marketing Strategies:

Comparative advertising should be done to aware the consumers with the benefits provided by the bank. Proper branding of Retail Asset Center should be made for a large market capitalization and growth.

Payment System:

If facility of Direct account transfer should be offered, then it will make payment

system easier for customer whose accounts are in other banks.

Funding Of Sources:

At present Axis Bank is providing 6.31% appox. retail advances of total deposits. If increase in the percentage ratio 8-10%, then it will allow more finances of short term loans to the customers which will assist the bank to increase their income sources.

Others:

1. Minimum limit of Personal Loansamount should be decreased to attract the small Personal Loansector (construction, repair etc.).

2. Provide finances up to 85% of the cost of renovation (100% for existing customers).

Summary/Conclusion

Finance for real estate is now easily available in India. The property boom is not restricted to the national capital region but it has even transcended to satellite towns and remote semi-urban areas in and around the national capital. The number of transactions in the real estate sector has increased a number of times, making it profitable for the banks and other lending institutions to offer more finance opportunities to the buyers.

In India, the most of the borrowers in Personal Loansegment fall in the first time buyer category. It means that they are either tenants or living with their parents in their ancestral house. As the salaried-class is spreading and emerging stronger than ever, more and more people are becoming capable of buying house. Their need to get finance from banks is being taken care of by all the major players in the market. Banks like AXIS, ICICI, SBI, LIC, HDFC and all the nationalized banks are offering Personal Loansat attractive rates.

The housing finance industry is getting increasingly commoditized. Competition within the sector is ensuring that players offer consumers flexibility and features to choose from. Features such as adjustable rate plans, lower processing fees, monthly rest, low interest rates, low EMI, lower margin money, no pre-payment penalty have become common across the industry. There is a growing trend among Banks and HFCs to include the cost of registration, stamp duty, society charges and other associated costs while sanctioning loans to differentiate and make the Personal Loansproducts more attractive. This has resulted in further lowering the threshold limit for buying a house for differentiation of their Personal Loanproducts, companies are also resorting to offering of free add-ons such as life insurance, credit cards and consumer loans at reduced rates for furnishing the house.

Several housing finance companies have now begun to offer tailor-made loan schemes to renovate, repair, extend, convert or otherwise improve ones home. Companies like HDFC and others provide home improvement loans for purposes like external repairs, water-proofing, roofing, internal and external painting, plumbing and electrical work, tiling and

flooring, grills and aluminum windows, construction of underground or overhead water tanks, paving of compound walls and setting up borewells, among other things.

Some of the major players in the housing finance industry have started organizing property fairs, wherein the projects of different construction companies are brought together and bundled with a lower than normal interest rate loan product. Such initiatives are expected to result in a more organized housing market and more value for the customer.

On the services front the housing finance companies have begun addressing concerns of borrowers through counseling and legal advisory services on matters pertaining to propertys title, its technical evaluation, its pricing etc. Customer relationship management is emerging as one of the key areas of competition to win over new customers. Housing finance companies have been upgrading their technology and investing in sophisticated systems for sourcing, processing and managing information pertaining to Personal Loancustomers.

As the scope for product differentiation is increasingly getting limited, the housing finance companies will increasingly compete on the strength of their service quality. Rendering technology-enabled value added services would enable the housing finance companies to better withstand the competition.

The procedure for taking a Personal Loanis rather easy. You can directly approach the bank or call for a meeting to be arranged with the bank's loan executive. This can also be done over the Internet. The banks may ask for various proofs like those related to your residence, income, spouse's income, number of dependants, etc. Based on a number of parameters, the banks arrive at your credit rating and offer you varying amount of loans.

Personal Loansin India come in various forms inviting fixed interest rate or floating interest rates. There are hybrid loans also that are a middle path between fixed and floating options. The borrower can put a part of his loan amount under fixed rate and expose the other part to the floating rates that depend on market conditions and the interventions by the Reserve Bank of India.

The Internet as a medium of loan arrangement is fast catching up in India. Many websites are coming up that take care of individual and corporate finance for various purposes like buying real estate, investments, business operations, etc. This medium of finance is growing rapidly although it is surely in its nascent age as far as the Indian market is concerned.

References and Bibliography

Net Sites:

www.axisbank.com www.emkayshare.com www.indiaground.com/home_loans www.in.ibtimes.com/articles/20070806

www.niftindia.com/Axisbanklist.html www.indiahousing.com www.indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=330584 www.equitymaster.com/DETAIL.ASP?story=2&dateReleases:. Analyst PPT Q1 FY09 of YES Bank. Annual Performance Report.News Paper and Magazines:

Business World April June Editions.

4Ps of Marketing April June Editions.

Economic Times April June Editions.

Appendixes

Key Financial Performance Indicators

Q1FY13 Q1FY12 Q4FY12

Return on Assets 1.5% 1.5% 1.5%

Return on Equity 24.0% 22.1% 23.6%

NIM 2.8% 2.8% 2.8%

Cost to Income Ratio 39.5% 37.4% 39.8%

Non Interest Income to Total Income 37.9% 31.8% 37.3%

Capital Adequacy 16.5% 16.2% 17.9%

Tier I Ratio 9.2%* 9.6% 9.9%

Book Value (`) 140.7 115.5 132.5

Gross NPA 0.28% 0.17% 0.22%

Net NPA 0.06% 0.01%

PERFORMANCE HIGHLIGHTSQ1FY13 Performance highlights Sound growth in Advances and Deposits: Total Advances grew by 16.4% to ` 38,533.9 crore as at June 30, 2012 from ` 33,104.2 crore as at June 30, 2011. Customer Assets (Loans & Credit Substitutes) grew by 32.4% y-o-y to ` 49,338.7 cr as at June 30, 2012.

Current and Savings Account (CASA) deposits grew by 71.5% y-o-y to ` 8,170.2 crore taking the CASA ratio to 16.3% as at June 30, 2012 up from 10.9% as of June 30, 2011. The Bank continues to demonstrate increased traction in CASA on the back of enhanced Savings Rate offerings and improvements in productivity. Retail Banking Liabilities (CASA + Retail Banking term deposits) improved from 27.2% of Total Deposits as of June 30, 2011 to 37.3% as of June 30, 2012. Total Deposits grew by 15.2% to ` 50,208.1 crore as at June 30, 2012 from ` 43,575.9 crore as at June 30, 2011. The Banks Balance Sheet grew by 37.3% to ` 78,223.9 crore as at June 30, 2012 from ` 56,963.6 crore y-o-y.The Bank has adopted a cautious approach to lending given the economic environment and hence the current loan mix stands at: Corporate & Institutional Banking accounting for 64.0% of the loan portfolio, Commercial Banking 20.2% and Branch Banking 15.8%.

Healthy Net Interest Income (NII) Growth: NII for Q1FY13 increased by 33.3% y-o-y to

` 472.2 crore from ` 354.2 crore in Q1FY12. This was on account of stable growth in Customer Assets and stable NIM of 2.8%.

Robust growth in Non Interest Income streams: Non Interest Income grew by 74.3% y-o-y to ` 288.1 crore for Q1FY13 from ` 165.3 crore in Q1FY12. This was on the back of continued growth across all income streams Financial Advisory, Transaction Banking, Financial Markets and Retail Banking Fees & Others, that showed firm traction y-o-y.

Strong growth in Net profit: Net profit for Q1FY13 was up 34.3% to ` 290.1 crore as compared to ` 216.1 crore for Q1FY12 driven primarily by sustained and diversified revenue growth. The Cost to Income ratio was 39.5% in Q1FY13.

Consistently healthy Asset Quality: The Banks continued risk mitigation practices results in Gross Non Performing Advances ratio of 0.28% (Total GNPA at ` 109.5 crore)and a Net Non Performing Advances ratio of 0.06% (Total NNPA at ` 23.7 crore)as of June 30, 2012.

Banks total loan loss coverage ratio was at 295% while specific provisioning cover was at 78.3% as at June 30, 2012. Total Restructured Advances of ` 196.5 crore remained flat sequentially at 0.51% of Gross Advances as of June 30, 2012.

Strong Shareholders returns: The Bank delivered RoE of 24.0% and RoA of 1.5% for Q1FY13. Return on Assets has been at or abover 1.5% over the past 15 quarters, and Return on Equity has been approximately 20% or above over the last 4 years.

Capital Funds: Tier I Capital stood at 9.2% (9.7% including Q1FY13 PAT) and total CRAR stood at 16.5% as at June 30, 2012. Total Capital funds grew by 33.9% to ` 9,494.9 crore as at June 30, 2012 compared to ` 7,090.3 crore as at June 30, 2011.

Expansion/ Investment Initiatives YES BANK added 25 branches across the country during the quarter, taking the total branch count to 381.

YES BANK further augmented its presence in Chennai with the launch of its state-of-the-art branch at Adyar. The branch was inaugurated by His Excellency, Dr. K. Rosaiah, the Governor of Tamil Nadu. YES BANK added 387 ATMs to its network since 30 June 2011, taking the total count to 642 ATMs as on June 30, 2012.

Employee strength stood at 6,183 as on June 30, 2012; a growth of 41% over June 30, 2011.

Retail Products YES SWARN: YES BANK entered into Gold Bullion distribution, making available the yellow metal to its customers at competitive prices and strong demand was seen among wealth management customers.

Online Goal-based Recurring Deposits scheme: A unique variant of the traditional Recurring Deposits scheme was launched, based on the Systematic Investment Plan model, using the Banks Net Banking services.

Awards & Recognitions YES BANK received the No. 1 Sustainable Bank of the Year (Asia/Pacific) award at the FT/IFC Sustainable Finance Awards 2012, London, for the second consecutive year and for the third time in the last 5 years

YES BANK was awarded the Performance Excellence Trophy (Service Category) at the IMC Ramkrishna Bajaj National Quality Awards 2011.

Capital Raising Initiatives YES BANK successfully raised ` 140 crore of Innovative Perpetual Debt Instrument Tier I Capital & ` 60 crore of Upper Tier II Capital, rated ICRA AA- by ICRA & CARE AA- by CARE.

Financial Advisory, Debt Structuring, Debt Capital Markets & Loan Syndications YES BANK was the Sole Arranger of ` 1,500 crore Bond issue for Hindalco Industries Ltd

YES BANK was the Joint Arranger of ` 1,500 crore Bond Issue for Tata Steel Ltd

YES BANK was the Sole Arranger of ` 300 crore Bond issue for United Phosphorus Ltd.

YES BANK was the Joint Arranger of ` 200 crore Bond issue for Indian Hotels Ltd.

PROFITIBILITYFY 2011-2012

FY 2011-2012

FEE INCOME COMPOSITION

In Q1, Fees have grown particularly strongly in Capital Markets and Corporate Banking

FY 2011-2012

FY 2011-2012

BUSINESS OVERVIEW

TOP SECTOR EXPOSURES

RankSectors % of Total

Corporate Credit

1Gems & Jewellery 8.97**

2Metals8.24

3Infrastructure7.70

4Real Estate7.68

5Financial Companies*7.33

6Trade5.64

7Textiles5.43

8Petrochemicals4.02

9Food Processing4.00

10Chemicals3.99

As on 30.6.2012* Housing Finance Companies and other NBFCs.

** 76% of this exposure is backed by cash margins RETAIL BANKING

INCREASING REACH

Mar2007Mar2008Mar2009Mar2010

Mar2011Mar2012JUN2012

Branch Demographics

BranchesExtn. Counters

Metro

Urban

Semi-urban

Rural

236

284

147

26

15

5

0

0

TOTAL69320

RETAIL ASSETS

JUN2012

JUN2012

Retail Assets grow 52% yoy.

Retail Assets constitute 24% of the Banks total advances, as against 23% at end June07.

Growth driven through Retail Asset Centres (RACs).

70 RACs established so far.

COMPOSITION OF RETAIL ASSETS

INTERNATIONAL PRESENCE

Representative Office opened at Dubai in May12 Branches at Singapore, Hong Kong and DIFC, Dubai.

Representative office at Shanghai.

Total assets under overseas operations amounted to US$ 1.80 billion.

Corporate Banking, Trade Finance products, Debt Syndication and Liability businesses.

Disbursement Process

Loan Sanction

Process

Legal & Technical valuation initiation

Field Investigation (FI)

Sourcing

Credit Appraisal Sheet

(CAS)

Punching of Files

(Finnone)

Loan Kit Signature

Payment to customer

Credit Recommendation

Login of Files

(Excel sheets)

Loan Sanction

Disbursement

Punching of details in FINNONE

For Approval

Login of Files, FI, Legal & Technical, preparation of CAS

Sourcing of files

Operations Manager

Credit Processing Agency

Credit Manager

Credit Processing Agency

Sales Manager

The property would be purchase from the four type of Authority

Society

Development authority

Industrial Corporation

Housing Board

In Case of Company.

In case of Partner ship firm

In case of proprietorship firm

FOR SELF EMPLOYEES

UTI-I

27.11%

LIC

10.37%

FIIs

31.21%

Others

31.31%

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