NAYANSANKALP

DEEVANSHU

Objective COMPETITIVE STRATEGY OF A LATE ENTRANT

VISION• Vision: To create a commercially viable financial

institution that incorporates sustainable development within core business functions

• Mainstream sustainability through multi-stakeholder engagement both internally & externally

• Link shareholder value with sustainable development of India (Fourth Generation Sustainability)

• Engage in strategy development (in thought) and execution (in action)

Yes bankYes bank, one of the new generation private

bank , entered Indian market in late 2004 when the banking sector in india was already overcrowded by no of public bank

But inspite of late enterent the bank grew up with such a fast pace that it drew the attention of analysist and extend its operations to all over the country

Yes bankIn dec 2006 the bank rated as third best

private bank in India by business world and won many other awards

Ranked second best private bank in financial express –Ernst & young survey of India’s best for the year 2006

Yes bankThe yes bank was promoted by Rana kapoor

and Ashok Kapur with assistance from robobank

Kapoor and kapur together own 52.5 % of the initial promoters equity of 20 m

While the Indian promoters had 39 % stake in the bank , robobank had 20 % stake and FII held 20 %

The bank went public in june 2005. IPO was over subscribed 30 times

Yes bank segmentationYes bankCorporate & institutional banking companies with turnover of over Rs. 7.5 bn

Business banking companies with turnover between Rs .5bn and Rs 7.5 bn

Retail banking individual with annual turnover income between Rs.5bn and Rs 5mn

PERFORMANCEThe bank growth as per the sensex …yes.one

Competition…New Microsoft Office Word Document.docx

Growth speaks through figures…yes bank.xlsx

Differentation stragyThe bank differentiated itself from other

players in the industry through its unique “knowledge banking approach” , emphasizing on technology and human resource.

The knowledge banking approach was its main pillar of differentiation and using it provided specialized service to various sunrise industries through domain expert.

Differentiation The success of yes bank can be attributed

to its differentiating strategy The bank differentiated itself on three

basic parametersKnowledge banking approachEmphasis on technologyHuman resource

Knowledge bankingYes bank decided to follow an innovative

approach to break into the heavily cluttered Indian commercial banking system.

Knowledge banking--- a unique method of acquiring customer and retaining them.

The bank provides specialized service to the emerging sectors of the economy through better understanding of its clients business and industry.

Knowledge bankingThe bank focused on providing the customer with

specialized banking service depending upon their requirement.

The bank identified some sectors of economy which had growth prospect:-

1.Food and agribusiness2.Infrastructure business3.Life science and biotechnology4.Telecommunication5.IT6.Media and entertainment7.Real estate

TechnologyYes bank was founded with the aim of

providing the world class customer service to the customer using latest technology in the industry.

The bank consider technology as a strategic tool to differentiate itself from other banks.

Corporate internet bankingATMsMobile bankingPhone banking

TechnologyThe bank entered into the strategic

partnership with Gartner inc. to formulate and implement the bank IT policy.

Price Water House Coopers to facilitate the confirmation of policies and process with ISO and six sigma norms.

I-flex solution ltd. it used FLEXCURE, a universal banking solution software, as its core banking system for retail as well as corporate banking.

Yes bank use FLEXCUBE to provide key banking solution to its customers.

HUMAN RESOURCETop management team very experienced.Higher pay to retain talent5% executive ownership clause

Key initiatives by bank to recruit and train Key initiatives by bank to recruit and train manpowermanpower

1.Yes entrepreneur in action2.Yes professional entrepreneurship program3.Yes mentor4.Yes school of banking5.Yes university and school relations

Statics Statistics shows that the bank was primarily

in metros and other places that provided them a sound customer base, who were knowledgeable and used latest technology.

Yes bank had access to latest technology.Yes bank had good promoters.They had the ability to raise funds easily

because of foreign shareholding.Outsourcing its non core business.Top management very experienced.

IndiaSignificant strengths in

agriculture, horticulture, dairy, poultry, etcAgro-climatic diversityProduction leadership in

many areasRapid urbanizationGovt. according priority

statusGrowth in Organized food

retail

India’s share in global production

India’s prices as % of world prices

Thank you