-
7/31/2019 46883097 Yes Bank Strategy
1/17
YES BANK
Prof. Shilpa Chadichal
Alliance Business Academ
-
7/31/2019 46883097 Yes Bank Strategy
2/17
OBJECTIVE
COMPETITIVE
STRATEGY
OF A
LATEENTRANT
-
7/31/2019 46883097 Yes Bank Strategy
3/17
VISION
Vision: To create a commercially viable financial institutionthat incorporates sustainable development within core business
functions.
MISSION:
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)
-
7/31/2019 46883097 Yes Bank Strategy
4/17
YES BANK
Yes bank, one of the new generation private bank ,entered Indian market in late 2004 when the bankingsector in India was already overcrowded by no. ofpublic bank
But inspite of late entrant the bank grew up with such afast pace that it drew the attention of analysist andextend its operations to all over the country
-
7/31/2019 46883097 Yes Bank Strategy
5/17
YES BANK
In dec 2006 the bank rated as third best private bankin India by business world and won many otherawards
Ranked second best private bank in financial expressErnst & young survey of Indias best for the year2006
The bank has a AAA credit rating from the ratingagencies Moody's (since 1981), Standard & Poor's(since 1981) and DBRS (since 2001).
Global Finance currently ranks Rabobank 6th in itssurvey of the worlds safest banks.
-
7/31/2019 46883097 Yes Bank Strategy
6/17
YES BANK
The yes bank was promoted by Rana kapoor and AshokKapur with assistance from rabobank
Kapoor and kapur together own 52.5 % of the initialpromoters equity of 20 m
While the Indian promoters had 39 % stake in the bank ,rabobank had 20 % stake and FII held 20 %
The bank went public in June 2005. IPO was oversubscribed 30 times
Yes Bank to launch mobile banking service inassociation with Nokia shortly.
On August 14th, 2010.Mobile handset manufacturer,Nokia and Yes Bank have joined hands to launch mobilepayment service in the country. The aim is to increasethe financial inclusion campaign in the country.
-
7/31/2019 46883097 Yes Bank Strategy
7/17
YES BANK SEGMENTATION
Yes bank
Corporate & 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
-
7/31/2019 46883097 Yes Bank Strategy
8/17
DIFFERENTIATION STRATEGY
The bank differentiated itself from other players in theindustry through its unique knowledge bankingapproach , emphasizing on technology and humanresource.
The knowledge banking approach was its main pillarof differentiation and using it provided specializedservice to various sunrise industries through domain
expert.
-
7/31/2019 46883097 Yes Bank Strategy
9/17
DIFFERENTIATION
The success of yes bank can be attributed to itsdifferentiating strategy
The bank differentiated itself on three basicparameters
Knowledge banking approach
Emphasis on technology
Human resource
-
7/31/2019 46883097 Yes Bank Strategy
10/17
KNOWLEDGE BANKING
Yes bank decided to follow an innovative approach tobreak into the heavily cluttered Indian commercialbanking system.
Knowledge banking--- a unique method of acquiringcustomer and retaining them.
The bank provides specialized service to theemerging sectors of the economy through better
understanding of its clients business and industry.
-
7/31/2019 46883097 Yes Bank Strategy
11/17
KNOWLEDGE BANKING
The bank focused on providing the customer withspecialized banking service depending upon theirrequirement.
The bank identified some sectors of economy
which had growth prospect:-1. Food and agribusiness
2. Infrastructure business
3. Life science and biotechnology
4.Telecommunication5. IT
6. Media and entertainment
7. Real estate
-
7/31/2019 46883097 Yes Bank Strategy
12/17
TECHNOLOGY
Yes bank was founded with the aim ofproviding the world class customer service tothe customer using latest technology in theindustry.
The bank consider technology as a strategictool to differentiate itself from other banks.
Corporate internet banking
ATMs
Mobile banking
Phone banking
-
7/31/2019 46883097 Yes Bank Strategy
13/17
TECHNOLOGY
The bank entered into the strategic partnership withGartner inc. to formulate and implement the bank ITpolicy.
Price Water House Coopers to facilitate theconfirmation of policies and process with ISO and sixsigma norms.
I-flex solution ltd. it used FLEXCUBE, a universalbanking 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.
-
7/31/2019 46883097 Yes Bank Strategy
14/17
HUMAN RESOURCE
Top management team very experienced.
Higher pay to retain talent
5% executive ownership clause
Key initiatives by bank to recruit and trainKey initiatives by bank to recruit and trainmanpowermanpower
1.Yes entrepreneur in action
2.Yes professional entrepreneurship program
3.Yes mentor4.Yes school of banking
5.Yes university and school relations
-
7/31/2019 46883097 Yes Bank Strategy
15/17
STATICS
Statistics shows that the bank was primarily inmetros and other places that provided them asound customer base, who were knowledgeableand used latest technology.
Yes bank had access to latest technology.
Yes bank had good promoters.
They had the ability to raise funds easily becauseof foreign shareholding.
Outsourcing its non core business.
Top management very experienced.
-
7/31/2019 46883097 Yes Bank Strategy
16/17
INDIA Significant strengths in
agriculture, horticulture, dairy,poultry, etc
Agro-climatic diversity
Production leadership inmany areas
Rapid urbanization Govt. according priority status
Growth in Organized foodretail
Indias share in global production
Indias prices as % of world prices
-
7/31/2019 46883097 Yes Bank Strategy
17/17
Thank you
