Experience Our Expertise Annual Report 2014-15
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Experience our Expertise Annual Report 2014-15 YES BANK’s new Corporate Headquarters - Mumbai, India Awards & Recognitions Consistent Performer and Best Asset Quality - Large Sized Banks 2014 Achiever Award for SME Enablement Best Mid-Sized Bank, 2013, 2012, SKOCH Development Summit Best Private Sector Bank (Asset 2010, 2009 & 2008 Best Private Sector Bank & Awards Class) 2014 Fastest Growing & Strongest Large Money Today - FPCIL Awards Order of Merit Dun & Bradstreet - Polaris Bank, 2011 2015 & 2012 SKOCH Financial Inclusion and Software Banking Awards Business Today - KPMG Best Banks Deepening Awards 2014 Annual Survey Best Trade Finance Bank in India - 2015 Best Corporate Trade Finance Deal in India - 2015 Winner for Best ATM Network in Mid Best Cash Management Project in Best Co-Branded Program India - 2015 Sized Banks category Winner - Payments Best Commercial Card Program The Enterprise Risk Technology Special Award for Innovation on Transaction Banking Awards, Best Prepaid Card Program Implementation - 2015 Mobile Payments (IMPS) London, 2014 The MasterCard Innovation Best Multi-channel Capability & National Payments Corporation of Awards 2014 Best Financial Supply Chain - 2011 India 2014 The Asian Banker Achievement Awards, Hong Kong Pioneering innovation-Incentivizing Awarded the Best Performer in Winner - Business Excellence Adjudged World Class Organisation Customers by Offering Discount only Indian bank to win this Account Growth Rate – Rising Coupons on ATMs at the Award - Services Category Depository Participants Prestigious Global Award International Banking Expo 2015 IMC RBNQA Awards, 2013 Chicago, Illinois, USA 2014 NSDL Star Performers Awards 2014 FINNOVITI Awards Environment Management Award, 2014 Outstanding Sustainable Project Ranked 3rd in Excellence in People Corporate Social Responsibility, Best Initiative in Financial Inclusion Financing, 2014 Engagement and Satisfaction Bangalore, 2013 Practices Excellence in Social Media Outstanding Business Sustainability Global Business Excellence Award, Achievement, 2013 CII National Excellence Practice Asia Trailblazer Awards Dubai, 2013 Competition 2014 Singapore, 2015 Karlsruhe Sustainable Finance Sustainability Award, London, 2012 Awards, Germany Golden Peacock Global Convention Ranked 2nd best Globally for Awarded High Performance Brand Best Tourism Friendly Bank Pacific Innovative Customer engagement Award Recognized as ET Promising Brand Area Travel Writers Association through Social Media. All India Management Association The Economic Times International Awards International Best Practice & R K Swamy BBDO 2015 Promising Brands Award 2015 ITB Berlin, 2015 Competition, Abu Dhabi 2014 Contents Corporate Overview Statutory Reports About Us .....................................................................................2 Management Discussion and Analysis .......................... 78 Excellence through Expertise .............................................3 Directors’ Report .................................................................104 Financial Highlights ...............................................................4 Report on Corporate Governance ..................................135 Message from the Non-Executive Chairperson ............6 Financial Statements Managing Director & CEO’s Communiqué ......................8 Standalone Financial Statements Experience our Expertise ................................................... 12 Independent Auditors’ Report ........................................158 Robust in Risk Management ............................................. 15 Balance Sheet ......................................................................160 Responsible Banking ........................................................... 16 Profit and Loss Account ....................................................161 Expertise in Financial Inclusion ...................................... 18 Cash Flow Statement ........................................................162 Brand and Social Media ..................................................... 19 Schedules ..............................................................................164 Non-Executive Chairpersons ............................................ 20 Consolidated Financial Statements Board of Directors ................................................................ 21 Independent Auditors’ Report ........................................210 Management Team ............................................................... 22 Balance Sheet ......................................................................212 Sustainability Review Profit and Loss Account ....................................................213 Cash Flow Statement ........................................................214 Sustainability Disclosures ................................................. 31 Schedules ..............................................................................216 Annual Business Responsibility Report (ABRR) ......... 68 Form AOC I ..........................................................................238 Disclosures under Basel III ........................................238 Annual Report 2014-15 Corporate Overview About us About Us At YES BANK, our differentiation begins with a simple word: ‘YES’ ‘Experience our Expertise’ is not simply a catchphrase at YES BANK. It is our corporate credo, built on a foundation of trust, reinforced by knowledge, backed by cutting-edge technology, governed by transparency, and commitment to Responsible Banking. YES BANK, India’s fifth largest private sector Bank, is a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India. 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, Vision and is well-equipped to offer a range of products YES BANK’s vision is to and services to corporate and retail customers. For a become the ‘Finest Quality nation on the move after years of sluggish growth, the Bank of the World’ in India banking industry has to play a pivotal role to support by 2020’ having evolved its and sustain this growth for the long-term. We are organizational ethos into the excited at being able to play our part to India’s growth ‘Professionals’ Bank of India’. story by virtue of our expertise. Our aim is to provide a consistent and superior banking experience with simplicity, empathy and totality, and catalyze higher inclusive growth for the nation. 2 Introduction Excellence through Expertise During the year, we focused on delivering excellence in banking through our expertise. Key Milestones FY 2014-15 households and rural women in Self Help Groups (SHGs). ADB will also provide technical assistance In FY 2014-15, YES BANK Limited achieved for capacity building, improving financial literacy multiple milestones across new relationship of women borrowers, leveraging YES LEAP program breakthroughs, optimization of business portfolio for regional expansion and agriculture value chain and capital raising through a concerted focus on integration. executing our Vision and Strategy. October 2014: Successfully raised USD 422 Million February 2015: Launched India’s first Green by way of Dual Currency Multi-tenor Syndicated Loan Infrastructure bond issue of ` 500 Crores plus Facility. The said facility shall be utilized for general Greenshoe, which saw overwhelming demand and corporate purposes. The facility has a maturity of 1, was closed at ` 1,000 Crores. The amount raised will 2 and 3 years. The loan has been widely distributed, be used to finance Green Infrastructure Projects in with commitments being received from 21 banks, Renewable Energy Projects including Solar Power, representing 14 countries across the US, Europe, Wind Power and Biomass Projects. KPMG in India will Africa, the Middle East, Japan, Taiwan and Australia, be providing the Assurance Services annually, on the with larger commitment coming in the 2 and 3 year use of proceeds in line with the Green Bond principles. tranches. January 2015: Teamed up with the Overseas Private May 2014: Completed allotment of USD 500 Investment Corporation (OPIC), the U.S. Government’s Million for Global Qualified Institutions Placement Development Finance Institution, by signing a (Global QIP). The allotment of shares was done memorandum of understanding to explore OPIC across 114 investors at ` 550 per share. The issue financing of up to USD 220 Million to increase lending was oversubscribed over five times, generating an to micro, small and medium enterprises (MSMEs) in aggregate worldwide demand of USD 2.5 Billion India. Specifically, USD 100 Million of the financing from marquee institutional investors across USA, would be used to support either Micro-SMEs or SMEs Europe, Asia and India. in underserved rural and urban markets. U.S based lender Wells Fargo Bank, N.A., will act as sponsor and co-lender to the project. December 2014: Raised USD 200 Million unsecured loan facility from the Asian Development Bank (ADB). The funds are being used to finance working capital and investment loans targeted towards small farm 3 Annual Report 2014-15 Corporate Overview Financial Highlights Total Assets (` in Crores) Shareholders Funds (` in Crores) 2014-15 1,36,170 2014-15 11,680 2013-14 1,09,016