We have started a new journey, backed by India’s best. Investor Presentation May 6, 2020 YES for You Contents Subject Slide No. New Journey 03 - 20 Q4FY20 and FY20 Financial Highlights 21 - 34 Covid-19 Impact 35 – 38 Sustainability & Recognition 39 - 42 YES for You 2 New Journey YES for You A Full Service Commercial Bank 6th Largest Pan India Young & Innovative Differentiated Technology Private Sector Bank* Presence Human Capital Platform Backed by marquee With 1,135 Branches and 1,423 With 22,973 Yes Bankers with Market Leader within Payments shareholders, Total Assets of ATMs # an average age of 33 years, - #1 IMPS Remitter Bank INR 257,827 Crores, with with a vintage of ~8 years for - #1 P2M UPI Transactions Advances of INR 171,443 Top Management & 7 Years for Bank with a ~31% market share Crores (56% Corporate & 44% Senior Management # - AePS a 40% markets share in MSME & Retail) # transaction value ^ Agility + Innovation * Basis Total Assets as on December 31, 2019 # As on March 31, 2020 ^ for FY20 YES for You 4 Unique Ownership Model Under Reconstruction Scheme in March 2020 Shareholding Data as on March 31, 2020 Unique Public and Private 8.0% ownership model backed by SBI 8.0% India’s largest and safest ICICI Bank financial institutions HDFC Ltd. 4.8% Axis Bank 3.6% 48.2% Kotak Bank 2.4% Bandhan Bank 1.9% 1.7% Federal Bank IDFC First Bank Others 21.4% Safety YES for You 5 Robust Governance Structure Backed by newly formed board consisting of eminent and experienced professionals to ensure strictest adherence to Sunil Mehta Prashant Kumar Mahesh Krishnamurti Atul Bheda regulatory and governance norms Non-Executive Chairman Managing Director & CEO Chairman Nomination & Chairman Audit Remuneration Committee, Committee, Non-Executive Director Non-Executive Director R. Gandhi Ananth Narayan Partha Pratim Swaminathan Additional Director Gopalakrishnan Sengupta Jankiraman (appointed by RBI) Additional Director SBI Nominee Director SBI Nominee Director (appointed by RBI) Safety + Credibility YES for You 6 New Journey - Strategic Objectives Rebuild Trust amongst RoA greater Corporate flows than stakeholders and Cross sell 1.0% (1-3yrs) through 1.5% (3-5yrs) Market share gains Granular Transaction Stable liability through Digital Capabilities Advances: banking mix and lower Retail/ MSME cost of funds: >60% CASA Ratio > Focused 40% Stronger Stressed Assets governance and Resolution underwriting frameworks Cost Rebuild Optimization Predictable and Sustainable Liabilities and Earnings Liquidity Buffers Return value to shareholders Rebuild the foundation & calibrate growth (6-12 months) Medium Term Objectives YES for You 7 Liquidity Headwinds - Receded Key Updates Customer Engagement Customer Acquisition Outflow in Deposits post March 31, Post moratorium, successfully Thrust on leveraging superior existing 2020 has receded recouped cash management / fintech and supply chain relationships Analytics driven extensive customer payments business from various for mass acquisitions of NTB outreach program underway customers viz. one of the largest UPI customers merchant aggregators, one of the Acquisition engine continues to Recent mandates to aid pickup in largest telecom service providers, Deposits traction include: demonstrate resilience despite large money transfer company etc. multiple headwinds ▪ Collection of donations for PM In April, the Bank made the highest CARES Fund to fight Covid19 Short term credit rating of A2 by ever contacts made across all sales CRISIL and service roles ▪ Collection of contributions to Rajasthan CMRF Covid19 In April, number of retail FDs booked, mitigation fund higher than any month of FY20 ▪ E-Kharid mandate from Govt. of Launched Covid-19 Protection Plan in Haryana for collections and partnership with Reliance General payments to farmers insurance ▪ ...... and many others YES for You 8 Cost Optimization Cost Optimization and productivity transformation backed by Digital and Analytics, target minimum 5% savings in FY21 Human Capital Identifying Operations and Management Profitability Changing Trends Digitization Focus on Manpower Reallocation of costs as Examine impact on Centralize credit optimization per medium- long term workforce centralization monitoring operations Consolidated monitoring business objectives due to COVID-19 with automated trigger- and management of all Focus on key initiatives Turbocharge processes, based MIS generation outsourced manpower like ATM, branch, client, e.g. entirely digital and analytics-led decision and activities and product profitability account opening process making Analytics-led cost breakup of key areas with higher than industry costs YES for You 9 Stronger Governance and Underwriting Framework Separate vertical for Simplified Organization Stressed Asset Structure Independent Oversight Resolution To enable the bank to synergize, build Risk underwriting and Risk Separate vertical to surgically work scale and efficiencies Oversight functions have been towards stressed asset resolution with Multiple Corporate Products & segregated with separate Chief Risk specialized skill set Relationship units have been Officer and Chief Credit Officer Strengthening the team to ~100 (vs. aggregated into Wholesale Banking, Chief Risk Officer to report directly to ~40 earlier) which will be Asset Light, Liability the Risk Monitoring Committee of the To unlock value from the stressed Led and Transaction Heavy Board assets pool This will unclog the growth bandwidth of the management Segregation of assets / management to facilitate strategic spin off of these assets to a separate legal entity / sale to ARC at a later stage YES for You 10 Platform in Place to Aggressively Ramp Up Low Cost Retail Deposits ▪ Pan India Presence with 1,135 branches PAN India Branch Network Locational Mix and 1,423 ATMs ▪ 250+ Hub Branches ▪ 850+ Spoke Branches 1 ▪ ~85% of Branches with Vintage > 3 years ▪ Complete suite of products with customers at 11 Rural the fore including superior experience 19% through digital channels Metro 34% ▪ Liability Led acquisition in Metro & Urban areas ▪ Target customers in Metro and urban areas: Semi - Urban ▪ NRIs, 26% ▪ Senior Citizens, Urban 21% ▪ HNIs, 1 ▪ Trust Associations Schools & Clubs ▪ Asset led acquisition in semi urban/rural areas 1,135 Branches 1,423 ATMs ▪ Leverage POS and corporate relationships 70 CA focused Branches YES for You 11 Granular Advances Best in Class Retail Assets Platform Complete suite of products offered with clear strategies to target the low retail finance penetration in India Customers & Asset Quality Risk and Yields Rural Banking Credit Cards Strategy Technology ▪ Low risk portfolio with ▪ Portfolio built on low ▪ Business Correspondent ▪ Credit cards in force: 5+ ▪ Focus segment of ▪ Usage of data analytics large proportion of cash risk, offering room for model (~0.5 mn) lakh cards with an salaried and self- and Fintech risk engines flow-based financing higher yielding products outstanding balance of employed customers for risk mitigation ▪ Tie-ups with Fintech with adequate collateral as it has attained scale INR 1000 Crores+ companies to identify ▪ Utilize branch channel, ▪ Ensuring seamless ▪ Focus on internal / ▪ Focus on building a potential geographies ▪ Spends grew by 64% manufacturing tie-ups service by leveraging salaried customers for more granular book (YES Villages) YoY in FY20 and technology aided investments in unsecured products reducing concentration service delivery digital/tech capabilities ▪ Presence across Tier II ▪ Cross sell of liability – VI cities products to new credit ▪ Tapping liability customers customers ▪ Agri Potential with 416 branches across 150 ▪ Multiple variants of Districts in 9 Focused Consumer / Commercial States Cards ▪ World Class Technology YES for You 12 Granular Advances Retail Higher profit contribution from Retail share has been rapidly increasing FY20 split of Retail advances Share of retail advances (%) in overall advances Retail franchise: a key strategic focus area • Deeper geographic penetration 24% into Tier II/ III cities Consumers Loans , 20% Business • Targeting lower ticket sizes while Equipment , maintaining best in class asset 17% 11% quality 12% • Lowering the cost of acquisition by 11% Vehicle Loans, 10% 34% leveraging digital capabilities Mortgaged • One of lowest NPA ratios in the Backed, 30% Industry* Others, 5% FY16 FY17 FY18 FY19 FY20 * As per Credit Bureau Reports YES for You 13 Granular Advances Enhancing MSME Capabilities through Partnerships Supply Chain Banking Knowledge Banking Branch Banking & CRM Financing vendors of Tie ups with trade/industry Liability business through branches & corporates associations CRM based sourcing ▪ Strong corp. relationships ▪ Sector specialists with vast industry ▪ Cash flow-based underwriting ▪ Utilizing tech. & analytics to automate knowledge ▪ Strong Risk assessment framework limit enhancement ▪ Working relationships with leading ensuring adequate collaterals and risk- ▪ Market leader in Electrical & Electronic domestic & international institutions based pricing Goods Segment YES MSME Mobile application for speed YES First Business and YES Privilege Business banking and reduction in transaction costs with offerings for MSMEs overall increase in productivity YES for You 14 Granular Advances MSME Growth marginally higher, asset quality MSME at 20% of Advances MSME business built on robust risk much better vs. the overall sector* management platform, with potential for meaningful growth Sector YBL Self Sourced without any intermediaries