Yes Bank Limited · NSE:YESBANK
Yes Bank — Investor Presentation (June 2020)
20 slides from Yes Bank's investor presentation, Jun 10, 2020
Slide 1: Exchange filing cover letter – Investor Presentation
YBL/CS/2020-21/18 June 10, 2020 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Corporate Relations Department Plot no. C/1, G Block, P.J. Towers, Dalal Street Bandra - Kurla Complex Mumbai – 400 001 Bandra (E), Mumbai - 400 051 Tel.: 2272 8013/15/58/8307 Tel.: 2659 8235/36 8458
Slide 2: YES Bank Company Presentation
YES Bank Company Presentation June 10, 2020 YES for You
Slide 3: Important Notice
Important Notice This presentation and the accompanying slides (the “presentation”) contains selected information about the activities of YES Bank Limited (the “Bank”) and its subsidiaries and affiliates (together, the “Group”) as at the date of the presentation. It does not purport to present a com
Slide 4: We have started a new journey, backed by India's best
We have started a new journey, backed by India’s best* * Based on 48.2% stake held by State Bank of India, India's largest commercial bank YES for You
Slide 5: Summary
Summary 1 India’s 6th largest private bank backed by marquee institutions and experienced leadership team 2 Well defined plan to achieve diversified and sustainable earnings 3 Accelerated recognition of stressed assets along with step-up in provisioning 4 Well-established granular banking platform w
Slide 6: India's 6th Largest Private Bank with a Scalable Platform
1 India’s 6th Largest Private Bank with a Scalable Platform Advances Split: Backed by Marquee 6th Largest Retail – 23.8% Total Assets: Total Advances: Total Deposits: Shareholders – SBI, ICICI, 1 Private Sector INR 2,57,827 cr INR 1,71,443 cr SME – 12.6% INR 1,05,364 cr HDFC, Axis, Kotak, Bandhan, M
Slide 7: Focus on Robust Governance Structure
1 Focus on Robust Governance Structure to Ensure Adherence to Regulatory and Governance Norms Simplified Organization Structure – Enables to Build Scale Eminent and Experienced Board and Drive Efficiencies Prashant Kumar MD & CEO Ashish Agarwal,(1) Anurag Adlakha Global Head, Wholesale Banking Group
Slide 8: Well-defined Plan to Achieve Diversified and Sustainable Earnings
2 Well-defined Plan to Achieve Diversified and Sustainable Earnings • Rebuild trust amongst stakeholders • Market share gains through digital capabilities Sustainable Cross-sell Earnings Granular Opportunities Advances • RoA greater than Governance and Focused Stressed Liability Franchise • Corporat
Slide 9: Accelerated Recognition of Stressed Assets along with Step-up in Provisioning
3 Accelerated Recognition of Stressed Assets along with Step-up in Provisioning 50% 43% 43% 43% 73% 74% ▪ Net NPA improved sequentially Q-o-Q to 90% 86% 15% 15% 39% 74% 5.0%; significant step-up in provision coverage 100% 83.8% ratio to 73.8% (best-in class) 80% ▪ Provision coverage ratio for NPIs i
Slide 10: Well-established Granular Banking Platform - Retail
4 Well-established Granular Banking Platform - Retail Resilient Retail Assets Platform with Complete Suite of Offerings… Customers & Asset Quality Risk and Yields Rural Banking Credit Cards Strategy Technology ▪ Low risk portfolio with ▪ Portfolio built on low risk, ▪ Business Correspondent ▪ Credit
Slide 11: Well-established Granular Banking Platform - SME
4 Well-established Granular Banking Platform - SME …Strategically Enhancing SME Capabilities Growth marginally higher, asset quality much better vs. the overall Supply Chain Financing vendors of corporates sector (1) Banking Sector YBL 13.8% 12.2% ▪ Strong corporate relationships ▪ Utilizing tech. &
Slide 12: Well-established Granular Banking Platform
4 Well-established Granular Banking Platform Retail and SME Segments – Low Risk and High Resilience Businesses Retail SME 1.63% 1.19% 1.01% 1.38% 0.15% 1.2% 1.1% 0.7% 0.3% 0.2% 4.5% 2.3% 1.7% 2.0% 34% 30% 46% 20% 11% 10% 8% 5% 5% 11% 6% 5% 5% 4% % Gross Loan O/S GNPA % % Gross Loan O/S GNPA % ▪ Gran
Slide 13: Strong Technology Backbone and Unparalleled Digital Capabilities
5 Strong Technology Backbone and Unparalleled Digital Capabilities… Focused Strategy with Early Mover Advantage Objectives Applications Deepen Existing Relationships Payments The Customized Banking Solutions Improve Operational Efficiency A R T Mobile & Mobility Identify new customers Alliances Rela
Slide 14: Resulting in Digital Leadership
5 …Resulting in Digital Leadership Using Technology Platform to Expand Offerings and Drive Market Leader in Digital Payments Space (AePS and UPI) Lower Cost of Delivery AePS Market Share (1) UPI Market Share (1) 42.1% 45.0% 44.6% 30.8% 33.4% 33.3% More than 0.16 cr registered users; 21.9% 39.7% Y-o-
Slide 15: Capital Management Plans to Improve Regulatory Capital Ratios
6 Capital Management Plans to Improve Regulatory Capital Ratios Total CRAR as on Mar 31, 2020 after considering Total Tier II Capital Funds at 6.4% (INR 15,294 cr). However Tier II ratio currently capped at 2% resulting into Total CRAR at 8.5% 12.8% CRAR 16.5% 4.1% 8.5% ▪ Potential capital raise (1)
Slide 16: Appendix
Appendix YES for You
Slide 17: Financial Performance – Balance Sheet
Financial Performance – Balance Sheet Figures in INR cr Year Ended Balance Sheet (1) FY18 FY19 FY20 Assets 312,446 380,826 257,827 Advances 203,534 241,500 171,443 Investments 68,399 89,522 43,915 Liabilities 312,446 380,826 257,827 Shareholders’ Funds 25,758 26,904 21,726 Total Capital Funds 46,976
Slide 18: Financial Performance – Income Statement
Financial Performance – Income Statement Figures in INR cr Year Ended Income Statement (1) FY18 FY19 FY20 Net interest income (A) 7,737 9,809 6,805(2) Non interest income (B) 5,224 4,590 3,441 Total (A+B) 12,961 14,399 10,247 Operating expense 5,213 6,264 6,729 Human Resource Cost 2,189 2,470 2,600
Slide 19: Financial Performance – Ratios
Financial Performance – Ratios Year Ended Ratios FY18 FY19 FY20 Net Interest Margin (NIM) 3.5% 3.2% 2.2% Net Interest Income to Average Total Assets (1) 2.9% 2.8% 2.1% Non Interest Income to Average Total Assets (1) 2.0% 1.3% 1.1% Operating Profit to Average Total Assets (1) 2.9% 2.3% 1.1% Cost to I
Slide 20: Impact of Covid-19
Impact of Covid-19 Operational Impact - Leveraging Technology to Minimize Moratorium Disruption ▪ The Bank ensured availability of services in 95%+ of all branches / ATMs ▪ In accordance with the RBI guidelines relating to COVID-19 Regulatory Package, the Bank has offered a moratorium of six months