Yes Bank Limited · NSE:YESBANK
Yes Bank — Investor Presentation (June 2023)
45 slides from Yes Bank's investor presentation, Jun 11, 2023
Slide 1: Submission of Investor Presentation to exchanges
YBL/CS/2023-24/039 Date: June 11, 2023 National Stock Exchange of India BSE Limited Limited Exchange Plaza, Plot no. C/1, G Corporate Relations Department Block, Bandra - Kurla Complex Bandra P.J. Towers, Dalal Street (E), Mumbai - 400 051 Tel.: 2659 8235/36 Mumbai – 400 001 8458 Tel.: 2272 8013/15/
Slide 2: YES BANK – Investor Presentation June 2023
YES BANK – Investor Presentation June 2023
Slide 3: Contents
Contents YES BANK of Today 3-6 YES BANK Franchise 8-28 ESG Led Responsible Banking New Age Digital Platform Universal Bank – One Bank For All Needs Governance and Senior Management Team Shareholding Financials 30-43
Slide 4: New Generation, Professionally Run, Private Sector Bank with a Scalable Platform
New Generation, Professionally Run, Private Sector Bank with a Scalable Platform ▪ 6th Largest Private Sector, Universal Bank offering comprehensive suite of product and services via its pan India network of 1,192 branches, 150 BCBO and 1,300+ ATMs in over 300 districts of India New Generation ▪ 1 P
Slide 5: Strategic Shift towards a Granular Franchise
Strategic Shift towards a Granular Franchise All figures in INR Crs 1 Strong 2.2x growth in Retail Advances between Mar’20 to Mar’23 I Retail, SME and Mid-Corporate Segment Advances at ~INR 146,215 Crore and at ~73% of Net Advances Net Advances Growth Led by Retail Advances Retail Advances - Growth
Slide 6: Fortified Balance Sheet - Marked Improvement in Asset Quality
Fortified Balance Sheet - Marked Improvement in Asset Quality All figures in INR Crs Both i) Net NPA and ii) Net NPA + Net carrying Value of SRs, Strong Past Trend of Recoveries & Upgrades of INR ~20,000 Crores 1 consistently trending lower 2 since Reconstruction (INR Crores) 8.0% Pro-forma Incremen
Slide 7: Protected PPOP/Assets during the strategic shift towards Granular Franchise
Protected PPOP/ Assets during the strategic shift towards Granular Franchise through Efficiency Gains Significant investments into the Retail franchise over past few years in order Efficiency gains in the Retail franchise has aided this strategic shift in mix- resulting 1 2 to organically build a su
Slide 8: Contents
Contents YES BANK of Today 3-6 YES BANK Franchise 8-28 ESG Led Responsible Banking New Age Digital Platform Universal Bank – One Bank For All Needs Governance and Senior Management Team Shareholding Financials 30-43
Slide 9: Sustainability
Responsible franchise committed to a purposeful ESG agenda CDP S&P Global Rated ‘A-’ for its 2022 Moody’s ESG Highest ESG score Climate Change Solutions amongst Indian banks in disclosures - highest Ranked 5th in ESG, the S&P Global Corporate rated Indian Bank. Only amongst 90 Retail & Sustainabilit
Slide 10: Digital & Transaction Banking
Digital & Transaction Banking: Sustainable & Granular Revenues through Digital Payments, Trade Finance & Cash Management Digital Payments | Trade Finance | Cash Management | Capital Markets | Custody | Bullion & Currency | Remittances | Supply Chain 93% growth in TBG* Managed CA, 22% growth in Trade
Slide 11: Curated & Expansive Digital Offerings
Curated & Expansive Digital Offerings Enriched customer experience across all customer segments Yes Online - Corporate & MSME Banking Revamped, Simplified and Futuristic Revamped, Simplified and Futuristic Net Banking Service Net Banking Service Smart Trade IRIS – (Mobile Platform) Digital Online Tr
Slide 12: Enriched customer experience – IRIS
Enriched customer experience – IRIS SuperAPP for Retail Customers ▪ IRIS is a cloud native API-led mobile platform offering banking on fingertips across customer lifecycle ▪ Leveraging 30% mobile native consumers + Digital India stack to build a highly scalable and low C2I digital business model Key
Slide 13: Enriched customer experience – YES Connect
Enriched customer experience – YES Connect Super App for Businesses API’fication of our Marketplace model Sachetization of Solutions across Industry Segments (YES Bank + Partner Offerings) Smart FinTechs Collections E-Invoicing Remittances Traders Exchange Houses Cardless cash Payments (FT2/IMPS) wi
Slide 14: Embedded (Connected) Banking
Embedded (Connected) Banking Digitizing client journeys and creating inorganic client acquisition funnel thru Fintech partnerships Partnership roadmap of Digital & Transaction Banking Source Digital Onboard Digital Transact Digital Service Digital Monitor Digital ▪ Digital Acquisition at Scale ▪ Dig
Slide 15: Yes Pay
Yes Pay Open Market “Payments Super App” for Retail individual & merchants Yes Pay Biz | Yes Pay Lite | Yes Pay Next One-stop mobile applications to seamlessly manage all domestic payment (Wallets, UPI, Bills, Digital Card & POS, Transit Yes Pay Next Yes Pay Biz For Individual Customers For Retailer
Slide 16: Pioneer in leveraging Public Digital Infrastructure
Pioneer in leveraging Public Digital Infrastructure Contributing to building new-age India through collaboration on Key Digital Initiatives Digital Initiatives Principle Objectives YES Differentiators Consent Layer for Data sharing system making Account Aggregator (AA) lending and wealth management
Slide 17: Retail Bank
Retail Bank: Full spectrum retail bank growing with strong momentum All figures in INR Crs Strong growth in Retail Advances Highest Ever Pan-India +39% p.a. presence via 1,192 56% of branches in branches, 150 BC Top 200 deposit 78,400 83,769 90,447 65,250 71,506 banking outlets centers and 1,301 ATM
Slide 18: Retail Assets
Retail Assets: Fast growing diversified book All figures in INR Crs 1 Retail asset disbursements momentum continues 3 Diversified retail book1 12,667 12,705 Secured Business Loans Preferred financier status 12,563 11,863 6% with leading Auto OEMs Auto Loans 4% 16% 10,201 Highest Ever Personal Loans
Slide 19: Rural Assets
Rural Assets: Deepen the penetration in emerging rural markets & generate Agri PSL All figures in INR Crs 1 Business originations 3 Robust Farmer financing book & improved collections in JLG book ▪ High quality farmer financing book with NPA of 1% ▪ NPA <2% in the JLG book generated post–COVID (disb
Slide 20: SME Banking
SME Banking: Granular book creation with a solution led approach All figures in INR Crs 1 Steady momentum in disbursements1 3 Strengthening Relationship Management Highest Ever Liability Book 13,282 14,321 11,731 11,714 12,127 7,389 6,008 6,104 5,089 5,001 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q
Slide 21: Credit Cards
Credit Cards: Strong business growth and enhanced customer experience 1 Sustained Strong Growth in Cards, Book Size & Card Spends 3 Growth in Acquisition and Cross sell No of Cards In (000s) 1,419 ▪ Steady growth in new card acquisition leading to 20% YoY growth in customer base Book Size in Cr 1,18
Slide 22: Wholesale Banking
Wholesale Banking: Granularization of incremental lending book All figures in INR Crs 1 Corporate Book & Disbursements – Debulking Continues 3 Providing tailored solutions to clients across business segments Book Disbursements 1 ▪ Team of 195 Relationship Bankers spread across 10 locations servicing
Slide 23: Large Corporates
Large Corporates Focus Sectors Pan India Presence Products ▪ Auto ▪ Metals ▪ IT / ITES Presence in 10 major locations ▪ Working capital Finance, Project Finance, ▪ Cement ▪ Logistics & Supply Chain Finance , FX and Derivatives. ▪ Chemicals ▪ Delhi ▪ Bengaluru Warehousing ▪ ▪ Growing non-fund book -
Slide 24: Institutional & Government Banking
Institutional & Government Banking YES BANK’s Institutional & Government Banking Group is divided into 7 segments Anchoring the Wholesale liabilities franchise Cooperative banks, Scheduled commercial banks & DFIs, NBFCs, Indian Financial International International banks, Global Insurance, Mutual Fu
Slide 25: Mid Corporates
Mid Corporates Knowledge Sectors – Media & Growth led by NTB and X-sell - Entertainment, Gems & Jewellery, ECOM Team higher wallet share and Food & Agri, Pharma, Chemicals, Unicorn and Soonicorn Focus productivity Auto ancillary, Logistics, Metals Initiatives to maintain Bank’s Leadership Position i
Slide 26: Financial Markets – Customised solutions for clients
Financial Markets – Customised solutions for clients >15 yrs Remittances FX All 32% Currenc Exotics y Notes Active FX trading desk FX GO Available across digital 5-15 yrs Imports for market making Full platforms for Rate booking 36% providing best in class YesFX FX Sales Product Suite pricing for cu
Slide 27: Robust Governance Structure – Board Members
Robust Governance Structure – Board Members Eminent and Experienced Board Rama Subramaniam Gandhi Atul Malik Sharad Sharma Sadashiv Srinivas Rao Sanjay Kumar Khemani Non-Executive, Part time Chairman, Independent Director Independent Director Independent Director Independent Director Independent Dir
Slide 28: Professional and Seasoned Management team
Professional and Seasoned Management team Prashant Kumar Managing Director & CEO, YES Bank Ravi Thota Niranjan Banodkar Rajan Pental Country Head, Large Corporates (LCs) Chief Financial Officer Executive Director Arun Agrawal Archana Shiroor Dheeraj Sanghi Sachin Raut Country Head, Institutional & G
Slide 29: Strong Investor base
Strong Investor base Well diversified Investor base: Shareholding Pattern as on March 31, 2023 Category % STATE BANK OF INDIA Banks 33.0% CA BASQUE INVESTMENTS 26.1% VERVENTA HOLDINGS FDI 12.9% 1 LIFE INSURANCE CORPORATION OF INDIA 45.7% Resident Individuals 29.9% HOUSING DEVELOPMENT FINANCE CORPORA
Slide 30: Contents
Contents YES BANK of Today 3-6 YES BANK Franchise 8-28 ESG Led Responsible Banking New Age Digital Platform Universal Bank – One Bank For All Needs Governance and Senior Management Team Shareholding Financials 30-43
Slide 31: Results At a Glance – Q4FY23
Results At a Glance – Q4FY23 All figures in INR Crs Total Assets Advances Total Disbursements1,2 Deposits CD Ratio 2 Advances Mix 2 Retail & SME: Mid Corp: Corporate 354,786 203,269 26,317 v/s. 217,502 92.0% v/s. 59%:14%:27% 3.2%: Q-o-Q 4.5%: Q-o-Q 27,311 Q3FY23 1.8%: Q-o-Q 89.7% Q3FY23 58% : 13% :
Slide 32: Highlights for Q4FY23 and FY23
Highlights for Q4FY23 and FY23 Marked improvement in Asset Quality: ~60 bps Q-o-Q reduction in (NNPA + net Sustained Earnings: Second straight year of full year profitability carrying value of SR) % ▪ Net Profit at INR 202 Crs for Q4FY23 despite accelerated provisioning during the quarter ▪ (NNPA +
Slide 33: Profit and Loss Statement
Profit and Loss Statement All figures in INR Crs ▪ Net Profit at INR 202 Crs despite Profit and Loss Statement Quarter Ended Growth Year Ended Growth accelerated provisioning during the Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y FY23 FY22 Y-o-Y quarter Net Interest Income 2,105 1,971 1,819 6.8% 15.7% 7,918 6,
Slide 34: Break Up of Non-Interest Income
Break Up of Non-Interest Income All figures in INR Crs ▪ Non-Interest Income at INR 1,082 Crs for Quarter Ended Growth Year Ended Growth Break up of Non Interest Income Q4FY23, up 22.8% Y-o-Y, down 5.3% Q-o- Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y FY23 FY22 Y-o-Y Q Non Interest Income 1,082 1,143 882 -5.3%
Slide 35: Break up of Operating Expenses
Break up of Operating Expenses All figures in INR Crs ▪ Opex for Q4FY23 grew 4.5% Q-o-Q and Quarter Ended Growth Year Ended 19.3% Y-o-Y Cost Head ▪ Opex for FY23 grew 26.5% Y-o-Y v/s. Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y FY23 FY22 Y-o-Y normalised Total Income growth of 25.6% leading to flattish normali
Slide 36: Provisions and P&L
Provisions and P&L All figures in INR Crs ▪ Provision costs for Q4FY23 declined Quarter Ended Growth Year Ended Growth Break up of Provisions 20.4% Q-o-Q, led by Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y FY23 FY22 Y-o-Y – Security Receipts Redemptions of INR Operating Profit/(Loss) 889 914 774 -2.7% 14.8% 3,
Slide 37: Balance Sheet
Balance Sheet All figures in INR Crs ▪ Balance Sheet grew 11.5% Y-o-Y Growth % Growth % Balance Sheet 31-Mar-23 31-Dec-22 31-Mar-22 – C/D ratio at 92.0%1 v/s. 91.8% (Q-o-Q) (Y-o-Y) last fiscal and 89.7% in Q3FY23 Assets 354,786 343,778 318,220 3.2% 11.5% ▪ Advances growth at 12.3% Y-o-Y. Normalized
Slide 38: Break up of Advances & Deposits
Break up of Advances & Deposits All figures in INR Crs ▪ Sustained Granularization of Break up of Advances 31-Mar-23 31-Dec-22 31-Mar-22 QoQ YoY Balance Sheet: Growth (%) Growth (%) – Retail Advances mix at 45.2% Retail 90,447 83,769 65,250 8.0% 38.6% v/s. 43.7% in Q3FY23 (ex- SME 28,724 27,215 23,4
Slide 39: Break up of Investments
Break up of Investments All figures in INR Crs ▪ Total Net Investments at INR 76,888 Crs Investments breakup Rating wise break up of Standard Performing NSLR Investments ▪ SLR – INR 65,158 Crs 0.2% ▪ NSLR – INR 11,730 Crs 2% • Standard Performing – INR 6,497 Crs • Others1 – INR 5,233 Crs HTM 3% 37%
Slide 40: NPA Highlights
NPA Highlights All figures in INR Crs Asset Quality Parameters 31-Mar-23 31-Dec-22 31-Mar-22 ▪ Gross NPA Ratio at 2.2% vs 2.0% Gross NPA (%)1 2.2% 2.0% 13.9% in Q3FY23 Net NPA (%) 1 0.8% 1.0% 4.5% Provision Coverage Ratio (%) 2 62.3% 49.4% 70.7% ▪ Slippages at INR 1,196 Crs for Q4FY23 vs. INR 1,610
Slide 41: Summary of Labelled & Overdue Exposures
Summary of Labelled & Overdue Exposures All figures in INR Crs ▪ Slippage of ~INR 283 Crs from In INR Cr 31-Mar-23 31-Dec-22 31-Mar-22 Standard Restructured Advances Gross Provisions Gross Provisions Gross Provisions pool of Q3FY23 NPA 4,395 2,736 3,904 1,930 27,976 19,771 Other Non Performing Expos
Slide 42: Organic accretion of Capital
Organic accretion of Capital: CET 1 ratio at 13.3% 1 Bank’s Capital Adequacy Ratio1 CET 1 Ratio at 13.3% 17.4% 18.2% 17.9% ▪ Post full warrant conversion ~150 bps to further accrue to CET I ratio 5.1% Organic accretion in CET 4.7% 5.8% 1% during the quarter ▪ Warrants Application / Subscription CRAR
Slide 43: Strong people focus: Stable leadership with focus on up-skilling talent
Strong people focus: Stable leadership with focus on up-skilling talent, objective performance management & enabling employee flexibility ▪ Top and Senior Management with average vintage of around 8.5 years within the Bank combined with Average new talent from the industry. Vintage (in years) ▪ ‘Adv
Slide 44: Credit Rating
Credit Rating CARE Upgrades: ICRA Downgrades BASEL III Tier II to BBB from C Basel II Upper Tier II to D from BB BASEL II Tier I to BB+ from D INDIA Ratings CARE Downgrades INDIA Ratings Upgrades BASEL II Upper Tier II to BB+ from D CARE Upgrades Ratings across all Outlook-keeps Basel II Upper Tier
Slide 45: Thank You
Thank You Disclaimer: No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of information or opinions contained herein. The information contained in this presentation is only current as of its date.