TECHNOLOGY THE COMPETITIVE DIFFERENTIATOR Industry Redefining Features powering Customer Satisfaction

YES Bank has created and implemented several industry redefining features, in its Endeavour to provide a superior banking experience. The Bank is committed to continuously introduce products and services on a sustained basis that revolutionize the traditional banking experience in India by bringing the fastest, most efficient and convenient services to our valuable customers. These include: Single PIN access for all channels, including Internet Banking, ATM and Debit Card. "Two Factor Authentication" security process where customers need to include a second transaction password, which is sent as an instant SMS on their mobile phone to complete the fund transfer. Online Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) services available to customers to transfer funds to third party accounts in over 54,000 branches nationally. Mobile Payments first of its kind Person 2 Person payments in partnership with OBOPAY. Mobile platform agnostic solution can work on SMS, GPRS (Java enabled), WAP, platforms Available 24 x 7 Stop payment instructions for cheques, using the SMS facility on mobile phones. Access to 35,000 plus ATMs affiliated to MasterCard, National Financial Switch and Cash Tree networks in India and over 1.25 million ATMs associated with MasterCard globally. Waivers on petrol surcharge, zero lost card liability, unlimited free ATM transactions across partner networks, higher daily withdrawal and purchase limits. Online Mutual Funds platform - MFONLINE enables customers to purchase and sell mutual funds over the internet on a daily basis. The product not only provides Marked to Market (MTM) updates but also tracks dividend performance and the Internal Rate of Return (IRR) of each transaction, within the consolidated portfolio thereby tracking the growth and progress of the portfolio. Periodic research, analysis and market updates, well documented in a report format are provided to customers on the managed products segment. These reports, like the "Daily Fund Watch", provide valuable information on market trends and investment opportunities for customers and fund managers to optimise their portfolio returns. YES Touch Phone Banking launched in 2008 integrates Voice, Email, Chat and Video in partnership with CISCO, Scansoft for speech-recognition and Servion Global for system

integration and implementation. This is a first and only implementation of speech enabled contact centre in BFSI segment in Asia Centralized Customer Query Management System, diligently tracks customer feedback and propels it towards a positive closure. Wi-Fi and RFID enabled Bank Branch of the Future in umparalled and innovative banking services as never before. New Delhi, which provides an

Your Bank introduced Money Monitor First of its kind financial aggregation tool on the Internet in India in 2008. It provides seamless information of your financial health by aggregating data from over 11, 000 Financial and related sites across the world into Your Bank Internet Banking, thereby giving you a single view across their own & family accounts. It was launched in partnership with YODLEE. Wide range of transactions that can be conducted online include: Real time payments using RTGS and NEFT payment systems Requests for demand drafts, cheque books, query cheque status, stop payments, purchase fixed deposits and TDS enquiry on fixed deposits amongst others. Pay utility bills to over 115 billers across India and make donations to various religious and charitable institutions View and download account statements across multiple formats View and initiate standing instruct Set various email alerts based on transaction thresholds and account activities Integrated view across Corporate and Cash Management services (payments and collections) Differential bulk transactions along with file-level encryption, for corporate clients Air-ticket reservations and e-shopping funded by direct debit to the customer's account Real time payments to various e-brokerage accounts Foreign exchange trading for corporate clients Request and view real-time balances and transaction information

Yes Bank New Development Innovation in Technology

YES Bank was among the earliest to get onto the online Real Time Gross Settlement (RTGS) and National Fund Transfer (NEFT) platforms. We were the first to enable speech-recognition in phone banking and, today, are ready to offer video-based phone banking services when 3G becomes widely available in India. We were the first bank in India to offer two-factor authentication for online funds transfers. We also offered Money Monitor, a first-of-its-kind, online financial aggregation tool in India. YES Bank introduced e-checks for the first time in India as well, where customers can make real time payments to any bank account with any other bank in India. As a matter of fact, we also introduced mobile payments a first-of-its-kind, secure, person-to-person payment service in association with Nokia and Obopay. YES Bank will act as the issuing bank and the custodian of funds under these services The technology platform enabled the Bank to achieve high standards of customer service at comparatively lower cost structures. Gartner advised the Bank in adopting global best practices in its IT strategy and technology roadmap. One of the key features of the Bank's technology strategy was to establish long-term partnerships with best-in-class technology service providers that enables co-creation of value and offers differentiated solutions to its customers. YES BANK has been

YES Bank cultivates an image of being a technology bank . What is IT s role?

Since our inception in 2004, we have known that if we were going to take on other established and well-entrenched players, we had to offer a different and compelling value proposition to our customers. In order to thrive in this highly-competitive and cluttered sector we would have to develop a strong innovation quotient in our business model and strategy, riding on IT. The first five years were about innovating to survive and keeping our cost-base low. Hence, we outsourced our IT to Wipro as part of a seven-year partnership deal in December 2004. Wipro set up and managed all of YES Bank s core infrastructure and hardware, branch rollouts, networking, datacenters and back-up support on a build-own-operate basis. We were the first bank in India to adopt a total IT outsourcing model. Others soon followed suit. The next five years will be about innovating to thrive. In a bid to do this, we have tied up with US-based First Data Corporation (FDC), For example, for an innovative ATM deployment program. FDC will ensure that the ATMs are installed in high footfall locations. This move will help YES Bank reduce its capital expenditure as the cost of setting up and servicing ATMs will be borne by FDC. IT has always helped us negate the disadvantage of our smaller branch network and promoted us as key innovators in the sector.

Clear multi-channel strategy

Working through Wincor s Indian partner AGS Infotech, YES BANK has ordered 188 ProCash 1500xe ATMs, with 106 already installed in branches around the country. The bank has installed 17 ProInfo 1000 interactive kiosks at selected flagship branches to help customers with cashless transactions. As customer behavior today is characterized by a variety of different needs, YES BANK immediately saw the benefit of applying a multi-channel strategy, an area in which kiosk systems play a key role. They offer the user a wide variety of information services and, in this way, enhance the provider s delivery strategy. Our kiosks are our electronic signboards for all new product launches and serve as an ideal platform for clients and prospects to know more about our products and services, says Subramanian Ayyar, Regional Business Leader and Head of Corporate Development, Retail Banking & Wealth Management at YES BANK. We have used both seated and stand-up kiosks in our branch self-service design strategy depending on space availability.

What are YES Bank s technology plans for the future as competitive strength to differentiate?
To take our service-oriented and customer-friendly banking approach to the next level, we are innovatively leveraging RFID technology to setup branches of the future. One such branch has been established at the South Extension at New Delhi. Here, customers debit cards are embedded with RFID microchips, which transmit identity information to relationship managers as soon as customers walk in. The customer s basic details and a photograph pop up on a relationship managers screen, saving time and eliminating introductory verification. Such branches will be launched as a novel concept in partnership with Intel. The South Extension branch has been designated as the YES Bank Intel Global Innovation Center, where such and more innovative technologies will be tested live in a production environment for the first time. This is Intel s only Global Innovation Center outside of China. I am quite sure that such initiatives would help us stay lean, dynamic and competitive.

Competition
Last Price HDFC Bank ICICI Bank Axis Bank Kotak Mahindra IndusInd Bank YES BANK Federal Bank ING Vysya Bank JK Bank Karur Vysya 438.95 820.25 1,000.30 414.55 226.60 259.40 333.85 294.65 784.05 349.90 Market Cap.
(Rs. cr.)

102,444.60 94,503.42 41,234.05 30,585.93 10,558.86 9,030.81 5,710.42 4,407.45 3,800.90 3,750.24

Net Interest Income 19,928.21 25,974.05 15,154.81 4,303.56 3,589.36 4,041.74 4,052.03 2,694.06 3,713.13 2,217.69

Net Profit 3,926.39 5,151.38 3,388.49 818.18 577.32 727.13 587.08 318.65 615.20 415.59

Total Assets 277,352.61 406,233.67 242,713.37 50,850.66 45,635.85 59,007.00 51,456.37 39,013.98 50,508.15 28,224.84