Strategic Management

YES BANK Case Analysis

10/01/2014

Prepared by:
Harsh Vyas 212011
Kali Prasad Pandey 212013
Kavita Kharayat 212016
Kunal Nagpal 212017
Manish Sisodia 212018

YES BANK, one of the new generation private

sector banks, was set up in India after reforms
were introduced in the banking sector in the
1990s. Yes Bank entered the market in late
2004 when the banking space in India was already
overcrowded with a number of public sector banks,
private sector banks, and co-operative banks.
Foreign multinational banks, which were growth-constrained, were
also waiting eagerly for the sector to open up further in 2009 to make
a major foray into this emerging market. However, despite being a late
entrant, Yes Bank drew the attention of its competitors and analysts by
the speed at which it grew and by increasing its operations throughout
the country.

 Banking reforms started in early 1990s.

The reforms in the financial sector were based upon the
recommendations of the Narsimhan committee.
India was dominated by the public sector banks which nearly had 83
% of the banking business.

Reforms like deregulation of interest rates, better disclosure norms,

debt recovery tribunals, and new private sector banks were set up.
The second phase reforms took place in 2009 which included
reducing NPA to 3%, extending credit facilities to rural areas, reducing
higher rates of interest and giving more importance to priority lending
sectors etc.

Yes bank was promoted by Rana kapoor

and Ashok Kapur.

The bank went public in June 2005.

YES BANK is the only Greenfield license

awarded by the RBI in the last 15 years.

Vision: To be recognized as the Best Quality Bank of the World in

India by 2015 and to evolve as the Professionals Bank of India
Mission: To establish a high quality, customer centric, service driven,
private Indian Bank catering to the Future Businesses of India. The
Version 2.0 launched in April 2010 aims to achieve the following by
March 2015:

Means: Trust, Growth, Technology,

Human Capital, Transparency and
Responsible Banking.
Ends: Objective of becoming the Best
Quality Bank of the World in India.
The foundation of this strategy lies in the name "YES", which underlines the
twin ethos of service and trust and the promise to deliver a truly delightful
and unprecedented Banking experience to all customers.

Political factor:
RBIs 1991 monetary policy and control systems
To enlist the confidence of global investors and International market
players
Number of legislative changes to enable competitive banking
systems
Economical factor
Economic Fluctuation -Delay in Indian Vision of 2020
Every year RBI declares its 6 monthly policies
If FDI limits are relaxed then more FDI are brought in India through
Banking channels

Socio Economic factor

Tradition maharaja Pratha
Change in Lifestyle
Literacy Rate
Population
Technological Factor
Foreign banking sectors entered in Indian market witb asserting the
technological based approach
ATM Machines
Credit Card Policies
IT services and Mobile Banking

Strength

Efficient Human capital

Top management very experienced.
High class technology
Client Knowledge database
Advanced risk management systems
Pioneer in usage of internet services
Ability to raise funds easily because of foreign shareholding

Opportunities

Building new client relationships

Expanding the advisory and Customized services offered to clients,
investors, and banks
Other competitor like ICICI bank has Primarily targets upper middle
class and upper class of the society. Expanding business to the
middle and lower income groups
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Once they identify a particular area, then they set up a specialized

business unit to create a viable business for the bank.

Porters Generic Strategies

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The success of yes bank can be attributed to its Differentiating

Strategy.

The bank differentiated itself from other players in the industry

through its on three basic parameters.
Knowledge banking approach
Emphasis on technology
Human resource

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A unique method of acquiring customers and retaining them.

The knowledge banking approach was its main pillar
of differentiation and using it provided specialized service to various
sunrise industries through domain expert.
Yes bank decided to follow an innovative approach to break into the
heavily cluttered Indian commercial banking system.
The bank provides specialized service to the emerging sectors of the
economy through better understanding of its clients business and
industry.

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The bank focused on providing the customer with specialized

banking service depending upon their requirement.
The bank identified some sectors of economy which had growth
prospect: Food and Agribusiness
Life Sciences
Telecom
IT
Media and Entertainment
Infrastructure

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We have made a calibrated decision to invest in the best IT systems

and practices in order to make its technology platform a strategic
business tool for building a competitive advantages
Srikrishan H ( Executive director)

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Yes bank was founded with the aim of providing the world
class customer service to the customer using latest technology
in the industry.

The bank consider technology as a strategic tool to differentiate

itself from other banks.
Corporate internet banking
ATMs
Mobile banking
Phone banking

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The bank entered into the strategic partnership with Gartner

inc. to formulate and implement the bank IT policy.

Price Water House Coopers to facilitate the confirmation of

policies and process with ISO and six sigma norms.

It believed in outsourcing those activities that are not part of

its core competencies.

It entered into a total outsourcing deal with Wipro Infotech in

Dec 2004.

Achieving a high level of efficiency through the automation of

operations.

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Maintaining centralized database and centralized processing for

speedy retrieval of data.

Connectivity with customers and external agencies to provide a

consistent experience at various touch-points.

Using the best systems for seamless integration of front, middle,

and back offices.

Adopting the best inspection and security system to provide a better

comfort zone for customers of bank systems.

Using real-time environment for good disastrous recovery process

and back-up systems.

Wireless advances.

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Yes Bank ---Employees are strategic asset for long term competitive
asset.
Main objective

To emerge as one of the best employers in the country & as most

preferred recruiter in the banking sector.

Higher pay for Retention of talented employees.

Performance management process.

Synergy at work.

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Yes entrepreneur in action Take break from regular work to focus

on project of his/her interest to achieve individual goal.
Yes-Professional Entrepreneurship Program (YPEP)
Talent management initiative.
Talented middle & upper management for strategic initiative.
Yes-retail Entrepreneurship programme (YR EP)
To beat cutting edge skills of latest development to meet future
needs.

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Yes Mentor : Assigning a senior and dynamic employee as a mentor

to new employee
Yes school of banking : To create a center of excellence for
providing training in banking & other financial services in the
banking .
Yes University and school Relations: Recruitment of meritorious
students from university campuses. Offering internship to the
students.

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Value Chain for a Differentiation Strategy of Yes Bank

Firm Infrastructure Money Monitor, Mobile payments, Two-factor
authentication, Mobile Banking , RFID, speech enabled IVR
Human Resources: Higher pay, Performance Management Process,
Synergy at work, Yes entrepreneur in action, YPEP, YREP, Yes Mentor
Yes School of Banking, Yes University and School Relations

Technology: Outsourcing ATMs, Mobile Banking, Phone Banking,

Partnership for IT Policy, SIX Sigma Norms, Automation of Operations

Inbound
Logistics
Customer
Database

Operations
Faster turn
around time.

Dedicated trade
Technology desk for
handling trade
High Skilled transactions
Human
capital
Specialized
advisory team
for catering to
SME

Outbound
Logistics
high quality customer
service.

Marketing
& Sales
Knowledge
Banking

Customized.
Products

Less
advertising
focus .

asset quality through

disciplined credit risk
management. and
address inefficiencies
in the Indian financial
sector.

Service
Knowledge
Banking
Sophisticated
& delighted
customer
service.

Yes Bank has positioned itself as a bank which gives higher

standard of services through product innovation for the diverse need
of individual & corporate clients. So they want to highlight following
points in their positioning segment :
Customer centric
Service oriented
Product innovation

Using TOWS matrix to generate alternative strategies

Strength

Efficient Human capital

Top management very experienced.
High class technology
Client Knowledge database
Advanced risk management systems
Pioneer in usage of internet services
Ability to raise funds easily because of foreign shareholding

Opportunities

Building new client relationships

Expanding the advisory and Customized services offered to clients,
investors, and banks
Other competitor like ICICI bank has Primarily targets upper middle
class and upper class of the society. Expanding business to the
middle and lower income groups
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Grown at a tremendous pace.

http://jainmatrix.com/2012/09/14/yes-bank/
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The Bank differentiated itself from other players through

Unique knowledge banking approach

Emphasis of high end technology to provide innovative solutions
Highly qualified human resources.
Rather than expanding very quickly, the bank focused on the
niche segments of the customers
The bank catered to a niche segment which helped it to avoid
price competition
Overall, it aimed at establishing itself as knowledge based and
technology driven bank that would cater to the needs of
emerging Indian economy

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Yes, the Business strategy implied by Yes Bank was a runaway

success.
Unrelenting efforts to provide world class service coupled
with steadfast maintenance of operational standards were the
prime reasons for banks phenomenal growth.
The growth was even impressive considering it came at a time
when the banking sector was on the verge of consolidation
phase

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December 2006 the bank rated as third best

private bank in India by business world

Ranked second best private bank in financial

express - Ernst & young survey of Indias best for
the year 2006.
YES BANK has recently become the first Indian
Bank to become a signatory to the United Nations
Global Compact

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http://www.yesbank.in/
http://en.wikipedia.org/wiki/Yes_Bank
http://articles.economictimes.indiatimes.com/2013-1023/news/43326592_1_credit-growth-rajat-monga-profitgrowth
http://jainmatrix.com/2012/09/14/yes-bank/

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Thank you

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