DURING FY 2023-24,
YES BANK PROGRESSED WELL ON ITS KEY STRATEGIC OBJECTIVE OF PROFITABILITY IMPROVEMENT
AND MADE FURTHER ADVANCEMENTS ACROSS MOST KEY FINANCIAL AND OPERATING METRICS.
Dear Shareholders,
As I reflect on the last eighteen months, the time since I became the Chairman of YES
BANK, the Bank has scripted a story of resilience and progress, achieving its third
consecutive year of full-year profitability in the Financial Year 2023-24.
Post moratorium, YES BANK has exemplified resilience and adaptability, successfully
navigating multiple challenges that came along the way. The collective spirit and ability
to steer through these challenging periods is a testament to the dedication of the staff,
the loyalty of our customers, and the support of our shareholders and regulatory
authorities. As we move into the financial year 2025, I feel that YES BANK is well placed
to continue to thrive and make further progress in the ever-changing banking landscape.
Macroeconomic Scenario
The global macroeconomic scenario for 2023-24 reflected a complex interplay of
challenges and opportunities, marked by cautious optimism.
The geopolitical conflicts heightened the uncertainties in global energy markets,
affecting oil prices and regional stability. These conflicts, along with trade tensions
and shifting alliances, underscores the need for diversified supply chains and strategic
economic partnerships.
Despite these geopolitical tensions and monetary policy tightening, the global economy
demonstrated resilience, with global GDP expanding by 3.2% in CY 2023.
Advanced economies GDP grew at 1.6%, while the emerging and developing economies grew
at 4.3%.
In the midst of global headwinds, India has emerged as a pocket of resilience. The GDP
growth stood at 8.2% in FY 2023-24, supported by government-led capex spending, robust
urban and rural demand, and proactive measures by the RBI stabilising inflation at 5.4%.
The government's emphasis on infrastructure development and digital transformation has
been pivotal in attracting investments and fostering economic resilience.
The latest Financial Stability Report highlights that Indian Banking Sector continues
to remain stable, with profitability and asset quality indicators at their "decadal
best" levels with adequacy of liquidity and capital buffers in the banking system.
Moreover, RBI's macro-stress tests revealed that Scheduled Commercial Banks (SCBs) are
well-capitalised and capable of absorbing macroeconomic shocks even in the absence of any
further capital infusion.
YES BANK in FY 2023-24
During FY 2023-24, YES BANK progressed well on its key strategic objective of
Profitability Improvement and made further advancements across most key financial and
operating metrics.
The Bank's balance sheet crossed Rs.4.0 lakh crore mark with robust accretion to
Deposits at Rs.2.6 lakh crore. The Bank judiciously expanded its branch network and added
85 branches in FY 2023-24. YES BANK's Deposit Growth was 22.5% vis-avis the Advances
Growth of 13.8%1. There was a marked improvement in the asset quality with Net
NPA and net carrying value of Security Receipts (SRs), as a percentage of advances,
reducing from 2.4% to 1.1% as at March 31,2024.
Another key highlight was the substantial progression in achievement of targets of
lending to Priority Sector Lending (PSL) achieved through a combination of organic efforts
as well buying of PSL certificates by the Bank. YES BANK concluded FY 2023-24 with NIL
shortfall in overall PSL and sub-categories of Small & Marginal Farmer (SMF) and
Weaker Section (WS), and a negligible shortfall in the Non-Corporate Farmer (NCF)
sub-category.
Overall, FY 2023-24 showcased YES BANK's steady commitment to enhancing profitability,
prudent risk management, and sustainable growth.
Digital @ Banking
In FY 2023-24, YES BANK continued its journey of innovation in the digital banking
space and introduced multiple new products and solutions aimed at enhancing customer
convenience and accessibility.
In FY 2023-24, the Bank launched a comprehensive mobile banking solution, 'iris by YES
BANK' with over 230 plus features and services accessible on a single platform enabling
customers to do banking on-the-go, with unparalleled convenience and flexibility.
The Bank introduced YES Pay Next, an innovative UPI payment mobile banking application
that offers efficient transaction management with its intuitive features and enhanced
security protocols and seamless and secure payment solutions. Additionally, YES BANK also
unveiled YES PAY BIZ, a unique payment solution with multiple features such as multi-mode
payment collection, instant digital charge slips, and automated reconciliation statements.
The Bank further strengthened its capabilities and technology infrastructure in digital
payment and transaction banking ecosystem.
YES BANK collaborated with a leading player in the payment ecosystem as the PSP Payment
Bank. The Bank launched UPI payments through RuPay Credit Cards, providing customers with
enhanced convenience and security in credit card-based transactions, empowering its
customers to transact effortlessly with enhanced security measures.
By leveraging technology and strategic partnerships, the Bank endeavours to offer
superior customer experience and further enhance its positioning in digital banking
ecosystem.
Sustainability Focussed
The banking and finance sector continued to witness significant regulatory developments
around ESG and climate integration, during the year. RBI issued a Framework for acceptance
of Green Deposits aimed at channelising flow of funds to climate-aligned activities. The
Central Bank also released a 'Draft Disclosure Framework on Climate-related Financial
Risks', based on the Taskforce for Climate-related Financial Disclosures (TCFD)
recommendations. Regulators have highlighted that climate-related risks pose significant
challenges to the banking sector and overall financial stability, and financial
institutions need to set up mechanisms to integrate climate aspects into their business
strategy, factor the effects of climate change into financial planning, and evaluate and
disclose the impact of climate-related risk drivers on the overall enterprise risk
profile.
SEBI also expanded its Business Responsibility and Sustainability Reporting (BRSR)
framework by introducing BRSR Core disclosures and expanding the scope of disclosures to
the value chain of listed entities. YES BANK views the emerging focus on ESG as a
significant opportunity and aims to not just keep pace but stay ahead of the curve in this
area. As the only Indian banking signatory to the UNEP FI Principles for Responsible
Banking, YES BANK is committed to align its business with the objectives of the UN SDGs
and the Paris Climate Agreement. The Bank has already set up a robust governance structure
for integrating ESG and climate considerations into its business with oversight from the
Board-level CSR and ESG Committee.
In FY 2023-24, the Bank strengthened this commitment by undertaking significant
actions, and progressing on its targets of reducing its financed emission intensity
(electricity generation sector portfolio), achieving net zero emissions by 2030, enhancing
its gender diversity and expanding financial inclusion amongst rural women borrowers. The
Bank also continued to be recognised for its benchmark sustainability disclosures,
achieving the highest S&P Global ESG score and CDP rating for its climate disclosures,
amongst Indian banks, for the second year in a row.
Governance and Risk Management at the Core
The Bank remained committed to the highest standards of Governance, Risk and Compliance
which remains at the core of everything that YES BANK does.
The Bank has implemented comprehensive policies and controls to reflectthe latest
directives, including those related to IT governance, customer service, green deposits,
asset quality, and investments, etc. The Bank's leadership is dedicated to fostering a
strong culture of compliance, regularly evaluating and updating the policies to
incorporate best practices
The Bank endeavours to remain focussed on mitigating risks revolving around data and
information security, supported by a robust IT infrastructure with resilient systems and
stringent security policies and controls to safeguard its information asset. The Bank has
adopted a risk-based approach and follows defence-indepth to protect its information
systems against cyber-attacks. It has adopted a Cyber Security Resilient Framework to
manage cyber security risk. Moreover, while the Bank would endeavour to invest in
straight-through-processes, it would be without compromising on the first principles of
banking controls and compliances.
Brand that Connects
As YES BANK continues to evolve and adapt to the dynamic landscape of modern banking,
the Bank's refreshed brand identity reflects its core values, vision for the future, and
commitment to delivering unparalleled banking experiences. The introduction of a refreshed
logo in May 2023 symbolises its aspiration to soar to greater heights, embodying its
modern, agile, and digitally forward approach.
The strength of YES BANK is in each individual team member, and the strength of each
member of the team is in the YES BANK platform. Keeping this ethos in mind, YES BANK
proudly announced its partnership with the Indian Olympic Association as the Principal
Sponsor for Team India at the Paris Olympics 2024. This initiative underscores our
unwavering support for Indian athletes and the Bank's fervent desire to highlight its
commitment on the global stage. To complement this endeavour, the Bank introduced a
special savings account proposition named "Yes Glory", along with the empowering
campaign "Milkar Jitayenge" which reflects our belief in collective success and
the spirit of victory.
We, at YES BANK, continuously aspire to build a future-ready institution of global
repute, size, and stature with a blend of distinctive capabilities that generates a
superior value for our stakeholders.
As I conclude, I wish to express my sincere thanks to my colleagues on the Board for
their continued support and dedication in steering the Bank, as we transition to a
brighter tomorrow.
On behalf of the entire Board and the Management Team, I extend my warmest greetings
and express our most sincere appreciation for your unwavering support and trust in the YES
BANK franchise.
Sincerely,
Rama Subramaniam Gandhi
Chairman.