Catalyzing a Shared Sustainable Future YES BANK RESPONSIBLE BANKING PRESENTATION Catalyzing a Shared Sustainable Future Namita Vikas, President & Chief Sustainability Officer Consolidated printing to save paper

Branding - Focus on Service Excellence, Positivity & Growth YES BANK: The journey so far… Empowering Business through Professional Entrepreneurship YES BANK - Outcome of Professional Entrepreneurship of Dr. Rana Kapoor the Founder, Managing Director & CEO and highly competent top management team Only ‘Greenfield’ private sector bank Emerged as a Full Service Commercial Bank - 4th Largest Private Sector bank Highest Standards of Governance & Management Framework Branding - Focus on Service Excellence, Positivity & Growth

Branding - Focus on Service Excellence, Positivity & Growth YES BANK: The journey so far… Empowering Business through Professional Entrepreneurship Vision To be recognized as the Best Quality Bank of the world in India by 2015 To provide a Consistent Superior Banking Experience to all its customers To be a long term partner with all stakeholders particularly customers by creating & sharing value To be a solid and trusted financial trust mark led by an exceptional top/senior management team To build the “Professional’s Bank of India” Branding - Focus on Service Excellence, Positivity & Growth

Version 2.0 March 2013- On the road to Version 2.0 - 2015 12,750 employees “The Professionals’ Bank of India” 7,024 employees* 900 Branches 2,000 ATMs 430 Branches* 951 ATMs* Advances–$ 16.69 billion* Deposit base–$20.86 billion* Balance Sheet–$25.03 billion* $7.84 billion * $11.18 billion* $16.69 billion* Target RoE : 22- 24% Target RoA : 1.5 – 1.75% 24.8 % * 1.5 % * *-Stock take 31st March 2013 Vision to become “THE BEST QUALITY BANK OF THE WORLD IN INDIA” 4

Branding - Focus on Service Excellence, Positivity & Growth YES BANK: The journey so far… Empowering Business through Professional Entrepreneurship A Differentiated Approach Professional Entrepreneurship Owner–Manager–Partner Model Customer Centric Approach Superior structuring capabilities leading to client focused solutions Knowledge Banking Focus on sunrise sectors of the Indian economy Creative Technology Delivery of world-class banking solutions Service Excellence Superior & Customized products & services Responsible Banking Mainstream sustainability within business Operations Vision To be recognized as the Best Quality Bank of the world in India by 2015 To provide a Consistent Superior Banking Experience to all its customers To be a long term partner with all stakeholders particularly customers by creating & sharing value To be a solid and trusted financial trust mark led by an exceptional top/senior management team To build the “Professional’s Bank of India” Branding - Focus on Service Excellence, Positivity & Growth

Responsible Banking Vision “YES BANK - Be the Benchmark Financial Institution for Sustainability” Mission Link Sustainable Development with stakeholder value creation through innovative business solutions and services & Weave sustainability principles into YES BANK’s core business strategy and processes Deliverables Deliver Positive socio-environmental Impact—internal and external Enhance YBL visibility and influence in sustainability space

MULTILATERAL ORGANIZATIONS YES BANK Stakeholders EMPLOYEES CUSTOMERS & COMMUNITY MULTILATERAL ORGANIZATIONS Sustainability Training – Instituting internal practices, external initiatives, new business lines and training/capacity building The Responsible Times – Connect with employees on sustainable themes a monthly newsletter is circulated called ‘The Responsible Times’ Sustainability Series – A knowledge exchange platform that generates dialogue between employees, sustainability practitioners & social entrepreneurs YES COMMUNITY, is the Bank’s community engagement initiative wherein all branches serve as ‘choupal’ or knowledge exchange platform for clients to discuss local social & environmental issues Board Member of the UNEP-FI Banking Commission steering Committee Jointly Developed a Sustainable Finance model with UNEP – FI BUSINESS PARTNERS INDUSTRY BODIES Business partners are screened against Bank’s Environment & Social Policy (ESP) which lays down guidelines for business partner selection Leading Board member: ASSOCHAM FICCI CII-ITC TERI CIVIL SOCIETY Engages with Civil Society to develop well informed content for internal & external sustainability engagement programs (Volunteering & YES COMMUNITY) Social Deposit Account, a retail banking product, is an example of partnering with civil society, to develop innovative Banking products SUPPLIERS Vendor agreement includes a 300 page document that contains YBL stipulated clauses on human rights & ethical business practices INVESTORS ACADEMIA REGULATORS GOVERNMENT The Annual Report, the Environmental & Social Policy, Business Updates as well as the Shareholding Pattern as of March 31, 2013 have been uploaded on the YES BANK website (www.yesbank.in) Authored numerous publications in partnership with premier academic institutions Knowledge reports have been authored by various business units Compliant to all RBI & SEBI regulations, directives & notifications Occasionally collaborates with regulatory authorities to host financial literacy workshops for clients YES BANK has dedicated teams like Strategic Initiatives & Government Advisory (SIGA) , Government Relationship Management (GRM) & Responsible Banking that specifically manage relations with government bodies through policy advocacy

Approach Impacting Environment & society through Innovative solutions Proactive investments for Environmental & social Outcomes Mainstreaming Sustainability amongst stakeholders Adopting Sustainable Best Practices Reporting on Sustainable Performance Leveraging Human capital YES FOUNDATION

Impacting Environment & society through Innovative solutions YES MONEY Remittance service for unbanked & under-banked population of India YES SAHAJ Cost effective & scalable Mobile transaction solution—Micro-ATM model YES LEAP Credit, saving & insurance facilities to SHGs through NGOs acting as Business Correspondents of Bank Microfinance Institutions & Affordable Housing Group (MIAG) Making credit available to BOP Approximately 9 million man- hours of productive wage earning time saved $136.29 million worth transactions in FY2012-13 IMPACT Brought financial services to rural households $3.56 million worth transactions in FY2012-13 Extended Financial Inclusion to over 72000 households $1.67 million in savings linked SHGs & $26.03 million in credit linked SHGs Impacted 3 million low income borrowers In FY2012-13, MIAG extended funding to 2 developers & 5 HFCs Inclusive & Social Banking

Impacting Environment & society through Innovative solutions 385000 unique Txns $136.29 million Remitted 16,468 Bank Branches 2.13 Million Users BC SBI ICICI AXIS HDFC CBI BOB BOI PNB Canara IDBI UCO CITI SCB Corporation Vijaya

Impacting Environment & society through Innovative solutions YES MONEY Remittance service for unbanked & under-banked population of India YES SAHAJ Cost effective & scalable Mobile transaction solution—Micro-ATM model YES LEAP Credit, saving & insurance facilities to SHGs through NGOs acting as Business Correspondents of Bank Microfinance Institutions & Affordable Housing Group (MIAG) Making credit available to BOP Approximately 9 million man- hours of productive wage earning time saved $136.29 million worth transactions in FY2012-13 IMPACT Brought financial services to rural households $3.56 million worth transactions in FY2012-13 Extended Financial Inclusion to over 72000 households $1.67 million in savings linked SHGs & $26.03 million in credit linked SHGs Impacted 3 million low income borrowers In FY2012-13, MIAG extended funding to 2 developers & 5 HFCs Inclusive & Social Banking

Proactive investments for Environmental & Social Outcomes Sustainable Investment Banking (SIB) Mainstreaming clean technology, water & waste management investments Alternate Energy & Environment Advisory Social Enterprises & Rural Advisory Knowledge Banking IFC PE Fund for Development of North-East India Improve economic & social conditions of under-developed North-East Indian States Focus Sectors: Tourism & Hospitality, Food & Agribusiness, Infrastructure, Healthcare, Education & Livelihood Creation and Affordable Housing

Sustainability Research Initiatives Mainstreaming Sustainability amongst stakeholders YES COMMUNITY Sustainability Research Initiatives

Mainstreaming Sustainability amongst stakeholders YES BANK’s Associations Associated Chambers of Commerce (ASSOCHAM) The Banking Codes and Standards Board of India (BCSBI) Carbon Disclosure Project (CDP) Clinton Global Initiative (CGI) Confederation of Indian Industry (CII) Federation of Indian Chambers of Commerce and Industry (FICCI) Indian Banks’ Association (IBA) Indian Center for Corporate Social Responsibility (ICCSR) Indian Institute of Corporate Affairs (IICA) PHD Chamber of Commerce and Industry (PHDCCI) Responsible Investment Research Association (RIRA) The Energy Research Institute – Business Council for Sustainable Development (TERI BCSD) United Nations Environment Program – Finance Initiative (UNEP-FI) United Nations Global Compact (UNGC) US India Business Council (USIBC) World Economic Forum (WEF) Evangelizing & Influencing Environmental, Social & Governance (ESG) Founder member of Responsible Investment Research Association(RIRA) to propagate ESG research in Indian context Triple Bottom Line Reporting Natural Capital Initiative

Adopting Sustainable Best Practices Within Environmental & Social Policy Environmental Management System Infrastructure Management Employee Grievance Redressal – My Voice Technology Initiatives War on waste –Reduce, Reuse, Recycle

Reporting on Sustainable Performance United Nations Global Compact (UNGC) First Signatory in India to the UNGC Moved from Learner’s platform to GC Active level Carbon Disclosure Project (CDP) One of the first signatories to CDP from India Maintained its “Band A” position & stood a joint 5th among 57 Indian organizations in 2012 Global Reporting Initiative (GRI) United Nations Environment Programme Finance Initiative (UNEP FI) Banking Commission Board member

Reporting on Sustainable Performance Step towards being Carbon Neutral Material gifting to environment friendly platform To support UNEP’s billion tree campaign & WWF’s Cities for Forests campaigns planted over 8000 trees & gifted over 2,500 e-certificates on behalf of stakeholders An approximate offset of 154.48 tons of carbon

Leveraging Human Capital Employee Engagement YES i CARE YES CONNECT Joy of Giving Social Deposit Account Employee Payroll Giving YES School of Banking Project Udaan Access to employability in affected states of India

Build “an Empowered and Equitable India” YES FOUNDATION Build “an Empowered and Equitable India”

YES FOUNDATION

YES FOUNDATION

Best Practices in Embedding Sustainability in Financial Institutions In conclusion Best Practices in Embedding Sustainability in Financial Institutions Impacting Environment & society through Innovative solutions Proactive investments for Environmental & social Outcomes Mainstreaming Sustainability amongst stakeholders Adopting Sustainable Best Practices Reporting on Sustainable Performance Leveraging Human capital YES FOUNDATION

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