YBL Annual Report 2019 2020 PDF

co mmi tme n t
A redeﬁned YES.
tr ansparency
p ro mi se
YES BANK LIMITED | ANNUAL REPORT 2019-20

Contents
Annual Repor t 2019 -20
01 29 84
Corporate Overview Our Approach to Value Creation Statutory Reports
How to Navigate the report 01 Commitment. Promise. Transparency. 29 Value creation model 84 Management discussion and analysis
A redefined YES 31 Our strategy 106 Directors’ report
This is the navigation bar.
02 Key highlights FY 2019-20 36 Risk management 146 Report on corporate governance
You can use this to switch to 03 YES BANK at a glance 187 Annual business responsibility report
40
different chapters within a section 05 Products and services
Our ESG Focus
or to a different section altogether. 06 Geographical presence
198
43 Environment
The blue colour will highlight the 07 Message from the Chairman Financial Statements
54 Social
chapter you are currently in. You can 10 Message from the Managing Director 198 Standalone Financials
69 People
directly access the chapters from and CEO 267 Consolidated Financials
80 Governance
this navigation. 12 Key performance indicators
15 COVID-19 response
More information in some cases will
17 Customer focus
be provided by way of hyperlinks
21 Technology and digital innovation
within the text. Alternatively, a read
25 Retail
more button will guide you to the
specific links.
Icons used in the report About this report

Our approach to reporting resources YES BANK consumes and its continued issues that are material to YES BANK’s ability to create
This report is prepared in accordance with the ability to create value for the stakeholders in the short, value and transparently presents its performance and
International Integrated Reporting <IR> Framework, medium and long terms. These are collectively referred future strategy.
Financial Manufactured Intellectual to as ‘the capitals’ and comprise financial capital,
Capital Capital Capital
outlined by the International Integrated Reporting Reporting boundary and period
Council (IIRC). YES BANK voluntarily adopted the manufactured capital, intellectual capital, human
capital, social & relationship capital and natural capital. The information presented in this report pertains to all
<IR> Framework in 2016 and has been publishing
Please refer to page number 29 for a snapshot. business and non-business activities of YES BANK and
annual disclosures based on the same. With
its subsidiaries, recorded between April 1, 2019 and
this framework, the Bank intends to provide its Board and management assurance March 31, 2020, unless stated otherwise.
stakeholders a holistic picture of its operations,
Human Social & Natural As ‘Those Charged With Governance’, the Board and the
Capital Relationship Capital
business model, strategy and risk management,
Management of YES BANK together take responsibility
Capital together with its performance across financial and
for the integrity of the information presented in this
non-financial parameters. The report also strives to
report. In their opinion, this report addresses all the
Read more PG NO 29 articulate the interconnectedness between various
Commitment. Transparency. Promise.
A redefined YES.
Contents
Corporate Overview
01 Commitment. Promise. Transparency.
A redefined YES
02 Key highlights FY 2019-20
Reinforcing its commitment to the highest standards of compliance
03 YES BANK at a glance
05 Products and services and governance, YES BANK is paving the path to sustainable value
06 Geographical presence creation with a recapitalised balance sheet and a recalibrated strategy.
07 Message from the Chairman With marquee financial institutions as partners and customer-centricity
10 Message from the Managing Director
and CEO at heart, YES BANK is strengthening its core to deliver an enhanced
12 Key performance indicators banking experience with a ‘digital first’ approach, in line with its strategy
of building a ‘Digital Bank’.
17 Customer focus
25 Retail
Our approach to value creation Commitment

29 Value creation model The Bank is committed to the interest of
31 Our strategy Transparency
customers – ‘customer’ being the ‘sole’
36 Risk management
focus and an uncompromising mandate Upholding transparency by conducting Promise
Our ESG focus through which the Bank intends to business with the highest degree of
43 Environment generate real and sustainable value for integrity, ethics and compliance with The Bank is repositioning itself to fuel
54 Social shareholders, thereby endeavouring to regulatory guidelines. the aspirations of an India that is taking
69 People be a contributor to economic recovery. confident strides towards self‑reliance.
yy By fostering a compliance culture Leveraging on the two pillars of
80 Governance
yy To all stakeholders Commitment and Transparency will
yy By upholding stakeholder trust
Statutory Reports enable the Bank to fulfil its promise to all
yy To sustainable growth
84 Management discussion and analysis yy By effective and evolved risk stakeholders in its journey forward.
106 Directors’ report yy To good governance management
146 Report on corporate governance yy Delivering a differentiated banking
187 Annual business responsibility report yy To organisational integrity experience
Financial Statements yy Providing a truly digital experience
198 Standalone Financials
yy To keep the customer at the centre
267 Consolidated Financials
yy Digital innovations to support customers
1
Key highlights FY 2019-20
Contents
Corporate Overview
A redefined YES
8.5%
C10,247
05 Products and services
06 Geographical presence
07 Message from the Chairman crore
and CEO
Total Net Income Capital adequacy ratio^
12 Key performance indicators
17 Customer focus
2.2% 5.03%
25 Retail
Our approach to value creation

29 Value creation model
31 Our strategy Net interest margin Net NPA
36 Risk management
Our ESG focus

43 Environment
44% 26.6%
54 Social
69 People
80 Governance
Statutory Reports
84 Management discussion and analysis Retail and MSME advances CASA ratio
106 Directors’ report in total portfolio
146 Report on corporate governance
187 Annual business responsibility report
Financial Statements
^ Tier II ratio is capped at 2.0% in line with RBI Basel III Regulations.
2
YES BANK at a glance
Redesigned to deliver quality banking

Contents
Corporate Overview
A redefined YES YES BANK is a ‘full service commercial bank’ offering a comprehensive suite of products
and services to its corporate, MSME and retail customers. Customer-centric and
05 Products and services service‑driven since inception, the Bank is taking confident strides into the future
06 Geographical presence by blending its wide physical reach with digital capabilities to provide differentiated
07 Message from the Chairman offerings, in line with India’s evolving banking needs.
and CEO
17 Customer focus
25 Retail
New Age Private Sector Bank Differentiated
Our approach to value creation Technology Platform
Total Assets of D257,827 crore,
29 Value creation model with Advances of D171,443 crore Market leader within Payments
31 Our strategy
(56% Corporate and 44% MSME -#1 IMPS Remitter Bank
36 Risk management
and Retail) -#1 in UPI P2M transactions with
Our ESG focus ~31% market share
43 Environment -AePS 40% market share in
54 Social transaction volume^
69 People
80 Governance
Statutory Reports
84 Management discussion and analysis Young and enterprising Pan India Presence
106 Directors’ report workforce 1,135 Branches, 21 BC Manned
146 Report on corporate governance Banking outlets and 1,423 ATMs*
22,973 YES BANKers with an average age
of 33 years, with a vintage of ~8 years
Financial Statements for Top Management and ~7 years for
198 Standalone Financials Senior Management#
267 Consolidated Financials # As on March 31, 2020.
^ for FY 2019-20.
*Includes CRMs and BNA as on March 31, 2020.
3
YES BANK at a glance
Contents Backed by marquee financial institutions Capital adequacy post reconstruction

Corporate Overview In March 2020, YES BANK underwent a reconstruction process under Total CRAR as on March 31, 2020 after considering Total Tier II Capital Funds at 6.4%.
the guidance of the Reserve Bank of India. Today, the Bank has a However, Tier II ratio currently capped at 2% resulting in Total CRAR at 8.5%.
A redefined YES
unique public-private partnership model, supported by India’s leading
03 YES BANK at a glance financial institutions as key shareholders.
12.8
06 Geographical presence shareholding model as on march 31, 2020 CRAR (in %) 16.5 4.1 8.5
07 Message from the Chairman
and CEO 5.2
2.9
17 Customer focus
21 Technology and digital innovation 2.0 0.1
25 Retail 8.4
Our approach to value creation 2.0 6.3
1.5
29 Value creation model 0.6
31 Our strategy
31-Mar-19 31-Dec-19 31-Mar-20
36 Risk management
Our ESG focus CET 1 AT 1 Tier - II

43 Environment
54 Social
69 People RWA 305,838 crore 252,243 crore 240,224 crore
80 Governance
Statutory Reports
State Bank of India - 48.21% Bandhan Bank - 2.39%
84 Management discussion and analysis Advances mix
56% 8% 13% 24%

106 Directors’ report ICICI Bank - 7.97% Federal Bank - 1.92%
146 Report on corporate governance HDFC Limited - 7.97% IDFC First Bank - 1.67%
Axis Bank - 4.78% Others - 21.48%
Corporate Banking Medium Small and Retail Banking
Financial Statements Kotak Bank - 3.61% Enterprises Micro Enterprises
4
Products and services
Tailored to suit evolving customer needs

Contents
Corporate Overview
A redefined YES
06 Geographical presence BRANCH INCLUSIVE & SOCIAL Agribusiness EMERGING LOCAL TRANSACTION
BANKING BANKING AND Product CORPORATES (ELC) BANKING
MICROFINANCE BANKING Management
and CEO Read more PG NO 85 Read more PG NO 87 Read more PG NO 90 Read more PG NO 91 Read more PG NO 93
17 Customer focus
25 Retail
DIGITAL CREDIT CORPORATE GOVERNMENT Financial
Our approach to value creation BANKING CARDS BANKING BANKING Markets
29 Value creation model Read more PG NO 86 Read more PG NO 89 Read more PG NO 90 Read more PG NO 91 Read more PG NO 93
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People GLOBAL RETAIL Corporate Finance INDIAN FINANCIAL LOAN
80 Governance INDIAN BANKING BANKING ASSETS - Infrastructure INSTITUTIONS BANKING SYNDICATIONS
Banking (CFIB)
Statutory Reports
Read more PG NO 87 Read more PG NO 89 Read more PG NO 90 Read more PG NO 92 Read more PG NO 94
84 Management discussion and analysis
106 Directors’ report
198 Standalone Financials RURAL SMALL ENTERPRISES MULTINATIONAL INTERNATIONAL ASSET RECONSTRUCTION
267 Consolidated Financials BANKING GROUP BANKING CORPORATE BANKING BANKING AND MANAGEMENT GROUP
Read more PG NO 87 Read more PG NO 89 Read more PG NO 91 Read more PG NO 92 Read more PG NO 94
5
Geographical presence
Optimising reach with omnichannel delivery

Contents
Corporate Overview
A redefined YES YES BANK has a wide network of branches and ATMs operated under a hub and spoke
model, covering all states and union territories of India. Further, the Bank’s physical
05 Products and services reach is complemented by its robust digital channels to drive efficiency and enhance
06 Geographical presence customer convenience and experience, and drive operational efficiency.
1,423
and CEO Location-wise focus areas
yy Asset-led acquisition in semi-urban/rural areas
17 Customer focus yy Liability-led acquisition in metro and urban ATMs*
21 Technology and digital innovation areas targeting non-resident Indians (NRIs),
25 Retail senior citizens, high net worth individuals (HNIs),
and trusts, associations, schools and clubs
31 Our strategy
Location mix PAN India Branch Network
1,135
36 Risk management
Our ESG focus

43 Environment
54 Social
Branches
69 People
80 Governance
Statutory Reports ~85% 850+

84 Management discussion and analysis of Branches with Spoke Branches
106 Directors’ report vintage > 3 years
250+ 21
Rural - 19% Urban - 21% Hub Branches BC manned
198 Standalone Financials Metro - 34% Semi-urban - 26% banking outlets
6
Message from the Chairman
Navigating change with conviction

Contents
Corporate Overview
A redefined YES Dear Stakeholders, of India’s largest financial institutions, YES BANK has
02 Key highlights FY 2019-20 been re-energised and is steering its way forward
As the newly appointed Chairman of the Board
03 YES BANK at a glance by leveraging on a unique opportunity to learn
appointed under the YES Bank Reconstruction
05 Products and services from past challenges and become stronger, while
Scheme 2020, I take this opportunity to introduce to
06 Geographical presence continuing to focus on supporting our customers and
you a redefined YES BANK.
07 Message from the Chairman all stakeholders.
10 Message from the Managing Director At the outset, on behalf of the Board, I thank the
and CEO The Bank’s new Board had just embarked
Government of India, Department of Financial
12 Key performance indicators implementing the Reconstruction Scheme during
Services in Ministry of Finance, Reserve Bank of
15 COVID-19 response difficult market conditions, when the COVID-19
India (RBI), State Bank of India, HDFC Limited,
17 Customer focus situation erupted and swept across the world, forcing
ICICI Bank, Axis Bank, Kotak Mahindra Bank,
21 Technology and digital innovation governments to impose nationwide lockdowns.
IDFC First Bank, Federal Bank and Bandhan Bank
25 Retail This created an additional complexity to an existing
for their extraordinary and timely support through
difficult situation which the Bank faced on account
Our approach to value creation the YES BANK Reconstruction Scheme 2020, which
of its legacy issues and its liquidity situation
29 Value creation model was made effective March 13, 2020. It is the first
pre‑implementation of the reconstruction scheme.
31 Our strategy such bank led restructuring plan in India’s banking
Given the unprecedented situation, the Bank’s
36 Risk management history. Further, the plan has been exceptionally
management team under the able leadership of the
Our ESG focus well conceptualised and flawlessly executed by
new MD & CEO, Prashant Kumar, immediately re-
43 Environment RBI and the investing banks. The Bank greatly
positioned itself and dealt with market challenges
54 Social appreciates the support extended. With the backing
admirably to restore customer and depositor
69 People confidence post lifting of the moratorium imposed by
80 Governance YES BANK has been re-energised and is RBI. In addition to the Special Liquidity Facility (SLF)
Statutory Reports steering its way forward by leveraging of `50,000 crore extended by RBI, the Bank has since
84 Management discussion and analysis on a unique opportunity to learn from then received strong customer liquidity inflows. I am
106 Directors’ report pleased to report that the Bank has, as of date repaid
challenges and become stronger, while `35,000 crore of SLF and the balance will be repaid
187 Annual business responsibility report continuing to focus on supporting our within the timelines set by RBI.
customers and stakeholders. Meanwhile, YES BANK has made significant
198 Standalone Financials progress. Most importantly, the Bank successfully
267 Consolidated Financials raised equity funding of `15,000 crore through
Follow‑on Public Offering (FPO) within four months
7
of the restructuring scheme, amidst challenging global scale, COVID-19 was declared as a global Embarking on a journey of transformation,
Contents market conditions, towards the end of July, 2020. health emergency by the World Health Organisation
Corporate Overview It truly demonstrates the strong confidence of as the fiscal year came to an end. The imposition
we have and continue to make progress
01 Commitment. Promise. Transparency. institutional and retail investors in the Bank’s of a stringent nationwide lockdown to contain the towards achieving the targets we had
A redefined YES restructuring plan, action taken, future roadmap and spread of COVID-19, led to an economic slowdown, laid out for ourselves, which reflects the
professional leadership. prompting series of conventional as well as resilience of the Bank and its ability to
unconventional policy responses from both RBI and
05 Products and services Pursuant to the encouraging developments in the
the Government.
bounce back, even in an unpredictable and
06 Geographical presence Bank and equity capital raise of `15,000 crore, I am complex economic environment
07 Message from the Chairman pleased to report that on August 03, 2020 Moody’s On the monetary policy front, the RBI cut the repo
10 Message from the Managing Director Investors Service (Moody’s) upgraded the Bank’s rate by a cumulative of 160 basis points during
and CEO rating to B3 with outlook stable. This is a testimony FY 2019-20, besides taking targeted steps to infuse banking sector has responded by offering a loan
12 Key performance indicators of the positive changes implemented in the Bank liquidity and controlling term premium in the bond moratorium to customers. Given the uncertainty and
within a short time frame. The Moody’s rating market. It upped its policy response by introducing full economic impact of COVID-19 on key sectors,
17 Customer focus
improvement rationale as reported, was due to a targeted long term repurchases operation or TLTRO it is difficult to fully ascertain the implication of the
successful FPO which bolstered the Bank’s solvency and increased the quantum of long-term repo moratorium in the short to medium term and will
25 Retail
and improved financial strength. This will support purchases. The central government also responded need close monitoring by Banks.
Our approach to value creation depositor confidence. Following this capital increase, by implementing counter cyclical measures and
Looking ahead, FY 2020-21 will be a year of transition,
29 Value creation model the Bank’s Common Equity Tier (CET) 1 ratio has allowing the FY 2019-20 fiscal deficit to expand to
as we battle health and economic impact of COVID-19
31 Our strategy doubled to 13.4% from 6.6% at the end of June, 4.6% of GDP vis-à-vis the revised budget estimate
and simultaneously re-invent ourselves as a nation.
36 Risk management 2020, bringing its capitalisation largely in line with of 3.8%. In addition, the government took several
India’s fundamentals continue to remain strong —
Our ESG focus the private sector peers. The significantly improved sectoral initiatives to support growth while lowering
with its structural strengths of vast consumption
43 Environment solvency ratio strengthens the Bank’s resilience to the corporate tax rate to improve sentiments.
base, young demographics and with an aspiring
54 Social potential asset quality risks resulting from the impact The total fiscal and monetary economic package
middle class, the potential is limitless. We must seize
69 People of the economic slowdown and COVID-19 related amounted to `20.97 trillion under ‘Atmanirbhar
the opportunity and expeditiously move forward
80 Governance disruptions on India’s economy. Bharat’ program. Despite the support, the knock-on
with structural and regulatory reforms that will
impact from global growth slowdown and the initial
Statutory Reports Taking stock of FY 2019-20 facilitate seamless, strong and sustainable growth
setback from domestic lockdowns resulted in India
84 Management discussion and analysis FY 2019-20 has been a challenging year given the across sectors. Timely action to conceptualise and
recording its slowest GDP growth in 11 years at 4.2%
106 Directors’ report global and Indian macro-economic head-winds. implement India’s first bank led restructuring plan
in FY 2019-20.
146 Report on corporate governance India experienced moderate growth, demand of YES BANK and the very positive developments
187 Annual business responsibility report contraction, low pace of investment and weaker The Banking sector, as also emphasized by the thereafter, is a shining example of a well-coordinated
credit offtake. The adverse impact of global political RBI Governor, needs to create buffers to ensure and decisive initiative by the government and RBI.
uncertainty arising from US and China trade war effective credit flow to develop resilience in the
198 Standalone Financials In these difficult times, I must commend the
and Brexit related developments impacted external financial system and cushion against the economic
267 Consolidated Financials coordinated efforts of the central and state
trade. In midst of a watchful turn of events on a impact of the COVID-19 situation. Guided by RBI, the
governments, municipal authorities and regulatory
8
bodies, to insulate all of us from the larger health The Board of Directors of the Bank recognise that support, will help us honour them. This is also
Contents issues, livelihood, economic and financial fallout we must continue to strengthen and augment the time for the Bank to increase its focus on
Corporate Overview of COVID-19. I applaud the immense contribution our oversight along with governance and risk Environmental, Social and Governance (ESG) front,
01 Commitment. Promise. Transparency. of essential service providers including healthcare management practices. Acknowledging that and continue to factor in new age risks that are
A redefined YES professionals, delivery, police personnel amongst strong Corporate Governance is key to success of becoming increasingly mainstream.
many other selfless workers who tirelessly an institution, the Board has identified ‘Culture
03 YES BANK at a glance As we move forward and embrace the new normal,
safeguarded the nation during this period of an of Compliance’ as a key asset that we need to
05 Products and services we aspire to be seen as a Bank, which is trusted
extreme health and consequent economic crisis. nurture and cherish - a culture of transparency,
06 Geographical presence for its integrity, practices highest standards of
Our compliments and gratitude to them. integrity, trust, accountability and collaboration.
07 Message from the Chairman governance, is contemporary and continuously
The importance of good governance cannot be
10 Message from the Managing Director Restarting with a resounding YES motivated to deliver value to its stakeholders. There
and CEO understated which was also emphasised by RBI
Embarking on a journey of transformation, the Bank is uncertainty about the depth and length of the
12 Key performance indicators in its recent discussion paper on improving the
has made considerable progress towards achieving current crisis. However, as the Bank embraces this
15 COVID-19 response quality of governance and empowering the Board
targets set by the new Board. It reflects the resilience, transformation, I am confident that an adaptive and
17 Customer focus of Directors to set the culture and values of the
resolve and perseverance of the management team responsive business model that harnesses the power
21 Technology and digital innovation institution, identify and manage conflicts of interest,
to bounce back despite enormous challenges and a of digital and focuses on customer value, we will
25 Retail manage risks while also endeavour to improve the
complex economic environment. While successfully collectively drive positive outcomes for YES BANK.
supervisory oversight of Senior Management. In
Our approach to value creation navigating transformation or change is daunting, order to ensure effective risk management practices The Board and I, feel a deep sense of pride
29 Value creation model I have immense faith in our reinvigorated team to which benefit all stakeholders, in recent months, to be a part of an institution which continues
31 Our strategy
rebuild the Bank, to its rightful position amongst the Board has ensured efficient risk frameworks to show remarkable resolve and confidence
36 Risk management
leading domestic and global banking peers. The are put in place so that risks are identified, towards delivering these positive outcomes.
Our ESG focus support received from all stakeholders, particularly evaluated and addressed appropriately. Much of The achievements and the change would not have
43 Environment the unwavering confidence of our customers the work undertaken is not only to meet regulatory been possible without the incredible support of
54 Social has been most gratifying. It has enhanced the requirements, but to make the Bank stronger, agile the Government of India, RBI, other regulators,
69 People determination of the new Board and the Management and efficient. investors, valued customers, my Board colleagues
80 Governance to build an institution which has highest standards and over 21,000 enthusiastic YES BANK employees.
of governance, strong risk processes, financially The Bank’s Board continues to work closely with the
Statutory Reports Thank You all.
strong, technologically powered to deliver best value Management to identify and deal with impending
to our customers. The Bank is working on three issues vigorously and appropriately. We are closely Best Regards,
pillars of sustainable growth - driving operational monitoring the stress on our credit portfolio on
excellence through digitisation; strong governance account of legacy issues, current macro-economic
and risk frameworks; and sharing success with our and Covid-19 situation. Operating a revamped
Financial Statements stakeholders. These combined, lay the foundation of YES BANK, we are mindful of our fiduciary
198 Standalone Financials our transformation journey. Much work remains to be responsibilities to our customers, shareholders,
Sunil Mehta
done. However, I am sanguine about our future and employees and the regulator. We believe our
Chairman
excited about the journey ahead. coordinated efforts, together with stakeholder
9
Message from the Managing Director and CEO
Revisiting purpose, promise and potential

Contents
Corporate Overview
A redefined YES Dear Shareholders, the efforts being made by the Bank. Moreover, this has As I write this message, the world is traversing through
02 Key highlights FY 2019-20 further strengthened our foundation with reinforced a situation that has no precedence in recent history.
It gives me immense pleasure to connect with you for
03 YES BANK at a glance liquidity, which is well above the required regulatory The COVID-19 outbreak is a crisis for humanity as a
the first time as MD & CEO of YES BANK. On behalf
05 Products and services norms. We look forward to building on this momentum. whole with far-reaching effects. Apart from the social
of the Bank, I take this opportunity to thank you for
06 Geographical presence I thank our new investors – both institutional and retail, and human costs, the world is expected to face a
your unflinching support, which continues to provide
07 Message from the Chairman for reposing faith in the institution and our future severe economic downturn as the impact of nationwide
inspiration and strength to all of us.
10 Message from the Managing Director roadmap, despite global headwinds of the COVID-19 lockdowns become apparent. The International
and CEO I thank the State Bank of India, HDFC Limited, situation and its socio-economic impact. Monetary Fund (IMF) forecasts global GDP to contract
12 Key performance indicators by 4.9% in 2020. That said, the Governments, the
ICICI Bank, Axis Bank, IDFC First Bank, Kotak
15 COVID-19 response While we work towards navigating through the
Bank, Federal Bank, Bandhan Bank and our other private sector and the civil society are collaborating to
17 Customer focus economic headwinds, our first priority is to provide the
shareholders for reposing faith in the institution. minimise the fallout.
21 Technology and digital innovation best possible experience to our customers. Although,
We recognize the commitment that you as investors
25 Retail the Bank has seen tumultuous times in the recent past,
in YES BANK, have made in the organisation. We are
we have taken decisive steps to ensure we continue to
Our approach to value creation confident that the renewed focus, coupled with the
fulfil our commitment to our stakeholders. The tone
29 Value creation model changes we continue to make at the Bank, will enable
has already been set by our reconstituted Board
31 Our strategy us to continue to deliver on our commitment to provide
of Directors and leadership as well as independent
36 Risk management customers a differentiated banking experience. It is
control functions on enhancing governance and risk
Our ESG focus unprecedented in the history of banking that top
frameworks, translating into a culture of accountability
43 Environment financial institutions in the country came together to
to all our stakeholders. The Bank has made
54 Social provide support to another Bank. This has only been
significant changes in the Risk framework to ensure
69 People possible due to the strong belief and faith of customers
that impending risks are identified, evaluated, and
80 Governance and the banking fraternity alike in the franchise.
resolved before these convert into reputational risks.
Statutory Reports On our journey of transformation, we have completed We have made foundational changes to strengthen
84 Management discussion and analysis our first crucial milestone within a quarter of our governance frameworks, identify and mitigate
106 Directors’ report restarting operations. The successful completion of risks, with the objective of creating an authentic,
146 Report on corporate governance our `15,000-crore follow-on public offering (FPO), empathetic Brand committed to ethical leadership and
187 Annual business responsibility report India’s largest fund raise in the financial services sector, conducting business with integrity. While there is still
against an extremely challenging socio-economic more work to be done to reach this goal, I assure you
backdrop is a testament to the faith reposed by our that the Board of Directors and I are striving to deliver
investors. This is one of the first but a very crucial step on the expectations of our customers, employees,
in the Bank’s journey of transformation into a ‘Digital communities, regulators and shareholders.
Bank’ - a key milestone and a market endorsement of
10
Message from the Managing Director and CEO
Contents India too is working to tide over this unprecedented YES BANK 2.0 payments space, state-of-the-art infrastructure
Corporate Overview situation, prioritising life over livelihood initially and While we usher in a Bank that is recapitalised and facilities, ingrained banking behaviour across the
01 Commitment. Promise. Transparency. then looking to strike a balance at an acceptable cost. country and fast-moving aspirations that would seek
recalibrated, it is gratifying to see that our stakeholders
A redefined YES The Indian economy, which has been experiencing a to bring closer the divide between the developing and
continue to show their faith in the brand, for which we
cyclical slowdown before the outbreak, is likely to see are grateful. the developed.
its growth contract by 4.5% (IMF) in FY21. That said, the
05 Products and services As we look into to the future, we are committed to YES BANK has demonstrated organisational agility
central government and the Reserve Bank of India (RBI)
06 Geographical presence executing our long-term strategy, strengthening the in catering to such diverse and evolving banking
responded with a `20.97 lakh crore comprehensive
07 Message from the Chairman market-leading position as a truly digital Bank, and requirements. From bringing cutting-edge innovations
policy package to revive demand, along with a clarion
10 Message from the Managing Director in fintech to plain vanilla transactional banking,
call for a self-reliant India. The package is expected to investing for growth in our retail and SME businesses.
and CEO the Bank has set a paradigm in terms of customer
provide support to vulnerable population, farmers, Embarking on a transformational and inspiring new
12 Key performance indicators experience, satisfaction, and overall productivity.
15 COVID-19 response Micro, Small and Medium Enterprises (MSMEs) and journey, I wish to lay down a clear roadmap for the first
17 Customer focus middle & low-income groups. RBI complemented the phase of this journey. The current phase of COVID-19 outbreak could see
21 Technology and digital innovation fiscal measures by announcing emergency rate cuts, yy Strong and sustained liabilities growth focus some near-term disruptions in the economy. From a
25 Retail liquidity infusion, targeted forbearance measures, and broader lens, the banking and financial sector would
easing of macro-prudential guidelines. yy Create a more granular franchise and a balanced need policy support to tide over the temporary
Our approach to value creation earnings mix between wholesale and retail uncertainty. The policymakers could also use this
29 Value creation model Banking is a service essential to every community,
yy Build and monetise new businesses through window to push forward long-term structural reforms
31 Our strategy be it customers, partners, vendors or the nation at
digital innovation required to bolster financial stability.
36 Risk management large. Though, COVID-19 has undoubtedly created
Our ESG focus an extraordinary situation, which impacted all our yy Bring a sharp focus on cost optimisation while While there are impending challenges, the
43 Environment functions, the extraordinary ownership, stamina and continuing to invest in growth opportunities growth opportunity for financial services remains
54 Social resilience displayed by the Bank’s employees across most compelling.
branches, call centers and various teams towards yy Conform to the highest standards of risk
69 People To all our stakeholders, thank you for placing your
helping weather this unforeseen situation and prepare management, compliance and governance
80 Governance trust in YES BANK and for your continued support.
the organization and customers to cope with it, is yy Reinforce commitment to responsible banking and
Statutory Reports Our commitment to you is unwavering as we continue
commendable. In the last four months, the Bank has social engagement
84 Management discussion and analysis our transformation into a stronger institution.
launched various products and solutions to cater to
106 Directors’ report You’ll be pleased to learn that the building blocks for
the evolving needs of the customers in the COVID-19 Sincere Regards,
146 Report on corporate governance the execution of this strategy are already in place and
induced new normal. As a Bank, we continue to
187 Annual business responsibility report monetising it does not entail a long build-out phase.
focus our efforts on ensuring that our customers are
Financial Statements supported every step of the way. While many of us have Looking forward
198 Standalone Financials been working remotely from home or working in shifts
I firmly believe that the emergence of a New
267 Consolidated Financials across locations, we are and will be there to assist and Prashant Kumar
India during the next decade would be marked
serve, with commitment and dedication. MD & CEO
by accelerated digital velocity across the financial
11
Key performance indicators
A new baseline for future growth

Contents
Corporate Overview
A redefined YES Total assets (B in crore) Shareholders Funds (B in crore)
03 YES BANK at a glance (5-year CAGR) (5-year CAGR)
06 Geographical presence 13.6% 13.2%
FY 2020 2,57,827 FY 2020 21,726
and CEO FY 2019 3,80,826 FY 2019 26,904
12 Key performance indicators FY 2018 3,12,446 FY 2018 25,758
15 COVID-19 response FY 2017 2,15,060 FY 2017 22,054
17 Customer focus FY 2016 1,65,263 FY 2016 13,787
21 Technology and digital innovation FY 2015 1,36,170 FY 2015 11,680
25 Retail
Balance sheet de-growth in line with bank's aim to
Our approach to value creation conserve capital

31 Our strategy
36 Risk management
Our ESG focus Deposits (B in crore) CASA Ratio (%)
43 Environment
54 Social (5-year CAGR) (5-year CAGR)
2.9% 5.9%
69 People
80 Governance
FY 2020 1,05,364 FY 2020 26.6
Statutory Reports
84 Management discussion and analysis FY 2019 2,27,610 FY 2019 33.1
106 Directors’ report FY 2018 2,00,738 FY 2018 36.5
146 Report on corporate governance FY 2017 1,42,874 FY 2017 36.3
187 Annual business responsibility report FY 2016 1,11,720 FY 2016 28.1
FY 2015 91,176 FY 2015 23.1
12
Contents
Corporate Overview
A redefined YES Advances (B in crore) Gross NPA (%) Net NPA (%)
03 YES BANK at a glance (5-year CAGR)
06 Geographical presence 17.8%
FY 2020 1,71,443 FY 2020 16.80 FY 2020 5.03
and CEO FY 2019 2,41,500 FY 2019 3.22 FY 2019 1.86
12 Key performance indicators FY 2018 2,03,534 FY 2018 1.28 FY 2018 0.64
15 COVID-19 response FY 2017 1,32,263 FY 2017 1.52 FY 2017 0.81
17 Customer focus FY 2016 98,210 FY 2016 0.76 FY 2016 0.29
21 Technology and digital innovation FY 2015 75,550 FY 2015 0.41 FY 2015 0.12
25 Retail
Granular Advances now contribute almost NPAs increased, however the bank has provided more Significant coverage on NPA accounts
Our approach to value creation 44% of total advances than sufficient coverage on the same

31 Our strategy
36 Risk management
Our ESG focus Capital Adequacy Ratio (%) Net Interest Income (B in crore) Non Interest Income (B in crore)
43 Environment
54 Social (5-year CAGR) (5-year CAGR)
14.3% 11.0%
69 People
80 Governance
Statutory Reports FY 2020 8.5 FY 2020 6,805 FY 2020 3,441

84 Management discussion and analysis FY 2019 16.5 FY 2019 9,809 FY 2019 4,590
106 Directors’ report FY 2018 18.4 FY 2018 7,737 FY 2018 5,224
146 Report on corporate governance FY 2017 17.0 FY 2017 5,797 FY 2017 4,157
187 Annual business responsibility report FY 2016 16.5 FY 2016 4,567 FY 2016 2,712
Financial Statements FY 2015 15.6 FY 2015 3,488 FY 2015 2,046
198 Standalone Financials High provisioning coverage ratio made by the bank on Impacted by slippages in FY20 Impacted in FY20 due to sell downs in order to
267 Consolidated Financials NPA and NPI accounts conserve capital; continued momentum in Retail and
Transaction Banking Fee
13
Contents
Corporate Overview
A redefined YES Net Profit (B in crore) Net Interest Margin (%) Cost to Income Ratio (%)
FY 2020 (16,418) FY 2020 2.2 FY 2020 65.7
and CEO FY 2019 1,720 FY 2019 3.2 FY 2019 43.5
12 Key performance indicators FY 2018 4,225 FY 2018 3.5 FY 2018 40.2
15 COVID-19 response FY 2017 3,330 FY 2017 3.4 FY 2017 41.4
17 Customer focus FY 2016 2,539 FY 2016 3.4 FY 2016 40.9
21 Technology and digital innovation FY 2015 2,005 FY 2015 3.2 FY 2015 41.3
25 Retail
Impacted by interest/ fee reversals, sell downs and slippages Impacted by slippages in FY20 Impacted by decrease in income in FY20 on account of
Our approach to value creation reversals, sell dwons and income

31 Our strategy
36 Risk management
Our ESG focus Return on Annual (%) Return on Equity (%) Basic Earnings er (B in crore)
43 Environment Average Assets Share

54 Social
69 People
80 Governance
Statutory Reports FY 2020 (5.1) FY 2020 (81.8) FY 2020 (56.1)

84 Management discussion and analysis FY 2019 0.5 FY 2019 6.5 FY 2019 7.4
106 Directors’ report FY 2018 1.6 FY 2018 17.7 FY 2018 18.4
146 Report on corporate governance FY 2017 1.8 FY 2017 21.5 FY 2017 15.8
187 Annual business responsibility report FY 2016 1.7 FY 2016 19.9 FY 2016 12.1
Financial Statements FY 2015 1.6 FY 2015 19.0 FY 2015 9.9
198 Standalone Financials Impacted by interest/ fee reversals and slippages Impacted by interest/ fee reversals and slippages Impacted by interest/ fee reversals and slippages and
267 Consolidated Financials dilution from equity infusion from the reconstruction
scheme
14
COVID-19 response
Adapting to the new normal

Contents
Corporate Overview
COVID-19 has had a significant socio-economic impact, altering our ways of
01 Commitment. Promise. Transparency. interaction, service and life itself. The Bank has made concerted efforts to support
A redefined YES employees, customers and communities, especially those most affected, in adapting
03 YES BANK at a glance to the new normal.
05 Products and services Once the lockdown was implemented, the Bank worked As the country slowly starts unlocking
06 Geographical presence with agility to support employees, their families, and and re-starting business activity in a
07 Message from the Chairman customers. The Bank’s branches and call centres phased manner, YES BANK continues to
10 Message from the Managing Director started operating with minimal staff while ensuring lay emphasis on the following areas:
and CEO that customers had access to uninterrupted banking
12 Key performance indicators yy Prioritising health and well-being of employees, their
services from the safety of their homes, through
15 COVID-19 response families and customers
the Bank’s digital banking assets. A key tenet of the
17 Customer focus
Bank’s promise as a provider of essential services yy Playing a constructive role as a responsible Bank in
is helping customers navigate dynamic situations. supporting Central and State Governments in their
25 Retail
Through continued digital outreach and efforts, the efforts to contain the spread of COVID-19
Our approach to value creation Bank urged customers to avail their banking needs
yy Supporting customers and the community in tiding
29 Value creation model through digital channels.
over the COVID-19 situation
31 Our strategy
36 Risk management yy Extending special support to those most vulnerable
An ‘Essential services’ provider, the
Our ESG focus to the socio-economic impact of COVID-19
Bank’s primary objective has been
43 Environment to ensure the safety of employees While COVID-19 undoubtedly created an extraordinary
54 Social and customers while delivering situation, which impacted all functions, the Bank made
69 People uninterrupted banking services. significant interventions to support customers every
80 Governance step of the way while also embracing the time as an
Statutory Reports opportunity to review long term efforts, business
84 Management discussion and analysis focus and shift in perspective to cater to the evolving
106 Directors’ report needs of customers by introducing innovative and
146 Report on corporate governance relevant products.
15
COVID-19 response
Contents Key interventions by YES BANK 3. For customers

Corporate Overview
1. For employees yy The Bank ensured availability of services in
A redefined YES The Bank has implemented measures to provide a 95%+ branches and ATMs immediately
02 Key highlights FY 2019-20 sanitised and disinfected work environment for the yy All digital channels were available round the clock
03 YES BANK at a glance safety and wellbeing of employees. It formulated a to provide uninterrupted banking services
05 Products and services clear SOP (standard operating procedure) outlining the
06 Geographical presence necessary behavioral changes along with interventions yy The Bank quickly ramped up remote access
07 Message from the Chairman needed at various touch points to contain the capability to cover critical activities from day one
10 Message from the Managing Director of the nationwide lockdown. At this stage, remote
COVID-19 spread. Further, a Human Capital taskforce
and CEO access was enabled for 10,000 users to support
for COVID-19, along with medical helplines, has also
been set up for employees. The Bank also supported the business, with the option of scaling up as
employees in helping adapt to a remote working set up needed
17 Customer focus
21 Technology and digital innovation through training sessions. yy The Bank rolled out sequential planning of
25 Retail 2. For communities employees working in shifts with twin objectives –
extending customer service windows at branches
Our approach to value creation The Bank remains committed to the needs of citizens
and avoiding employee travel at peak hours
29 Value creation model and continues to work alongside the government
31 Our strategy and health authorities to further support customers yy Critical and non-critical activities were
36 Risk management and communities. immediately reviewed. Using agile digital
Our ESG focus innovation platforms, the Bank was also able
yy The Bank contributed D10 crore to the PM CARES Fund
43 Environment to launch products and solutions enabling
54 Social yy Employees contributed a day’s salary totalling consumers to open accounts digitally and
69 People D1.9 crore to the PM CARES Fund complete their KYC remotely via Video KYC.
80 Governance Understanding the need for easy access to
yy Partnered with Akshaya Patra to support their
liquidity, the Bank also enabled digital overdrafts
Statutory Reports efforts in providing cooked meals to daily wage
on fixed deposits
84 Management discussion and analysis workers, migrant labourers, and the low income and
106 Directors’ report marginalised sections of society, whose livelihood has The Bank is constantly monitoring the evolving
146 Report on corporate governance been affected by the current lockdown macroeconomic environment and proactively
187 Annual business responsibility report working towards minimising the impact. With
yy Enabled contribution to these causes through
partners, customers and communities, the Bank is
Financial Statements redemption of accumulated Reward Points on
facilitating actions that contribute meaningfully to
198 Standalone Financials YES BANK Debit and/or Credit Card using the online
the ongoing efforts.
267 Consolidated Financials portal, YES Rewardz
16
Customer focus
Reinvigorating the YES experience

Contents
Corporate Overview
A redefined YES YES BANK, being a customer-driven and service-focused Bank, strives
to simplify banking, increase convenience, and elevate experience
05 Products and services throughout customer journeys. The Bank has adopted an omnichannel
06 Geographical presence approach to connect with customers, with a clear focus on self-service
07 Message from the Chairman channels as the primary mode of banking.
and CEO
12 Key performance indicators To make systems and processes more efficient,
15 COVID-19 response YES BANK continues to invest in strengthening
17 Customer focus IT infrastructure and digital platforms to complement
21 Technology and digital innovation its electronically linked physical branch network.
25 Retail This holistic approach enables the Bank to design
better products & solutions and ensure seamless
delivery, resulting in customer delight.
31 Our strategy
ISO 9001
36 Risk management
Our ESG focus

43 Environment Certified, 24x7 Inbound
54 Social Contact Centre
69 People
80 Governance
Statutory Reports Strengthened Business Continuity

84 Management discussion and analysis Management (ISO 22301 certified)
106 Directors’ report framework and Information Security
146 Report on corporate governance Management (ISO 27001 certified)
17
Customer focus
Contents Business processes – creating a quality yy The Bank’s Inbound Contact Centre is ISO 9001
Corporate Overview organisation certified. Further, the Inbound Contact Centre
01 Commitment. Promise. Transparency. introduced TPIN on IVR to enable self-services
Service quality is integral to continued customer
A redefined YES for customers
patronage. YES BANK continues to refine its
03 YES BANK at a glance operational processes to implement best practices, risk yy The Credit Card Contact Centre launched Credit Card
05 Products and services identification and mitigation, which drives operational PIN generation through IVR, which minimised the
06 Geographical presence efficiency in both corporate and retail businesses. physical process in a cost-effective manner
07 Message from the Chairman Key initiatives to elevate customer experience yy The Bank has successfully upgraded to the new ISO
and CEO yy The Bank has deployed an enterprise-level, customer 9001 (Quality Management) standard and adopted
12 Key performance indicators 360° service platform, YES Genie, which provides a risk-based thinking, thereby aligning itself with the
15 COVID-19 response single view for both corporate and retail customer Enterprise Risk Management (ERM) framework
17 Customer focus segments. It is an advanced 360° analytical and
yy The Bank has strengthened its Business
21 Technology and digital innovation intelligent system that enables the Bank to derive
Continuity Management (ISO 22301 certified)
25 Retail actionable insights towards improving service delivery
framework and Information Security Management
Our approach to value creation yy The Bank operates centralised back-offices, (ISO 27001 certified) framework by including two
29 Value creation model National Operating Centres (NOCs) of various data centres, five branches, along with their ATMs,
31 Our strategy businesses in Mumbai, Gurgaon and Chennai, apart from the two existing NOCs
36 Risk management staffed with 9,000 people
yy Business excellence frameworks and quality
Our ESG focus yy The Bank has a dedicated 24/7 inbound Contact management practices such as Five S, Lean and
43 Environment Centre for Liability, Asset and Credit Card customers, Six Sigma, and ISO 9001 standards established for
54 Social which resolves queries, complaints and service back-office operations at National Operating Centres
69 People requests in multiple languages. The Bank also has a (NOCs) and 101 key branches. The Bank’s Collections
80 Governance dedicated 24/7 desk for Super Premium Credit Card, Unit for Micro Enterprise Banking, Retail Asset & ISB
Statutory Reports MasterCard World Elite and Concierge, providing and Credit Card Risk Management and Operations
84 Management discussion and analysis bespoke services have been certified under ISO 9001 (Quality
106 Directors’ report Management System)
yy In compliance with regulatory directives, the Bank
has set up a dedicated desk for customers looking to yy The Bank’s complaint management processes are
reach out to its Senior Management certified under ISO 10002:2018 (Customer Service
Financial Statements – Complaints Management system). It uses the
yy YES BANK has extended chat services to customers
198 Standalone Financials Complaints and Query Management framework as
who contact the Bank through email. A centralised
267 Consolidated Financials a touchpoint to log, handle, escalate and resolve
welcome calling desk was set up in August, 2018 to
customer grievances
provide a seamless onboarding experience
18
Customer focus
Contents yy YES BANK consistently measures customer

Corporate Overview experience (internal and external) by analysing and
01 Commitment. Promise. Transparency. acting upon feedback gathered at each touchpoint
A redefined YES (including customer complaint registers, customer
satisfaction surveys, transactional interactions,
telephonic surveys and employee feedback)
06 Geographical presence yy The Bank has implemented straight-through
07 Message from the Chairman transaction processing in critical functions
10 Message from the Managing Director through digitisation
and CEO
12 Key performance indicators yy It has leveraged social media as a channel to address
15 COVID-19 response queries or complaints, receive feedback and gather
17 Customer focus inputs on service (Voice of the Customer – VOC) YES BANK continues to
21 Technology and digital innovation leverage YES ROBOT, an AI
yy The Bank adheres to the Banking Codes and driven intelligent chatbot
25 Retail
Standards Board of India (BCSBI), Goiporia which helps customers
Our approach to value creation Committee recommendations, Damodaran with various queries
29 Value creation model Committee recommendations and the Committee on
31 Our strategy Procedures and Performance Audit of Public Services
36 Risk management (CPPAPS) guidelines, thereby ensuring compliance
Our ESG focus across its critical functions
yy The Bank has launched YES ROBOT, an AI-driven
43 Environment yy As part of its spirit of instant service, the Bank chatbot which helps customers with various queries,
54 Social has taken an initiative to fast-track processing apart from carrying out transactions, thereby
69 People (within two hours) of key customer requests allowing customers to access banking services from
80 Governance the convenience of their homes or offices
yy The Bank has implemented ‘Robotics Process
Statutory Reports Automation’ to optimise internal processes with a yy The Bank has enabled the functionality of Aadhaar
view to provide faster, accurate and efficient services seeding across ATMs
19
Customer focus
Contents Service Excellence Deployment Model

Corporate Overview The Bank has adopted a five-stage Service Excellence Deployment Model for
continuous oversight and improvement across its products, services and channels.
A redefined YES
It is a comprehensive mechanism to deliver superior and consistent experience for
03 YES BANK at a glance both internal and external customers.
06 Geographical presence Service Excellence model
and CEO
17 Customer focus
Delivery Adherence Recovery Experience Design
25 Retail The Service Excellence The Bank has ensured The Bank has deployed The Bank uses the The inputs from each
team supports customer that extant guidelines by a robust Grievance and Net Promoter Score of the prior stages are
Our approach to value creation facing and engagement Redressal (GR) policy for model to gather customer shared with respective
the regulatory bodies,
29 Value creation model channels with knowledge, end-to-end customer feedback at regular business and business
e.g., IBA, RBI, BCSBI and
31 Our strategy
skills, technology and Banking Ombudsman complaints management. intervals. The inputs are leaders on an ongoing
36 Risk management
process support to meet are implemented in The procedure follows taken into account to basis. The leadership
Our ESG focus customers’ expectations true spirit and has a conventional improve internal products of each business unit
43 Environment in a timely and accurate established mechanisms PDCA (plan‑do–check– and processes. reviews existing processes,
54 Social manner. to ensure oversight and act) cycle of identifying initiates improvement
69 People adherence. Third Party the root cause before programmes and instils
80 Governance audits are conducted to finalising the resolutions procedural orientation.
prepare the branches for that are well supported Each service feedback
Statutory Reports
maintaining the service by the Monitoring and from Complaints, VOC or
106 Directors’ report standards as expected by Control mechanisms to Customer Engagement
146 Report on corporate governance the regulators. avoid recurrence. Programmes is analysed to
187 Annual business responsibility report develop new processes or
modify existing processes
Financial Statements and services.
20
Technology and digital innovation
Leading to inspire
Contents
Corporate Overview
A redefined YES YES BANK has been at the forefront of technology-driven innovation in the
Indian banking industry. The Bank leverages new-age digital technologies to
05 Products and services optimise reach and offer differentiated products and services to customers
06 Geographical presence across business segments. YES BANK’s leadership in the online payments
07 Message from the Chairman ecosystem bears testimony to its continued focus on leveraging its digital
and CEO capabilities to make banking simple, secure and convenient.
15 COVID-19 response By FY 2020-21, the Bank will roll out elements of the
17 Customer focus next-generation banking platform, which is expected
21 Technology and digital innovation to provide a unified experience across internet,
25 Retail mobile, voice and bot channels.
31 Our strategy
36 Risk management
Our ESG focus The Bank has pioneered the

43 Environment implementation of ‘Bot’ technology for
54 Social customer acquisition, personal banking
69 People assistance, cross-selling and customer
80 Governance servicing for various businesses.
Statutory Reports
106 Directors’ report YES BANK ranks #3 in achieving
146 Report on corporate governance digitisation targets set by MeitY
187 Annual business responsibility report in FY 2019-20
Contents Digital payments

Corporate Overview
Transactions Processed in FY 2019-20
YES BANK has emerged a leader in the Payments
A redefined YES
market by enabling millions of transactions. The Bank
has close to one third of the market share in Aadhaar
~450 crore ~24 crore ~33 crore #3 in achieving
Enabled Payment System (AePS). It is among the top Unified Payments Immediate Payment Aadhaar Enabled digitisation targets in
three players in Unified Payments Interface (UPI), Interface (UPI) Service (IMPS) Payment System (AePS) FY 2019-20 set by MeitY
06 Geographical presence Immediate Payment Service (IMPS) and continues to
07 Message from the Chairman build use cases around both the systems.
and CEO
#1 remitter bank^
17 Customer focus Immediate Payment
21 Technology and digital innovation Service (IMPS)
25 Retail

31 Our strategy ~40% transaction
36 Risk management VOLUME market share^
Our ESG focus Aadhaar Enabled Payment
43 Environment System (AePS)
54 Social
69 People
80 Governance
Statutory Reports
#1 in UPI P2M
transactions^
106 Directors’ report with ~31% market share
^FY 2019-20
22
Contents Data analytics backbone Robotics and analytics yy Segment specific solutions: Hospitals, educational
Corporate Overview YES BANK’s digital leadership is anchored in The Bank has been a pioneer in adopting BOTs for institutions, and government with deep integration
01 Commitment. Promise. Transparency. with the merchant partner’s billing solution
strong partnerships, trusted platforms and early customer acquisition, personal banking assistance,
A redefined YES
investments in Banking 4.0. cross-selling and customer servicing. Unlike other With a solution centric approach, the business is
03 YES BANK at a glance BOTs, which largely restrict users to explore services poised to add incremental customers and capture
05 Products and services or seek product information, YES BANK’s BOTs maximum wallet share in FY 2020-21. The business
Cloud Adoption
06 Geographical presence allow customers to transact over chat. The Bank aims to make a significant contribution in the liability
Partnership with Microsoft has also implemented BOTs for Enterprise RMs
07 Message from the Chairman growth of the Bank.
on Azure cloud for running (Relationship Managers) for sourcing deposits
and CEO multiple R&D initiatives through this channel.
YES BANK is creating Centres of Excellence for
17 Customer focus Robotics and Analytics, which would play a pivotal
21 Technology and digital innovation Platformisation role in reducing service time and enhancing customer
25 Retail First Bank to set up microservices interaction quality. Digital payments is another
platform for development of reusable focus area for the Bank, wherein it plans to further
Our approach to value creation scale other payment services like IMPS, Bharat
APIs to support Bank-wide applications
29 Value creation model Bill Payment System (BBPS), FASTag (NETC) and
31 Our strategy
prepaid instruments.
36 Risk management
Graph Processing & Blockchain
POS
Our ESG focus Neo4j graph database to map a
43 Environment YES BANK’s Merchant Services business has a
customer’s banking ecosystem, first to
54 Social comprehensive product suite catering to the needs of
issue CP on the Blockchain platform
69 People various merchant partners.
80 Governance yy Wide range of terminals: GPRS, Android, MPOS,
Big Data processing with AI PCPOS, PSTN, NFC-enabled, and Bharat QR code
Statutory Reports
and Deep Learning models with UPI
106 Directors’ report Partnerships with industry leaders
yy Acceptance of all popular payment instruments:
146 Report on corporate governance making YES BANK India’s first Bank to
American Express, Visa, MasterCard, RuPay, Diners
187 Annual business responsibility report use Hadoop Data Lake
and other supported schemes
Financial Statements Leverage Elastic framework to support
198 Standalone Financials real time analytics and IoT
23
Contents API banking leadership Enabling a ‘Digital India’

Corporate Overview YES BANK is the first Bank in India to digitise the With its digital infrastructure, YES BANK enables large- yy Largest MF aggregator integrated for digitising
01 Commitment. Promise. Transparency. B2B supply chain with the launch of application receivables (SIF) through eNACH
scale transactions and payment solutions, helping drive
A redefined YES programming interface (API) banking. YES BANK,
the Digital India agenda. yy Enabling instant refund processing via MasterCard
with its superior API offering, is the ‘Banking MoneySend for MakeMyTrip
03 YES BANK at a glance yy Digital solutions for customers of cooperative banks
Partner of Choice’ across the fintech universe.
05 Products and services yy Enabling corporate bill payments
Over the next 12-18 months, the Bank plans yy Digital payment collections for IIT Jammu,
06 Geographical presence yy Enabling credit card bill payments on multiple
to leverage these partnerships to expand IIT Roorkee, Karnavati University and Tamil Nadu
07 Message from the Chairman payments platforms including PhonePe
API banking beyond payments. Open University
and CEO yy SmartCity App for Coimbatore Smart City initiative yy Enabling instant reward payouts, driver payments
Throughput for FY 2019-20
12 Key performance indicators and multiple other instant gratification use cases
yy Providing offline payments across
15 COVID-19 response ₹4.3 lakh crore ₹26.7 crore 6,300 Gram Panchayats in Karnataka yy Enabling instant reconciliation and downstream
17 Customer focus action for inward credit on all modes
Total throughput Total volume yy Working capital management for MSMEs on the
25 Retail connected banking model
Customers onboarded
1,500+
31 Our strategy implementations for customers so far,
36 Risk management including unicorns and soonicorns
Our ESG focus

43 Environment YES BANK’s key API customers
54 Social
69 People
80 Governance
Statutory Reports
24
Retail
Driving retailisation to reshape future

Contents
Corporate Overview
A redefined YES As part of its future roadmap, YES BANK views India’s low retail finance
penetration as a significant growth driver. The Bank is well positioned to
05 Products and services capitalise on the opportunity with its expanding reach, robust technology
06 Geographical presence capabilities and relentless focus on addressing evolving customer preferences.
07 Message from the Chairman In the process, YES BANK envisages increased granularisation of advances,
and CEO improved profitability and moderated portfolio risk.
17 Customer focus
21 Technology and digital innovation Target lower ticket
25 Retail sizes while maintaining
Our approach to value creation asset quality
31 Our strategy
36 Risk management
Lower cost of acquisition
Our ESG focus by leveraging digital
43 Environment capabilities
54 Social
69 People
80 Governance
Deepen geographic
Statutory Reports
penetration into
106 Directors’ report Tier II/ III cities
25
Retail
Contents Key focus areas: Best-in-class retail assets platform Rural banking
Corporate Overview YES BANK’s retail suite of products are well attuned to yy Business Correspondent (BC) model (~0.5 million)
01 Commitment. Promise. Transparency. YES BANK’s retail
(%) the growing demand for formal financing in India. The
A redefined YES advances mix in FY 2019-20 yy Tie-ups with fintech companies to identify
Bank’s retail segment is characterised by the following:
potential geographies (YES Villages)
20 Consumer Loans Asset quality yy Presence across Tier II–VI cities
34 Vehicle Loans
06 Geographical presence yy Low risk portfolio with large proportion of cash yy Agri focus with 409 branches across 120 districts
5 Others
07 Message from the Chairman flow-based financing with adequate collateral in 9 focused states
30 Mortgaged Backed
and CEO 11 Business Equipment yy Focus on internal/salaried customers for Technology
12 Key performance indicators unsecured products
yy Usage of data analytics and fintech engines for
Risk and yields risk mitigation
17 Customer focus
21 Technology and digital innovation yy Portfolio built on low risk at scale, offering room yy Ensuring seamless service by leveraging digital
25 Retail for higher yielding products capabilities
Our approach to value creation Share of retail in YES BANK’s yy Focus on building a more granular book, reducing
overall advances (%) concentration risk
Targeting instead of tapping
31 Our strategy
36 Risk management
Customer
24
Our ESG focus Focused on salaried and self-employed
strategy in
43 Environment the retail
17
54 Social segment
69 People Utilise branch channel, leverage
partnerships & technology aided
12
80 Governance
11
service delivery
10
Statutory Reports
106 Directors’ report FY16 FY17 FY18 FY19 FY20
26
Retail
Contents Credit cards MSME focus provides favourable risk- MSME at 20% of Advances
Corporate Overview Launched in 2016, YES BANK’s Consumer, MSME and return trade-off yy Self-sourced without any intermediaries
Commercial Credit Card products offer best-in-class YES BANK’s MSME business is built on a robust risk yy From ‘Supply Chain Financing’ to
A redefined YES
features and services, complementing the lifestyle management platform, with significant headroom ‘Ecosystem Banking’
03 YES BANK at a glance of the modern day consumer. The Bank plans to for growth, given the high addressable credit cap in
launch more innovative and differentiated products the segment. yy Digital handholding to scale up MSMEs
in FY 2020-21. from Tier II and III cities
07 Message from the Chairman yy Current suite consists of 13 products across yy 50 dedicated SME branches in SME hubs
Consumer, MSME and Commercial Cards
and CEO
12 Key performance indicators yy Robust risk management resulting in one of the Granular
portfolio
15 COVID-19 response lowest delinquency rates in the industry
17 Customer focus
25 Retail Technology YES BANK’s SME
Business
Leading with ‘digital first’ approach
Diversified Strong
29 Value creation model Partnering fintechs to create across sectors collateral
31 Our strategy future-ready platforms
36 Risk management
Our ESG focus

43 Environment Higher growth and better asset quality (%)
54 Social Robust y-o-y growth in FY2019-20
69 People YBL Sector
80 Governance
SME Advances 7.5
Statutory Reports CAGR (FY16-20)
10.2
146 Report on corporate governance 75% 64% 59% NPA 12.2
187 Annual business responsibility report 1.8
Cards in force Card spends Transactions
198 Standalone Financials Sector Advances and NPA data sourced from TransUnion CIBIL’s quarterly
“SME Pulse” report; latest available report contains data as of September
30, 2019; Definition of “SME” however may vary between the Bank
classification and TransUnion CIBIL
27
Retail
Contents Enhancing MSME capabilities through

Corporate Overview partnerships
Supply chain banking
A redefined YES
02 Key highlights FY 2019-20 Financing vendors of corporates
03 YES BANK at a glance yy Strong corporate relationships
06 Geographical presence yy Utilising technology and analytics to automate
07 Message from the Chairman limit enhancement
yy Market leader in electrical and electronic
and CEO
goods segment
Knowledge banking
17 Customer focus
21 Technology and digital innovation Tie-ups with trade and industry associations
25 Retail yy Sector specialists with vast industry knowledge
Our approach to value creation yy Collaboration with leading domestic and
29 Value creation model international institutions
31 Our strategy
36 Risk management Branch banking and CRM
Our ESG focus Liability business through branches and

43 Environment CRM‑based sourcing
54 Social yy Cash flow-based underwriting
69 People
yy Strong risk assessment framework ensuring
80 Governance
adequate collaterals and risk-based pricing
Statutory Reports
28
Value creation model
The value we create

Contents
Corporate Overview
A redefined YES
05 Products and services Social and
Financial capital Manufactured capital Intellectual capital Human capital Natural capital
06 Geographical presence relationship capital
Funds available with the Tangible and intangible Collective knowledge, Employees’ competencies, Natural resources used by
07 Message from the Chairman Relationships the Bank
Bank through customer infrastructure, including research, thought knowledge, experience, the Bank for its operations
IT assets leadership, brand and training programmes creates and fosters with and financing for natural
and CEO deposits, shareholder’s
management and its customers, regulators, resource preservation and
12 Key performance indicators equity and market
15 COVID-19 response intellectual property suppliers and the climate risk mitigation
borrowings
17 Customer focus community at large
25 Retail
Our approach to value creation D10,247 crore 1,135 25 advisory 22,973 54,500 1.50 CO e per FTE
2
29 Value creation model Total Net Income Branches mandates Total employees Lives touched through Specific emissions
31 Our strategy - Food & Agribusiness YES COMMUNITY
1,423 812,744 3,010

36 Risk management Strategic Advisory &
D257,827 crore 5,000
Research (FASAR) MW
Our ESG focus Balance sheet size Number of ATMs* Clean energy exposure
Training hours
43 Environment MSMEs trained
54 Social
69 People 21 90,149
80 Governance BC manned
individuals covered
banking outlets
Statutory Reports Livelihood & Water
84 Management discussion and analysis Security Programme
187 Annual business responsibility report YES BANK’s YES BANK’s Footprint YES BANK’s Digital YES BANK’s YES BANK’s YES BANK’s
Financial Statements Key financial results and presence and technology focus Human capital Social focus Environmental focus
198 Standalone Financials Read more PG NO 12 Read more PG NO 6 Read more PG NO 21 Read more PG NO 69 Read more PG NO 54 Read more PG NO 43
29
Value creation model
The representation given below indicates how various capitals interact with each other during our activities to create value at YES BANK. For
Contents example, ‘employee volunteering’ draws from the Bank’s human capital while enhancing outcomes for social and relationship capital.
Corporate Overview
THE interlinkages matrix for capitals
A redefined YES
Financial Capital Manufactured Capital Social and Relationship Capital
yy A Digical infrastructure approach to achieve scale yy Supports daily operations yy Supports local outreach
yy Manage supply-chain & procurement practices to
06 Geographical presence yy Avoiding emissions
improve efficiencies and lower costs
07 Message from the Chairman yy Awareness on sustainable practices
yy Development and upkeep of branches, NOCs
and CEO yy Drives business performance
yy YES SCHOOL OF BANKING: capacity building
yy 5 Cs Engagement model: Culture, Career, Intellectual Capital Natural Capital
17 Customer focus
Communication, Connect and Care
21 Technology and digital innovation yy Forges strong ties with national and yy Major consumption of natural resources
25 Retail yy Advisory services like Strategic Government global thought leaders, multi-laterals, and yy 732 ISO 140001 certified green facilities
Advisory (SGA) and Food and Agribusiness governments to release knowledge reports
Strategic Advisory and Research (FASAR) drive yy Influences policy decisions, positively
business performance; e.g e-vehicle policies impacting the society, environment and
31 Our strategy
36 Risk management yy Knowledge-based approach to provide clients with industry at large.
Our ESG focus customised solutions

43 Environment yy Innovative products and services
54 Social yy Forged ties with national and global Human Capital
69 People thought leaders
80 Governance yy Developed thought pieces aimed at positively yy Contributes to operational environmental
impacting industry and policy excellence through reduced consumption,
Statutory Reports improved recycling and management of e-waste
84 Management discussion and analysis yy Investment in Natural Capital
106 Directors’ report Conservation projects yy Employee volunteering or donation
146 Report on corporate governance e.g. Payroll Giving
yy Deposits from customers and loans to customers
yy Investments by shareholders and investors
Financial Statements yy Responsible Banking ethos
198 Standalone Financials yy Unique scalable and sustainable projects e.g
267 Consolidated Financials – Green Future Deposit, SDG Financing and
Livelihood and Water Security
30
Our strategy
Repositioning to stay ahead

Contents
RoA greater than
Corporate Overview
1.0% (1-3 years)
A redefined YES YES BANK has crafted a well-defined strategy to deliver sustainable returns 1.5% (3-5 years)
02 Key highlights FY 2019-20 to shareholders, thereby creating value for all stakeholders. The Bank has
identified key focus areas with time-bound targets set to measure progress Corporate flows and cross sell
06 Geographical presence in a structured manner. through Transaction banking
and CEO Granular Advances:
Retail/MSME > 60%
17 Customer focus
21 Technology and digital innovation Enhance the trust factor
25 Retail Stable liability mix and lower
amongst stakeholders Medium Term Objectives cost of funds: CASA Ratio > 40%
31 Our strategy
Reconstruct the foundation and
36 Risk management
calibrate growth (6-12 months)
Predictable and
Our ESG focus Sustainable Earnings
43 Environment Focused Stressed
Assets Resolution
54 Social Return value to shareholders
69 People
80 Governance
Stronger governance
Statutory Reports and underwriting
frameworks
187 Annual business responsibility report Cost optimisation
267 Consolidated Financials Focus on increasing liabilities
and liquidity buffers
YES BANK LIMITED 31

Our strategy
Contents YES BANK’s transformation strategy focuses on three key result areas, with …covering four key aspects, spanning 12-36 months
Corporate Overview definite targets to measure their progress
A redefined YES
05 Products and services Stable, granular franchise
07 Message from the Chairman Liabilities
10 Message from the Managing Director Differentiated expertise
and CEO
Key
aspects
15 COVID-19 response Digital and analytics led productivity
YES BANK’s
17 Customer focus transformation and cost rationalisation
21 Technology and digital innovation strategy
25 Retail
Controls and governance
Our approach to value creation Profitability Stressed assets
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
Liabilities Profitability Stressed assets Initial
54 Social yy Liabilities drive, led by yy Reduction in operating yy Structural shift to 360 days
69 People Retail & Transaction expenses house all stressed Focus on building the foundation and drive
80 Governance Banking, to recoup Corporate book pools productivity/cost reduction
yy Sophisticated Data
September 2019 levels in a ‘Bad Bank’ unit,
Statutory Reports Analytics aimed at
84 Management discussion and analysis yy Corporate Balance revenue generation for focused resolution
106 Directors’ report Sheet reduction and monetisable and / or a stake sale
360 to
through asset business intelligence
187 Annual business responsibility report selldowns and stressed
Financial Statements asset resolutions 1,000 days
198 Standalone Financials Focus on asset growth
32
Our strategy
Contents
Corporate Overview YES BANK’s transformation
01 Commitment. Promise. Transparency. execution roadmap
A redefined YES
03 YES BANK at a glance Digitalising 1. Digitalising the Bank 2. Retail banking
05 Products and services the Bank yy Build on the payments ecosystem YES BANK’s RENEW strategy is aimed at re-energising
06 Geographical presence retail banking and regaining its leadership position.
07 Message from the Chairman yy Optimise productivity with digital solutions
10 Message from the Managing Director and analytics
and CEO Retail
yy Service digitisation
12 Key performance indicators banking ECOSYSTEM
15 COVID-19 response yy Building digital and agile capabilities Internal &
External
17 Customer focus
21 Technology and digital innovation yy Partner with fintech companies for
25 Retail Transaction speed to market
banking yy Streamline credit decisioning
Our approach to value creation NEW
REVITALISE
29 Value creation model yy Leverage analytics to drive value through ACQUISITION
Resources, RENEW
31 Our strategy Products & Strong funnel
prioritised use cases Strategy to strengthen
36 Risk management Processes
Corporate customer base
Our ESG focus banking
43 Environment
54 Social
69 People
Cost WINBACK ENGAGEMENT
80 Governance Customers,
management Build back the
Partners and
Statutory Reports Balance Sheet
Employees
187 Annual business responsibility report Enablers of RENEW
Digital Partnerships Data Service
analytics excellence
33
Our strategy
Contents Key focus areas:

Corporate Overview Granular liabilities via digital customer acquisition
and servicing
A redefined YES
YES BANK expects to achieve granularity in liabilities
through short-term and medium-to long-term 3. Transaction banking
05 Products and services interventions, categorised under the following: Transaction Banking Group (TBG) covering Cash
06 Geographical presence Management & Trade Finance related products is
yy Digital assets for MSMEs
07 Message from the Chairman playing a crucial role in propelling the Bank’s growth
YES BANK plans to scale digital assets for micro, small
10 Message from the Managing Director by providing a stable source of low-cost liquidity with
and medium-sized enterprises (MSMEs) by focusing on
and CEO added benefits of moderate cyclicality, relatively low
origination, credit underwriting, best-in-class collection
12 Key performance indicators risk and low capital requirement. TBG’s strategy centers
mechanisms and asset quality KPIs
on building a granular and sustainable fee & liability
17 Customer focus yy Leveraging branch network business by creating market differentiators in key areas
21 Technology and digital innovation Retailisation will be driven by leveraging the extensive like data analytics, risk management, value added
25 Retail and diversified branch network of the Bank solutions and advisory services. TBG through its focus
Our approach to value creation on digital innovation, smart technology investments
yy Retail assets
29 Value creation model and partnerships with Fintechs aims to create holistic
YES BANK has articulated a three-pronged strategy of
31 Our strategy solutions for a differentiated client experience and
protect-prepare-propel, to be deployed across
36 Risk management enhanced operational efficiencies.
different time frames to capitalise on its retail assets
Our ESG focus
yy CASA focus
43 Environment
In the medium-to-long term, the Bank expects
54 Social
to significantly enhance its CASA (Current Accounts
69 People
and Savings Accounts) portfolio by focusing on specific
80 Governance
multiplier levers. These include:
Statutory Reports 4. Corporate banking
yy Government banking
yy API banking YES BANK is shifting focus to a granular transactional
yy TASC (trusts, associations, societies and clubs) working capital lead book and liabilities from long
yy Retail liability client segments term assets to reduce concentration, preserve asset
yy Fiduciary and capital markets quality and build capital buffer. The Bank is further
Financial Statements yy Ecosystem and connected banking strengthening its internal risk management framework
198 Standalone Financials to address existing stressed asset issues and mitigate
267 Consolidated Financials The Bank is focusing on diversifying its revenue future risks.
streams by increasing the share of fee income and
other non-interest income in the overall mix
34
Our strategy
Contents
Corporate Overview
A redefined YES
03 YES BANK at a glance 5. Cost management
05 Products and services The Bank aims to control costs and boost overall profitability by focusing on five key themes.
Theme Action areas
and CEO Human resources yy Manpower optimisation through span of control and attrition
12 Key performance indicators management
yy Consolidated monitoring and management of outsourced
17 Customer focus
manpower and activities
25 Retail Profitability ATM, branch, client, and product profitability
Identifying changing Work-force management and back-office as well as corporate
29 Value creation model trends of customer and office capacity
31 Our strategy employee engagement
36 Risk management Process improvement yy Digitise credit sanction process
(e.g., loan application with external checks and validations to
Our ESG focus
ensure high credit quality)
43 Environment
54 Social yy Recalibrate bandwidth through technology process
69 People rationalisation in order to prioritise key projects
80 Governance
yy End-user computing (EUC) management – holistically review
Statutory Reports end-user experience and consider all the systems required to
84 Management discussion and analysis accomplish daily workload
Operations and yy Centralise credit monitoring operations with automated
digitisation trigger‑based MIS generation and analytics-led decision making
yy Analytics-led cost breakup of key areas with higher than
industry cost
35
Risk management
Monitoring and mitigating risks

Contents
Corporate Overview
A redefined YES YES BANK has instituted a robust risk management framework, which is
implemented by the Bank’s risk management function. The responsibility of
05 Products and services overall risk management lies with the Board of Directors and four Board-level
06 Geographical presence committees. Together with the management, they ideate, implement and
07 Message from the Chairman review policies, frameworks and systems for effectively managing the Bank’s
and CEO existing and emerging risks.
Enterprise Risk Management
17 Customer focus
21 Technology and digital innovation YES BANK’s Enterprise Risk Management (ERM) unit is
25 Retail responsible for implementation of the ERM framework,
risk aggregation and risk-based pricing. The ERM unit is
Our approach to value creation also involved in Basel II/III compliance, Internal Capital
29 Value creation model Adequacy Assessment Process (ICAAP), Bank-wide
31 Our strategy
stress testing and risk assessment of Pillar II risks, such
36 Risk management
as Reputation Risk, Compliance Risk, Concentration
Our ESG focus Risk, among others.
43 Environment
54 Social Types of risks
69 People
80 Governance
Statutory Reports
106 Directors’ report Credit Market Operational
COVID-19 Climate Cyber
36
Risk management
Contents Types of risks and mitigation

Corporate Overview
A redefined YES
05 Products and services CREDIT RISK MARKET RISK
YES BANK’s credit risk management is governed by reviewing the Bank’s credit policies and programmes, YES BANK’s market risk management is governed by
a comprehensive and well-defined Board-approved including validation and monitoring of rating models. comprehensive Board-approved policies such as Market
and CEO Credit Policy. It encompasses credit approval processes The Unit is also responsible for migration to Internal Risk Policy, Asset Liability Management Policy, Investment
12 Key performance indicators for all business segments, along with guidelines for Ratings Based (IRB) approach and IndAS 109 (IFRS 9) for Policy, Hedging Policy, Stress Testing Policy, Derivative
15 COVID-19 response monitoring and mitigating the associated risks. All Credit Risk. Policy, Derivative Appropriateness Policy and Liquidity
17 Customer focus corporate credit proposals are approved either through & Contingency Funding Policy. They ensure that risks
The Bank has an independent Retail, MSME & Rural
21 Technology and digital innovation a committee or through a Joint Delegation, based on underwritten across business activities are within the
Policy and Portfolio Management Unit, which is
25 Retail exposure thresholds outlined in the Credit Policy. stipulated risk appetite of the Bank, and that similar risks
responsible for the formulation, amendment and
The appraisal process encompasses a detailed risk are aggregated. These policies have been benchmarked
Our approach to value creation review of Credit Policy for the granular business
assessment and rating of obligors, using the Bank’s with industry best practices and the RBI regulations.
29 Value creation model segments within the risk appetite of the Bank. This Unit
internal rating models.
31 Our strategy also manages portfolio distribution risk at product, The Bank has an integrated, straight-through processing
36 Risk management The Bank additionally has scorecards in place for segment, industry and geography levels, having set up and state-of-the-art treasury system for enabling
Our ESG focus specific schematic programmes for Retail and MSME a robust early warning mechanism. It also supports better risk management. It measures liquidity, currency,
43 Environment borrowers. This function works in close coordination new product launches and digital initiatives of the Bank and interest rate risks through various metrics, based
54 Social with various business segments to periodically review throughout the lifecycle of customers by implementing on regulatory guidelines or using internal risk models.
69 People the individual borrower relationship and assess the business rule engines and scorecards as well as The Bank also regularly conducts stress testing to
80 Governance overall health of borrowers. The Bank has a dedicated enabling system changes to improve process efficiency monitor its vulnerability to extreme, but plausible,
team in place, which uses an internal tracking system through the use of risk models and analytical tools. unfavourable shocks.
Statutory Reports to ensure compliance with the sanctioned terms and
84 Management discussion and analysis The Bank also has an active legal team that helps in The Bank monitors and controls its risks using various
conditions.
106 Directors’ report assessing and managing Legal Risk. The team has internal and regulatory risk limits for trading book and
146 Report on corporate governance There is also an independent Portfolio Analytics Unit, developed a comprehensive set of standard documents banking book, which are set according to a number
187 Annual business responsibility report which is responsible for monitoring the entire credit for various types of credit products and is responsible of criteria, including economic scenario, business
portfolio across segments, including identifying for ensuring legal compliance of applicable laws and strategy, peer analysis and the Bank’s risk appetite.
portfolio trends and generating portfolio-level MIS ensuring that the documentation entered into by the The risk reporting mechanism comprises disclosures
covering various credit quality indicators. Further, the Bank is legally valid and enforceable. and reporting to the Asset Liability Committee and
Credit Risk Policy Unit is responsible for independently Board- level committees.
37
Risk management
Contents
Corporate Overview
A redefined YES
03 YES BANK at a glance OPERATIONAL RISK COVID-19 Risk
05 Products and services Operational risk is the risk of loss resulting from yy Implement methodology for computation and It is the risk arising from the impact of the ongoing
06 Geographical presence inadequate or failed internal processes, people allocation of capital for Operational Risk COVID-19 situation on the broader economy and
07 Message from the Chairman or systems, or from external events. Operational sectors, which will affect operations and financials of
yy Manage risks of the entire lifecycle of a vendor by
10 Message from the Managing Director Risk includes legal risk but excludes strategic and companies, thereby translating into a credit risk for the
and CEO outsourcing risk review development, implementation
reputational risks. It is inherent in the Bank’s Bank from the borrowers thus impacted.
12 Key performance indicators and monitoring of business continuity plans across
day-to-day business activities.
15 COVID-19 response the Bank Since 2020, there is an ongoing outbreak of the 2019
17 Customer focus The Bank has implemented a comprehensive operational novel coronavirus (‘COVID-19’) which has affected
The Bank has constituted the Operational Risk
21 Technology and digital innovation risk management framework, based on proactive and countries globally. The impact of this has resulted
Management Committee (ORMC), chaired by the
25 Retail forward-looking practices to ensure superior customer in disruption with respect to production, supply
Chief Risk Officer and consisting of members of the top
service and minimal operational risk events and losses. chain, trade and tourism channels. Several countries’
Our approach to value creation and senior management.
governments and numerous companies have imposed
29 Value creation model The objective of the Bank’s operational risk management
The committee undertakes the following: increasingly stringent restrictions to help avoid, or
31 Our strategy framework is to:
slow down, the spreading of COVID-19, including, for
36 Risk management yy Review implementation of the Operational
yy Ensure compliance with regulatory guidelines on example, restrictions on international and local travel,
Our ESG focus Risk Framework
operational risk management issued from time to time public gatherings and participation in meetings, as well
43 Environment yy Review Operational Risk profiles of business units, as imposition of lock-down measures. As a result of the
54 Social yy Implement best practices to promote a culture of
understand future changes and threats, and concur on lock-down, there has been a significant impact on the
69 People high risk awareness, continuous control improvement
areas of highest priority with related mitigation strategy global as well as domestic economy. This will negatively
80 Governance and risk mitigation. This, in turn, would help to create
affect various sectors of the economy, thereby resulting
a flexible low operational risk profile organisation yy Develop, implement, monitor and review the
Statutory Reports in financial stress on the banking system.
capable of rapid response to business opportunities effectiveness of business continuity plans
In order to mitigate COVID-19 Risk, the Bank shall
106 Directors’ report yy Monitor net operational risk losses on a continual yy Review the effectiveness of the outsourcing policy
closely monitor its exposure in such impacted
146 Report on corporate governance basis against an operating limit of 0.35% of gross and procedures besides ensuring effective due
sectors and initiate necessary actions as deemed
187 Annual business responsibility report annual income diligence and monitoring of outsourced activities on a
necessary from time to time. Further, in line with
continuous basis
Financial Statements yy Ensure that operational risk events and losses arising the RBI requirements, the Bank holds necessary
198 Standalone Financials from inadequate processes, systems, people and In addition, the Bank has constituted a Product and provisions against the assets where the asset
267 Consolidated Financials external events are identified, reported, escalated and Process Approval Committee (PPAC) for approval and classification benefit has been extended on account of
resolved in a timely manner risk evaluation of all new products or modifications to standstill requirements.
existing products.
38
Risk management
Contents YES BANK broadly categorises climate risks confidentiality, integrity and availability of classified
Corporate Overview into physical and transitional risks. data like customers’ personal and financial information.
01 Commitment. Promise. Transparency. Customer information is of critical importance to
A redefined YES YES BANK.
03 YES BANK at a glance CLIMATE RISK Transitional risks arise from external efforts to address The Bank is committed to protecting their
05 Products and services YES BANK recognises climate risk and refers to the climate change including, but not limited to, regulatory privacy through its Information Security unit under
06 Geographical presence Financial Stability Board’s (FSB) Taskforce on Climate- and policy changes, technological advancement or the Risk Management Unit.
07 Message from the Chairman related Disclosures (TCFD) recommendations to shifts in investor sentiment and consumer behaviour.
The Bank has a governance structure in place and a
10 Message from the Managing Director Globally, there are many countries adopting climate
address it. Since FY 2018-19, the Bank’s management Board-level committee, which provides guidance and
and CEO related regulation. India is also expected to bring in
committees have been considering climate risk in direction on information security. The Bank also has a
their briefing. The Bank’s Internal Capital Adequacy more stringent regulations, which may impact the
15 COVID-19 response Security Council, a management-level committee that
Assessment Process details its importance within the Bank’s assets. The Bank remains future focused and is
17 Customer focus is constituted with cross-functional representation
framework, alongside other Pillar II risks. addressing this eventuality by educating its employees
21 Technology and digital innovation at the leadership level, which meets quarterly to
on climate risks and mitigation strategies through
25 Retail The Bank started aligning its annual disclosures to review the implementation of the Information
climate-related sector briefs.
TCFD recommendations last year. This is helping the Security management system in the Bank. The Bank
Bank analyse its lending activity to climate-related The Bank is aiming to address technology transition by has adopted Global Information Security Standard
sectors and disclose financed emissions of some bridging the innovation gap in the industry. Further, the ISO 27001:2013 and implemented Board-approved
31 Our strategy
carbon-intensive sectors in a phased manner. The Bank Bank is identifying and supporting the next generation Information Security Policy and Cyber Security policy,
36 Risk management
has initiated these efforts to pre-empt investor and of technologies through YES SCALE – a multi-sector as directives to protect its information assets.
Our ESG focus innovation platform.
stakeholder demand for climate-related disclosures. The Bank has implemented a multi-layered defence to
43 Environment
54 Social YES BANK broadly categorises climate risks into protect against cyber attacks. It has adopted a Cyber
69 People physical and transitional risks. Physical risks are a Security Resilient framework to manage cyber security
80 Governance consequence of direct physical impacts of climate risk. The framework rides on four pillars – Protect,
change and range from acute risks (such as extreme Detect, Respond and Recover. To monitor Cyber Risks,
Statutory Reports the Bank has a Security Operations Centre (SOC),
weather events) to chronic risks (like gradual rise in sea
level and temperature). Due to these acute and chronic which keeps vigil on actionable threat intelligence,
changes in climate, the Bank faces risk to its physical CYBER RISK suspicious network traffic and events to timely detect
assets, which could result in service disruption. The Over the last few years, the financial sector has any anomalies and help respond to potential incidents.
Bank remains ISO 22301 certified, an International witnessed a significant increase in adoption and Further, the Bank creates awareness among employees,
Financial Statements Business Continuity Standard, to effectively address investment in digitisation. This has led to the customers, and other stakeholders on global cyber
198 Standalone Financials these possible service disruptions. This certified and implementation of cutting-edge technologies. security threats, and issues guidance on using digital
267 Consolidated Financials platforms in a safe and secure manner.
robust business continuity plan helps manage any However, with the rise in digitisation, security risks
potential service disruption at all its locations. have emerged, which could occur due to the breach of
39
Mainstreaming sustainability
Contents
Corporate Overview
in banking
A redefined YES
03 YES BANK at a glance A pioneer of sustainable initiatives in the banking industry,
YES BANK consistently strives to integrate the value of holistic
07 Message from the Chairman sustainable development in its core business strategy. One of
10 Message from the Managing Director the Bank’s key focus areas is to address global developmental
and CEO
challenges by adopting new and innovative models, based on the
15 COVID-19 response bedrock of economic, social and environmental factors.
17 Customer focus
21 Technology and digital innovation The Bank recognises the need to report beyond
25 Retail financial parameters and evaluate its performance with
Our approach to value creation a broader perspective considering its ability to create
29 Value creation model and sustain key stakeholder value over the short,
31 Our strategy medium and long terms.
36 Risk management
In FY 2019-20, YES BANK became the only Indian Bank
Our ESG focus to be included in FTSE4Good Emerging Index for the
43 Environment 3rd consecutive year (2017, 2018 and 2019).
54 Social
The Bank was also awarded ‘PRIME’ status by ISS ESG
69 People
(previously known as OEKOM Research AG) for the
80 Governance
2nd consecutive year (2018 and 2019).
Statutory Reports
40
Contents Highlights of Financial Performance

Corporate Overview
Economic Value Generated, Distributed and Retained
A redefined YES
Particulars FY 2019-20 FY 2018-19
D in ‘000 D in ‘000
05 Products and services Economic Value Generated
06 Geographical presence Revenues 379,230,977 342,148,999 P&L Account, Annual Report 2019-20
TOTAL 379,230,977 342,148,999 A
and CEO Economic Value Distributed
12 Key performance indicators Operating costs # 41,293,397 37,945,115 Schedule 16 – Operating Expenses, P&L Account, Annual Report 2019-20
Employee wages and benefits 25,998,717 24,697,653 Schedule 16 – Operating Expenses, P&L Account, Annual Report 2019-20
17 Customer focus
21 Technology and digital innovation Payments to providers of capital 197,247,642 204,381,149 Annexure A
25 Retail Payments to government (43,126,371) 7,650,336 Annexure B
Our approach to value creation Community investments 405,400 537,800 Annexure 1, Directors’ Report, Annual Report 2019-20
29 Value creation model TOTAL 221,818,785 275,212,053 B
31 Our strategy
Economic Value Retained *
157,412,192 66,936,946 A-B
36 Risk management
Annexure A
Our ESG focus
43 Environment Interest on deposits 120,052,790 136,871,140 Schedule 15 – Interest Expended, P&L Account, Annual Report 2019-20
54 Social Interest on RBI/Inter-bank borrowings/Tier I & 66,661,229 60,764,723 Schedule 15 – Interest Expended, P&L Account, Annual Report 2019-20
69 People Tier II debt instruments
80 Governance
Others 5,899,706 521,297 Schedule 15 – Interest Expended, P&L Account, Annual Report 2019-20
Statutory Reports Dividend paid for last year 4,633,917 6,223,989 P&L Account, Annual Report 2019-20
Payments to providers of capital 197,247,642 204,381,149
146 Report on corporate governance Annexure B**
Provisions made for income tax during the year (44,078,887) 6,370,684 Schedule 17 - Provisions & Contingencies, Annual Report 2019-20
Financial Statements Tax on dividend paid last year 952,516 1,279,652 P&L Account, Annual Report 2019-20
Payments to Government (43,126,371) 7,650,336 P&L Account, Annual Report 2019-20
* Calculated as per the GRI 201 Standards ** Only includes the taxes shown in the Bank’s Statements of Accounts in its Annual Reports for 2019-20 and
# Excluding Employees Wages and Benefits, which has been shown separately 2018-19, and does not include all the payments to government made by the Bank
41
Contents Highlights of ESG performance

Corporate Overview
A redefined YES Environmental Social Governance
03 YES BANK at a glance yy Rated A – (Leadership Band) by CDP for 2019 yy Reached 2.9 million+ families at the bottom-of- yy First and only Indian Bank to be included as a
05 Products and services Climate Change disclosures the-pyramid through Livelihood Enhancement constituent of the FTSE4Good Emerging Index
06 Geographical presence Action Programme till FY 2019-20 for three consecutive years (2017-2019)
07 Message from the Chairman yy First Bank globally to migrate to ISO
10 Message from the Managing Director 14001:2015; 732 locations being certified yy Provided financial literacy trainings to 230 yy Awarded ‘Prime’ Status by ISS ESG (previously
and CEO thousands+ bottom-of-the-pyramid customers OEKOM Research AG) (2018,2019)
yy Continues to maintain 45,462 trees on a 40 km
12 Key performance indicators till FY 2019-20
stretch along the Mumbai-Nashik Highway yy First and only Indian Bank to be listed on DJSI
17 Customer focus under ‘Adopt a Green Highway’ initiative yy Continues to provide access to safe & clean Emerging Markets for 4 years consecutively
21 Technology and digital innovation drinking water across 1,005 semi-urban and (2015-2018)
yy First and only Indian banking signatory to
25 Retail rural railway stations in FY 2019-20
Natural Capital Finance Alliance (NCFA) & yy Included in Vigeo Eiris Best Emerging Markets
Our approach to value creation Chair of Steering Committee yy Impacted 90,149 lives in rural geography through Performers Ranking in 2018
29 Value creation model livelihood and water security initiative in
yy Focused interventions to conserve yy Selected in MSCI ACWI ESG Leaders & SRI
31 Our strategy FY 2019-20
endangered/ critically endangered species Indexes in 2017
36 Risk management
including Pangolin, Red Panda, Great Indian yy Provided Occupational Health & Safety and
yy First Indian banking signatory to UNEP Finance
Our ESG focus Bustard and House Sparrow Energy Efficiency Training to 54,000+ MSMEs
Initiative, and a member of its Global Steering
43 Environment till FY 2019-20
Committee
54 Social
yy Conducted SDG literacy sessions in 292 schools,
69 People yy First Indian Bank to be on Green Bond Principles
reaching out to 29,000+ students in FY 2019-20
80 Governance – Social Bond Principles Advisory Council,
yy Launched India’s 1st Green Retail Liability International Capital Market Association
Statutory Reports
Product, Green Future Deposits in 2018
84 Management discussion and analysis yy First Indian Bank to launch Green Bond Impact
106 Directors’ report yy Sole arranger and subscriber to India’s First Report
146 Report on corporate governance Social Bond in 2018, with proceeds allocated to
187 Annual business responsibility report yy First Indian Bank to support Task Force on
Affordable Housing
Climate Related Financial Disclosure
198 Standalone Financials yy First and the only Indian Bank to be the
267 Consolidated Financials founding member of UN Principles for
Responsible Banking
42
Environment
Conserving the natural environment

Contents
Corporate Overview
A redefined YES Natural capital has always been a critical focus area at YES BANK. Guided by its
02 Key highlights FY 2019-20 ethos of Responsible Banking, the Bank has always endeavoured to be conscious and
responsible in optimising the use of natural resources and minimising the impact on
06 Geographical presence natural ecosystems.
10 Message from the Managing Director Its focus on natural capital conservation and climate
and CEO action has led the Bank to garner one of the largest
renewable energy lending portfolios among private-
sector banks. The Bank has also taken a lead in
17 Customer focus
reducing carbon footprint and continues to be ISO
14001:2015 certified for its robust Environmental
25 Retail
Management System. Additionally, YES BANK has been
Key Highlights
Our approach to value creation at the forefront of mainstreaming the protection and
732
29 Value creation model conservation of India’s rich natural capital by becoming
31 Our strategy the first Indian signatory to the Natural Capital
36 Risk management Declaration; the first Indian Bank to join the Natural
Our ESG focus Capital Coalition (NCC); and a founder member of the Locations ISO 14001:2015
43 Environment UN Principles for Responsible Banking. certified
54 Social
3,010 MW
69 People
80 Governance
Statutory Reports
Renewable energy sector
106 Directors’ report exposure
5.51%
267 Consolidated Financials Reduction of GHG
Natural capital
emission intensity
43
Environment
Contents Positive Impact Finance

Corporate Overview YES BANK believes that Financial Institutions (FIs) can
play a major role in driving climate action by adopting
A redefined YES
proactive approaches towards climate finance.
03 YES BANK at a glance The Bank’s holistic climate strategy encompasses the
05 Products and services launch of innovative green financial mechanisms, the
06 Geographical presence integration of sustainability principles into operations,
07 Message from the Chairman During FY 2019-20, the Bank’s key transactions to support
and establishing its credentials as a green Bank among
10 Message from the Managing Director sustainable use of natural capital included financing
sustainability-focused investors.
and CEO 350 MW solar projects across geographies and clientele
12 Key performance indicators In February 2015, YES BANK committed to mobilise
15 COVID-19 response $ 5 billion toward climate action till 2020, with specific
17 Customer focus sector-wise targets. The Bank has already surpassed
21 Technology and digital innovation its target of financing 5 GW of Renewable Energy (RE) Renewable Energy Lending & Advisory The Corporate Finance Infrastructure Banking (CFIB)
25 Retail projects by an additional 1.8 GW. The Government of India has expanded its Renewable Unit represented YES BANK’s strong sector expertise
Energy (RE) capacity target to 175 GW by 2022. YES BANK and thought leadership in renewable energy sector at
Our approach to value creation With an aim to mainstream sustainable finance,
has financed 6.8 GW renewable energy capacity in the key conferences and seminars like WINDIA 2019- Wind
29 Value creation model YES BANK has, over the years, developed long-term
last five years. In FY 2019-20, the Bank’s key transactions Power Conclave (August, 2019), Intersolar Conference
31 Our strategy
partnerships with leading global development financial (November, 2019) and Energy Storage: Driving Demands
36 Risk management to support sustainable use of natural capital included
institutions such as International Finance Corporation; and Investments Conference (November, 2019).
financing 350 MW of solar and 250 MW of wind
Our ESG focus Overseas Private Investment Corporation; Asian YES BANK was among the few banks to participate in
projects across geographies and clientele. Accounting
43 Environment Development Bank; Netherlands Development Finance the 2nd Assembly of ISA - an interaction of ministers
for reduction in exposures due to syndication and
54 Social Company; Development Bank of Austria and European and government officials of several countries.
repayments, as on March 31, 2020, the Bank has
69 People Investment Bank, among others. These partnerships
credit exposures to renewable projects aggregating to
80 Governance help the Bank in promoting financing opportunities in
3,010 MW, which is broadly categorised as:
areas such as energy efficiency, renewable energy and
Statutory Reports
gender financing.
Power Capacity as per technology (MW)
6.8
GW 827 Wind
3,010
Financial Statements The Bank has already surpassed its
198 Standalone Financials 884 Solar
target of financing Renewable Energy
267 Consolidated Financials 1,200 Hybrid
(RE) projects by an additional 1.8 GW.
99 Small hydro
44
Environment
Contents Sustainable Investment Banking & Karnataka) to Brookfield Renewables. The deal Environment and Social Policy
Corporate Overview Sustainable Investment Banking (SIB) is a knowledge- further strengthens SIB’s credentials and dominance YES BANK believes that it is imperative for banks to
01 Commitment. Promise. Transparency. in renewable energy asset M&A, having concluded
focused vertical at YES BANK. It provides investment have a framework to recognise, evaluate, monitor and
A redefined YES 1,500 MW of Renewable M&A transactions over the
banking and advisory services in the sustainability manage the environmental and social elements in its
space, including renewable energy, clean technology, last five years across 11 deals cumulating to over day-to-day decision-making. Besides, it is becoming
environmental services, healthcare, and education. $1.2 billion (enterprise value) increasingly imperative for banks to consider the
06 Geographical presence SIB specialises in private equity fund raising, mergers yy Further, SIB has got a mandate for sale of over ‘sustainability dimension’ while making credit decisions.
07 Message from the Chairman & acquisitions, technology transfer, business advisory 1 GW of renewable assets. The deal reinforces SIB’s In line with its Responsible Banking ethos, YES BANK
10 Message from the Managing Director and corporate restructuring, among others. It has capability to execute transactions with large global has been adopting a proactive approach to address
and CEO successfully executed over 37 transactions in the financial investors environmental and social impacts that could result
12 Key performance indicators sustainability sector, cumulating to a transaction value from its lending activities. Towards this, the Bank’s
15 COVID-19 response of over $7.6 billion. During the reporting period, SIB SIB represented YES BANK’s strong sector expertise Environment and Social Policy (ESP), implemented
17 Customer focus successfully closed the following transactions: and thought leadership in the renewable energy and in 2006, serves as a structured approach towards
21 Technology and digital innovation sustainability sectors at key conferences and seminars responsible lending.
25 Retail yy Acted as an exclusive advisor to Emami Group for like Indian Wind Energy Forum 2019 (November, 2019)
sale of their 43 MW operational solar asset portfolio and Indian Rooftop Solar Congress 2020 (January, 2020). The ESP, as an integral part of its Environment & Social
Our approach to value creation (spread across Gujarat, Uttarakhand, Tamil Nadu Management System (ESMS), sets out the overarching
29 Value creation model framework for identification and management of
31 Our strategy
potential and/or existing Environmental & Social (E&S)
36 Risk management
risks commensurate with the nature and scale of
Our ESG focus transactions and their potential impacts. Through this
43 Environment policy, the Bank integrates environmental and social
54 Social risks into its overall credit risk assessment framework,
69 People which goes beyond financial risk mitigation. It has
80 Governance voluntarily adopted the policy, based on international
frameworks such as the Equator Principles and IFC
Statutory Reports
Performance Standards. The ESP is a crucial part
106 Directors’ report of the Bank’s credit risk appraisal process and the
146 Report on corporate governance Bank further continues to mainstream environment
187 Annual business responsibility report and social considerations across its lending by
strengthening ESP integration with the overall credit
Financial Statements risk assessment framework.
45
Environment
Contents Achieving operational environmental Digital & Paperless Banking has avoided the potential use of approximately
Corporate Overview excellence The Bank continued its efforts to gradually move 14,38,358 A4 sheets and 2,22,612 envelopes (equivalent
In 2014, YES BANK became the first Bank in India to towards paperless banking by digitising paper-based to avoiding 228.95 GJ of energy consumption) in
A redefined YES
receive the ISO 14001:2004 certification for bringing products and processes, wherever possible. Its key FY 2019-20. The estimated savings for FY 2020-21 are
03 YES BANK at a glance down resource usage, waste generation & disposal initiatives during the year included: 17,97,947 A4 sheets and 2,78,265 envelopes.
05 Products and services costs, energy consumption, and implementing
yy E-Statement of Accounts (SOA) & Income yy Electronic Inventory Funding System (EIFS) KIA
06 Geographical presence environment friendly practices. In 2017, YES BANK
Tax (IT) Certificate manufacturer integration
07 Message from the Chairman became the first Bank globally to migrate to the
YES BANK’s digital focus is on ensuring ease of YES BANK’s EIFS System has completely automated
10 Message from the Managing Director ISO 14001:2015 standard for its Environmental
transaction, and thereby winning and retaining auto indent processing, balance reporting and
and CEO Management System (EMS). The latest ISO 14001:2015
customers by creating value. The Bank introduced eliminated user intervention. It has resulted in
12 Key performance indicators standard further expands the scope of the Bank’s
paperless banking and developed digital solutions reduction of turnaround time by 30 minutes
commitment to the environment through:
17 Customer focus for providing E-SOAs and IT certificates. This initiative per transaction. The system auto generates the
21 Technology and digital innovation yy Greater emphasis by leaders to implement EMS Management Information System (MIS) at defined
25 Retail Better strategic fit to incorporate environmental frequency which is transferred to KIA’s ERP system

risk mitigation 14,38,358 2,22,612 and basis the MIS, bills are placed. The EIFS system
auto reads the billing and processes the indent
29 Value creation model yy Integrating environmental impacts in life A4 sheets recycled in Envelopes recycled in
payment. Further, the system ends payment
31 Our strategy cycle thinking FY2019-20 FY2019-20
confirmation MIS to KIA Motors automatically.
36 Risk management
yy Driving effective internal and external stakeholder
Key Features
Our ESG focus communication
43 Environment yy Vehicle Identification Number (VIN) wise
As on March 31, 2020, YES BANK is leading the BFSI disbursement for KIA Motors
54 Social
sector globally with the highest number of ISO
69 People yy Documentation exception tracking and hold
14001 certified facilities with 732 certified locations,
80 Governance marking for defaulting dealers
including five corporate offices, YES SECURITIES and
Statutory Reports the Abu Dhabi Representative Office. This marks the yy Penal interest calculation post expiry of ad-hoc limits
84 Management discussion and analysis latest milestone achieved by YES BANK in its journey in
106 Directors’ report becoming a leading environmentally-friendly Bank. Key Benefits
146 Report on corporate governance yy Improved operational efficiency
187 Annual business responsibility report YES BANK is committed to continuously benchmark
its environmental performance. This is done through yy Improved revenue realisation
Financial Statements strategic reduction of its carbon footprint intensity
198 Standalone Financials yy Improvement in reporting
in order to fulfil its environmental obligations and
stakeholder expectations towards supporting yy Enabled for future integration with other OEMs
sustainable growth.
46
Environment
Contents yy E-Letters
Corporate Overview YES BANK continued with its E-letters service for
01 Commitment. Promise. Transparency. Retail Asset Product. This has helped enhance
A redefined YES service quality through the digital platform and
02 Key highlights FY 2019-20 YES BANK introduced Robotics
provide seamless customer experience. It has also
03 YES BANK at a glance platform for downloading available
significantly reduced the turnaround time from
05 Products and services certificates through Government of
3 days to 1 day, thereby avoiding the potential
06 Geographical presence India’s VAHAN website.
use of approximately 13,02,963 A4 sheets and
4,56,037 envelopes (equivalent to avoiding 242.66 GJ
and CEO of energy consumption) in FY 2019-20. The estimated
12 Key performance indicators savings from this initiative for FY 2020-21 are
15 COVID-19 response 16,28,704 A4 sheets and 5,70,046 envelopes
17 Customer focus
yy VAHAN Robotics
YES BANK’s retail strategy for both lending and
25 Retail significantly reduced the turnaround time from yy Click to Happiness
borrowing focuses on creating scalable models
Our approach to value creation within sourcing, processing and last mile fulfilment 2 days to 1 day and avoided the potential use The Bank’s digital personal loan system for
29 Value creation model through fungible tech-enabled platforms with of approximately 62,835 A4 sheets (equivalent employees processed 215 loan applications in
31 Our strategy digital interfaces. Over a period of time, the Bank to avoiding 8.65 GJ of energy consumption) in FY 2019-20, thus avoiding the potential use of
36 Risk management has replaced outdated systems with cutting‑edge FY 2019-20. The estimated savings for FY 2020-21 approximately 23,670 A4 sheets, equivalent to
innovations. Vehicle loans is one such example, are to the tune of 78,543 A4 sheets avoiding 3.26 GJ of energy consumption (based
Our ESG focus
where the Bank has demonstrated this successfully. on the estimate that each manual loan sanction
43 Environment yy Digital Post Disbursal Document (PDD)
A customer is required to submit the vehicle process requires an average 90 A4 sheets)
54 Social YES BANK continues to use its YES PDD application
69 People registration certificate post loan disbursement. in collaboration with an outsourced partner, yy YES Approvals
80 Governance YES BANK introduced Robotics platform for aiming to reduce paper used in post disbursal A formalised, automated paperless workflow
downloading available certificates through documents through digitisation of documentation process for submitting, tracking, and collaborating
Statutory Reports Government of India’s VAHAN website. This has and verification. It has saved over 1,08,545 A4 on a variety of document types to make approval
106 Directors’ report sheets (equivalent to avoiding 14.88 GJ of energy decisions fast. This also complements the Bank’s
146 Report on corporate governance 62,835 498.40 GJ consumption) in the Bank’s retail operations in
FY 2019-20. The estimated savings for FY 2020-21 are
decision standards (no delays), organisational
needs and provides a complete trail of actions
A4 sheets saved total reduction in ~1,35,681 A4 sheets taken including time, date, and employee approval
Financial Statements in FY2019-20 energy requirements process stamp.
198 Standalone Financials through all these
267 Consolidated Financials initiatives is estimated
47
Environment
Contents Reduce, Reuse and Recycle Managing E-Waste Climate Disclosure

Corporate Overview During the year, the Bank continued its focused efforts Owing to its high dependence on technology, e-waste YES BANK was the first Indian banking signatory to
in resource consumption reduction: is a primary environmental concern for YES BANK. the CDP and has been reporting its carbon emissions
A redefined YES
Thus, the Bank has empanelled Pollution Control Board since 2009. In FY 2019-20, YES BANK was rated ‘A-‘
03 YES BANK at a glance authorised third-party e-waste handlers for disposal (Leadership Band) by CDP, for its 2019 Climate Change
05 Products and services of e-waste from its locations across India. During disclosures. The rating not only marks an upgrade for
06 Geographical presence FY 2019-20, the Bank responsibly disposed 1,479.5 kg of YES BANK from ‘C’ (Awareness band) to ‘A-‘ (Leadership
07 Message from the Chairman e-waste, which included desktops, printers and laptop band), but also takes it ahead of the average for
hardware, UPS, and server hardware. the global ‘Financial Services’ organisations and the
3,998 52,291 kg
and CEO Asia Region, which stand at ‘C’. The Bank earned the
Water Footprint
batteries recycled of dry waste, resulting ‘Leadership Band’ (A/ A-) in 7 out of 11 climate‑related
15 COVID-19 response Considering the nature of the Bank’s business and disclosure parameters including governance, risk
across 217 locations in 63 MT of carbon
17 Customer focus locations it operates in, there are no significant management, opportunity disclosure, emission
footprint reduction
21 Technology and digital innovation negative impacts on the communities around its areas reduction initiatives, among others. The Bank shares
25 Retail of operation, and the Bank’s primary consumption of this ‘Leadership’ band with 23% of the global ‘Financial
water is for drinking and municipal purposes. Services’ organisations that reported through CDP’s
29 Value creation model Based on the assumption that approximately 45 litres Climate Change 2019 disclosures.
31 Our strategy of water is consumed per employee per day (Source:
36 Risk management IS 1172:1993-Code of Basic Requirements for Water
Our ESG focus Supply, Drainage And Sanitation), the Bank has
Green Ninja
43 Environment estimated that in FY 2019-20, the water consumption
As part of the Phase VII ISO 14001 implementation at all its facilities was approximately 221,321.925 m3* in
54 Social
process, the Bank launched an internal campaign called 2019- 20. The Bank encourages branches to lead their
69 People
‘GREEN NINJA’ to promote environmentally conscious own mitigation initiatives and share best practices
80 Governance
behaviour amongst employees. The campaign was across other branches.
Statutory Reports aimed at recognising employees who had taken
*Estimated number of working days per employee calculated excluding
84 Management discussion and analysis proactive actions to reduce their environmental weekends, annual leaves, public holidays and averaged sick leaves
106 Directors’ report footprint. About 25 employees were recognised as
146 Report on corporate governance GREEN NINJAs for their exemplary initiatives to reduce
187 Annual business responsibility report their own carbon footprint and that of the Bank.
Financial Statements The GREEN NINJAs received YES LEAGUE of Excellence
198 Standalone Financials Certificates, reward point and had their case-studies
267 Consolidated Financials publicised across the organisation in an effort to
promote best practices.
Environment
Contents Infrastructure – Key Steps to Enhance Resource & in 96 branches with energy efficient (star rated) In FY 2019-20, the Bank’s estimated energy
Corporate Overview Energy Conservation systems that use eco-friendly coolants, thus reducing consumption and energy intensity, within its
01 Commitment. Promise. Transparency. YES BANK has been increasing investments in its environmental footprint, which have potential operational boundaries were 146.76 TJ (an increment
A redefined YES technology to renew existing infrastructure, improve saving of 10 to 15% of 824.98 GJ of energy consumption over the last
02 Key highlights FY 2019-20 financial year) and 6.38 GJ/FTE respectively. The energy
performance and enhance resource & energy efficiency. yy YES BANK’s energy management initiatives aim at
03 YES BANK at a glance consumed by its outsourced data centres is estimated
05 Products and services yy The Bank has been migrating to LED lighting in reducing 15-20% energy consumption by introducing
at 179.35 TJ.
06 Geographical presence phases. In the present financial year, YES BANK Energy management system, wherein the
07 Message from the Chairman has replaced 3,700 LED units. They are estimated consumption will be monitored centrally using IoT # Scope 1 emissions include 10% refrigerant leakage from the AC systems (as suggested
in the Default IPCC Values section of the “Refrigeration and Air-Conditioning Equipment”
10 Message from the Managing Director to save 671.32 GJ of energy consumption, yy YES BANK has explored the potential of using Worksheet by GHG Protocol, dated January 2015). The emission factors and GWP (Global
and CEO every year. The estimated annual reduction in alternative sources of energy by installing Warming Potential) values have been taken from the GHG protocol. The estimated ODS
electricity consumption that may be attributed to 5 kVA solar power system at Pune Bund Garden
emissions from HCFC-22 is estimated at 78.06 Kgs of CFC-11 equivalent. The equivalent
15 COVID-19 response NOx and SOx emissions through diesel consumption are 26.31 kg and 13.70 kg
these LEDs is 186.48 MWh, helping the Bank avoid branch. In FY 2019-20, the branch drew an respectively. Like 2012-13 (base year), the operational control approach has been used
17 Customer focus
154.21 t CO2e emissions estimated 4.5 Mwh of electricity (16.2 GJ of energy for measuring and managing these emissions.
25 Retail yy The Bank is in the process of phasing out air consumption) through this system, avoiding 3.72 t ## Scope 2 emissions include CO2 emissions from electricity consumed by YES BANK.
conditioning systems that use ozone depleting CO2e emissions. YES BANK would continue to explore The emission factors have been taken from CEA’s (Central Electrical Authority) CO2
Our approach to value creation alternative sources of energy in future
Baseline Database, Version 15. Grid Electricity Consumed has been estimated from
coolants, and in the current reporting cycle, the Bank the facility-wise electricity bills and state-wise tariffs (fixed tariff components have not
has replaced 648 tonnage of R22 air conditioners been included in the estimations). The year-on-year reduction in emission intensity
31 Our strategy is estimated for the Bank’s Scope 1 and Scope 2 emissions (within operational
36 Risk management boundaries) only.
YES BANK GHG Inventory FY 2017-18 FY 2018-19 FY 2019-20 ### Scope 3 emissions for FY 2019-20 include emissions from business air travel
Our ESG focus
(3,301.35 tCO2e), daily employee commute (1,131.56 tCO2e), paper consumption including
43 Environment Scope 1 emissions - Diesel Consumption (tCO2e) #
921.03 905.38 876.07 inbound and outbound couriers - assuming 1 A4 envelope and 1 A4 paper per courier
54 Social (2,961.95 tCO2e) and outsourced data centres (41,201.39 tCO2e). Environmental impact
Diesel Consumption (Litre) 348,263.61 342,345.83 331,262.93
69 People estimates (for paper consumption) were made using the Environmental Paper Network
80 Governance
Scope 1 emissions - Refrigerant Leakage (tCO2e) # 2,059.04 2,172.92 2,569.08 Paper Calculator Version 4.0. For more information visit www.papercalculator.org
Given the unavoidable circumstances during the lockdowns, the emissions through
Scope 2 emissions - Grid Electricity Consumption (tCO2e) ##
29,668.27 30,453.16 30,993.69 daily employee commute have been estimated basis the primary pan-bank survey
Statutory Reports conducted in FY 2018-19 (estimated using the framework suggested by WRI) and the
84 Management discussion and analysis Grid Electricity Consumption (Mwh) 36,180.82 37,138.00 37,477.26
corresponding change in the employee strength in FY 2019-20. Emissions through
106 Directors’ report Total Emissions (Scope 1+2) (tCO2e)* 32,648.34 33,531.46 34,438.84 electricity consumption at off-site ATMs have not been included due to the unavailability
of reliable data.
146 Report on corporate governance Total FTE as on March 31 18,238 21,136 22,973
187 Annual business responsibility report *Substantial changes in the total emissions are also a result of the continual
Emission Intensity (tCO2e/FTE) 1.79 1.59 1.50 improvements in the adoption of emission estimation methodologies. FTE includes all
Financial Statements % Reduction of Emission Intensity y-o-y 1.35 11.38 5.51 full-time employees across YES BANK’s pan-India and Abu Dhabi facilities. Emissions
198 Standalone Financials through currency chests and YES Securities (India) Limited (YSIL) (a subsidiary of YBL)
267 Consolidated Financials Scope 3 Emissions ###

(tCO2e) 4,420.89 45,823.67 48,596.25 which operates from NOC Mumbai (YES BANK premises) are also included. Resource
consumption data for a percentage of facilities was unavailable and hence not included
in the estimates.
49
Environment
Contents Accreditation by Green Climate Fund The Bank is proud to partner with Green Climate Fund The Bank has steadily worked towards
Corporate Overview During the year, the Bank received approval as the and remains committed to playing a pivotal role in preventing extinction of critically endangered
01 Commitment. Promise. Transparency. stimulating finance for India’s transition towards a species by supporting science based research,
accredited entity with Green Climate Fund (GCF).
A redefined YES low‑emission and climate resilient future. habitat restoration (protected & potential) and
With this accreditation, the Bank would work on
developing and implementing projects that can address community‑led interventions across Madhya Pradesh,
03 YES BANK at a glance Set up by the United Nations Framework Convention
climate change with the support of GCF funding. This NCR, Rajasthan and Sikkim.
05 Products and services on Climate Change (UNFCCC) in 2010, the Green
06 Geographical presence development is a testament to the commitment of the Climate Fund fosters transformative impact in
07 Message from the Chairman Bank in playing its part as a catalyst in the sustainable, developing countries by unlocking the power of The Bank has steadily worked towards preventing
10 Message from the Managing Director low emission and climate resilient transformation of the climate-friendly investment for low-emission, climate extinction of endangered/critically endangered
and CEO Indian economy. resilient development. To achieve maximum impact, species by supporting science based research, habitat
12 Key performance indicators GCF catalyses funds, multiplying the effect of its initial
YES BANK was approved as an accredited entity by GCF restoration (protected & potential) and community-led
in November, 2019, post a rigorous assessment of the financing by opening markets to new investments interventions across Madhya Pradesh, NCR, Rajasthan
17 Customer focus
Bank’s key administrative and financial capacities (general and de-risking projects to make them bankable. GCF and Sikkim. Through such initiatives, the Bank assists
management, financial management, control frameworks, enables countries to realise their Nationally Determined in creating a holistic local ecosystem for promoting
25 Retail
transparency and accountability), fiduciary capacities Contributions under the Paris agreement by supporting conservation and preservation of natural capital.
Our approach to value creation (project management, grant awards, on-lending and climate mitigation and adaptation actions and driving
29 Value creation model climate finance to where it is needed most - in Least Ensuring water security, improving the quality of
blending), and environment and social safeguards and
31 Our strategy Developed Countries, Small Island Developing States, education and health, promoting responsible tourism,
gender capacities. The Bank was one of the first Indian
36 Risk management and African States. increasing the forest cover, reducing dependence on
private banks to be nominated as ‘Direct Access Entities’
fuel wood, preventing forest fires, adjusting to changing
Our ESG focus for GCF by the Ministry of Environment, Forests and Environmental Sustainability rainfall patterns, enhancing awareness on legal
43 Environment Climate Change. The Bank has begun exploring a potential
With a relentless commitment to protecting the protection status and building capacity, are part of such
54 Social project pipeline in climate change sectors like e-mobility,
environment and reducing the negative impact of conservation project activities for long-term survival.
69 People water & waste management, green real estate & energy
human activities on the planet, YES BANK has made
80 Governance efficiency, and climate smart agriculture. Engagement with relevant stakeholders by imparting
climate action and environmental sustainability a core
trainings, conducting workshops, organising special
Statutory Reports focus area.
camps, empowering forest guards and providing
106 Directors’ report Biodiversity Conservation material support, identifying local stewards,
146 Report on corporate governance As a financial institution, YES BANK has taken focused strengthening anti-poaching activities, diversifying
187 Annual business responsibility report measures to ensure conservation of biodiversity and livelihood opportunities and enabling local communities
The Bank was one of the first Indian endangered species, while mitigating the factors to become partners, are included under the
Financial Statements conservation plan depending on geography and species.
private banks to be nominated as ‘Direct affecting them.
Access Entities’ for GCF by the Ministry of
Environment, Forests and Climate Change.
50
Environment
Contents During the FY 2019-20, the following initiatives were taken: YES BANK also participated in key events during the
Corporate Overview year like the United Nations Climate Action Summit
yy Habitat Conservation for Sparrows: Nest making
workshops for conserving House Sparrows were 2019, United Nations Youth Climate Summit 2019,
A redefined YES
conducted in 110 schools of NCR covering 39,292 Signing Ceremony and Global Launch of United Nations
03 YES BANK at a glance students, along with Eco Roots Foundation Principles for Responsible Banking, United Nations
05 Products and services Environment Programme Finance Initiative European
yy Baseline Data Collection for Pangolin Conservation: Regional Roundtable, Institute of International Finance
Two pangolins were successfully tagged for Sustainable Finance Workshop, Asia [RE]volution,
monitoring and data collection. Camera trappings Task Force on Climate-related Financial Disclosures
and CEO and field surveys by detection dogs were initiated by Good Practice Handbook Launch, Expert Workshop
12 Key performance indicators Wildlife Conservation Trust in Madhya Pradesh on Paris Alignment, India Initiative on Decentralised
15 COVID-19 response Renewable Energy Financing, Economic Times
yy Red Panda Conservation: 78 villagers were trained
17 Customer focus Sustainable Development Goals Impact Summit 2019,
through three training sessions to reduce fuel wood
21 Technology and digital innovation Villages have been identified for Expert workshop on Closing the Investment Gap (CIG)
consumption. Villages have been identified for
25 Retail promotion of responsible tourism for Initiative.
promotion of responsible tourism and facilitation
Our approach to value creation of local tourism licenses by World Wide Fund for conservation of Red Panda in Sikkim
On all these forums, YES BANK presented and catalysed
29 Value creation model Nature–India for conservation of Red Panda in discussions centred around the need for enabling
31 Our strategy Sikkim policy frameworks, innovative business models and
36 Risk management achieving India’s commitment to creating an additional
yy Conservation of Great Indian Bustard: One habitat financial mechanisms to achieve the global goals, need
carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent
Our ESG focus restoration site of 30 hectares has been developed for scaling up corporate ambition to achieve the targets
by 2030 and YES BANK’s COP21 commitment of planting
43 Environment for the Great Indian Bustard at Khetolai village of set by the landmark Paris Agreement, and the mission
2 million saplings by 2020.
54 Social Rajasthan by Bombay Natural History Society critical role of financial community in scaling finance to
69 People Global Engagement on Sustainable meet the climate action targets.
80 Governance Tree Plantation Initiative Development
Given YES BANK’s industry-first sustainability initiatives
YES BANK is the first Indian private sector Bank to YES BANK was invited to share its views and insights
Statutory Reports and unprecedented leadership in driving positive
collaborate with the National Highways Authority of at various national and international events bringing
84 Management discussion and analysis changes at a financial sector level, the Bank continues
106 Directors’ report India (NHAI), and work towards the vision of creating together experts from the government, select financial to be a signatory and active participant to key
146 Report on corporate governance green highways. Under the Ministry of Road Transport institutions, private and institutional investors. Through protocols focused on climate action and sustainable
187 Annual business responsibility report and Highways’ ‘Adopt a Green Highway’ initiative, these platforms, the Bank enhanced its knowledge development, including the UN Environment Program
the Bank has adopted a 40-kilometer stretch along about the climate-aligned sectors as well as forged new
Financial Statements Finance Initiative (UNEP FI), Carbon Pricing Leadership
the Mumbai – Nashik Highway. The Bank continues alliances and partnerships to further accelerate action
198 Standalone Financials Coalition, UN Global Compact (UNGC), Carbon
to maintain 45,462 trees along the stretch for a five- towards achieving the sustainable development agenda
267 Consolidated Financials Disclosure Project (CDP), Natural Capital Finance
year period. This endeavour will contribute towards of the country. Alliance (NCFA).
51
Environment
Contents Natural Capital Finance Alliance YES BANK, as the first Indian signatory Science Based Targets initiative (SBTi)
Corporate Overview In 2013, YES BANK became the first Indian signatory to the UNEP FI continues to play a The SBTi aims to provide the private sector with a
01 Commitment. Promise. Transparency. leadership role at the platform.
to the Natural Capital Declaration [now a part of the clearly defined pathway to future-proof growth, by
A redefined YES
Natural Capital Finance Alliance (NCFA), a joint initiative specifying extent of reduction of GHG emissions
03 YES BANK at a glance of the UNEP FI and Global Canopy Programme]. and the timelines. In September 2018, YES BANK
collectively holding $47 trillion in assets, representing committed to developing a science-based emission
05 Products and services As a signatory, the Bank remains committed to bringing one third of the global banking sector. reduction target, in line with the SBTi definition and
06 Geographical presence together an ecosystem that would help develop an
07 Message from the Chairman YES BANK, as a member of the Positive Impact Call to Action criteria. In FY 2019-20, YES BANK became
appropriate regulatory infrastructure, disclosure
10 Message from the Managing Director Initiative, was involved in the development of Corporate the only Indian Bank to participate in the official
mechanisms, and reporting measures to integrate,
and CEO Impact Analysis Tool and Portfolio Impact Analysis road-testing of methodologies that could help global
value, and account for natural capital. As the Chair of
12 Key performance indicators Tool. YES BANK was the only Indian Bank as part of financial institutions to set science-based emission
the Steering Committee of NCFA, YES BANK continues
the Working Group, which comprised global banks, reduction targets.
17 Customer focus to oversee NCFA’s strategy and provide direction and
oversight for the Working Groups and the Secretariat. investors and management consulting firms.
25 Retail Partnership with United Nations Climate Resilience Risks and Opportunities
Environment Programme Finance Coalition (Climate-RROC)
29 Value creation model Initiative (UNEP FI) With the support of UNEP FI and Global Center
31 Our strategy YES BANK, as the first Indian signatory to the UNEP FI, on Adaptation, Climate-RROC was conceptualised
36 Risk management continues to play a leadership role at the platform. to build finance sector resilience by promoting
financial institutions to measure and disclose risks
Our ESG focus The Bank has actively collaborated with UNEP FI and and opportunities linked to physical impacts of
43 Environment 29 other global banks in formulating the ‘Principles of climate change.
54 Social Responsible Banking’, to align their business practices
69 People with the objectives of the SDGs and the Paris Climate YES BANK, Standard Chartered Bank, Rabobank,
80 Governance Agreement. The Principles were officially launched at European Bank of Reconstruction and Development
the UN General Assembly, ahead of the UN Climate and Rockefeller Asset Management became the core
Statutory Reports
Action Summit in New York in September 2019. A total members of Climate-RROC and committed to disclosing
106 Directors’ report of 130 global banks became the ‘Founding Signatories’, physical risks arising out of climate change. This
146 Report on corporate governance leadership group is working towards mobilising support YES BANK became the only Indian Bank to
187 Annual business responsibility report for public policies to encourage climate-related physical participate in the official road-testing of
130 risk disclosure across the financial sector, as well as
engaging with other financial firms to ensure that a
methodologies that could help global financial
institutions to set science-based emission
198 Standalone Financials Global banks became the ‘Founding
critical mass of institutions commits to disclosure. reduction targets.
267 Consolidated Financials Signatories’, with YES BANK being one of them
52
Environment
Contents Co-creating an Ecosystem to Mobilise Given the relevance of the topic for the Indian Mr Lalit Bhandari (Senior Environmental and Social
Corporate Overview Sustainable Finance in India financial sector, YES BANK organised a high-level Development Specialist, IFC) and Mr Bhuvan Srinivasan
convening ‘Scaling ESG Investments in India’, which (Principal, Private Equity, KKR). The convening also
A redefined YES YES BANK believes that a focus on incorporating
brought together a targeted group of leading witnessed launch of the YES BANK knowledge
02 Key highlights FY 2019-20 Environmental, Social and Governance (ESG)
03 YES BANK at a glance financial institutions, investment community, report ‘ESG Investing Scenario in India’. The report
parameters in investment-decision making is important
05 Products and services policy makers and ESG leaders, for a focused presents a situational analysis of the emerging India
from a risk-return perspective. While globally a growing
06 Geographical presence discussion on ESG integration. The convening saw landscape by identifying the barriers, highlighting the
number of investors are decarbonising their portfolios
07 Message from the Chairman participation of Mr Sudarshan Sen (Former Executive opportunities and benefits of aligning investments with
and divesting from carbon-intensive sectors, the
10 Message from the Managing Director Director, Reserve Bank of India); Ms Franciska ESG. The report suggests a set of recommendations
Indian landscape too is evolving rapidly, with about
and CEO Decuypere (Head of Territory – India, BNP Paribas); to institutionalise an ESG-aligned approach at an
$240 billion of ESG aligned investments expected in the
12 Key performance indicators Mr Abhay Laijawala (MD, Avendus); Mr Chandresh organisational level.
next 10 years.
Nigam (MD & CEO, Axis Mutual Fund); Mr Amit Tandon
17 Customer focus (Founder & MD, Institutional Investor Advisory
21 Technology and digital innovation Services); Mr Ajit Dayal (Founder, Quantum Advisors);
25 Retail

31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
The convening also
Statutory Reports witnessed launch of the
84 Management discussion and analysis YES BANK knowledge
106 Directors’ report report ‘ESG Investing
146 Report on corporate governance Scenario in India’.
53
Social
Building lasting relationships and

empowered societies
Contents
Corporate Overview
A redefined YES
05 Products and services Since inception, YES BANK has recognised its responsibility towards the
06 Geographical presence society and has remained committed to its role as a good corporate
citizen. Over the years, the Bank has developed and implemented various
and CEO programmes to create and enhance shared value through unique, scalable,
and sustainable models to achieve this objective.
17 Customer focus
21 Technology and digital innovation YES BANK’s Corporate Social yy Engaging with stakeholders to further
25 Retail Responsibility (CSR) policy guides the the sustainability agenda of the Bank
Bank to deliver internal and external and empower them with knowledge Key Highlights
Our approach to value creation positive socio-environmental impact
29 Value creation model yy Collaborating with like-minded
90,149
by following a unique approach, which
31 Our strategy institutions and forging partnerships
focuses on:
36 Risk management towards addressing the needs of
yy Promoting principles of social stakeholders
Our ESG focus Individuals covered
responsibility and inclusive growth
43 Environment yy Monitoring the environmental and under Livelihood & Water
through awareness and support
54 Social social investments of YES BANK Security Programme
69 People yy Investing in socially and through structured governance and
80 Governance
Statutory Reports
environmentally responsible activities
to create positive impact
transparent performance indicators
54,500
84 Management discussion and analysis Lives touched through
106 Directors’ report YES COMMUNITY
5,000
267 Consolidated Financials MSMEs covered under ‘Say YES
Social and relationship capital to Sustainable MSMEs in India ‘
54
Social
Contents This unique, multi-pronged approach has enabled With the view of actualising and concentrating its
Corporate Overview the Bank to forge meaningful associations with its efforts towards Sustainable Development Goals (SDGs),
01 Commitment. Promise. Transparency. stakeholders, including community groups, non-profit the Bank undertook various programme and initiatives
A redefined YES organisations, governments, corporate peers, and civil during FY 2019-20 in line with its CSR focus areas:
society and deliver exponential impact.
and CEO
17 Customer focus Livelihood and Water Security Social Transformation
25 Retail
70,000 3.1 lakh
Villagers benefitted through Customers given financial
Our approach to value creation the membrane-based water literacy training
29 Value creation model purification systems installed in 48
31 Our strategy
villages of Maharashtra
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Employability and Environmental
Statutory Reports Entrepreneurship Sustainability
106 Directors’ report 721 29,000
Youth trained for employability Students experientially
in Karnataka and Telangana in trained on climate action
Financial Statements partnership with Deshpande and UN SDGs
198 Standalone Financials Foundation
55
Social
Contents providing and increasing capacity for water availability

Corporate Overview by construction, restoration and rejuvenation of
01 Commitment. Promise. Transparency. water bodies. In FY 2019-20, conservation structures,
A redefined YES including 17 Pagaras (an overflow structure) and 1
Pokhar (community farm pond) were constructed in
03 YES BANK at a glance Livelihood and Water Security
Karauli district of Rajasthan, with an aim to reduce
05 Products and services ‘SDG 6 – Clean Water and Sanitation’ sets out to the vulnerability of farmers. These measures facilitate
06 Geographical presence ‘ensure availability and sustainable management of water availability for irrigation purpose. To ensure the
07 Message from the Chairman water and sanitation for all’. Water, being at the core of sustainability of the programme, the Bank continues
and CEO
sustainable development, has strong linkages with other
developmental parameters such as education, health,
1,025 to engage with stakeholders and impart training to
12 Key performance indicators Water filtration community members on maintenance of the built
food security and livelihoods. In the Indian context, access structures.
systems, installed by
17 Customer focus to safe and clean drinking water is extremely critical to
the Bank between During the year, the Bank launched an initiative to
21 Technology and digital innovation ensure survival and progress of rural, underprivileged
2015 and 2019. develop a robust drinking water distribution network
25 Retail and marginalised sections of the society. In concurrence
with SDG 6, YES BANK launched its Livelihood and for rural households in Maharashtra by developing and
Our approach to value creation Water Security initiative in 2014, with the aim to provide retrofitting water sources in villages.
29 Value creation model access to safe, clean and affordable drinking water to In FY 2019-20, YES BANK undertook installation of
31 Our strategy membrane-based water purification systems to provide
urban, rural and semi-rural communities. The plethora
36 Risk management safe and clean drinking water to locations where there
of initiatives undertaken by the Bank over the years
Our ESG focus has positively impacted the community members and is an assured water source and a delivery mechanism
43 Environment improved their health and welfare. that includes an overhead tank and pipe network for
54 Social distribution. The innovative membrane-based water
Providing access to safe and clean drinking water purification technology requires zero electricity and no
69 People
80 Governance The Bank is addressing the issue of water security in chemical dosing for the purification process, resulting
the states of Maharashtra, Madhya Pradesh, Rajasthan, in zero water wastage. Further, these innovative filters
Statutory Reports Gujarat, Karnataka and Goa. In FY 2015-16, YES BANK have the capability to purify water from any freshwater
joined hands with the Indian Railways to provide safe and source and can be easily installed at community
clean drinking water at 1,000 ‘D’ and ‘E’ category railway centres such as schools and public buildings, requiring
stations across India. In line with this commitment, the minimum maintenance. Such purification systems were
Bank continues to provide safe and clean drinking water installed in 48 villages of Maharashtra, benefitting over
Financial Statements across 1,005 ‘D’ and ‘E’ category railway stations through 70,000 villagers.
198 Standalone Financials 1,025 water filtration systems, which were installed by
The Bank has also taken conscious efforts in providing
267 Consolidated Financials the Bank between 2015 and 2019.
water for livelihood through its interventions focusing on
Social
Contents With this initiative, 1,390 individuals from During the year, over 9,000 farmers from Gujarat,
Corporate Overview 278 households will get up to 200 litres of potable Madhya Pradesh, and Rajasthan were engaged through
01 Commitment. Promise. Transparency. water supply on a daily basis through improved training and capacity building sessions, market linkage
A redefined YES supply and distribution infrastructure, switching from modules and productivity enhancement initiatives for
electric pumps to solar pumps and construction of crops like maize, gram and wheat. Additionally, 2,000
rainwater harvesting structures. The sustainability farmers from Madhya Pradesh and Maharashtra were
of water infrastructure will be ensured by the provided training to form farmer development groups
formation of Water Management Committees (WMC), and were facilitated in securing access to agriculture
which are mainly established to manage local water credit and financial management services.
3,800
and CEO infrastructure, supply water to entitled water users,
Menstrual Hygiene Management Programme
12 Key performance indicators and to implement management decisions agreed
In India, young girls often miss their schools during Adolescent girls were reached
15 COVID-19 response between the members on maintenance and usage of
their menstrual cycle, owing to lack of access to out to through various school
17 Customer focus infrastructure. The participatory approach adopted
hygienic infrastructure, lack of sanitary products and orientation sessions
21 Technology and digital innovation in this initiative has led to community involvement
25 Retail and ownership, making it a self-sufficient project little or no awareness about menstruation, before
and resulting in water security throughout the year, reaching adolescence. Given the lack of sanitary
Our approach to value creation products, women use home-grown alternatives such as
including dry summers. degradable menstrual hygiene products amongst
29 Value creation model rags, old fabric, dried leaves and even old newspapers
31 Our strategy Enhancing Rural Livelihoods last mile users. The programme is driven by 40 rural
as absorbents. As a result of such unhygienic practices,
36 Risk management women entrepreneurs, who are trained to create
To support rural and tribal farmers below the poverty women are highly susceptible to major health risks,
awareness amongst adolescent school girls and women
Our ESG focus line through agriculture based interventions, the Bank which also affect their productivity at school or
of reproductive age. The programme has provided
43 Environment took up a new initiative in FY 2019-20 to promote workplace. Safe and effective menstrual hygiene
these entrepreneurs with an opportunity to earn their
54 Social sustainable livelihoods. These interventions focused management, or ‘MHM’ plays an instrumental role
livelihood by promoting adoption and usage of reusable
69 People on building strong community institutions, agri-market in ensuring holistic development for adolescent girls
and biodegradable sanitary napkins.
80 Governance linkages and value chain for better price realisation, and women. To support ‘SDG 3 - Good Health and Well
improving access to finance and developing inclusive Being’, and promote women empowerment, YES BANK These women entrepreneurs have reached out to 2,222
Statutory Reports
supply chain solutions. The initiative aims to improve launched menstrual hygiene management programme community women by conducting awareness activities
106 Directors’ report farm productivity, leading to increased household in 40 villages of Jaipur and Tonk districts of Rajasthan, in rural localities and 3,800 adolescent girls through
146 Report on corporate governance income and enhanced quality of life. with a focus on creating awareness, addressing various school orientation sessions. The programme
187 Annual business responsibility report stereotypes and breaking taboos on various aspects of aims to effectively engage rural women and school girls
2,000 female menstrual hygiene. through snake and ladder placards, flipbooks, leaflets
Financial Statements and videos to enhance understanding of the cause of
Farmers from Madhya Pradesh and Through this programme, the Bank also strives to
198 Standalone Financials monthly cycles, physiological and biological changes in
Maharashtra were provided training to create awareness on safe disposal of sanitary napkins
form farmer development groups a female’s body and the ways to manage menstruation
and encourage the use of environment friendly bio-
in a safe and hygienic manner.
57
Social
Contents 54,000 MSMEs Workshops on promoting energy efficiency,

Corporate Overview Supported through the ‘Say YES to renewable energy (RE), and clean technology
01 Commitment. Promise. Transparency. Sustainable MSMEs in India’ initiative
A redefined YES Empowering SMEs through financial literacy
02 Key highlights FY 2019-20 camps, including GST transition support
YES BANK’s CSR initiative ‘Say YES to Sustainable
03 YES BANK at a glance Employability & Entrepreneurship MSMEs in India’, was conceptualised to support MSMEs
Employability Skill Training for Youth and Women in adopting best practices in Energy Efficiency (EE) and
06 Geographical presence Energy audits of MSMEs
YES BANK partnered with Deshpande Foundation Occupational Health & Safety (OHS). The initiative has
to provide employability training to 721 youths in helped SMEs integrate sustainability into operations,
and CEO Karnataka and Telangana under various focus sectors reduce overall carbon footprint, enhance global
competitiveness in terms of output and efficiency, and Structured Occupational Health and Safety (OHS)
12 Key performance indicators such as agriculture, accountancy, electrical works, interventions, including health camps, first-aid
15 COVID-19 response BPO, soft skills and primary teachers’ training. The contribute to India’s ‘Zero Defect, Zero Effect’ vision.
trainings and safety trainings
17 Customer focus programme had a significant impact on the lives of The intervention was launched as a pilot project in
21 Technology and digital innovation these youth, thereby enabling them to earn a living or FY 2014-15 as part of the European Union’s ‘Scaling Up Skills Training of Homestay Owners
25 Retail start an independent business. A substantial number of Sustainable Development of MSME Clusters in India’
beneficiaries also opted for higher education. Over the past few years, tourism has grown from
Our approach to value creation initiative. Other partners to the initiative included the
conventional geographies to areas offering pristine
29 Value creation model The Bank also partnered with Trust for Retailers & United Nations Industrial Development Organization
natural and cultural environments, creating
31 Our strategy (UNIDO), Deutsche Gesellschaft für Internationale
Retail Associates of India (TRRAIN) to impart training opportunities in associated hospitality services. In
36 Risk management Zusammenarbeit (GIZ), Global Reporting Initiative (GRI),
to 410 underprivileged women (including women with coastal destinations such as Sindhudurg district in
Our ESG focus disabilities) and enable them to pursue a career in the Indian Institute of Corporate Affairs (IICA) and Small
Maharashtra, the concept of homestays has gained
43 Environment retail sector. The comprehensive industry training and Industries Development Bank of India (SIDBI) in Punjab.
popularity as a means of accommodation over the
54 Social mentorship programme addresses the recruitment In partnership with the Foundation for MSME Clusters years. Unfortunately, not all homestays are listed on
69 People challenges of corporate retailers in India. (FMC), Entrepreneurship Development Institute of India travel websites which results in skewed customer
80 Governance (EDII) and Society for Energy Engineers and Managers booking at such beautiful accommodations. YES BANK
Say YES to Sustainable MSMEs in India
Statutory Reports (SEEM), the project has grown its focus from foundry trained around 118 homestay owners in hospitality
The micro, small and medium-sized enterprises
84 Management discussion and analysis sector to cover 17 MSME sectors. standards and on-boarding process to an online
(MSME) segment is the largest contributor to Indian
106 Directors’ report platform. As many as 61 homestay owners were
manufacturing sector and one of the biggest employers Since inception, the initiative has supported over
146 Report on corporate governance successfully on-boarded and listed on online platforms.
in the country. MSMEs play a critical role in India’s 54,000 MSMEs and benefitted more than 1,00,000
187 Annual business responsibility report Due to YES BANK’s initiative, homestay owners of
economic growth by realising the ‘Make in India’ workers across 57 cluster locations. The initiative
Malvan, Tarkali, Vengurla and Devgarh in Sindhudurg
Financial Statements mission. However, the sector also accounts for a has also helped MSMEs reduce carbon emissions
have been introduced to new ways of marketing
198 Standalone Financials significant portion of India’s total industrial pollution, and improve occupational health and safety systems
through online platforms, which have a better guest list
267 Consolidated Financials largely due to the use of obsolete technologies and through multifaceted interventions including:
and lower commission rate.
poor management practices.
58
Social
Contents
Corporate Overview
A redefined YES
SDG Champions - Training students on Waste-No-Waste: Training Housing Societies on
03 YES BANK at a glance Creating positive impact through
05 Products and services SDG Literacy Waste Management
06 Geographical presence Building a sustainable future requires the youth to be To address the enormous challenge of waste in urban
07 Message from the Chairman educated, aware and in tune with the environmental areas, and reduce the quantum of reject waste sent to
10 Message from the Managing Director and developmental challenges of our times. Keeping landfills, YES BANK reached out to 500 housing societies
YES COMMUNITY is the Bank’s unique branch-led
and CEO this in mind, in 2018, YES BANK began an SDG Literacy around its branches in Mumbai, to understand their
community engagement platform through which the
Bank undertakes social and environmental initiatives programme, wherein students from schools around waste management needs and train them on waste
in the neighbourhoods and communities around YES BANK branches in Delhi were imparted experiential segregation and onsite-composting.
17 Customer focus
its branches. YES BANK branches work closely with training on climate action and SDGs. This year, the
21 Technology and digital innovation Training to Farmers on Financial Literacy and
not-for-profit organisations, government bodies and programme reached out to 292 schools in Mumbai,
25 Retail Climate- smart Technologies
citizen groups to address key day-to-day challenges Delhi and Bengaluru, covering over 29,000 students
Our approach to value creation from Grades 4-8 who were trained on four critical YES BANK designed a unique financial literacy training
in the locality, enabling the Bank to play a more active
29 Value creation model SDGs (SDG 3 – Good Health and Well-Being; SDG 4 programme to educate farmers on the costs and
community role and advance its relationships beyond
31 Our strategy – Quality Education; SDG 5 – Gender Equality; and benefits of investing in and adopting eight climate-smart
the transactional.
36 Risk management SDG 13 – Climate Action). Schools and students were technologies such as mulching, drip irrigation and paddy
encouraged to take action through SDG projects and thresher, amongst others. The programme will help train
Our ESG focus
competitions with winners being awarded the title of 3,000 farmers in neighbourhoods around the Bank’s
43 Environment
SDG Champions. rural branches in Haryana and Rajasthan by FY 2020-21.
54 Social
69 People Cyclone Fani Relief
80 Governance In May 2019, Odisha was ravaged by Cyclone Fani
Statutory Reports which caused extensive damage to life and property
84 Management discussion and analysis in the state. YES BANK joined hands with two of its
106 Directors’ report local BC partners, Mahashakti and Adhikar to support
146 Report on corporate governance the rehabilitation effort and provide relief kits to
187 Annual business responsibility report 25,000 families in the worst-affected areas. The Bank
In FY 2019-20, the Bank touched also organised a material collection drive in its offices
Financial Statements over 54,500 lives through unique in partnership with Goonj to collect food and other
198 Standalone Financials initiatives under YES COMMUNITY essential items. Employees contributed over 5,000 kgs of
dry ration towards the relief effort.
59
Social
Contents Performance and Risk Management. A multidisciplinary and was delivered virtually, primarily through phone/
Corporate Overview mentoring was organised to provide handholding video calls.
01 Commitment. Promise. Transparency. support to the grantee partners to address their
A redefined YES Employee Payroll Giving
organisation-specific challenges. The outlined
02 Key highlights FY 2019-20 YES BANK continues a payroll giving initiative for
objectives from the mentorship phase were to provide
03 YES BANK at a glance Social Transformation its employees. Employees registered under the
functional and sector mentorship, advisory support,
05 Products and services The developmental challenges faced by India require programme contribute a stipulated amount from their
and relevant industry connections to the grantee
06 Geographical presence innovative and inclusive solutions with a potential salary every month, toward a cause of their choice from
organisations.
07 Message from the Chairman to create a multiplier effect, addressing both scale options shared by the partner who, in turn, shares a
10 Message from the Managing Director To strengthen and promote best practices in financial
and impact. Towards this, YES BANK through its progress report with the employee along with details of
and CEO management, each grantee organisation was assigned
social development arm, YES FOUNDATION, adopted impact created through the funds. During the reporting
12 Key performance indicators an individual functional/sector mentor on the basis of
a differentiated approach focusing on stimulating period, an amount of `11,36,978 was received as
entrepreneurship and building responsible youth the challenges expressed. The mentorship spun over donations from employees.
17 Customer focus
citizenship. The initiatives undertaken by the 3 months - from December 2019 to February 2020
25 Retail Foundation aim to address the gaps in the development
sector by strengthening Design and Innovation-led
Our approach to value creation Creative Entrepreneurship (DICE) solutions, thereby
29 Value creation model contributing towards building of an empowered and
31 Our strategy
equitable India.
36 Risk management
Grant & Accelerator Programme
Our ESG focus
43 Environment The YES FOUNDATION (YF) Grant & Accelerator
54 Social programme aims to help existing social impact
69 People organisations improve quality of operations, adapt
80 Governance to management best practices, scale up impact and
emerge as benchmark organisations in the sector.
Statutory Reports
84 Management discussion and analysis As many as NGOs and social enterprises were selected
106 Directors’ report as part of the first cohort of the programme in 2018
146 Report on corporate governance through a competitive application process. YES
187 Annual business responsibility report FOUNDATION is focusing on capacity building of the
grantee organisations via activities such as workshops
and mentorship sessions.
267 Consolidated Financials The primary areas of intervention under the
programme include Governance, Compliance, Controls,
60
Social
Contents YES BANK’s Supply Chain Supplier Base: The Bank has a diverse supplier review. YES BANK has put in place processes to ensure
Corporate Overview The Bank’s procurement practices continue to be base, comprising 11,500+ large, medium and small vendor redundancy/ Business Continuity Planning (BCP)
01 Commitment. Promise. Transparency. suppliers who also include providers of key platforms for critical spends.
driven by Centre-led operating model through Strategic
A redefined YES and services on which the Bank operates. The Bank
Procurement Unit (SPU). The Bank’s procurement YES BANK has well-established vendor guidelines,
model is to ensure the right level of centralisation to has transacted with 7,200+ suppliers in FY 2019-20
03 YES BANK at a glance outlining its vendor selection criteria in compliance with
ensure adequate cost and governance controls during for provision of goods and services. The Bank has
05 Products and services the law, in addition to assessing vendors’ credibility,
the procurement activities. The Bank is focused on its formed strategic relationships with eminent Indian
06 Geographical presence capability and cost to deliver. This has been further
roadmap to further its procurement process maturity and global companies, which not only widen business
07 Message from the Chairman enhanced with the introduction of SAP Ariba e-Sourcing
and vendor management framework in line with the platforms but also lay the foundation for a sustainable
10 Message from the Managing Director Platform. The e-sourcing platform is helping the Bank
and CEO best practices. Accordingly, the sourcing activity and future. As the Bank is spread across the country, it also
bring in fair and transparent sourcing processes.
12 Key performance indicators procurement operations are respectively managed procures from local vendors for localised consumption
While this has already become an integral part of
15 COVID-19 response by experts who have higher order skills in sourcing, of products and services. Being in the services sector
the sourcing process, the Bank intends to increase
17 Customer focus negotiations and operations respectively. The focus on with significant focus on technology, a large set of
institutionalisation of the implemented processes.
21 Technology and digital innovation ensuring proactive management of strategic supplier vendors are providing services required to create and
One of the key focus areas this year has been skill
25 Retail partners and adequate risk management continues. maintain technology and physical infrastructure while
development within the procurement team wherein the
The Bank continues to strengthen its supply chain others are required to provide goods and materials to
Our approach to value creation team has collectively clocked more than 125 man-days
based on the following principles: create the infrastructure.
29 Value creation model of learning and development engagements. This also
31 Our strategy Ensuring Transparency and Greater Accountability: includes participation in conferences and seminars for
36 Risk management In order to strengthen governance and facilitate knowledge enhancement.
Our ESG focus communication, information is publicly provided on
Value for money
43 Environment YES BANK website for suppliers and partners.
54 Social (https://www.yesbank.in/strategic-procurement-unit)
69 People Transparency The Bank has clearly defined the risk management
80 Governance framework for its suppliers, based on the risk profile
Statutory Reports of the service. In order to mitigate the risks for the
YES BANK’s
84 Management discussion and analysis Fitness for Purpose Bank, control and governance parameters have been
Supply Chain
106 Directors’ report constructed, implemented and reviewed on a periodic
146 Report on corporate governance basis. Additionally, a robust Vendor Performance
187 Annual business responsibility report Efficiency Management Framework has been implemented
wherein the Bank has implemented a mechanism for
segregating its vendors into four categories: Strategic,
Fairness Critical, Core and Tactical. Based on this categorisation,
the Bank implements its periodic vendor performance
61
Social
Contents As part of the Bank’s stated objective and commitment Supply Chain Sustainability
Corporate Overview to implement best practices in Corporate Governance, As India’s first banking signatory to the UN Global
01 Commitment. Promise. Transparency. the Bank has a Whistle-blower Portal viz. ‘Corporate Compact, YES BANK continues to abide by the
A redefined YES Whistle-blower Initiative’ (CWI) which is an independent
10 principles of the compact comprising human rights,
online reporting service aimed at facilitating secure labour, environment, and anti-corruption. The Bank
and confidential communication of any concerns faced uses these principles as a foundation for building its
by its vendors to the designated and independent sustainable supply chain practices.
Whistle‑blower Committee constituted by the Bank.
07 Message from the Chairman The Bank believes that its suppliers are integral to
10 Message from the Managing Director During FY 2019-20, the Bank continued with its efforts its ecosystem and optimises its strengths with the
and CEO of increasing its Spend Penetration (Spends Influenced/ competencies of its supply chain partners.
Addressable Spends) and several cost management
15 COVID-19 response In FY 2017-18, YES BANK adopted a Supplier Code
initiatives were identified based on spend analytics
17 Customer focus of Conduct, based on Environmental, Social and
to optimise cost structures. To meet the goal, the
21 Technology and digital innovation Governance (ESG) parameters, defining the Bank’s
procurement team, in collaboration with various
25 Retail commitment to human rights, fair labour practices,
operations/ functional units, looks for opportunities for
Our approach to value creation value engineering and innovative solutions. To maximise environmental progress, and anti-corruption policies.
29 Value creation model sustainable sourcing practices, various initiatives have Through this initiative, the Bank continues to encourage
31 Our strategy been identified to reduce power consumption and use its suppliers to support its sustainability agenda; and
36 Risk management paper products. expects its supply chain partners to comply with the
Our ESG focus In line with YES BANK’s vision of digitisation of land’s applicable laws and adhere to globally recognised
43 Environment processes and further strengthening sourcing, the Bank ESG standards. The Bank has also promoted the use of
54 Social is now in the process of implementing Procure to Pay an ESG self-assessment tool among its suppliers to help
69 People solution, which will digitise its entire Sourcing to Procure them understand their current practices and identify
80 Governance to Payment process. The Bank has initiated steps to improvement areas.
Statutory Reports encourage e-Invoice with key suppliers to enhance its
84 Management discussion and analysis digital procurement journey. Inclusive and Social Banking
106 Directors’ report Read more PG NO 87
D983 crore
Financial Statements Microfinance Banking portfolio through
198 Standalone Financials 39 major MFIs
62
Social
Contents
Corporate Overview
Customers yy Aadhaar Enabled Payment Scheme (AEPS) has
enabled ~3.5 lakh active BC agents to fulfil financial
4.5 billion
Agribusiness Product Management Transactions with a value of
requirements of urban and rural customers. It has
A redefined YES The Bank’s Agribusiness Product Management (APM) successfully processed transactions worth `43,378 C749,767 crore, capturing 35.7% market
02 Key highlights FY 2019-20 unit comprises experienced banking and industry share in the ecosystem for FY 2019-20
crore in FY 2019-20 and achieved 134% growth y-o-y
03 YES BANK at a glance professionals with an in-depth knowledge of the in terms of transaction value. The Bank has also
05 Products and services priority sector and delivers efficient and customised captured 36.5% market share in terms of transaction
banking solutions for the agri-value chains. For a
detailed overview of the activities of APM unit.
value in the ecosystem for FY 2019‑20 24 crore
10 Message from the Managing Director yy The registered user base for Retail Net Banking Transactions with a value of
Read more PG NO 90
and CEO increased to 66.02% (of the eligible base), compared C1,65,991 crore processed in FY 2019-20
Digital Banking to 54.74% in FY 2018-19 and reached 16 lakh users (as
of March 31, 2020). About 2.136 crore transactions
36.5%
17 Customer focus YES BANK continues to maintain a laser-sharp focus
on fostering innovation and leveraging technological worth `381,302 crore were done through Retail Net
developments to enhance the banking experience Banking in FY 2019-20; NEFT transactions increased Market share captured by the Bank
25 Retail
for its customers. It has adopted a holistic approach by 34.15% in volume and 46.34% in value vis-à-vis in terms of transaction value in the
Our approach to value creation towards going digital and has integrated this strategy FY 2018-19. A total of 71.7 lakh bill payment and ecosystem for FY 2019-20
29 Value creation model across its banking ecosystem. e-commerce transactions worth `10,424 crore were
31 Our strategy processed through Retail Net Banking in FY 2019-20
36 Risk management The size and volume of digital banking transactions
done through YES BANK’s products and services yy The registered user base of YES Mobile (mobile
Our ESG focus banking application) witnessed 46% y-o-y growth
continued to scale up rapidly in FY 2019-20.
43 Environment and reached 15.2 lakh (as of March 31, 2020).
54 Social yy Unified Interface Payment (UPI) transactions YES Mobile is the second highest rated mobile
69 People witnessed y-o-y growth of around 212% in terms banking application on Google Play Store (as of
80 Governance of volume and 218% in terms of value. The Bank March 31, 2020). A total of 14.35 crore financial
processed overall 4.5 billion transactions with value
46% y-o-y
Statutory Reports transactions worth `78,841.17 crore were conducted
of `749,768 crore, capturing 35.7% market share in through YES Mobile in FY 2019-20, an increase of
106 Directors’ report the ecosystem for the FY 2019-20 288% in volume and 78% in value vis-à-vis FY 2018-19 Growth and reached
146 Report on corporate governance yy Immediate Payment Service (IMPS) witnessed 15.2 lakh (as of
yy YES ROBOT (a comprehensive, secure, AI-enabled
187 Annual business responsibility report y-o-y growth of 71% in terms of transaction volumes March 31, 2020)
24*7 Personal Banking Assistant for customers)
Financial Statements and 102% in terms of transaction value. The Bank witnessed 1.12 crore interactions in FY 2019-20,
198 Standalone Financials processed overall 24 crore transactions with value of a growth of 129% as compared to FY 2018-19.
267 Consolidated Financials `1,65,991 crore in FY 2019-20 In total, the bot platform has received 1.75 crore
interactions since inception. About 1.7 lakh deposits
63
Social
Contents worth `2,861 crore were booked via YES ROBOT in waste management, property tax and other
Corporate Overview FY 2019-20 and the BOT became the preferred digital government receivables
01 Commitment. Promise. Transparency. channel for booking deposits in the latter half of
A redefined YES yy Partnering with ‘Slicepay’ to provide card based
FY 2019-20, contributing ~40% of deposits booked
02 Key highlights FY 2019-20 credit limits and lending to their customers. Till
every month through digital channels. YES ROBOT
03 YES BANK at a glance March 31, 2020, over 40,000 Cards had been issued
responded to over 43 lakh customer queries raised
05 Products and services and it continues to grow. UPI based collection has
on Facebook messenger and website in FY 2019-20.
06 Geographical presence also been enabled for EMI collections
Several industry first functionalities were introduced
in FY 2019-20, such as email and PAN update, yy Partnering with ‘UDMA Technologies’ for Yuvapay
and CEO add/view/modify/delete nominees in CASA and solution - a digital offline payment solution
12 Key performance indicators deposits account, FD for joint account holders and aimed at the Gram Panchayats across Karnataka
15 COVID-19 response non-resident customers, generate TDS certificate, for all government payments. Over 6,300 Gram
17 Customer focus manage MMID for retail customers and managing panchayat shall be enabled with digital wallet that
21 Technology and digital innovation dealer accounts for corporates FASTAG solution for a potential of has the capability to work offline (a patent pending
25 Retail 20 lakh fleet operators technology of UDMA)
yy Internet Payment Gateway registered a y-o-y
Our approach to value creation growth of 122.24% by contributing total volume of yy Partnering with ‘Finly’ for enabling corporates to
29 Value creation model `10,641.32 crore. MasterCard Send and Visa Direct make bill payments of all their multiple offices and
31 Our strategy were launched in June 2019, and in 10 months outlets on one platform with once click of a button.
36 Risk management the transaction volume reached `2,463.33 crore. Other digital banking initiatives spearheaded by the Swiggy is one of the first corporates to be made live
Within few months of the launch, YES BANK was the Bank include: on this platform
Our ESG focus
43 Environment top volume contributing and acquiring together bank yy Launching FASTAG in partnership with programme
Digital Banking Centre of Excellence
54 Social for MasterCard Send for two months and 2nd highest partners to offer FASTAG solution for a potential of
volume contributor for Visa Direct 20 lakh fleet operators yy The Digital Banking Centre of Excellence (DB COE)
69 People
was formed in November 2018 to harmonise the
80 Governance yy YES BANK launched Co-branded Multi Currency yy Launching digital payment collections under the retail Bank’s digital initiatives with a view to create
Statutory Reports Travel Card (MCTC)/Forex Card with three partners ‘Cashless Campus’ initiative with educational formidable levers that will be difficult for competition
84 Management discussion and analysis on sponsorship model. The Bank has already issued institutions such as IIT Jammu, Karnavati University, to replicate in the short term. Creation of the DB COE
106 Directors’ report over 19,000 MCTCs with over $62 million uploads, Tamil Nadu Open University and Karnataka was aimed at building a central digital think tank, with
146 Report on corporate governance thereby acquiring over 2% market share (in terms of Examination Authority the vision and intent of synergising innovations and
187 Annual business responsibility report load value) in just five months of the launch initiatives that would cut horizontally across myriad
yy Launching the Smart City mobile application for
Financial Statements Coimbatore City Municipal Corporation, a part of business functions. The DB COE is instrumental in
19,000 mctcs Coimbatore Smart City initiative. The application
is one stop shop for citizens to register and track
paving the way for drawing up a holistic digital blue
print that would strive to create an unparalled and
Issued acquiring over 2% market share in five months enhanced experience for YES BANK customers.
complaints as well as digital payments for water tax,
64
Social
Contents Some of the initiatives undertaken include: Thought leadership

Corporate Overview yy Laurel & Hardy: This project was undertaken to Food and Agribusiness Strategic Advisory and
completely re-build short data entry (Laurel) and detailed Research (FASAR)
A redefined YES
data entry (Hardy) modules in the core processing system YES BANK’s specialised Food and Agribusiness
03 YES BANK at a glance for retail loans to facilitate efficient data entry, customer Strategic Advisory and Research (FASAR) unit houses
05 Products and services on-boarding and seamless image based loan application industry specialists with sectoral knowledge and
06 Geographical presence processing for EMI backed Retail Assets experience. FASAR generates banking opportunities
07 Message from the Chairman yy COLORS (Corporate Loan Origination System): on the back of knowledge services, with a focus on
10 Message from the Managing Director acquiring New To Bank clients.
An application processing system created by
and CEO
YES BANK for the Micro Enterprise Banking for The unit works closely with the corporate sector,
onboarding of a customer, risk assessment including MSMEs, multinationals, Central Government, state
17 Customer focus automated calculation of various financial ratios, Risk governments and multilateral agencies and has
21 Technology and digital innovation Management Unit, legal and valuation checks with executed multiple project finance advisory, strategic
25 Retail numerous child/approval/deviation workflows. The advisory and policy advisory projects across diverse
application is also integrated with credit bureau and sub sectoral and thematic areas, including agri
Our approach to value creation National Securities Depository Limited exports, agri inputs, agricultural marketing, agri
yy YES Samadhan: Core processing workflow for policy, agri value chain, dairy, food processing,
31 Our strategy
Micro Enterprise Finance, Kisaan Credit Card and Dairy food services, food safety, farm mechanisation,
36 Risk management
equipment horticulture, marine, organic food, poultry,
Our ESG focus plantations, start-ups, warehousing and cold chain,
43 Environment yy Auto-BOT: Facility and loan account status queries for amongst others.
54 Social inventory funding dealers on YES BANK ROBOT
69 People FASAR also regularly publishes knowledge reports and
yy YES PRIME Suite: research papers on key trends and developments in
80 Governance
–– m-FI: Mobility for Field Investigation (FI) agencies and the sector. On the back of the Government of India’s Agricultural
Statutory Reports agents that plugs in to FinnOne Application Processing Export Policy (2018) towards actualising the
84 Management discussion and analysis In FY 2019-20, FASAR took up 25 new advisory $60 billion agri exports target for India, YES BANK
System (APS)
106 Directors’ report mandates and executed projects on Agri partnered with Agricultural and Processed Food
146 Report on corporate governance –– m-CAPS: Mobility solution for collection agencies that Infrastructure, Export Policy, Food Processing, Products Export Development Authority, Ministry of
187 Annual business responsibility report can write call memos and receipt payments; seamlessly Sericulture, Food Safety, Fisheries, Spices and Dairy Commerce & Industry and the Federation of Indian
integrated with FinnOne APS (APS - Collections Module) amongst others. In the reporting period, FASAR also Export Organisations to organise a series of industry
released multiple publications on Frozen food, Climate workshops to engage with key industry players in
198 Standalone Financials m-Source: Mobility solution for front-end teams and channel
smart technologies, Agritech and Dairy in partnership focus sectors including seafood, animal husbandry,
267 Consolidated Financials partners to facilitate digital onboarding of loan applications
with various industry stakeholders. horticulture amongst others.
and image based processing
65
Social
Contents As part of supporting the entire food and agri value-

Corporate Overview chain, the Bank has led various sectoral knowledge
01 Commitment. Promise. Transparency. initiatives in key global and domestic industry forums.
A redefined YES
02 Key highlights FY 2019-20 yy YES BANK was a ‘knowledge partner’ to the India
03 YES BANK at a glance International Cooperative Trade Fair organised by
05 Products and services the National Cooperative Development Corporation
06 Geographical presence and contributed thematic papers on ‘Agri-Tech
07 Message from the Chairman and Climate Smart Agri’ and ‘Dairy Cooperative
10 Message from the Managing Director Opportunities for Value Addition and Trade’
and CEO The team is working on supporting the
12 Key performance indicators yy YES BANK also partnered with the apex industry accelerated adoption and deployment of EV
15 COVID-19 response body, Confederation of Indian Industry to publish a charging infrastructure
17 Customer focus knowledge paper on ‘Indian Frozen Food Industry’
21 Technology and digital innovation with a focus on promoting investments in frozen
25 Retail food industry in Maharashtra
Strategic Government Advisory (SGA) Electric Vehicles: Clean Mobility for
Our approach to value creation yy YES BANK conceptualised an Investor Booklet on Food Sustainable Future
To further YES BANK’s commitment towards a
29 Value creation model Processing Opportunities for the Vibrant Goa Summit
journey of holistic and inclusive growth, the Strategic Globally, there is a paradigm shift and growing call
31 Our strategy
To deepen its engagement with the food processing Government Advisory (SGA) group works across for transition from fossil-powered vehicles to cleaner
36 Risk management
sector, YES BANK has partnered with Council key and emerging sectors of the Indian economy and sustainable mobility alternatives. India is also
Our ESG focus of Scientific & Industrial Research to focus on by executing knowledge and advisory mandates witnessing a budding e-mobility revolution led by the
43 Environment commercialising innovative technologies in key areas of social and economic importance. The group government’s push towards increasing adoption and
54 Social such as nutrition, packaging, food safety, traceability, leverages its in-depth sectoral expertise, research creation of electric mobility infrastructure. SGA is at the
69 People logistics and digital to bring in more synergy between skills and apex-level relationship capital across the front of this revolution and is working with various state
80 Governance the research institutes and food industry. government and the industry ecosystem to assist governments and their entities to support them in their
Statutory Reports clients, including Central and state governments, sustainable mobility initiatives. The team is working
YES BANK continues to support the Government of
84 Management discussion and analysis multi-lateral bodies, industry chambers and private on the State Electric Vehicle (EV) Policy of Punjab,
India’s policies for the development of the Indian food
106 Directors’ report sector players, in their developmental and growth Rajasthan, Telangana and Goa, and also supporting few
processing sector through its valued strategic advisory
146 Report on corporate governance agenda. A focused and sector-oriented approach others in accelerating adoption and deployment of EV
services and financing offering to both domestic and
187 Annual business responsibility report across sectors such as e-mobility & logistics, smart charging infrastructure.
international players investing in India.
cities & urban infrastructure, tourism & hospitality,
healthcare & wellness, and education, among others
has led to creation of new avenues of banking
opportunities and deepening of relationship across key
customer segments.
66
Social
Contents Tourism: Engine for Socio-economic Growth mindshare, through active participation in client
Corporate Overview SGA has championed several initiatives in the tourism meetings and engagements with policymakers and
01 Commitment. Promise. Transparency. multilateral institutions.
sector and strongly believes in the sector and its
A redefined YES
multiplier impact on key socio-economic pillars. The BEB team publishes periodic reports covering HP Road Transport
03 YES BANK at a glance The sector has the potential to catalyse the holistic macroeconomic data and events along with thematic Corporation
05 Products and services development of regions and livelihood generation for reports on key economic trends. Over the years, Dehradun Uttarakhand
06 Geographical presence communities. Over the last five years, SGA has engaged research and reports published by BEB have been Transport
with nearly 15 state governments through various Corporation
07 Message from the Chairman referred to and cited by key stakeholders, including the Jorhat
10 Message from the Managing Director policy and project advisory initiatives and knowledge government, global investors, media and top clients.
and CEO partnerships such as tourism policies, homestay As a validation of its expertise, the team consistently
12 Key performance indicators policies and development projects. remains among the top five forecasters for the Indian Guwahati
On September 1, 2019, the ‘Tourism Policy for the Union economy according to Bloomberg rankings.
17 Customer focus
21 Technology and digital innovation Territory of Daman and Diu and Dadra & Nagar Haveli In FY 2019-20, BEB shared its outlook on the Indian
25 Retail 2019-2024’ prepared by SGA was released by Hon’ble economy and impact on businesses at several Navi Mumbai Raipur
Union Home Minister, Shri Amit Shah. events under the aegis of Institute of International Municipal
Our approach to value creation Transport
SGA offered strategic project advisory services to a Finance-G20 Conference, NITI Aayog, US-India Business Vijayawada
29 Value creation model Corporation Visakhapatnam
leading online player in the tourism sector to assist Council, Federation of Indian Chambers of Commerce Amaravathi
31 Our strategy
in the development of the tourism ecosystem in & Industry and Indian Chamber of Commerce and Kadamba Kakinada
36 Risk management Guntur
Sindhudurg region in Maharashtra. SGA conducted a Industry, Coimbatore, besides engaging with several Transport
Our ESG focus corporates at curated thought sessions. Corporation Tirupati
resource mapping study through screening of villages/
43 Environment
clusters based on tourism potential and accessibility
54 Social Rural Development: Rejuvenating the
parameters. SGA also engaged a training service
69 People Rural Economy
provider for capacity building and financial literacy.
80 Governance In order to harness the true economic potential of
Statutory Reports Business Economic Banking (BEB) rural India, developmental initiatives for community
84 Management discussion and analysis With a view of developing a comprehensive engagement and livelihood generation are State EV Policy
106 Directors’ report understanding of all trends and nuances of the Indian implemented on a massive scale. SGA is working with
146 Report on corporate governance economy, Business Economics Banking (BEB) acts as the West Bengal State Rural Livelihood Mission to E-Bus Procurement Advisory
187 Annual business responsibility report the research and knowledge-driven team of YES BANK. conduct a study on developing comprehensive strategy under FAME II
The team provides authoritative, cutting-edge macro/ for livelihoods and convergence in three blocks of the Charging Infrastructure Deployment
markets outlook and sector-specific research content South 24 Parganas district (Jaynagar-I, Budge Budge-I Advisory under FAME II
for both the Bank’s clients and internal business and Kultali).
verticals. The team aims to further deepen YES BANK’s
67
Social
Contents Some of the key engagements in FY 2019-20 include: –– Jorhat Municipal Board Knowledge Reports released during the FY 2019-20
Corporate Overview yy Development of State Electric Vehicle Policy: –– Kadamba Transport Corporation, yy FICCI The Great Indian Travel Bazaar 2019: YES BANK
01 Commitment. Promise. Transparency. Government of Goa - FICCI knowledge report ‘India Inbound Tourism:
A redefined YES –– Department of Transport, Government of Punjab –– Navi Mumbai Municipal Transport (NMMT)
Unlocking the Opportunity’
–– Kadamba Transport Corporation, Corporation
03 YES BANK at a glance Government of Goa –– New & Renewable Energy Development
05 Products and services –– Department of Transport, Government of Corporation of Andhra Pradesh Limited:
06 Geographical presence Rajasthan Vishakhapatnam, Vijayawada, Amravati, Guntur,
yy Review of Telangana Electric Vehicle Policy for Kakinada and Tirupati
and CEO Department of Industries, Government of Telangana yy MoU with Meghalaya State Olympic Association
12 Key performance indicators to extend superior advisory, knowledge and
yy Release of Tourism Policy for the Union Territory of
Daman & Diu and Dadra & Nagar Haveli 2019-2024 banking services to promote sports and tourism in
17 Customer focus
prepared for Department of Tourism, Union Territory Meghalaya, with focus on upcoming National Games
of Daman & Diu and Dadra & Nagar Haveli 2022, signed on November 19, 2019 in Shillong
25 Retail
yy Preparation of response to EoI by the Department yy Knowledge Partner for The Great Indian Travel
of Heavy Industry, Ministry of Heavy Industries and Bazaar 2019 organised by FICCI on April 28 – 30, 2019
Public Enterprises for deployment of Electric Buses: in Jaipur; authored knowledge report ‘India Inbound
31 Our strategy
Tourism: Unlocking the Opportunity’
36 Risk management
–– Uttarakhand Transport Corporation, Government
Our ESG focus of Uttarakhand yy Knowledge Partner for the ‘Vibrant Goa Global
yy Vibrant Goa Global Expo & Summit 2019: Flagship
43 Environment –– Raipur Smart City Limited Expo & Summit 2019’ organised by the Vibrant Goa
investor handbook ‘Invest in Goa: Land of Happiness,
54 Social –– Himachal Pradesh Road Transport Corporation Foundation and Government of Goa on October
Sea of Opportunities’
69 People –– Kadamba Transport Corporation, Government 17-19, 2019; prepared investor handbook ‘Invest
80 Governance of Goa in Goa: Land of Happiness, Sea of Opportunities’
and background papers on Tourism, Pharma &
Statutory Reports yy Preparation of response to EoI by the Department Healthcare, Startup & E-mobility, and Agro & Food
84 Management discussion and analysis of Heavy Industry, Ministry of Heavy Industries and Processing sectors in the state
106 Directors’ report Public Enterprises for deployment of Electric Vehicle
146 Report on corporate governance Charging Infrastructure: yy Session partner for ‘Towards a Carbon Neutral
187 Annual business responsibility report Transport Sector’ theme during the India Smart
–– Guwahati Smart City Limited Utility Week 2020 organised by India Smart Grid
Financial Statements –– Dehradun Smart City Limited Forum on March 3 – 7, 2020 in New Delhi
198 Standalone Financials –– Himachal Pradesh Road Transport Corporation
–– Raipur Smart City Limited
68
People
Enriching our people

Contents
Corporate Overview
A redefined YES YES BANK’s Human Capital philosophy focuses on recruiting top quality
02 Key highlights FY 2019-20 human capital and empowering them to push their boundaries beyond
their comfort zones, inculcating the right mind-set based on a deep sense
06 Geographical presence of organisational commitment and ownership. This promotes a deepening
07 Message from the Chairman of the mind share of stakeholders through superior outcomes which, in
and CEO
turn, enhances the market share and drives sustainable growth.
17 Customer focus The YES BANK Human Capital philosophy is
21 Technology and digital innovation implemented through the 5C Engagement Model
25 Retail which covers focused initiatives addressing Culture,
Communication, Connect, Career and Care Key Highlights
31
36
Our strategy
Risk management 22,973
Our ESG focus Total employees
43 Environment
54 Social
69 People
80 Governance
Statutory Reports
5,044
84 Management discussion and analysis Training programmes
146
187
Report on corporate governance
Annual business responsibility report
8,12,744
Training hours
22,751
267 Consolidated Financials Human capital
Employees trained
69
People
Contents HUMAN CAPITAL POLICIES internal committees to investigate and inquire into Total No. of Queries (Nos.)
Corporate Overview Conflict of Interest Guidelines sexual harassment complaints in line with The Sexual
01 Commitment. Promise. Transparency. Harassment of Women at Workplace (Prevention, Q1 1461
A redefined YES The Bank has introduced Conflict of Interest Guidelines,
Prohibition & Redressal) Act, 2013. Q2 1669
02 Key highlights FY 2019-20 which facilitate employees to identify plausible
03 YES BANK at a glance conflict of interest areas within the Bank. The policy LISTENING TO EMPLOYEES Q3 907
05 Products and services suggests various approaches to manage situations by The ‘HCM HelpDesk’ was set up with the Bank’s Q4 1128
06 Geographical presence providing insights on types of conflict of interest. The objective to provide a consistent and superior service
07 Message from the Chairman guidelines explicitly chart out responsibilities for senior experience to its employees. It is a simple and easy-
Count of Category Queries –
management, employees and employees in supervisory to-use platform that allows employees to raise all
and CEO Category‑Wise Distribution
capacities so that they can identify and manage conflict HCM-related (Human Capital Management) queries
12 Key performance indicators of interest situations effectively.
and concerns through email, voice call (Interactive 10 40 7
3 48 19
17 Customer focus Equal Opportunity Employer Voice Response) and a query management system. 356
21 Technology and digital innovation The platform then offers satisfactory closure to these 584
The Bank has put in place a policy to promote equal
25 Retail concerns.
employment opportunities, without any discrimination
on the grounds of age, gender, disability, marital status, A unique toll-free Interactive Voice Response (HCM Q1 807 Q2 1256
29 Value creation model nationality, race, religion, sex, sexual orientation or any IVR) facility (1800 2000 515) was launched for all YES
31 Our strategy other form of discrimination. The policy defines the BANKers, as part of the Bank’s continued efforts to
36 Risk management procedure to be followed in case of a grievance related improve human capital service delivery. It enables
to discrimination and ensures that the workplace is free employees to address all Human Capital Management
Our ESG focus 3 10 28 1 5 28 8
from any discrimination. related enquiries. An Employee Query Management
43 Environment 289 367
System (EQMS) was also launched to leverage
54 Social HUMAN CAPITAL INITIATIVES
technologies and further enhance HCM service delivery
69 People ENCOURAGING GENDER RESPECT: through structured and timely query resolution.
80 Governance SAY YES TO G.R.A.C.E Q3 576 Q4 720
HCM HelpDesk aims at providing employees a direct
Statutory Reports Through the robust ‘Say YES to G.R.A.C.E’ (Gender
access to the Bank’s HCM team. The following charts
84 Management discussion and analysis Respect And Commitment to Equality) framework,
106 Directors’ report depict the extensive use of the tool for various
the Bank creates awareness while periodically
146 Report on corporate governance categories for FY 2019-20.
disseminating and reiterating the Bank’s policy for
187 Annual business responsibility report Prevention of Sexual Harassment, which is in line Benefits Grievance
Financial Statements with The Sexual Harassment of Women at Workplace HCM Policy Others
198 Standalone Financials (Prevention, Prohibition and Redressal) Act & Rules, Salary & Reimbursements
267 Consolidated Financials 2013. G.R.A.C.E also reaffirms the Bank’s commitment Human Resource
to being an equal opportunity employer. The Bank has Management System
70
People
Contents
Corporate Overview
YES CLUB
244
YES CLUB was launched across the Bank’s hub branches
01 Commitment. Promise. Transparency. Requests were automated during the pre-screening
with the objective of encouraging an atmosphere
A redefined YES conversations between candidates and recruiters
of fun, camaraderie and providing YES BANKers a
03 YES BANK at a glance platform to showcase their talent and creativity. It
05 Products and services facilitates participation in activities around three broad YES Talent Buddy chatbot was launched to automate
06 Geographical presence themes: social, cultural and sports. the interaction with prospective recruits and to assist
07 Message from the Chairman candidates in completing their applications. Using this
Since its launch in FY 2017-18, YES BANKers across
10 Message from the Managing Director feature, over 244 requests were automated during the
the Bank’s 262 hub branches have organised and
and CEO pre-screening conversation between candidates and
participated in activities such as sports tournaments,
12 Key performance indicators recruiter.
adventure sports and trekking, arts and crafts
17 Customer focus exhibitions, photography contests, and employee Enhanced Insurance Regulatory and Development
21 Technology and digital innovation volunteering activities. YES CLUB is also the primary Authority of India (IRDAI) Certification Process:
25 Retail driver of initiatives focused on building a culture of IRDAI certification is a very important requisite for
holistic well-being among YES BANKers. YES Club insurance business. The same was moved to online
Our approach to value creation Wellness Centre with state-of-the-art gym facilities, documentation and processing, from the offline
29 Value creation model regular Yoga and Zumba classes and a gaming zone for process of gathering documents and follow-ups.
31 Our strategy
employee engagement was set up.
36 Risk management Data Visualisation: To drive a data culture across
DIGITALISATION INITIATIVES HCM, the Bank migrated the existing reports and
Our ESG focus
YES for YOU Fusion to Mobile Responsive dashboards to Business Intelligence data visualisation
43 Environment
Environment: The HCM portal for employees tool. Key benefit of this mobile app-based tool is to
54 Social
is aimed at providing employees with mobility, enable decision-making using up-to-the-minute data
69 People
accessibility, convenience and a superior interface. visualisation and analytics.
80 Governance
Hence, the portal was moved to a mobile responsive Corporate Business Attrition Predictor Model:
Statutory Reports design and is accessible through Citrix security The churn model was successfully developed for
permissions on mobile. employees in Corporate Business units with the help of
146 Report on corporate governance Online Leave System for UAE based employees on Machine Learning algorithms in R Programming Tool.
187 Annual business responsibility report Fusion: Leave balance accruals and laws around it work It predicts employees who may leave the organisation
differently in UAE and hence, the leave management in the next six months with the help of churn model
Financial Statements and initiates proactive steps to enhance retention.
needs to be managed separately on Fusion, along with
those in India. This was made live in FY 2019-20.
71
People
Contents Vendor Staff Management System (VSMS) – an

Corporate Overview end-to-end staff life cycle management for vendors
01 Commitment. Promise. Transparency. at YES BANK. This application enables monitoring of
A redefined YES budget, faster and more effective hiring processes,
simpler onboarding, simplified within or across
department transfer process, end-to-end integrated
automation from hire to exit.
07 Message from the Chairman YES CORE Learning – GIEOM – an application for online
10 Message from the Managing Director simulation, digitised SOPs, work flow diagrams that are
and CEO easy to understand and train employees. The following
12 Key performance indicators were some of the programmes launched. In FY 2019-20, more than 4,000 nominations
15 COVID-19 response across different reward categories were received
17 Customer focus yy Training on processes for Retail Asset Operations through the Rewards and Recognition portal.
yy Knowledge documents for Clearing Operations
25 Retail
yy Clearing Operations process flow diagram
29 Value creation model yy CCCS – Credit Card Customer Service - REWARDS AND RECOGNITION: YES LEAGUE OF The category-wise spread of
31 Our strategy simulation training EXCELLENCE awards
36 Risk management At YES BANK, rewards and recognition is driven
yy IT simulation trainings for YES Approvals
Our ESG focus digitally through an online portal called the
2,446 774
43 Environment yy Rural Banking - KCC workflow moved to Production ‘YES LEAGUE OF EXCELLENCE’. It provides a formal
54 Social recognition platform to recognise and reward
EMPLOYEE PERFORMANCE MANAGEMENT
69 People excellence at YES BANK and, in turn, creates a SPOT ON Y-Star of the Month
To promote a culture of meritocracy, the Bank manages culture of appreciation. Reporting managers
80 Governance
the performance of executives, ensuring timely,
467 276
can nominate team members for rewards on
Statutory Reports unbiased and transparent appraisal process for all the basis of performance. In FY 2019-20, more
84 Management discussion and analysis executives. The Bank follows an annual performance than 4,000 nominations across different reward One for All for Rising Star of the
106 Directors’ report review cycle, with eligible executives undergoing a categories were received through the Yes League of One (Quarter) Quarter
146 Report on corporate governance multi-level performance evaluation. Excellence portal.
Financial Statements 52
198 Standalone Financials YES Personality
72
People
Contents LEARNING & DEVELOPMENT

Corporate Overview
A redefined YES
and CEO
15 COVID-19 response YSB initiatives cover all aspects of employee training,
17 Customer focus including Induction, Products & Process Training,
21 Technology and digital innovation Compliance & Mandatory Trainings, Sales & Service
25 Retail Trainings and Leadership & Behavioural Trainings
31 Our strategy
36 Risk management
YES SCHOOL OF BANKING (YSB) ONLINE LEARNING MANAGEMENT SYSTEM The LMS also has a mobile first approach, enabling
YES BANK has always emphasised on a knowledge- My Learning@YES is the Bank’s online Learning learning on the go, allowing users to go through
Our ESG focus modules and appear for tests from the app ensuring
driven approach for focusing on building capacity and Management System (LMS) which supports digital
43 Environment better time utilisation and higher learning engagement
capability, thereby nurturing the brightest and best learning in partnership with Cornerstone On Demand.
54 Social for employees. Additionally, the system has features
talent from the industry. This is one of the building My Learning@YES provides learners with increased
69 People like training calendar and schedule management,
blocks of YES BANK’s evolution as the ‘Professionals’ access to learning content (in-house courses and
80 Governance feedback mechanism and management information
Bank of India’. Orgainsational Learning and Development content partners like Coursera), learning scorecards
Statutory Reports initiatives at YES BANK are domiciled under the aegis of to measure actualisation against learning paths and system.
84 Management discussion and analysis the YES SCHOOL OF BANKING (YSB). Institutionalised assigns learning credits to learners. Since its adoption, the LMS has helped to create, deploy
106 Directors’ report in 2007, YSB was created with a vision to build a
The system offers social learning, advanced reporting and track learning to build capacity, capability, and
146 Report on corporate governance ‘Centre of Excellence’ for learning solutions in banking
& analytics, conducting and managing of classroom confidence among employees to increase performance.
187 Annual business responsibility report and related areas. YSB initiatives cover all aspects of
trainings, attendance tracking and training schedule Most online curriculums offer quizzes that enhance
Financial Statements employee training, including Induction, Products & learning absorption and recall. Sophisticated real-time
management in addition to accessing the e-learning
198 Standalone Financials Process Training, Compliance & Mandatory Trainings, reporting and tracking features have provided insights
modules.
267 Consolidated Financials Sales & Service Trainings and Leadership & Behavioural into employee learning patterns, thus enabling ease of
Trainings. YSB is accredited with ISO Certification (ISO customisation to specific learner needs.
9001:2015) on Quality Management System.
73
People
Contents The functionalities of the LMS have also simplified yy Compliance initiatives: communities in the branch BSA and maintaining
Corporate Overview the process for tracking and monitoring of the laser sharp focus on our stated rural banking sales
–– Classroom and Digital workshops on various
compliance and regulatory parameters, thus reducing strategy. This workshop focused on orienting the
A redefined YES topics mentioned in RBI Master Circular
human errors for better operational control. The LMS team towards the same
enables a variety of digital learning solutions, aligned –– Supervisory Programme for Assessment of Risk
03 YES BANK at a glance yy Retail Banking (RB) SKILL BUILDER WORKSHOP:
to the Bank’s evolution as a digital work place, and Capital/ Risk Based Supervision / Governance
05 Products and services RB Skill Builder Workshop was launched for Sales
thereby developing key digital skills among the sessions
06 Geographical presence Managers of Retail Banking team on enhancing
Bank’s workforce.
07 Message from the Chairman –– Awareness Sessions (Classroom and E Learning) business effectiveness by refreshing Products
10 Message from the Managing Director Major Learning Modules on Information Security/ Business continuity knowledge and how cross selling leads can be
and CEO planning/Operational Risk Management / generated through important interactions
Some of the key learning modules initiated by the
12 Key performance indicators Enterprise risk management
YES School of Banking are: yy CREDIT CARD SKILL BUILDER WORKSHOP: Credit
17 Customer focus Regulatory / Compliance Mandatory Programmes –– Training on codes of Banking Codes and Standards Card Skill Builder Workshop was launched for
21 Technology and digital innovation Board of India Acquisition Managers of the Credit Card team. The
yy RBI mandate
25 Retail objective was to reiterate important Product USPs
Implementation of Board approved policy on: yy Collecting successfully through partners
and equip participants with selling skills to enhance
Our approach to value creation A two-day classroom initiative launched for the
–– RBI Capacity Building in Banks and AIFIs for productivity
29 Value creation model Retail Collections team to encourage standardisation
existing employees and new hires
31 Our strategy of collections processes and to build customer-
36 Risk management –– IT and Cyber Security Certification for Board centricity by equipping the team with tools
Our ESG focus Members, CXOs and top management and techniques for managing the collections
43 Environment portfolio better
yy Risk management trainings
54 Social Key Retail Training initiatives:
–– Credit Skills Assessment – CRISIL
69 People
yy Rural Banking Group (RBG) ORIENTATION
80 Governance –– Exposure to best-in-class industry knowledge and
WORKSHOP: Given the convergence of Rural and
subject matter expertise: Centre for Advanced
Statutory Reports Inclusive Branch Banking (RIBB) and Retail Rural
Financial Research and Learning (CAFRAL),
84 Management discussion and analysis Banking (RBB) into a single unit from April 2019 to
106 Directors’ report National Institute of Bank Management (NIBM),
form RURAL BANKING GROUP, it was critical for the
146 Report on corporate governance National Institute of Securities Markets (NISM),
Rural Banking team to continue garnering CASA and
187 Annual business responsibility report College of Agricultural Banking (CAB), Indian
build a strong assets business line by fully utilising
Institute of Banking and Finance (IIBF), Foreign
Financial Statements the strength, scale and reach of our branch network,
Exchange Dealers’ Association of India (FEDAI)
198 Standalone Financials exploring and converting business from local
and Fixed Income Money Market and Derivatives
Association of India (FIMMDA), among others
74
People
Contents LEADERSHIP AND BEHAVIOURAL YESsentials; continues to be the Bank’s high-impact and various other products and processes relevant to
Corporate Overview PROGRAMMES – PAN BANK induction programme that enculturates the new joinee the business. For the reporting period, 261 YESsentials
01 Commitment. Promise. Transparency. on the Bank’s Code of Conduct, Information Security workshops were conducted for 5,696 executives and
A redefined YES Leadership Development Program Guidelines, KYC and AML policies, Operational Risk 9,888 executives inducted through e-learning modules.
(LEADVANTAGE): LEADVANTAGE is a Management, POSH policy of the Bank, HCM policies
sustained Leadership Development
Initiative for Top, Senior and Middle
Management levels focusing on
inspirational leadership, productive
and CEO collaboration, managing change
12 Key performance indicators with agility, building resilience and
15 COVID-19 response developing people.
17 Customer focus
Leadership Effectiveness Program:
Managing Business & Developing People -
25 Retail
The programme focuses on understanding
Our approach to value creation various leadership styles, learning the
29 Value creation model art and skill of giving feedback, coaching
31 Our strategy for team development and driving
36 Risk management performance to achieve results.
Our ESG focus Leadership Catalyst Program:
43 Environment Leading Performance & Managing
54 Social Conflicts - The programme focuses on
69 People relevant managerial challenges such as
80 Governance managing stakeholder expectations,
Statutory Reports delegating and giving feedback.
Creating Leadership Impact:
261 5,696 9,888
Adaptive Leadership & Managing Change
- The programme focuses on identifying
Financial Statements personal leadership drivers, driving YESsentials Executives Executives inducted
198 Standalone Financials adaptive leadership, understanding workshops through E-learning
267 Consolidated Financials the change management model and
influencing change.
75
People
Contents KEY LEARNING MATRIX

Corporate Overview
01 Commitment. Promise. Transparency. EMPLOYEE TRAINING – PROGRAMME-WISE BREAKUP TRAINING PROGRAMMES (CLASSROOM) – CATEGORY-WISE BREAKUP
A redefined YES
02 Key highlights FY 2019-20 Particulars FY 2019-20 FY 2018-19 FY 2017-18 Particulars FY 2019-20 FY 2018-19 FY 2017-18
03 YES BANK at a glance Total classroom-training 5,044 5,410 5,035 Behavioural and leadership skills 400 639 839
05 Products and services programmes conducted
Employee induction 261 241 318
07 Message from the Chairman Total executives trained in 17,161 16,132 15,568
Mandatory policies and compliance 163 476 1,428
10 Message from the Managing Director programmes above
and CEO Total executives trained (E -Learning) 22,691 20,306 16,108 Process training 677 553 600
12 Key performance indicators Product training 3,543 3501 1,850
17 Customer focus Total 5,044 5,410 5,035
21 Technology and digital innovation EMPLOYEES TRAINING (CLASSROOM) – GENDER-WISE BREAKUP
25 Retail
Particulars FY 2019-20 FY 2018-19 FY 2017-18
Our approach to value creation Male 13,906 13,117 12,811 TRAINING HOURS (CLASSROOM & E-LEARNING)
Female 3,255 3,015 2,757 Particulars FY 2019-20 FY 2018-19 FY 2017-18
31 Our strategy
36 Risk management Total 17,161 16,132 15,568 Participant man-hours (Classroom) 3,53,374 2,97,871 3,89,159
Our ESG focus Participant man-hours (E-Learning 4,59,370 4,11,303 3,39,446
43 Environment Room)
54 Social EMPLOYEES TRAINING (CLASSROOM) – MANAGEMENT
Participant man-hours (Classroom & 8,12,744 7,09,174 7,28,605
69 People CATEGORY-WISE BREAKUP
E-Leaning)
80 Governance
Particulars FY 2019-20 FY 2018-19 FY 2017-18 Participant man-hours per executive 35.38 33.55 39.95
Statutory Reports
Top management 38 57 99
106 Directors’ report Senior management 107 163 245
146 Report on corporate governance Middle management 1,902 1,960 2,958
Junior management 6,336 5,824 7,620
198 Standalone Financials General management 8,778 8,128 4,646
267 Consolidated Financials Total 17,161 16,132 15,568
Data points include YES BANK Limited full-time employees (India & Overseas) and exclude fixed term contractual employees (trainees, advisors, etc.).
76
People
Contents EFFECTIVENESS OF TRAINING PROGRAMMES TRAINING TARGET/ PLANS FOR NEXT YEAR
Corporate Overview The training programme effectiveness is measured by Role Based Certifications (mandatory) on Capacity Leadership & Professional Development Framework
using the Kirkpatrick’s four levels of evaluation model: Building, IT and Cyber Security for select BUs; in for all management bands across all BUs focused on
A redefined YES
addition to BU specific certifications for select roles. leadership role transitions and to support skill-building.
03 YES BANK at a glance Role Based Developmental Frameworks for various Professional Technology Programmes in partnership
Level 1
05 Products and services Corporate Business Units with focus on products, with best-in-class external training partners to equip
06 Geographical presence For programmes (with duration more than or equal to
1 day), ‘Reaction’ is measured by way of administering a
process, compliance, soft skills and sectoral insights. select YES BANK Executives on ‘Emerging Technologies’
07 Message from the Chairman in the banking ecosystem.
survey which gives quantifiable metrics.
and CEO
Level 2
17 Customer focus
21 Technology and digital innovation For certain product, process, sales, service,
certification programs etc. ’Learning‘ is measured by
25 Retail
way of administering post training assessment tests.
31 Our strategy
36 Risk management Level 3
For leadership programmes, implementation of
Our ESG focus
key learnings from the session within 30 days of
43 Environment
attending the programmes (duly documented) and
54 Social transfer of learnings from ‘workshop’ to ‘workplace’
69 People are ensured.
80 Governance
Statutory Reports
Level 4
146 Report on corporate governance For learning initiatives viz. Productivity Enhancement
programmes, ’Results‘ are measured by comparing
targeted outcomes pre & post training.
People
Contents UNIVERSITY and SCHOOL RELATIONSHIP YES PROFESSIONAL ENTREPRENEURSHIP YES FUTURE READY SCHOLARSHIP PROGRAMME
Corporate Overview MANAGEMENT (USRM) PROGRAMME (Y-PEP)
University and School Relationship Management
A redefined YES
programme (USRM) is a structured, sustainable,
03 YES BANK at a glance and scalable engagement programme to create
05 Products and services and maintain mindshare for YES BANK among
06 Geographical presence students from the best graduate and postgraduate
07 Message from the Chairman schools of India, thereby positioning the Bank as a
10 Message from the Managing Director preferred employer.
and CEO
YES BANK TRANSFORMATION SERIES
15 COVID-19 response YES Transformation Series is a national level case study
17 Customer focus competition that is conducted across under‑graduate The Y-PEP programme is YES BANK’s flagship campus YES FUTURE READY is a unique scholarship programme
21 Technology and digital innovation and post-graudate colleges. The 2019 edition of the recruitment programme that endeavours to hire that identifies 30 students from different B-schools
25 Retail competition saw participation from 32 business the most sought-after talent from the best business and Technology schools and awards them a
schools across the country. More than 8,000 students schools in India. The programme established in 2007, scholarship of `2 lakh for consistent academic and
registered to compete for the title of the Winner positions YES BANK as an ‘Employer of Choice’ across co-curricular excellence. The programme not only
of the YES Transformation Series 2019. Seven case premium business school campuses and helps develop offers structured mentorship for the students to
31 Our strategy
partners in IBM, Dunzo, Instamojo, Blackbuck, Bounce, a robust talent pool to drive the Bank’s future growth. help them transition smoothly from a student to a
36 Risk management
Quikr and MakeMyTrip provided us with case studies: The Bank has a strong legacy of onboarding premium well-rounded professional, but also offers critical
Our ESG focus 32 teams were chosen to move to the second round talent through the programme. More than 1,000 Y-PEPs learning interventions through e-courses that can
43 Environment that featured a YES BANK business case: 10 teams have been recruited over the years. For the batch of help them augment their skills significantly. With this
54 Social from different business schools participated in the 2020, the Bank has recruited 19 Y-PEPs from the Top 25 programme, YES BANK inducts the scholars into the
69 People Finale. IIM Ahmedabad was the winner followed by business schools of the country. agile and collaborative culture of the Bank. YES Future
80 Governance XLRI Jamshedpur and the third place went to MICA, Ready 2019 saw more than 5,000 enthusiastic students
Statutory Reports Ahmedabad. The finale was conducted in the YSB apply for the opportunity. A significant feather in the
84 Management discussion and analysis Learning Centre in IFC Mumbai. The event was a programme’s cap has been the increase in application
106 Directors’ report confluence of the industry and students, where ideas from technology schools which grew to 31% of the
146 Report on corporate governance were exchanged. total applications. After a rigorous selection process,
187 Annual business responsibility report 30 scholars were chosen as the YES Future Ready
scholars. The scholars spent four months working on
various virtual projects across the Bank, making the
whole experience rewarding.
78
People
Contents KEY METRICS AND PERFORMANCE INDICATORS C. Total Hires during the Year
Corporate Overview As on March 31, 2020, the Human Capital strength of the Bank was 22,973 employees
01 Commitment. Promise. Transparency. FY 2019-20
which is an approximately 9% increase compared to previous year. With increased Particulars Under 30 30-50 Above 50 Hire
A redefined YES
number of employees, there has been renewed focus on adding to the diversity of Male Female Male Female Male Female Rates
03 YES BANK at a glance the workforce during the year. Gender diversity was reflected with female executives Top Management 0 0 0 2 5 2 10.84%
05 Products and services numbering 21% and male executives 79% by the financial year end. The key areas of the Senior Management 0 0 16 3 1 0 8.81%
06 Geographical presence Human Capital towards the people demographics, attrition and hiring are as follows: Middle Management 4 1 350 49 3 2 14.87%
07 Message from the Chairman Junior Management 695 218 2170 310 0 0 40.26%
10 Message from the Managing Director A. People Demographics General Management 3824 1415 1375 218 0 0 59.49%
and CEO
12 Key performance indicators FY 2019-20 Total 4523 1634 3911 582 9 4 46.42%
15 COVID-19 response Particulars Under 30 30-50 Above 50 Total Hire Rates 76.26% 73.84% 30.76% 28.61% 12.68% 44.44%
Male Female Male Female Male Female Note: Data does not include employees of YES BANK’s subsidiaries.
17 Customer focus
21 Technology and digital innovation Top Management 0 0 45 8 27 3 83
D. Parental leaves
25 Retail Senior Management 0 0 204 16 6 1 227
Middle Management 5 1 2,382 327 33 3 2,751
PARENTAL LEAVE INITIATIVES
Our approach to value creation Junior Management 1,063 343 6,094 922 4 1 8,427
The Bank provides maternity benefit of 26 weeks to female executives to celebrate
General Management 4,863 1,869 3,990 761 1 1 11,485
motherhood and bonding. In addition, the Bank also provides access to crèche
31 Our strategy facilities as per the statutes, paternity leave to male executives to celebrate the
36 Risk management Total 5,931 2,213 12,715 2,034 71 9 22,973
special moments of fatherhood. The Bank presents gift vouchers for the new-borns
Our ESG focus to all new mothers resuming duty post maternity leave. The analysis of return to
43 Environment B. Total Attrition during the Year work after parental leaves is presented below:
54 Social
FY 2019-20 Particulars FY 2019 – 20 FY 2018 – 19
69 People
Particulars Under 30 30-50 Above 50 Attrition Maternal Paternal# Maternal Paternal#
80 Governance Rates
Male Female Male Female Male Female Employees taking parental leave 224 1,238 204 1,118
Statutory Reports Top Management 0 0 9 0 5 0 16.87% Employees resuming work 221 1,238 198 1,118
84 Management discussion and analysis Senior Management 0 0 23 4 4 0 13.66% Employees retained after resuming 214 1,238 188 1,118
106 Directors’ report Middle Management 0 0 329 53 1 0 13.92% work in the reporting period
146 Report on corporate governance Junior Management 329 117 1,586 238 1 0 26.95% Return to Work Rate 95.5% 100.0% 92.2% 100.0%
187 Annual business responsibility report General Management 2,803 1,066 1,698 285 0 0 50.95% Employees retained 12 months after NA* NA* 117 802
Total 3,132 1,183 3,645 580 11 0 37.22% resuming work
Attrition Rates 52.81% 53.46% 28.67% 28.52% 15.49% 0.00% Retention Rate (after 12 months)^ N/A* N/A* 57.4% 71.7%
267 Consolidated Financials * To be reported in FY 2020-21 reporting cycle
Note: Attrition is based on Head Count as on March 31, 2020 and includes only voluntary exits. # No causal relationship has been determined between paternal leave and voluntary exits.
Data points include YES BANK Limited full-time employees (India & Overseas) and ^ The percentage of employees retained 12 months after returning to work following a period of parental leave.
exclude fixed term contractual employees (trainees, advisors, etc.).
79
Governance
Accountability that guides value

Contents
Corporate Overview
A redefined YES YES BANK is led by a group of leaders who bring with them decades
02 Key highlights FY 2019-20 of experience, a varied set of expertise and a strong vision for the
future of the Bank.
07 Message from the Chairman Under the aegis of its new leadership, YES BANK is re-examining and
10 Message from the Managing Director recalibrating its internal systems and processes to achieve benchmarked
and CEO
standards of good governance.
17 Customer focus YES BANK’s newly formed Board comprises members who also represent
21 Technology and digital innovation different institutions, which helps bring a diverse perspective in terms
25 Retail
of guiding the Bank towards a redefined future. The Board is providing Key Highlights
Our approach to value creation direction and guidance to the management on the strategic objectives of
32
31 Our strategy
the Bank for the near and medium term. The Board and the leadership
36 Risk management are also setting highest standards of governance, compliance and
Our ESG focus risk management to form the foundation for the transformation Average years of
43 Environment journey at YES BANK. experience of the Board
54 Social
69 People Together with the management, the Board takes the onus of navigating
50%
80 Governance
the imminent challenges for the Bank, pursuing its strategy and
Statutory Reports creating, retaining and delivering value for all its stakeholders.
84 Management discussion and analysis Directors from RBI and
106 Directors’ report SBI on Board
80
Governance
Contents Board of Directors

Corporate Overview
A redefined YES
and CEO Mr. Sunil Mehta Mr. Prashant Kumar Mr. Mahesh Mr. Atul Bheda
Non- Executive Chairman Managing Director & Krishnamurti Non-Executive Director
Chief Executive Officer Non-Executive Director
17 Customer focus
25 Retail

31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People Mr. R. Gandhi Mr. Ananth Narayan Mr. Partha Pratim Mr. Swaminathan Mr. V.S. Radhakrishnan
80 Governance Additional Director Gopalakrishnan Sengupta Janakiraman SBI Nominee Director^
appointed by RBI Additional Director SBI Nominee Director* SBI Nominee Director
Statutory Reports
appointed by RBI
187 Annual business responsibility report Note:
1. Except Mr. Radhakrishnan, all the above Directors on Board have been appointed w.e.f March 26, 2020
Financial Statements 2. Detailed profiles of all Directors can be found on Page 148 of the Corporate Governance Report
198 Standalone Financials 3. The present composition of the Board is as per the Yes Bank Reconstruction Scheme, 2020 notified by the Ministry of Finance, Government of India
* Resigned w.e.f. July 24, 2020
^ Appointed w.e.f. July 31, 2020
81
Governance
Contents Management Team

Corporate Overview
A redefined YES
and CEO Prashant Kumar Anurag Adlakha Neeraj Dhawan Anita Pai Deodutta R. Kurane
Parag Gorakshakar 2 Rajeev Uberoi
MD & CEO Group Chief Financial Chief Risk Officer Chief Credit Officer Chief Operating Head, Governance & Head, Human Capital
Officer (CRO) (CCO) Officer (COO) Controls Management
17 Customer focus
25 Retail

31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Ashish Agarwal 1 Rajan Pental Rajanish Prabhu Amit Sureka Vinod Bahety Akash Suri Shivanand Shettigar
Statutory Reports Global Head, Global Head, Branch Global Head,
Business Head, Credit Head, Financial Head, Stress Asset Group Company
Wholesale Banking and Retail Lending Cards & Payments Markets Corporate Finance Management Secretary
Infrastructure Banking
267 Consolidated Financials 1. Mr. Ashish Agarwal, erstwhile CRO, is now the Global Head of Wholesale Banking (8 Corporate Segment heads to directly report to him)
2. Responsibilities of erstwhile CRO have been split between CCO and CRO
82
Governance
Contents Corporate Information

Corporate Overview
A redefined YES Committees of Directors
03 YES BANK at a glance Audit Committee Corporate Social Responsibility Committee IT Strategy Committee
Mr. Atul Bheda, Chairman Mr. Atul Bheda, Chairman Mr. Mahesh Krishnamurti, Chairman
07 Message from the Chairman Mr. R. Gandhi, Member Mr. Mahesh Krishnamurti, Member Mr. Sunil Mehta, Member
10 Message from the Managing Director Mr. Ananth Narayan Gopalakrishnan, Member Mr. Swaminathan Janakiraman, Member Mr. Partha Pratim Sengupta*, Member
and CEO
Mr. Partha Pratim Sengupta*, Member Mr. Prashant Kumar, Member
15 COVID-19 response Mr. Swaminathan Janakiraman , Member
#
Mr. Swaminathan Janakiraman†, Member
17 Customer focus
21 Technology and digital innovation Nomination and Remuneration Committee Risk Management Committee raud, Willful Defaulters and Non-Cooperative
F
25 Retail Borrowers Monitoring Committee
Mr. Mahesh Krishnamurti, Chairman Mr. Sunil Mehta, Chairman
Mr. Sunil Mehta, Member Mr. Atul Bheda, Member Mr. Prashant Kumar, Chairman
31 Our strategy Mr. Atul Bheda, Member Mr. Partha Pratim Sengupta*, Member Mr. Atul Bheda, Member
36 Risk management Mr. Partha Pratim Sengupta*, Member
Mr. Swaminathan Janakiraman, Member Mr. Swaminathan Janakiraman, Member
Our ESG focus Mr. Prashant Kumar, Member Mr. Swaminathan Janakiraman, Member
43 Environment Mr. V. S. Radhakrishnan†, Member
Mr. V. S. Radhakrishnan†, Member
54 Social
69 People
80 Governance Stakeholders Relationship Board Credit Committee Capital Raising Committee
& Customer Service Committee
Statutory Reports Mr. Sunil Mehta, Chairman Mr. Sunil Mehta, Chairman
84 Management discussion and analysis Mr. Mahesh Krishnamurti, Chairman Mr. Mahesh Krishnamurti, Member Mr. Mahesh Krishnamurti, Member
Mr. Atul Bheda, Member Mr. Swaminathan Janakiraman*, Member Mr. Atul Bheda, Member
187 Annual business responsibility report Mr. Partha Pratim Sengupta*, Member Mr. Prashant Kumar, Member Mr. Swaminathan Janakiraman, Member
Mr. Swaminathan Janakiraman, Member Mr. V. S. Radhakrishnan , Member
†
Mr. Prashant Kumar, Member
198 Standalone Financials Mr. V. S. Radhakrishnan†, Member
* Resigned w.e.f. July 24, 2020
† Appointed w.e.f. August 07, 2020
# Appointed w.e.f. July 28, 2020
83
Management Discussion and Analysis
Executive Overview the ‘Great Global Lockdown’ disrupts production, supply chain, trade, and tourism
Contents channels. The depth of the recession and the pace of recovery in 2021 would depend
Corporate Overview
Macro-Economic and Industry Overview
on the speed of containment and the efficacy of monetary and fiscal policy actions by
01 Commitment. Promise. Transparency. Global economic activity became subdued in the second half of 2019 amidst US-
various countries.
A redefined YES China trade tensions and Brexit-related uncertainty casting doubts over global supply
02 Key highlights FY 2019-20 chains. However, the early part of 2020 saw de-escalation of the US and China trade The COVID-19 impact
03 YES BANK at a glance tensions and reduced possibility of a hard Brexit, thereby providing a breather to the The International Monetary Fund (IMF) stated that the world economy will experience
05 Products and services global markets. The early signs of stabilisation in economic activity at the start of 2020 the worst fall in global output since the Great Depression of the 1930s, surpassing the
06 Geographical presence withered away with the outbreak of COVID-19 on a global scale. downturn seen during the Global Financial Crisis. The year 2020 is likely to result in a
The Indian economy, which has been undergoing a cyclical slowdown, recorded its contraction of world GDP by 4.9% vis-à-vis an expansion of 2.9% seen during 2019 and
and CEO slowest growth in 11 years at 4.2% in FY 2019-20, down from 6.1% in FY 2018-19, as per a contraction of 0.1% recorded during the Global Financial Crisis.
12 Key performance indicators the National Statistical Office. The average CPI inflation settled at 4.8% vis-à-vis 3.4% India also imposed a nationwide lockdown, allowing only ‘essential’ manufacturing
15 COVID-19 response in FY 2018-19. Looking at the inflation trajectory, the headline number for the last two and service related activities. These ‘essential’ activities have a share of ~43% in the
17 Customer focus quarters in FY 2019-20 stayed above the Reserve Bank of India’s (RBI) medium-term GVA basket, which implies a near freezing of activity for the remaining 57%. After
21 Technology and digital innovation target, primarily on the back of spike in food prices. Of late, the easing food prices, posting a decadal low of 4.2% in FY 2019-20, India’s growth is certain to face the worst
25 Retail along with a sharp correction in global crude oil prices, have provided some solace. recession in FY 2020-21 since FY 1979-80. We expect India’s FY 2020-21 GDP growth
Our approach to value creation Within the commodity market space, oil prices got caught between two significant to contract by 4.5%, with downside risks, as global and domestic activity have turned
29 Value creation model crosswinds. On the one hand, lockdowns in several countries perpetuated a severe out to be worse than expected earlier. To address the economic fallout, policymakers
31 Our strategy adopted a mix of fiscal and monetary relief measures. The Central Government
demand shock as economic activity came to a near standstill. On the other hand,
36 Risk management including the Reserve Bank of India (RBI) announced a relief package of `21 trillion,
uncertainty in supply response amid lack of unanimity among OPEC+ members for
Our ESG focus adequate recalibration of output further fanned volatility. Nevertheless, the recent which was supplemented with several state-level measures.
43 Environment signing of a historic deal between OPEC+ members with implicit support from the US Monetary policy and interest rates
54 Social is expected to provide some anchor to prices in the short term.
On the monetary policy front, the RBI slashed repo rate by a cumulative of 115 bps
69 People
As COVID-19 started spreading to countries beyond China, quantitative easing by between February to June 2020 to provide support to growth and economic sentiment.
80 Governance
systemically important central banks in the US, the UK, Eurozone, Japan and Australia In addition, the central bank upped the policy response by introducing Targeted Long-
Statutory Reports became the first line of defence, along with measures like long-term targeted repos Term Repurchase Operations (TLTRO) and increased the quantum of Long-Term Repo
84 Management discussion and analysis and purchase of Commercial Papers (CPs) in some cases to address tightness in the Operations (LTROs). It trimmed its CRR rate the first time since the Global Financial
106 Directors’ report short end of the credit curve. In addition, the US Federal Reserve reactivated its Crisis and allowed banks a higher dispensation under the MSF window. It also provided
146 Report on corporate governance currency swap lines with several other central banks to ensure adequate provision of few forbearance measures for consumers and businesses.
187 Annual business responsibility report dollar liquidity in global financial markets.
Money market liquidity switched into surplus territory in Q2 FY 2019-20 (`1,326 billion),
Financial Statements Through a coordinated monetary and fiscal policy approach, all countries stepped with the magnitude of surplus widening in Q4 FY 2019-20 (`3,088 billion) on the back
198 Standalone Financials in to prevent a health crisis, which also comes with a substantial economic fallout. of unsterilised build-up of FX Reserves by the RBI, along with primary liquidity infusion
Expectations of a severe global economic recession in 2020 have strengthened as through FX Swaps, OMOs, etc.
84
On the bond market, the 10-year g-sec yield eased by 121 bps during the course of pickup in monetary transmission, etc. However, the altered outlook amidst COVID-19
Contents FY 2019-20. Domestic monetary easing through the year amid a lower global rates has a combination of a sharp negative global impulse coupled with stalling of domestic
Corporate Overview environment contributed towards the development. Additionally, expectation of activity on account of the nationwide lockdown. In addition, volatility in financial
further easing by the RBI in the wake of COVID-19 also seems to be supporting sentiment. markets and uncertainty with respect to income prospects, could further accentuate
A redefined YES
India’s growth slowdown.
02 Key highlights FY 2019-20 The Indian rupee depreciated by 9.2% in FY 2019-20, closing the year at 75.45 to the
03 YES BANK at a glance US dollar. Weakness in rupee stemmed from global risk appetite that manifested in On the other hand, softening of global commodity prices and mitigating policy
05 Products and services portfolio outflows and benefitted the US dollar at the expense of Emerging Markets measures are likely to provide some relief to the economy. As per the RBI, CPI inflation
06 Geographical presence (EM) currencies. is projected to average ~3.6% in FY 2020-21. With inflation expected to fall below target,
07 Message from the Chairman the monetary policy reaction function would continue to accord primacy to growth
10 Message from the Managing Director Meanwhile, India’s twin deficits exhibited divergent behaviour. Riding on the back of
and financial stability in the current environment, and front load all possible steps
and CEO moderation in domestic demand and global commodity prices, current account deficit
to safeguard the economy from downside risks. There is a growing expectation of
12 Key performance indicators narrowed down to 0.9% of GDP in FY 2019-20 from 2.1% in FY2018-19. For FY 2020-21,
further monetary easing from the RBI, along with large-scale Open Market Operations
the CAD is expected to be moderate further to 0.3% of GDP.
17 Customer focus to accommodate the strong counter cyclical fiscal policy response required to provide
21 Technology and digital innovation On the other hand, the Central Government fiscal deficit expanded to 4.6% of GDP a safety net for the economic fallout from COVID-19.
25 Retail in FY 2019-20 vis-à-vis the revised target of 3.8% primarily on account of lower than
Branch Banking
anticipated revenue collections. For FY 2020-21, while the government has budgeted
Our approach to value creation for a fiscal deficit target of 3.5% of GDP, the economic shock from COVID-19 and the During FY 2019-20, YES BANK’s geographical footprint expanded to 1,135 branches and
29 Value creation model policy response thereof would once again result in a significant fiscal slippage. We 21 Banking Correspondents (BC) banking outlets spread across 750 locations with 1,423
31 Our strategy ATMs and Bunch Note Acceptor/Recycler (BNAs). The Bank continues to strengthen its
expect FY21 fiscal deficit at 6.5% of GDP with upside risk still remaining. Nevertheless,
36 Risk management presence across all state capitals, top 200 Deposit Centres, Delhi-Mumbai Industrial
recent reforms undertaken by the government (like the corporate tax rate cut,
Our ESG focus liberalisation in FDI-Defence, opening up of commercial mining, food supply chain Corridor, Special Economic Zones, Economic Promotion Zones, food parks, agri-parks
43 Environment reforms, etc.) are expected to play a crucial role in preserving India’s status as a and ports, among others, with a well-balanced parallel focus on financially-efficient
54 Social global investment destination and should start supporting economic activity from the Inclusive banking. The Bank considerably focused on branch penetration in rural, agri
69 People second half of FY 2020-21. and MSME geographies, by establishing dedicated leadership, with local know-how
80 Governance and products targeted at these specific segments. The Bank is also embracing the ever-
Outlook evolving technological landscape and complementing its endeavours toward physical
Statutory Reports India’s economic growth outlook for FY 2020-21 was looking up at the start of 2020 expansion with substantial investments in new-age technologies that will significantly
on the back of a bumper Rabi harvest, increase in food prices through FY 2019-20 enhance its reach and capabilities to optimally acquire and service customers.
prospectively supporting rural incomes, big reset in the corporate tax structure,
85
As a part of its drive to improve customer experience and convenience, the Bank has vis-à-vis the previous FY and has also partnered with VISA to issue VISA branded
Contents introduced multiple initiatives toward Deposit Mobilisation and Customer Service: cards for customers. In addition, the Debits Card spends have witnessed a growth
Corporate Overview of 16% y-o-y with a card activation ratio of 21.6% and improved e-commerce ratio of
01 Commitment. Promise. Transparency. Current Account Instant Fixed spends from 37% to 41.6%. YES BANK has 1,423 ATMs, Cash recyclers and Bunch Note
A redefined YES YES Genie BizCarnival Deposits (FD)
Acceptors as of March 31, 2020 and has achieved 100% compliance on RBI security
03 YES BANK at a glance measures in July 2019.
05 Products and services Digital Banking
YES BANK has continued investing significantly in new-age mediums and digital
technologies to achieve heightened customer engagement and experience. The Bank
and CEO realises that ‘digital’ is steadily growing as a preferred medium for customers to avail
12 Key performance indicators banking services.
[Read more on YES BANK’s digital interventions on Page 21]
17 Customer focus
21 Technology and digital innovation YES MSME Savings Account Currency Chest
segmental propositions
25 Retail The Bank is expanding its network of Currency Chests and Small Coin Depots and
Our approach to value creation now has two Currency Chests operational in Delhi and Mumbai, with a few more on
29 Value creation model Debit Card Variants and ATMs/Recyclers the anvil. During the past year, the Bank ensured optimal supply of fresh/issuable
31 Our strategy YES BANK has a complete suite of Debit Card products catering to the varied needs of currency across all touchpoints.
36 Risk management customers. The Bank had upgraded its portfolio of Debit Cards with the introduction YES FIRST
Our ESG focus of Near Field Communication (NFC) technology across card variants to enable
The YES FIRST Program is a flagship offering for the High Net-worth Individuals (HNI)
43 Environment contactless payments in FY 2016-17. Segmented across its flagship customer segments,
segment of the Bank’s customer base, encompassing premium products across
54 Social YES Prosperity and YES FIRST have been carefully customised and designed around
liabilities and assets along with a comprehensive suite of wealth management solutions.
69 People the specific needs of Debit Card customers. The cards offer unique benefits such
The relationship-led proposition is coupled with Debit and Credit Card offerings that
80 Governance as reward points on all spends, NFC-enabled contactless payments, complimentary
provide a host of features catering specifically to the needs of this segment.
lounge access at domestic airports on select Debit Card variants, MasterCard
Statutory Reports golf lesson on YES FIRST range of Debit Cards and YES InControl with card spend YES PREMIA
management features. The YES Prosperity Debit Card range comprises YES Prosperity The Bank has identified the affluent segment as a key growth driver. As part of
Titanium, Titanium Plus, Platinum and RuPay Platinum Debit Cards, whereas the YES a focused strategy, the Bank launched YES PREMIA as a dedicated offering for the
FIRST range includes the YES FIRST WORLD Debit Card. The Bank issues these cards to affluent segment towards the end of 2019. This offering uniquely addresses the
all new customers, and focuses on offering them to its existing Debit Card customers. needs of both individual and non-individual customers. Customers are serviced by a
Financial Statements The Bank launched a new Debit Card variant ‘YES PREMIA WORLD Debit Card’ for dedicated Relationship Manager for all their financial needs with customised solutions
198 Standalone Financials its new customer segment YES PREMIA, which is between YES Prosperity and YES across a range of liability, asset, transaction and wealth products. Customers enjoy a
267 Consolidated Financials FIRST segments. In FY 2020-21, the Bank has doubled its profitability in this segment bouquet of thoughtfully selected features on their YES PREMIA Debit and Credit Card.
86
This year, the Bank expanded its customer footprint in this offering through upgrade Inclusive & Social Banking and Microfinance Banking
Contents of existing eligible customers and acquisition of new-to-bank affluent customers. In line with its commitment towards sustainable ‘inclusive growth’ in the rural and
Corporate Overview
01 Commitment. Promise. Transparency. Global Indian Banking semi-urban segment, YES BANK has always focused on frugal innovations and key
A redefined YES partnerships to create viable business models, while providing ‘access to finance’ to
YES BANK offers superior banking products and services for Indians settled across the
02 Key highlights FY 2019-20 the bottom-of-the-pyramid (BOP) customers. It has a two-pronged strategy involving
globe and strives to continually enhance these offerings. FY 2019-20 witnessed a host
03 YES BANK at a glance divisions – Inclusive and Social Banking (ISB) and Microfinance Banking (MFB)
of developments across the Bank’s Global Indian Banking (GIB) proposition. The Bank
05 Products and services for implementation of various financial inclusion initiatives, albeit in a profitable
accelerated its digital interface with the introduction of booking of Term Deposits
06 Geographical presence manner. Further, to provide comprehensive services, the Bank has aligned the ISB
and nominee management modules on YES Robot, in just a few clicks. The Bank has
07 Message from the Chairman & MFB businesses with its rural branches and has also deepened the distribution
augmented its inward remittance solution YES Remit for NRIs based out of UAE, and
10 Message from the Managing Director channel through Business Correspondent (BC) branches and BC managed Banking
and CEO has introduced competitive forex rates. Overdraft facility against Premium Rupee Plan
Outlets (BCBOs).
12 Key performance indicators (PRP) was launched to help NRI customers meet their urgent financial requirements.
15 COVID-19 response The Bank also introduced the facility of processing financial transactions basis email
17 Customer focus instructions. The Bank further strengthened its Portfolio Investment Scheme (PIS)
21 Technology and digital innovation offering by introducing capital gain deduction on FY basis. The Bank also organised the
25 Retail NRI Festival FY 2019-20 to enhance visibility of YES BANK’s NRI Services by engaging
with various NRI associations, clubs and societies across the country and overseas. Its
representative office in Abu Dhabi, UAE, completed five years of operation, and has
contributed to making UAE its largest market for GIB business.
31 Our strategy
36 Risk management Rural Banking Group
Our ESG focus The Rural Banking Group aims to provide financial inclusion and Agri-Credit facility/
43 Environment Working Capital finance to the Priority sector in semi-urban and rural geography
54 Social through 409 branches and 21 Business Correspondent Banking Outlets.
69 People
YES BANK caters to each segment of the rural value chain – individuals (farmers,
80 Governance
professionals and self-employed), traders (dealers/distributors, arthiyas), MSMEs
Statutory Reports and rural institutions using digitally enabled, customised proposition across product
84 Management discussion and analysis segments of – Liabilities, Assets, Insurance and Investment. The Bank meets the credit
106 Directors’ report related requirements of its agriculture customers through Kisan Credit Cards, dairy
146 Report on corporate governance and farm mechanisation financing products as well as Micro-enterprise financing
187 Annual business responsibility report solutions for rural entrepreneurs.
Financial Statements The Bank provided banking services to 4 lakh customers and credit facilities to
198 Standalone Financials 13,400 farmers/Micro-entrepreneurs across 1,125 YES villages in 120 districts as on ISB Customer
March 31, 2020.
87
Product, Programmes & Portfolio and Outreach

Contents
The Bank promotes microfinance as an important asset class within its core business.
Corporate Overview
On the wholesale side, the Bank, through its MFB division, extends term loans to
A redefined YES Microfinance Institutions (MFIs) for on-lending, cash management services and rated
02 Key highlights FY 2019-20 capital market loan products like pool securitisation and Pass Through Certificates
03 YES BANK at a glance (PTCs). On the retail side, the Bank’s ISB division, through its flagship group-lending
05 Products and services programme, ‘YES Livelihood Enhancement Action Programme’ (YES LEAP), provides
06 Geographical presence financial services to women self-help groups (SHGs) and joint liability groups (JLGs)
07 Message from the Chairman through Corporates/MFIs as BCs. As 100% of these groups are women centric,
10 Message from the Managing Director YES LEAP has been able to contribute significantly towards strengthening women
and CEO entrepreneurship and empowerment in remote areas of India. As on March 31, 2020,
12 Key performance indicators the Bank has an active women customer base of 10.5 lakh. Since inception of the
programme, a cumulative disbursement of over `10,664 crore has been achieved,
17 Customer focus
reaching out to over 29 lakh families till date. Besides, the Bank offers bigger ticket
Micro Individual Business Loans to the graduated microfinance clients to augment
25 Retail ISB Customers
their existing business. Further, the Bank has also extended a customised loan cover
Our approach to value creation life insurance product to women customers and their families, thereby insuring over
29 Value creation model 10.7 lakh lives as on March 31, 2020.
31 Our strategy
Customer Engagement and Benefit Programmes
36 Risk management
To provide holistic development services, the Bank undertakes continuous
Our ESG focus
interventions for engaging with customers. It has introduced a highly innovative, yet
43 Environment
‘easy-to-use’ grievance resolution mechanism through Missed Call. The missed call is
54 Social
reciprocated with a vernacular call-back within 24 hours, thereby enabling customers
69 People
to register their complaints comfortably. To promote Financial Literacy, the Bank has
80 Governance
designed customised modules in collaboration with Accion International, and over
Statutory Reports 3.1 lakh customers have been provided basic financial literacy training through these
84 Management discussion and analysis modules till date. The Bank has also designed short story-based push call messages
106 Directors’ report on financial education topics with AwaazDe, which are sent in vernacular languages.
146 Report on corporate governance Besides, over 2,481 Financial Literacy Camps have also been conducted this year by
187 Annual business responsibility report the rural branches of the Bank.
198 Standalone Financials The Bank has extended a customised loan cover life insurance
Group Meeting - JLG program
267 Consolidated Financials product to women customers and their families, thereby
insuring over 10.7 lakh lives as on March 31, 2020.
88
Credit Cards Small Enterprises Banking

Contents
YES BANK Credit Cards have created a successful franchise through their customer- The Small Enterprises Banking (SEB) Group serves enterprises with a turnover in the
Corporate Overview
first approach, strong product suite, evolved distribution strategy and superior range of `15 crore to `100 crore. With dedicated 445+ Relationship Managers, product
A redefined YES customer service, which are complemented by robust risk management systems. specialists, and industry experts, the Bank focuses on providing continuous support
02 Key highlights FY 2019-20 and solutions across 210 locations.
With a total of ~9 lakh customers (80% growth over FY 2018-19) and cumulative
card spends of `6,500 crore in FY 2019-20, the business is scaling up, supported by The ‘Knowledge Banking’ expertise with an ‘Inclusive Banking’ approach towards
significant investments in platform, people and technology. The current product suite serving the needs of small enterprises acts as key differentiators for YES BANK. The
consists of 13 products across Consumer, SME and Commercial Cards with Yes Private Bank is consistently working towards making the banking experience more convenient
Card being the flagship product offering industry leading benefits. The Bank launched by harnessing the power of data and technology to create easy access to finance for
and CEO YES CART, a compare and buy platform, where customers can compare prices of the MSMEs and reducing overall Turn-Around Time (TAT).
12 Key performance indicators various products such as electronics, apparel, appliances and air tickets across leading
Smart Edge: The Bank recently launched an industry-first surrogate lending
15 COVID-19 response e-commerce platforms and get bonus reward points and cashback offers.
programme, ‘Smart Edge’, wherein an MSME can avail secured working capital limits
17 Customer focus
Apart from a strong distribution strategy, the business focuses on incremental from `1 crore to `3 crore based on GST returns and bank account transactions.
customer engagement backed by strong alliances and partnerships, resulting in
25 Retail YES MSME Mobile App / Web portal: With the shift towards digital transactions,
higher card spends, activation rates and growing wallet size.
YES BANK has curated a digital platform, especially for MSMEs and self-employed
Retail Banking Assets customers to enable them to undertake their business banking transactions
In line with the objective of continually strengthening the retail offerings, and with digitally and instantly.
31 Our strategy
36 Risk management customer satisfaction as the main objective, the Bank has expanded the product On the trade side, the focus has been on customer engagement for increasing penetration
offering by aligning Working Capital under Micro Enterprises Banking Group on 'Smart Trade' application. Smart Trade is a secure platform for the initiation of online
Our ESG focus
(for customers with turnover of up to `15 crore) within the overall Retail Banking trade transactions, through which customers can place the trade transaction request,
43 Environment
Assets Group. The Bank’s customers can select a wide range of Retail Loan products which will automatically flow to the Bank for processing, without visiting the branch.
54 Social
like Affordable Home Loans (YES KHUSHI), Home Loans, Car Loans, Super Bike Loans,
69 People In line with our strategy to institutionalise the ‘Knowledge Banking' approach, the
Commercial Vehicle Loans, Construction Equipment Loans, Loans against Securities,
80 Governance Bank has partnered and inked MoUs with various trade and industry associations
Gold Loans, Personal Loans, Secured Business Loans, Health Care Finance and Printing
Statutory Reports Equipment Finance, along with Working Capital under one roof. The Bank has entered including the Government of India enterprises to conduct banking knowledge events,
84 Management discussion and analysis into Preferred Financer agreement with leading automobile manufacturers across conducted MSME cluster development programmes in RBI defined clusters and
106 Directors’ report cars, commercial vehicles and construction equipment, thereby giving access to the loan carnivals to provide easy and inclusive financial assistance, ensuring that the
146 Report on corporate governance wholesale and retail business of the manufacturing dealers across the country. The customers have access to best-in-class schemes and benefits.
187 Annual business responsibility report Bank currently offers retail products across 68 locations in 490 branches.
89
This differentiated positioning, along with customised solutions, dedicated relationship YES BANK concentrated on credit quality and all offerings were made following
Contents team, knowledge-banking experts and an extensive network delivers unmatched one- an analysis of the client’s risk profile as well as monitoring of credit, market and
Corporate Overview stop service to small enterprises, addressing their end-to-end requirements. operational risks.
A redefined YES Agribusiness Product Management The Bank offered industry-specific products by understanding customer businesses,
02 Key highlights FY 2019-20 market conditions and industry developments. This distinctive approach translated
The Bank has institutionalised a specialised vertical viz., Agribusiness Product
03 YES BANK at a glance into mutually beneficial relationships with clients in knowledge-driven sectors such as
Management (APM), which houses industry and banking professionals with the
05 Products and services life sciences & healthcare, information technology, food & agribusiness, manufacturing,
relevant domain knowledge and skill sets. The team closely interacts with F&A clients
06 Geographical presence infrastructure, media & entertainment, and hospitality & education, among others.
to create structured lending propositions for agri value chain participants – farmers,
MSMEs as well as corporates, and facilitates building of banking opportunities in the The Bank remains committed to continuous improvement in service, risk management
and CEO agri value chain through structured financial products that are regulatory compliant, and product portfolio through original research, benchmarking and client orientation.
12 Key performance indicators while mitigating credit risk. The team is also responsible for ensuring that the Bank
15 COVID-19 response meets the regulatory Priority Sector Lending (PSL) norms, in collaboration with the CORPORATE FINANCE – INFRASTRUCTURE BANKING (CFIB)
17 Customer focus other Business Units that generate PSL assets. The CFIB Group enjoys a strong engagement through a dedicated relationship team
21 Technology and digital innovation that cater to large corporates across the Infrastructure and Core Industry segments.
As a part of agri value chain financing, the Bank has created a portfolio against
25 Retail The Group has underwritten many marquee deals in corporate lending, projects and
pledge of agri commodities while ensuring adequate risk mitigation. Within APM,
infrastructure financing. The Group has been instrumental in financing across the
Our approach to value creation a specialised team closely monitors the commodity pledge financing portfolio and
value chain of key infrastructure sectors and has also successfully distributed these
29 Value creation model mitigates the inherent risks through mark to market of commodity prices and regular
exposure to other lenders. The Group has also been at the forefront in providing
31 Our strategy audits. Another focus area of the Bank has been the emerging segment of Farmer
financial and risk management solutions.
36 Risk management Producer Companies (FPC), wherein the Bank is partnering with select FPCs with
Our ESG focus sustainable business models, in an effort to create a sizeable and profitable portfolio. The Group includes product teams with sectoral knowledge across key sectors like
43 Environment renewable power, ports, airports, roads, manufacturing thereby helping facilitate
CORPORATE BANKING
54 Social underwriting of exposures across other corporate segments for the Bank. The products
YES BANK’s Corporate Banking (CB) Group provided comprehensive financial and risk team also engages with other key stakeholders to deepen their understanding of
69 People
management solutions to large corporate clients. The Bank’s professional relationship the sector and help devise a sector-wise strategy. The sector expertise also helps in
80 Governance
experts forged value-based, long-term relationships with the top management and providing comprehensive industry specific products which facilitate quick turnaround
Statutory Reports promoters of almost all large corporate houses in India. time (TAT) and successful closure.
106 Directors’ report The Bank’s CB Group offered comprehensive client-focused services comprising In addition to regular Working Capital, Transaction Banking and Corporate Funding
146 Report on corporate governance Working Capital Finance, Term Loans, Specialised Corporate Finance Products, requirements, CFIB also provides Specialised Corporate Finance Products and
187 Annual business responsibility report Transaction Banking Products – Trade Finance & Cash Management Services, Debt comprehensive Projects Financing solutions as well as liability driven opportunities
Capital Markets, Treasury Services, Investment Banking Solutions and Liquidity and customising funding solutions to the B2B2C segments.
Financial Statements Management Solutions, among others. With the theme of Ecosystem Banking,
198 Standalone Financials YES BANK focuses on the ecosystem of the customer by catering to vendors and
customers of corporates, thus ensuring seamless service to the customers.
90
MULTINATIONAL CORPORATE BANKING ELC is deeply entrenched in new-age entrepreneurship ecosystem emerging across
Contents India, by providing bespoke digital solutions, incubation and networking platforms to
YES BANK’s Multinational Corporate Banking (MCB) Group provides comprehensive
Corporate Overview e-commerce and IT & ITeS startups. The Bank has a dedicated team providing innovative
client-focused services comprising Liquidity Management Solutions, Treasury Risk
Management Solutions, Transaction Banking Products – Trade Finance & Cash banking solutions for the unique requirements of the e-commerce industry. Over
A redefined YES
Management Services, Supply Chain Finance, Working Capital Finance, Term Loans, 150 top e-commerce firms in India have placed their trust with YES BANK. Working in
03 YES BANK at a glance Specialised Corporate Finance Solutions, Debt Capital Markets and Investment unison with Digital Banking and Transaction Banking teams of the Bank, this team has
05 Products and services Banking solutions to multinational corporate clients, International Private Equity and been instrumental in delivering ‘Industry First’ solutions like API Banking to various
06 Geographical presence Venture Capital Funds. e-commerce firms.
07 Message from the Chairman The ELC segment continues to present a significant growth opportunity for the Bank.
The Bank has positioned itself as the preferred host country banking partner to
and CEO international business houses by extending its expertise, strong technology platform GOVERNMENT BANKING
12 Key performance indicators for banking transactions, and deep understanding of the country’s regulatory
At YES BANK, the Government Banking (GB) team addresses the financial and banking
15 COVID-19 response framework to guide new-to-India establishments on banking matters, and help them
needs of the Central and State Government undertakings, and their affiliates.
17 Customer focus focus on their core business.
21 Technology and digital innovation Over the years, the Bank has provided financial and advisory services to ministries
The Bank has built a self-financed sustainable asset book for this segment through
25 Retail under the Union Government, State Governments, Central and State Public Sector
a focus on liability mobilisation and comprehensive credit analysis of the borrower
Undertakings (PSUs), Boards and other affiliates. The Bank remains committed
Our approach to value creation company’s domestic and international businesses. Looking beyond transactional
to delivering innovative, structured and comprehensive solutions, accomplishing
29 Value creation model banking with an unrelenting focus on Knowledge Banking, the Bank acts as a strategic
several landmark transactions with Maharatnas, Navratnas, Mini-Ratnas, and other
31 Our strategy partner for several marquee multinational corporates.
apex institutions. The team has developed relationships with 2,300+ entities across
36 Risk management
EMERGING LOCAL CORPORATES (ELC) India. GB remains committed to the core values of client origination, innovation and
Our ESG focus superior service.
The Emerging Local Corporates focus on corporates with turnover between `100 crore
43 Environment
and `1,000 crore. With presence at over 35 locations, ELC aptly lives up to the ‘Local’ role In continuation of YES BANK’s strong commitment toward sustainable growth, the
54 Social
by remaining closer to its customers, developing a thorough understanding of their Bank partnered with the Central Government and State Government(s) for their
69 People
banking needs and delivering customised solutions across the spectrum of banking flagship events during FY 2019-20. YES BANK was the ‘Knowledge Partner’ for the
80 Governance
services. The foundation pillars of ELC are granular book, robust risk management, ‘Vibrant Goa Global Expo & Summit 2019’ organised by the Vibrant Goa Foundation
Statutory Reports localised relationship management, strong digital penetration, cash & trade solutions and the Government of Goa and prepared the flagship investor handbook ‘Invest in
84 Management discussion and analysis and sustainable growth. Goa: Land of Happiness, Sea of Opportunities’. The handbook also included sectoral
ELC uses its Knowledge Banking approach to cater to the requirements of focus background papers on tourism, pharma & healthcare, start-up & e-mobility, and agro
sectors, including auto components, food & agri-processing, media & entertainment, & food processing sectors in the state. YES BANK signed MoU with the Meghalaya State
pharmaceuticals & specialty chemicals, and offers customised suite of financial Olympic Association to extend advisory, knowledge and banking services to promote
Financial Statements products including Cash Management Solutions, Trade, and Treasury by leveraging sports and tourism in Meghalaya, with a focus on the upcoming National Games 2022.
198 Standalone Financials cutting-edge technology. The Bank also aligns with State Governments and their entities to support them in
91
their sustainable mobility initiatives. YES BANK has worked on developing the Electric INTERNATIONAL BANKING
Contents Vehicle Policy for the states of Punjab, Rajasthan, Telangana and Goa, and also in YES – International Banking enjoys a partner network of international banks, financial
Corporate Overview supporting a few others in accelerating adoption and deployment of EV charging
institutions, exchange houses, and official bodies. Over the years, it has executed
infrastructure. marquee transactions across products and geographies through its global banking
A redefined YES
02 Key highlights FY 2019-20 YES BANK made concerted efforts towards innovating the collection and payment partner network, including large-ticket offshore borrowings for the Bank by tapping
03 YES BANK at a glance mechanisms of the State Development & Procurement Agencies through customised unique structures and new geographies.
05 Products and services digital solutions, besides supporting educational, religious and sporting institutions YES – International Banking provides a complete suite of products and solutions
06 Geographical presence across India through unique Transaction Banking offerings aimed at streamlining the such as Trade Finance, Treasury Services, Investment Banking Solutions, Remittance
07 Message from the Chairman working capital management of these important institutions. YES BANK continues to Solutions, Financial Advisory and Global Indian Banking for its partner institutions
partner with State Government(s) for disbursement under various schemes through and internal stakeholders. It has consistently delivered unique and first-to-market
and CEO
the Public Financial Management System (PFMS) Mode of payment to ensure seamless offerings, leveraging its global alliances. The Bank is among the preferred partners
last mile beneficiary disbursement tracking. by international institutions to meet their clients’ banking requirements in India.
17 Customer focus INDIAN FINANCIAL INSTITUTIONS BANKING YES – International Banking, in coordination with Multinational Corporate Banking,
21 Technology and digital innovation helped position the Bank as the preferred ‘host-country bank’ by capitalising its rich
The Bank’s Indian Financial Institutions Banking (IFIB) group engages with domestic
25 Retail relationship capital.
financial institutions. The team primarily offers correspondent banking solutions to
Our approach to value creation domestic banks and banking solutions to various financial institutions, non-banking YES – International Banking focuses on emerging markets as a preferred host-country
29 Value creation model finance companies, housing finance companies, asset finance companies, insurance banker and payments bank to global counterparts. As a result, more institutions
31 Our strategy companies, insurance intermediaries, mutual funds, small finance banks, payment utilised the Bank’s network for their India-linked businesses. YES – International
36 Risk management banks, domestic private equity funds, cooperative banks, regional rural banks, capital Banking has well-established relationships and a growing wallet share with exchange
Our ESG focus market participants (stock exchanges, stock brokers, commodity brokers, exchanges, houses across key geographies that are host to the Indian diaspora. It includes the
43 Environment and foreign portfolio investors), primary dealers, depositories and regulated payment US, the UK, Europe, Asia-Pacific (APAC) and GCC, and through these it originates a
54 Social operators (Authorised Dealer II (AD II) License holders, Full-Fledged Money Changers, significant portion of NRI remittances into India.
69 People PPI Operators, Payment Aggregators, MTOs & Principal Agents).
INTERNATIONAL FOOTPRINT
80 Governance The Bank actively engages with institutions like National Bank for Agriculture and YES BANK was the first bank in India to commence operations at the International
Statutory Reports Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), Financial Services Centre (IFSC) in GIFT City, Gujarat, in October 2015. The customer
84 Management discussion and analysis Export-Import Bank of India (EXIM Bank) and National Housing Bank (NHB) to avail advances and investments of the Bank’s IFSC Banking Unit (IBU) stood at ~US$ 1.90
106 Directors’ report refinance. It also connects with overseas branches of domestic banks to avail foreign billion as on March 31, 2020. GIFT-IFSC Banking Unit (IBU) provides comprehensive
146 Report on corporate governance currency borrowings and trade credit. solutions to the Bank’s clients to meet their foreign currency banking requirements
187 Annual business responsibility report in the domains of Cross Border Trade offerings, External Commercial Borrowings
The Bank has successfully deployed its Application Programming Interface (API)
Financial Statements Banking, a technology which has emerged as a key service to integrate and streamline and Foreign Currency Loans/Syndications and Arrangement/Underwriting of Masala
198 Standalone Financials the transaction processing cycle to offer real-time instant banking facility to Non- Bonds issuance by Indian corporates, among others.
267 Consolidated Financials Banking Financial Companies (NBFCs), mutual funds, stock brokers, cooperative
banks and other financial institutions.
92
Transaction Banking is always on client relationships and their growth. Over 100 professionals serve client
Contents needs through branches in various parts of the country.
Transaction Banking Group (TBG) at YES BANK specializes in providing trade finance
Corporate Overview
and cash management services to both Corporates and Financial Institutions. TBG’s • Foreign Exchange (FX) sales: The Bank offers customised solutions for foreign
A redefined YES comprehensive product suite, YES TRANSACT caters to unique working capital and exchange risk management to more than 35,000 clients pan India. Clients include
02 Key highlights FY 2019-20 liquidity management requirements of businesses across sectors including: large and midsize corporates, PSUs, MNCs, banks, private equities etc. The Bank
03 YES BANK at a glance has also developed a retail franchise for FX business which caters to SME, HNI,
• Cash Management Services for Collections and Payments
05 Products and services NRI and others. The FX Sales business provides spot and derivative products for
06 Geographical presence • Customized & Innovative Digital Solutioning, including our market-leading API efficient hedging of Foreign Currency and Interest Rate exposures of the Bank’s
07 Message from the Chairman Banking backed solutions Institutional, Corporate, SME and Retail customers. Products include Forex
• Digital solutions for Central and State Financial Institutions Advisory for trade flows/FDIs/Capital Flows/ECBs/ADR and hedging solutions for
and CEO
currency and interest rate exposure. There is a dedicated Treasury Sales Manager
• Fiduciary Services – Escrow, Nodal and RERA for each account offering personal attention to provide key services like timely
17 Customer focus • Capital Market related products market insights and sector expertise. In a bid for digital push the Bank also offers
21 Technology and digital innovation electronic execution in various forms.
• Solutions for Trusts, Associations, Societies and Clubs
25 Retail • Primary dealership: The Bank is a Primary Dealer (PD) for Government of India
• Trade Finance – Letters of Credit, Bank Guarantees, Export & Import Credit Securities and as part of this mandate, it underwrites and bids for Government
and Remittances Securities in the auction held by the Reserve Bank of India. The PD desk actively
31 Our strategy • Structured Trade Finance and Supply Chain Financing trades, distributes and makes market for dated Government Securities, T-bills,
36 Risk management State Government Bonds, Overnight Interest Swaps, Mumbai Interbank Forward
• Foreign Exchange Services – Currency Import Offer Rate (MIFOR) and Interest Rate Futures, thus providing a complete suite of
Our ESG focus
• Bullion sales and Gold Metal loan sovereign debt and rates offering for mutual funds, insurance companies, FPIs/
43 Environment
FIIs, cooperative banks, provident funds and retail customers. The PD desk has
54 Social TBG leverages product and technology expertise to offer innovative digital solutions been at the forefront to adopt new market instruments and has been active in
69 People by designing, developing and co-creating products with Corporate clients, Fintech/ Interest Rate Futures (IRF) as well as Government Securities’ STRIPS. In its third
80 Governance Technology partners, Global Banks and Exchange Houses. TBG effectively drives year of operation, the Asset Benchmark Research ranked the desk as the fourth
Statutory Reports digitization of financial supply chain of businesses across sectors using its flagship best Primary Dealership Franchise for primary auction of Government Securities.
84 Management discussion and analysis API banking and Fintech partnerships. Since its introduction in September 2015,
106 Directors’ report YES BANK’s API banking includes over 350+ API related services and has resulted in • Debt capital markets services: The Debt Capital Markets business originates
146 Report on corporate governance 1500+ client implementations. and distributes onshore Non-Convertible Debentures (NCDs), offshore Masala and
187 Annual business responsibility report foreign currency bonds, commercial papers and other structured finance products.
Financial Markets The Bank’s origination clientele includes large and mid-market corporates, PSUs,
Financial Statements The Financial Markets segment offers a full range of products and services to corporate, Central and State Government entities and NBFCs. On the distribution front, the
198 Standalone Financials government, retail and institutional clients. Whether providing comprehensive DCM desk has developed strong relationships across various investor segments
advisory services, macroeconomic research or debt capital markets services, its focus including mutual funds, insurance companies, provident and pension funds, FPIs/
93
FIIs, banks, private wealth managers and NBFCs. In the recent past, the DCM The team’s consistent performance has placed the Bank among the top three
Contents business has successfully executed structures ranging from vanilla transactions syndication houses for CY 2019 (domestic currency segment) in the league table
Corporate Overview to highly structured debt solutions, including renewable asset pooling structure, ranking for India by both Bloomberg and Thomson.
securitisation of infrastructure assets, lease rental discounting and InvIT bonds.
A redefined YES Asset Reconstruction and Management Group
Besides garnering a spot in the prestigious league table rankings, YES BANK DCM
03 YES BANK at a glance also won various awards and accolades in FY 2019-20. YES BANK’s Asset Reconstruction and Management Group (ARM) leads management
05 Products and services of distressed and non-performing assets. The Group provides effective solutions
Loan Syndications for resolving stressed assets by leveraging its rehabilitation, regulatory and
07 Message from the Chairman The Loans Syndication (LS) team has created brand equity across stakeholders recovery understanding.
10 Message from the Managing Director including banks, NBFCs, foreign lenders, and other financial institutions. Over the years,
The ARM Group employs multi-pronged resolution strategies, which includes
and CEO the team has demonstrated credit appraisal and structuring skills as well as sectoral
operational and financial restructuring, identifying strategic investors for takeover
12 Key performance indicators knowledge, basis which the Bank has underwritten exposures in various sectors
of stressed assets, resolution through the insolvency and bankruptcy framework,
including India’s first Toll Operate Transfer (TOT) project (awarded by NHAI and won
17 Customer focus negotiating with borrowers for one-time settlement, recovering through the
by Macquarie Group), Adani Electricity Mumbai Limited (Electricity Distribution) and
21 Technology and digital innovation enforcement of security interest under the Securitisation Act and selling NPAs to Asset
Mahindra Renewables Private Limited (Renewable sector) with aggregate exposure
25 Retail Reconstruction Companies (ARCs)/other investors to optimise recovery outcomes.
in these transactions of more than `12,000 crore. With its outreach, the team has
Our approach to value creation consistently distributed such strong corporate/project finance loan exposure to PROCESS OVERVIEW
29 Value creation model banks, NBFCs and financial institutions, improving capital churning and effective Human Capital Management
31 Our strategy yields on the Bank’s advances.
YES BANK pursues a strong employee value proposition of ‘Creating and Sharing
36 Risk management
During the challenging period faced by the Bank, the team has, in the true sense, Value’ driven by the ethos of Professional Entrepreneurship. A talent philosophy of
Our ESG focus worked in a coordinated manner as a business syndication team, bringing out the the Owner-Partner-Manager and superior employee experience, it is designed to
43 Environment synergies between various stakeholders (both internal and external). encourage and reinforce a strong culture promoting meritocracy, performance and
54 Social prudent risk taking.
The LS team has been able to place underwritten deals/Inter Bank Participation
69 People
Certificates aggregating to ~`26,000 crore in FY 2019-20 with broad spectrum of Banks, [Read more on YES BANK’s employee engagement and people practices on Page 70]
80 Governance
NFBCs and FIs. This is the highest-ever sell down since inception of the team (~`14,000
Statutory Reports crore), improving not only Return on Equity (ROE) on these deals, but also supporting Risk Management
84 Management discussion and analysis the Bank's liquidity and capital requirements. The portfolio comprises players across The long-term financial security and success of a Bank are built on its risk management
106 Directors’ report the manufacturing, renewable energy, roads, airports, power transmission, ports and framework. Risk Management at YES BANK is based on three lines of defence: Business
146 Report on corporate governance real estate sectors.
94
units, Independent Credit & Control Functions, and Audit. The Board of Directors of The IAD is staffed with qualified team members with relevant certifications. Through
Contents the Bank has the overall responsibility for Risk Management. The Risk Management an effective training programme, the IAD ensures that all the team members are
Corporate Overview Architecture of the Bank is overseen by four Board-level Committees, which strive to upskilled at frequent intervals.
put in place specific policies, frameworks and systems for effectively managing the
A redefined YES The function has adopted a risk-based approach of Internal Audit structured after
Bank’s various risks:
02 Key highlights FY 2019-20 considering RBI guidelines and internationally established best practices. A Risk
03 YES BANK at a glance Fraud, Wilful Defaulters Based Audit Plan (RBAP) is prepared annually and is duly approved by the ACB. Under
05 Products and services Risk Monitoring and Non-Cooperative the RBAP, audit of various businesses, operations, information security/systems and
06 Geographical presence Committee (RMC) Borrowers Monitoring Committee
support units, is carried out. The ACB monitors the progress of the RBAP, at least
07 Message from the Chairman quarterly. The IAD prepares a report for each audit and recommends mitigation plans
for the risks identified and ensures compliance with all the recommendations.
and CEO
12 Key performance indicators Additionally, the Bank also subjects its operations to Concurrent Audit by reputed audit
15 COVID-19 response firms to complement its Internal Audit function. The Concurrent Audit covers core
17 Customer focus activities such as the Operations (including credit), Financial Markets, Data Centre and
21 Technology and digital innovation Branches in compliance with the regulatory guidelines. All audit reports are circulated
25 Retail to the relevant management teams and the Audit Committee of the Board.
Our approach to value creation Compliance
29 Value creation model Audit Board Credit
Committee Committee (BCC) Ensuring compliance with regulatory requirements and building trust among all its
31 Our strategy
stakeholders is an overarching consideration at YES BANK. The dedicated Compliance
36 Risk management [Read more on YES BANK’s risk management on Page 36]
Department strives to be at the forefront of regulatory changes and continues to
Our ESG focus Internal Audit work closely with all businesses and operations at the Bank, in order to be compliant
43 Environment with all existing and new requirements. The key functions of this department include
The Bank’s Internal Audit Department which is ISO 9001:2015 certified (Quality
54 Social identifying effective procedures and corresponding controls to support the Bank’s
Management System) provides independent, objective assurance and consulting
69 People business divisions as well as dissemination of key regulatory updates affecting
services designed to add value and improve the Bank’s risk and control environment.
80 Governance the various businesses of the Bank. The department also reviews new products
The IAD aids the Bank’s Management through its assessments to monitor adequacy,
Statutory Reports effectiveness, and adherence to internal controls, processes and procedures instituted and processes from a regulatory compliance perspective, provides guidance on
84 Management discussion and analysis by the Management and extant regulations. compliance-related matters, conducts compliance reviews and imparts training to
106 Directors’ report employees on compliance aspects, among others. The Bank has also put in place a
146 Report on corporate governance IAD reports to the Audit Committee of the Board (ACB) for audit planning, reporting ‘Know Your Customer’ and ‘Anti-Money Laundering Policy’ approved by the Board of
187 Annual business responsibility report and review. IAD has unlimited and unrestricted access to all relevant data, systems, Directors, and transaction monitoring procedures, as per the regulatory guidelines.
personnel and information in order to achieve its objectives.
95
YES BANK SUBSIDIARIES Business

Contents
Corporate Overview
YES Securities (India) Limited (YSIL) Wealth Broking & Investment Advisory
01 Commitment. Promise. Transparency. YES Securities (India) Limited (YSIL) is the Bank’s wholly owned capital markets During FY 2019-20, YSIL’s Wealth Broking & Investment Advisory business continued
A redefined YES intermediary. YSIL, today, offers retail, HNI and corporate customers a comprehensive to enhance its bouquet of products and services to meet investment requirements of
02 Key highlights FY 2019-20 range of products and services, encompassing Wealth Broking, Investment Advisory, varied customer segments. It offers a best-in-class 3-in-1 proposition in major cities
03 YES BANK at a glance Investment Banking (including a dedicated Sustainable Investment Banking across India. YSIL also launched an advanced and easy-to-use self-investing platform
05 Products and services practice), Merchant Banking, Research and Institutional Equities services. YSIL is a across Web, Mobile & EXE to further complement the assisted dealing desk.
06 Geographical presence SEBI* registered stock broker holding membership of the National Stock Exchange Key highlights of FY 2019-20
07 Message from the Chairman (NSE), Bombay Stock Exchange (BSE), Multi Commodity Exchange (MCX) & National
10 Message from the Managing Director • 96% y-o-y growth in Broking and Delayed Payment Charges (DPC) income
Commodity & Derivatives Exchange (NCDEX). YSIL is also a SEBI-registered Category I
and CEO
Merchant Banker, Investment Adviser and Research Analyst. • 146% y-o-y growth in Portfolio Investment Advisory (PIA) Assets under Advisory (AuA)
15 COVID-19 response • Launched multiple products under wealth broking and portfolio investment advisory
17 Customer focus Wealth Broking &
21 Technology and digital innovation Investment Advisory
• Expanded its reach to premium bank client categories like MIB/SEB and Retail Assets
25 Retail • Launched Learning Academy – a knowledge-based proposition
Our approach to value creation • Launched and set up a dedicated Commodity Desk
31 Our strategy • Now operating from 9 branch locations across India, including a dedicated HNI
36 Risk management Dealing Desk based out of the Corporate Office in Mumbai
Sustainable Institutional
Investment Banking Research & Sales
YSIL
Our ESG focus
During FY 2019-20, YSIL strode towards achieving the long-term vision of establishing
43 Environment
itself as a research and advisory backed, client-centric, multi-asset wealth solutions
54 Social
provider. YSIL has further strengthened its product team with expertise across
69 People
asset classes – Equity, Derivatives, Debt, Advisory/Fund Management, Commodities,
80 Governance
Merchant Investment Currency, as well as a dedicated team focusing on developing digital products. During
Statutory Reports Banking Banking the year, YSIL also set up a business alliances channel in order to scale business via the
84 Management discussion and analysis Authorised Partners channel. The Company significantly strengthened its research
106 Directors’ report credentials and expanded its research coverage universe across fundamental,
*Securities and Exchange Board of India
146 Report on corporate governance thematic and technical insights. Some key developments in YSIL:
96
1. Broking quantitative methods of screening, keeping in mind the risk profile and goals
Contents • Launched Stock Basket that enables customers to invest in five well-researched of the investor. Also, YES Essentials is a platform on which an investor can
Corporate Overview basket of stocks. The portfolio is reviewed on a quarterly basis. execute his Mutual Fund Transactions (Lumpsum or SIP).
A redefined YES • Launched Learning Academy, that provides screening of client’s portfolio basis Investor Education Initiative(s)
02 Key highlights FY 2019-20 their Consolidated Account Statement (CAS) YES MasterClass: Multi-city events were organised to deliver investor education and
2. Portfolio Investment Advisory: In FY 2019-20, YSIL launched the following investment-related insights to existing and potential YSIL customers. The initiative
advisory propositions: was supported by NSDL and YES BANK. Experts addressed the audience with the sole
purpose of empowering them to make more informed investment decisions. During
07 Message from the Chairman • Multi Adviser Multi Strategy (High Risk) FY 2019-20, YES MasterClass travelled to four cities and addressed over 200 financial
The strategy is to provide multiple portfolio options on a single platform to enthusiasts and investors.
and CEO
ensure a diversified portfolio offering. The Advisers empanelled for the same
include Sundaram & Ambit. Investors get access to portfolios of both these Additionally, YSIL also partnered with its parent, YES BANK across multiple branch and
independent market advisers on a single demat. Investors can opt for either large format-based investor education initiatives like:
17 Customer focus
21 Technology and digital innovation or both these adviser(s), as per their preference. Also, investors can shift • Tax and Investment Sessions across branches, advising clients on various asset
25 Retail allocation to adviser(s), at the end of year. classes and diversified approach of investing
Our approach to value creation • Alpha Plus (High Risk) • We Appreciate – an edutainment-based, innovative series for corporate clients of
29 Value creation model The investment strategy uses both long and short positions in markets by YES BANK
31 Our strategy employing diverse or complex derivative trading strategies for seeking alpha
and risk-adjusted return in comparison with benchmark indices. • Investment Insights Series – a panel-based investor education event for the key
36 Risk management
premium customers of YES BANK
Our ESG focus • Selectus – (Select Midcap – Series 1) (High Risk)
43 Environment The strategy is to provide long-term returns on the offered portfolios, which Investment Banking
54 Social are based on the theme of the India Growth Story. Multiple strategies offered The Investment Banking team provides Mergers and Acquisition (M&A) and Capital
69 People to investors, which focus on varied market caps and combination of market Advisory services to large and mid-market corporate and financial sponsor clients
80 Governance caps. Select Midcap – Series 1 was the latest strategy launched under the through key products such as Mergers & Acquisition Advisory and private equity/
flagship product Selectus, with a focus on building a mid-cap portfolio for long- structured debt fund raising.
Statutory Reports
term wealth generation and diversification.
84 Management discussion and analysis YSIL’s teams offer expertise across a variety of sectors including Food and Agribusiness;
106 Directors’ report • YES ESSENTIALS (Moderate to High Risk) Media and Entertainment; Renewable Energy, Consumer Markets; Infrastructure and
146 Report on corporate governance Strategy is to provide an optimal portfolio of mutual funds/exchange traded Engineering, Procurement and Construction (EPC), Banking, Financial Services and
187 Annual business responsibility report funds (MF)/Exchange Traded Funds (ETF), shortlisted through qualitative and Insurance (BFSI), Environmental Services, Internet & E-commerce, Industrials and
Financial Statements Logistics to corporate clients.
97
Some of the notable transactions that YSIL’s Investment Banking team closed/signed • Book Running Lead Manager to the `12 billion IPO for Spandana Spoorthy
Contents during the year under review include: Financial Ltd.
Corporate Overview
01 Commitment. Promise. Transparency. • Exclusive adviser to Emami Power Ltd. for sale of 43 MW operating solar portfolio • Book Running Lead Manager to the `28.80 billion IPO for Sterling & Wilson Solar
A redefined YES to Brookfield Renewables
• Book Running Lead Manager to the `19.30 billion QIP of YES BANK Ltd.
03 YES BANK at a glance • Exclusive strategic and financial adviser to Navayuga Group for divesting two
• Sole Manager to the `1.55 billion Open Offer of Olectra Greentech
05 Products and services annuity road projects to Edelweiss’s Infrastructure Yield Plus Fund
06 Geographical presence • Sole Manager to the `720 million Buyback of Vaibhav Global
• Exclusive strategic and financial adviser to Dr. Willmar Schwabe India for acquisition
07 Message from the Chairman of Sanat Products Ltd. • Sole Advisor to the `4.26 billion Employee Stock Purchase Scheme for Union Bank
of India
and CEO • Exclusive adviser to Department of Investment and Public Asset Management
12 Key performance indicators (DIPAM), Ministry of Finance, Government of India, in divesting its 100% stake in • Adviser to TATA Motors for Scheme of Arrangement involving sale of non-core
15 COVID-19 response NPCC Limited to WAPCOS Limited. defence division
17 Customer focus
21 Technology and digital innovation • Exclusive adviser to Rabo Private Equity for divesting stake in Daawat Foods Limited Institutional Sales and Trading
25 Retail • Strategic and financial adviser to Essel Infraprojects Limited for sale of four FY 2019-20 was a significant year as institutional brokerage increased by 275% over
transmission project SPVs to Edelweiss’s Infrastructure Yield Plus Fund FY 2018-19. The team successfully secured empanelment as broker with some
prominent Asset Management and Insurance companies. Backed by improved
Merchant Banking client service, execution excellence and superior research, the team succeeded in
31 Our strategy
reactivating transaction activity from valued institutional clients. YSIL has proactively
36 Risk management YSIL’s Merchant Banking practice has a strong focus on capital market activities,
engaged and ideated with clients on capital market insights, corporate road shows
Our ESG focus offering a comprehensive bouquet of products including Initial Public Offerings (IPO),
and regular research inputs.
43 Environment Qualified Institutional Placements (QIP), Rights Issues, Open Offer, Buyback, Delisting
54 Social and other advisory services. During FY 2019-20, the team successfully engaged with As on March 31, 2020, YSIL is empanelled with 36 institutions, of which, five were
69 People leading Indian companies as a fund-raising partner and trusted adviser for their capital added in FY 2019-20.
80 Governance market requirements. The team completed nine marquee transactions in FY 2019-20:
Equity Research
Statutory Reports • Book Running Lead Manager to the `6.38 billion IPO of the Indian Railways Catering YSIL’s research team was significantly strengthened in FY 2019-20. The award-
84 Management discussion and analysis and Tourism Corporation (IRCTC) – one of the highest subscribed IPOs of 2019 winning team of research analysts has rich industry experience in serving diverse
106 Directors’ report client segments and bring knowledge expertise across diverse industry sectors
• Book Running Lead Manager to the `13.45 billion IPO of Polycab India Ltd – YSIL was
146 Report on corporate governance and asset classes.
the Post-Issue Banker handling critical, time-bound activities in one of the most
highly over-subscribed IPOs; achieved record listing in 5 days, despite receipt of
Financial Statements over 12 lakh applications – highest among recent IPOs
98
The research coverage universe as of March 31, 2020 stands at 94 companies, YES Trustee Limited
Contents accounting for more than 34% of India’s listed market capitalisation. The team is well- YES Trustee Limited (YTL) was incorporated on May 3, 2017 as a wholly owned subsidiary
Corporate Overview recognised for its ability to spot high conviction midcap ideas, contra-to-market ideas
of YES BANK Limited (YBL). YTL is acting as a Trustee Company to YES Mutual Fund
and its deep corporate relationships. Besides fundamental capabilities, YSIL’s analysts (YMF). It will provide trusteeship services to all the funds launched by YMF.
A redefined YES
also have proven expertise in technical and derivative analysis.
Overview of Financial Performance
03 YES BANK at a glance During FY 2019-20, equity research team conducted 25 events/roadshows and 32
05 Products and services Key Ratios
conference calls. This ensured that YSIL constantly remained engaged with existing
06 Geographical presence clients and tapped potential ones to increase the business. Particulars FY 2019-20 FY 2018-19
07 Message from the Chairman Return on average equity (%) -113.1% 6.5%
10 Message from the Managing Director YES Asset Management (India) Limited Return on average assets (%) -7.1% 0.5%
and CEO YES Asset Management (India) Limited (YAMIL), a wholly owned subsidiary of YES BANK EPS - Basic (FV `2) (77.57) 7.4
was incorporated on April 21, 2017 and was granted approval by the Securities EPS - Diluted (FV `2) (77.57) 7.4
and Exchange Board of India (SEBI) on July 3, 2018, to act as an Asset Management Book value per share (FV `2) 17.3 116.2
17 Customer focus
Company/Investment Manager to YES Mutual Fund. Cost to income 65.7% 43.5%
Cost of funds 6.7% 6.5%
25 Retail YAMIL, driven by the motto of ‘Experience our Expertise’, seeks to build a strong mutual
Capital Adequacy Ratio Basel III 8.5% 16.5%
fund franchise to provide a complete suite of financial products for all its investors.
Our approach to value creation Tier - I 6.5% 11.3%
The Board and the team at YES Asset Management comprise professionals with rich
29 Value creation model Tier - II* 2.0% 5.2%
experience in financial services and mutual funds.
31 Our strategy Gross non performing advances (NPA) % to total advances 16.8% 3.2%
36 Risk management YAMIL seeks to combine its investors’ and stakeholders’ interests and come out with Net NPA % to total advances 5.0% 1.9%
Our ESG focus optimal solutions for its investors. To this end, YAMIL launched its first mutual fund CASA ratio to % of total deposits 26.6% 33.1%
43 Environment scheme, YES Liquid Fund in January 2019 and further followed it with the launch of * Tier I ratio of the Bank was below the regulatory minimum requirements and hence as per RBI
YES Ultra Short Term Fund and YES Overnight Fund in FY 2020. YAMIL, an integral part guidelines, the Tier II ratio of 6.37% is restricted to 2%.
54 Social
69 People of the Sponsor Bank, through its products, aims to provide Treasury Management The above mentioned ratios are calculated after excluding one-time an extra-ordinary
80 Governance Solutions to the vast clientele of the sponsor bank. The yearly average AUM of YAMIL income due to AT1 write-down amounting to `84,150 million
as on March 31,2020 was `748.15 crore.
Statutory Reports The Bank has CASA ratio of 26.6%. The Bank shareholder returns with basic and
84 Management discussion and analysis YAMIL is presently focusing on tailoring liquidity management solutions for corporates, diluted EPS `(77.57) and `(77.57) respectively, taking the book value up to `17.3.
106 Directors’ report HNIs and retail investors. Going forward, in FY 2020-21, it proposes to launch funds in
146 Report on corporate governance equity and debt categories to offer a wide-ranging product suite to its investors in the
187 Annual business responsibility report retail and institutional categories. This would also allow YAMIL to leverage YES BANK'S
branch Infrastructure of over 1,000 branch and Relationship Managers (RMs) as well
as a significant base of retail and HNI customers.
99
Operating Performance such AT 1 Bonds amounting to `84,150.00 million have been written down during the
Contents financial year ended March 31, 2020.
` in millions
Corporate Overview
Particulars FY 2019-20 FY 2018-19 % change Operating expenses increased by 7.4% from `62,642.77 million in FY 2018-19 to
A redefined YES Interest income 260,666.04 296,247.47 -12.0% `67,292.11 million in FY 2019-20. Key drivers of operating expense growth were
02 Key highlights FY 2019-20 Interest expense 192,613.73 198,157.16 -2.8% growing branch network of the Bank and scaling up of retail asset and credit card
03 YES BANK at a glance Net Interest income 68,052.31 98,090.31 -30.6% business of the Bank.
05 Products and services Non interest income 34,414.94 45,901.53 -25.0%
06 Geographical presence Operating revenue 102,467.25 143,991.84 -28.8%
Provisions and contingencies(excluding provision for taxes) increased by 467.0% from
07 Message from the Chairman Operating expenses 67,292.11 62,642.77 7.4%
`57,775.60 million in FY 2018-19 to `327,584.34 million in FY 2019-20.
10 Message from the Managing Director Operating profit 35,175.14 81,349.07 -56.8% The Bank considers slippages in Corporate NPAs post the period end till the date
and CEO
Provisions and contingencies 327,584.34 57,775.60 467.0% of financial results, while determining NPAs and related provisioning requirements.
Profit before tax (292,409.20) 23,573.47 -1340.4% Subsequently, RBI issued guidelines on COVID-19 Regulatory Package, under which,
Provision for tax (65,259.44) 6,370.68 -1124.4% the Bank granted a moratorium of three months on the payment of all installments
17 Customer focus
Net profit/(loss) from ordinary (227,149.76) 17,202.79 -1420.4% and / or interest, as applicable, falling due between March 1, 2020 and May 31, 2020.
activities after tax For all such accounts where the moratorium is granted, the asset classification shall
25 Retail
Extraordinary income (net of tax)- AT 1 62,969.45 - remain standstill during the moratorium period (i.e. the number of days past-due
Our approach to value creation write down shall exclude the moratorium period for the purposes of asset classification under
29 Value creation model NET PROFIT (164,180.31) 17,202.79 -1054.4% the Income Recognition, Asset Classification and Provisioning norms) and as the asset
31 Our strategy
classification as of March 31, 2020 has been retained based on the overdue status on
36 Risk management Net loss for FY 2019-20 is `(164,180.31) million as compared to gain of `17,202.79
February 29, 2020. Hence on account of above mentioned RBI circular dated April 17,
million for the FY 2018-19. Net Interest income (NII) of the Bank decreased by 30.6% to
Our ESG focus 2020, Bank has not considered slippages post March 31, 2020 till the date of result.
`68,052.31 million during FY 2019-20 as compared to `98,090.31 million during FY 2018-
43 Environment Further, the Bank decided, on a prudent basis, to enhance its Provision Coverage Ratio
19. The Net Interest Margin (NIM) was 2.2% in FY 2019-20. Non interest income consists
54 Social on its NPA loans over and above the RBI loan level provisioning requirements. As a
of fee, trade income and gain on sale of securities. Non interest income decreased by
69 People result, the Bank recognised additional provisions of `154,220 million for the year.
25.0% from `45,901.53 million in FY 2018-19 to `34,414.94 million in FY 2019-20.
80 Governance
In line with RBI requirements, the Bank holds necessary provisions as on March 31,
The RBI invoked Section 45 of the Banking Regulation Act, 1949 and reconstituted
Statutory Reports 2020 against the assets where the asset classification benefit has been extended on
the Bank on March 13, 2020. As a consequence of the reconstitution, the Bank was
84 Management discussion and analysis account of standstill requirements.
106 Directors’ report deemed to be un-viable and the triggers for a write-down of certain Basel III additional
146 Report on corporate governance tier 1 Bonds ("AT 1 Bonds") issued by the Bank has been activated. As a consequence,
100
Net interest income Non-interest income consists of commission and fee income, trade income, derivative
Contents and foreign exchange income, gain on sale of securities and other income. Non-
The following table sets forth, for the periods indicated, the net interest income and
Corporate Overview interest income of the Bank decreased by 25% to `34,414.94 million during FY 2019-20
spread analysis:
as compared to `45,901.53 million during FY 2018-19.
A redefined YES
` in millions
Particulars FY 2019-20 FY 2018-19 % change Operating expenses/ Non-interest expenses
Interest income 2,60,666.04 2,96,247.47 -12.0% The following table sets forth, for the periods indicated, the principal components of
Interest expense 1,92,613.73 1,98,157.16 -2.8% Operating expenses.
07 Message from the Chairman Net interest income 68,052.31 98,090.31 -30.6%
` in millions
10 Message from the Managing Director Net interest margin 2.2% 3.2%
Particulars FY 2019-20 FY 2018-19 % change
and CEO
Net Interest income (NII) of the Bank decreased by 30.6% to `68,052.31 million during Payments to and provisions for 25,998.72 24,697.65 5.3%
12 Key performance indicators employees
FY 2019-20 as compared to `98,090.31 million during FY 2018-19. The decrease in NII
is due to higher slippages of advances to NPA and is due to muted lending and efforts Depreciation on own property 3,356.32 3,015.42 11.3%
17 Customer focus
by the Bank to conserve capital. (including non-banking assets)
Other administrative expenses 37,937.08 34,929.70 8.6%
25 Retail Non-Interest income Operating expenses 67,292.11 62,642.77 7.4%
Our approach to value creation ` in millions Cost to income ratio 65.7% 43.5% -
29 Value creation model Particulars FY 2019-20 FY 2018-19 % change
31 Our strategy Commission, exchange and brokerage 15,261.94 36,361.45 -58.0%
Non-interest expenses primarily include employee expenses, depreciation on assets
36 Risk management Profit on the sale of investments (net) 11,134.58 3,174.84 250.7%
and other administrative expenses. Non-interest expenses increased by 7.4% from
Profit/(Loss) on the revaluation of - - NA
`62,642.77 million in FY 2018-19 to `67,292.11 million in FY 2019-20.
Our ESG focus
43 Environment investments (net) The Bank continued to make investments in information technology and branch
54 Social Profit/(Loss) on sale of land, building 3.28 3.95 -16.8% expansion. Operating expenses increased by 7.4% from `62,642.77 million in FY 2018-
69 People and other assets 19 to `67,292.11 million in FY 2019-20.
80 Governance Profit on exchange transactions (net) 3,731.96 1,570.30 -137.7%
Income earned by way of dividends etc. - - NA
Employee costs increased by 5.3% from `24,697.65 million in FY 2018-19 to `25,998.72
Statutory Reports from subsidiaries, companies and/or million in FY 2019-20. Also, the number of employee has increased from 21,136 at
84 Management discussion and analysis joint ventures abroad/in India March 31, 2019 to 22,973 at March 31, 2020. Employee costs accounted for 38.6% of the
106 Directors’ report operating expenses for the FY 2019-20 compared to 39.4% for the FY 2018-19. Other
Miscellaneous income* 4,283.19 4,790.99 -10.6%
146 Report on corporate governance administrative expenses also increased by 8.7% to `34,929.70 million in FY 2019-20 on
Total 34,414.94 45,901.53 -25.0%
187 Annual business responsibility report account of the branch expansion to 1,120 as on March 31, 2020 from 1,100 as on March
* Excluding AT1 write-down amounting to `84,150 million. 31, 2019. The Bank also scaled up investments in information technology, retail asset
198 Standalone Financials and credit card business which contributed to increase in operating expenses.
101
Provisions and contingencies (including provision for tax) Total assets of the Bank decreased by 32.3% from `38,08,261.65 million at March 31,
Contents 2019 to `25,78,269.23 million at March 31, 2020, primarily due to decrease in loan
Provisions and contingencies increased by 342.0% from `64,146.28 million to
Corporate Overview book and investment book of the Bank. Reduction in advances book is due to higher
`2,83,505.45 million. The key components of provisions are Provisions for NPAs
of `2,78,060.36 million (FY 2018-19: `25,669.54 million), provision for taxation of slippages of advances to NPA and is due to muted lending and efforts by the Bank to
A redefined YES
`(44,078.89) million (FY 2018-19 `6,370.68 million), and release in provision for conserve capital.
03 YES BANK at a glance Standard Assets `(19,410.78) million (FY 2018-19: `22,514.06 million) and Provision Cash and cash equivalents
05 Products and services on investments of `64,819.07 million (FY 2018-19: `6,824.89 million). The increase
Cash and cash equivalents include cash in hand and balances with the RBI and other
06 Geographical presence in provision is primarily due to higher NPA provision. From FY 2020, the Bank has
banks, including money at call and short notice. Cash and cash equivalents decreased
07 Message from the Chairman considered slippages in NPAs post the period end till the date of the financial results,
from `2,68,895.12 million at March 31, 2019 to `83,830.01 million at March 31, 2020
10 Message from the Managing Director while determining NPAs and related provisioning requirements and enhanced
and CEO primarily due to a decrease in balances with banks and money at call and short notice.
its Provision Coverage Ratio on its NPA loans over and above the RBI loan level
12 Key performance indicators provisioning requirements. Investments
17 Customer focus Financial Condition Total investments decreased by 50.9% from `8,95,220.33 million at March 31, 2019 to
21 Technology and digital innovation `4,39,148.26 million at March 31, 2020. primarily due to a decrease in investments in
Assets
25 Retail Government Securities by `2,24,541.96 million from `5,53,611.12 at March 31, 2019 to
` in millions
`3,29,069.16 at March 31, 2020.
Our approach to value creation Particulars
As at As at
% change
29 Value creation model March 31, 2020 March 31, 2019 During the year ended March 31, 2020, the Bank sold and transferred securities from
31 Our strategy Assets HTM category exceeding 5% of the book value of investment held in HTM category
36 Risk management Cash and bank balances 83,830.01 2,68,895.12 -68.8% at the beginning of the year. The 5% threshold referred to above does not include
Cash and balances with RBI 59,436.55 1,07,977.37 -45.0% onetime transfer of securities to/from HTM category with the approval of the Board
Our ESG focus
Balances with banks and money at call 24,393.46 1,60,917.75 -84.8% of Directors permitted to be undertaken by banks as per extant RBI guidelines, sale
43 Environment
and short notice of securities under pre-announced Open Market Operation (OMO) auction to the RBI
54 Social
Investments 4,39,148.26 8,95,220.33 -50.9% and sale of securities or transfer to AFS / HFT consequent to the reduction of ceiling
69 People
SLR investments* 3,29,069.16 5,53,611.12 -40.6% on SLR securities under HTM. The book value of HTM investment sold during the
80 Governance
Non SLR investments 1,10,079.10 3,41,609.21 -67.8% year ended March 31, 2020 was `241,592.9 million. The market value of investments
Statutory Reports Advances 17,14,432.94 24,14,996.02 -29.0% (excluding investments in subsidiaries) under HTM category was `316,942.2 million
84 Management discussion and analysis In India 15,73,551.81 22,26,297.76 -29.3% and was higher than the book value thereof as at March 31, 2020.
106 Directors’ report Outside India 1,40,881.13 1,88,698.27 -25.3%
146 Report on corporate governance Advances
Fixed assets 10,090.88 8,169.96 23.5%
Other assets 3,30,767.13 2,20,980.23 49.7%
During FY 2019-20, the Bank recorded a reduction of 29.0% in its loan book with
Total 25,78,269.23 38,08,261.65 -32.3%
advances decreasing to `17,14,432.94 million, primarily due to decrease in term loan
of the Bank by 31.2%. The reduction in advances book is due to higher slippages of
198 Standalone Financials *Includes investment in Government Securities, Banks in India are required to maintain a specified advances to NPA and the increase in Provision Coverage Ratio, coupled with muted
267 Consolidated Financials percentage, 18.25% as at March 31, 2020, of their net demand and time liabilities by way of liquid
assets like cash, gold or approved unencumbered securities.
lending, as the Bank opted to contract its Balance Sheet in order to conserve capital.
102
Corporate Banking accounted for 65.6% of the Advances portfolio, while Retail & Equity Capital and Reserve and surplus
Contents Business Banking (incl. MSME) constituted 34.4%. Share capital of the Bank increased from `4,630.07 million as at March 31, 2019 to
Corporate Overview
01 Commitment. Promise. Transparency. Net advances of IFSC Banking Unit (IBU) in GIFT City decreased from `1,88,698.27 `25,100.94 million as at March 31, 2020.
A redefined YES million at March 31, 2019 to `1,40,881.13 million at March 31, 2020. In August 2019, the Bank issued 231,055,018 equity shares of `2 each for cash pursuant
Fixed assets and other assets to a Qualified Institutional Placement (QIP) at `83.55 aggregating to `19,304.64 million.
05 Products and services Fixed assets (net block) increased by 23.5% from `8,169.96 million at March 31, 2019 On March 13, 2020, the Government of India notified the “Yes Bank Ltd. Reconstruction
06 Geographical presence to `10,090.88 million at March 31, 2020. The addition in fixed assets is primarily due to Scheme, 2020” (Scheme). As per the Scheme, authorised capital has been increased
07 Message from the Chairman branch expansion to 1,135 as on March 31, 2020 from 1,120 as on March 31, 2019 and from `1,100 crore to `6,200 crore. The State Bank of India (SBI) and other investors
10 Message from the Managing Director continued investment in information technology. Other assets increased by 49.7% invested in the Bank at a price of `10 per equity share of the Bank (`2 face value with `8
and CEO from `2,20,980.23 million at March 31, 2019 to `3,30,767.13 million at March 31, 2020. premium). As per the scheme, SBI is required to hold maximum 49% with a minimum
12 Key performance indicators holding of 26% in the Bank for a period of 3 years. As per final reconstruction scheme
15 COVID-19 response Financial Condition
of the Bank, the Bank has issued 10,000,000,000 equity shares at `10 each aggregating
17 Customer focus Liabilities to `100,000.00 million to SBI and other Banks/Financial Institutions.
21 Technology and digital innovation ` in millions
25 Retail Deposits
As at As at
Particulars % change
Our approach to value creation March 31, 2020 March 31, 2019 Deposits decreased by 53.7% from `22,76,101.82 million at March 31, 2019 to
29 Value creation model Liabilities `10,53,639.43 million at March 31, 2020. Term deposits decreased by 49.3% from
31 Our strategy Capital 25,100.94 4,630.07 442.1% `15,23,568.60 million at March 31, 2019 to `7,73,011.08 million at March 31, 2020,
36 Risk management Reserves and surplus 1,92,161.99 2,64,411.90 -27.3% savings account deposits decreased by 60.3% from `4,67,112.35 million at March
Deposits 10,53,639.43 22,76,101.82 -53.7% 31, 2019 to `1,85,635.25 million at March 31, 2020 and current account deposits
Our ESG focus Current deposit accounts 94,993.11 2,85,420.87 -66.7% decreased by 66.7% from `2,85,420.87 million at March 31, 2019 to `94,993.11 million
43 Environment
Saving account 1,85,635.25 4,67,112.35 -60.3% at March 31, 2020. The Bank has seen a significant decrease in the composition of
54 Social
CASA 2,80,628.36 7,52,533.22 -62.7% granular deposits on account of withdrawal of deposits. The current and savings
69 People
Term deposit 7,73,011.08 15,23,568.60 -49.3% account (CASA) deposits decreased from `7,52,533.22 million at March 31, 2019 to
80 Governance Borrowings 11,37,905.03 10,84,241.09 4.9% `2,80,628.36 million at March 31, 2020. Total deposits at March 31, 2020 constituted
Statutory Reports Borrowing in India 10,01,280.59 6,73,595.98 48.6% 48.1% of the funding (i.e., deposits and borrowings). The Bank’s CD ratio stood at 163%
84 Management discussion and analysis Borrowings outside India 1,36,624.43 4,10,645.11 -66.7% as at March 31, 2020.
106 Directors’ report Other liabilities and provisions 1,69,461.83 1,78,876.79 -5.3%
146 Report on corporate governance Total 25,78,269.23 38,08,261.65 -32.3%
103
Borrowings As per Basel III norms, YES BANK had a capital adequacy ratio of 8.5% as at the end
Contents of March 31, 2020. As per Basel-III, Tier-I capital ratio was 6.5% and the Tier-II capital
Borrowings increased by 4.9% from `10,84,241.09 million at March 31, 2019 to
Corporate Overview ratio was 2.0% as at March 31, 2020. Tier I ratio of the Bank was below the regulatory
` 11,37,905.03 million at March 31, 2020.
minimum requirements and hence as per RBI guidelines, the Tier II ratio of 6.37% is
A redefined YES Other liabilities restricted to 2%. During the year, the Bank has raised capital via QIP of `19,305 million,
03 YES BANK at a glance Other liabilities decreased by -5.3% from `1,78,876.79 million at March 31, 2019 to by way of Reconstruction scheme `1,00,000 million.
05 Products and services ` 1,69,461.83 million at March 31, 2020.
Subsidiary Performance
06 Geographical presence Regulatory capital YES BANK has three subsidiaries
In line with the RBI circular on Basel III Capital Regulations, currently for computing Yes Securities (India) Limited (YSIL), YES Asset Management (India) Limited (YAMIL)
and CEO capital requirement, YES BANK has adopted the standardised approach for credit and YES Trustee Limited (YTL). All the three subsidiaries are wholly owned subsidiaries
12 Key performance indicators risk, standardised duration approach for market risk and Basic indicator approach for of the Bank. YSIL is the Bank’s Broking and Investment Banking subsidiary. YTL’s
15 COVID-19 response operational risk. The Bank has also put in place a Board approved policy on Internal principal activity is to act as trustee for funds (Yes Mutual Fund). YAMIL has entered
17 Customer focus Capital Adequacy Assessment Process (ICAAP) which defines and sets processes into investment management agreement with YTL to act as the investment manager
21 Technology and digital innovation to review and improve the techniques used for identification, measurement and for any funds to be launched by Yes Mutual fund. During the year, the Bank has infused
25 Retail assessment of all material risks and resultant capital requirements. capital of `150 million in YAMIL.
Our approach to value creation ` in millions During FY 2019-20 YSIL reported a net loss of `362.59 million vis-à-vis a profit in FY
29 Value creation model As at As at 2018-19 of `51.99 million. Total revenue from operations of YSIL increased by 12.6%
Capital Adequacy Ratios
31 Our strategy March 31, 2020 March 31, 2019
from `898.80 million during FY 2018-19 to `1,012.48 million in FY 2019-20. YAMIL has
36 Risk management Total capital ratio (CAR) out of the above 8.5% 16.5% made a loss of `185.39 million with total income of `18.90 million and YTL has made
Our ESG focus - CET1 6.3% 8.4% loss of `0.82 million with total income from operations of `0.71 million in FY 2019-20.
43 Environment - Tier I Capital 6.5% 11.3% Based on the RBI circular, the Bank has provided `403.30 million for impairment of
54 Social - Tier II Capital 2.0% 5.2% investment in subsidiaries.
69 People
80 Governance
Statutory Reports
104
Update on Ind AS implementation: Operating Officer (COO), Chief Information Officer (CIO) and members of the Senior
Contents Management from Financial Management, Risk Control and Treasury Operations.
The Institute of Chartered Accountants of India has issued Ind AS (a revised set of
Corporate Overview The Committee oversees the progress of Ind AS implementation in the Bank, and
accounting standards) which largely converges the Indian accounting standards with
International Financial Reporting Standards (IFRS). The Ministry of Corporate Affairs provides guidance on critical aspects of the implementation such as Ind AS technical
A redefined YES
(MCA) has notified these accounting standards (Ind AS) for adoption. The RBI through requirements, systems and processes, business impact, people and project
03 YES BANK at a glance press release RBI/2018-2019/146 DBR.BP.BC.No.29/21.07.001/2019-20 March 22, 2019 management. The Committee closely reviews progress of the implementation.
05 Products and services updated all scheduled commercial banks that legislative amendments recommended • Steering committee updates the Audit Committee and the Board on preparedness
06 Geographical presence by the RBI are under consideration of the Government of India. Accordingly, RBI has for migration to Ind AS on a quarterly basis.
07 Message from the Chairman decided to defer the implementation of Ind AS till further notice.
10 Message from the Managing Director • Further, YES BANK has procured IT solutions to automate Expected Credit Losses
and CEO As per RBI directions, YES BANK has taken the following steps so far: (ECL) computation and other accounting changes required in Ind AS in order to
12 Key performance indicators • YES BANK is submitting quarterly Proforma Ind AS financial statements to the RBI improve the robustness of the process.
17 Customer focus • Formed Steering Committee for Ind AS implementation. The Steering Committee YES BANK will continue to liaise with the RBI and industry bodies on various aspects
21 Technology and digital innovation comprises Chief Financial Officer (CFO) (Chairman), Chief Risk Officer (CRO), Chief pertaining to Ind AS implementation.
25 Retail

31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
105
Directors’ Report
To The Members, Banking business. The Bank has significant presence within the new-age payments
Contents space with the highest market share of 31% in UPI P2M transactions in FY 2019-20.
Corporate Overview The Directors are pleased to present the Sixteenth Annual Report on the business and
01 Commitment. Promise. Transparency. operations of the Bank together with the audited financial statements (consolidated YES BANK LIMITED RECONSTRUCTION SCHEME, 2020
A redefined YES as well as standalone) for the year ended March 31, 2020. The Reserve Bank of India (RBI) vide its press release, 2019-2020/2022 dated March 5,
BUSINESS OVERVIEW 2020 applied to the Central Government under Section 45(1) of the BR Act for imposing
a Moratorium on the Bank and accordingly the Central Government had placed the
05 Products and services Towards the end of the year, YES BANK underwent a significant transition with the
Bank under Moratorium as per the notification numbered, S.O. 993(E) dated March 5,
06 Geographical presence supersession of the erstwhile Board, pursuant to Section 36ACA of the Banking
2020 issued by the Ministry of Finance, (Department of Financial Services), (BANKING
07 Message from the Chairman Regulation Act, 1949 (the BR Act) and constitution of the new Board under the YES Bank
DIVISION) under Section 45(2) of the BR Act.
10 Message from the Managing Director Limited Reconstruction Scheme, 2020 ("YBL Reconstruction Scheme"). Mr. Sunil Mehta
and CEO was inducted on the Board as the Non-Executive Chairman and Mr. Prashant Kumar as Simultaneously, through another press release numbered 2019-2020/2025 dated
the new Managing Director and Chief Executive Officer (MD & CEO). March 5, 2020 and in exercise of the powers conferred under Section 36ACA of the BR
Act, the RBI, in consultation with Central Government, superseded the Bank’s Board
17 Customer focus The year began on a positive note with Mr. Ravneet Gill taking charge as MD & CEO
and in interim Shri Prashant Kumar, ex-DMD and CFO of the State Bank of India was
21 Technology and digital innovation with effect from March 1, 2019. The erstwhile Board of Directors introduced a more
appointed as the Administrator under Section 36ACA (2) of the BR Act. He was vested
25 Retail balanced mix in the credit authority delegated to the Management and Board Credit
with powers, functions and duties of the Board and assumed office on March 6, 2020.
Committees alongside exercising greater prudence towards income recognition.
Several measures to strengthen governance, risk management, control and compliance RBI, on March 6, 2020, in exercise of the powers conferred on it by Section 45(4) of the
frameworks, including top management inductions were adopted. BR Act, prepared a draft scheme for reconstruction. In terms of Section 45(6)(b) of the
31 Our strategy
BR Act, the draft scheme was placed on RBI website for suggestions and objections, if
36 Risk management The Bank successfully raised `1,930 crore via a Qualified Institutions Placement (QIP)
any, from members, depositors or creditors of the Bank by March 9, 2020.
Our ESG focus issue in August, 2019, up for 10% dilution, as approved by shareholders.
43 Environment Subsequently, the Ministry of Finance, Government of India, notified the YES Bank
In many ways, this can be described as a year of headwinds, wherein the Bank
54 Social Limited Reconstruction Scheme, 2020 (YBL Reconstruction Scheme) vide a notification
reported a net loss of `16,418.02 crore with Gross NPAs at 16.80%, impacted by higher
69 People numbered G.S.R. 174(E) dated March 13, 2020 which came into force on March 13, 2020.
recognition of NPAs from concentrated exposures to stressed corporate groups.
80 Governance As a part of this scheme, the Bank received an equity infusion of `10,000 crore from
Since October, 2019, the Bank witnessed a deposit outflow, owing to a delay in raising
Statutory Reports eight Indian financial institutions namely, State Bank of India, Housing Development
capital, impacting the liabilities franchise. This got further accelerated after the Reserve
84 Management discussion and analysis Finance Corporation Limited, ICICI Bank Limited, Kotak Mahindra Bank Limited, Axis
Bank of India (RBI) imposed moratorium was lifted, with deposits of `1,05,363.94 crore
106 Directors’ report Bank Limited, IDFC First Bank Limited, Federal Bank Limited and Bandhan Bank
at year end. However, the Bank continued its efforts towards building a stronger retail
146 Report on corporate governance Limited. After infusion of capital under the Scheme, State Bank of India ('SBI') was
franchise. Contribution of retail advances compared to total advances, increased to
187 Annual business responsibility report holding 48,21% in the share capital of the Bank and holding of SBI will not reduce
25% in FY 2019-20 compared to 17% in FY 2018-19. Digitisation remains among the
below 26% before completion of three years from the date of allotment.
Financial Statements Bank’s key focus areas to grow the Retail and MSME segments and the Transaction
106
Directors’ Report
Further, in accordance with the terms of the Scheme, there shall be a lock-in period of Some key strategic objectives that the Bank will focus on are:
Contents three years from the commencement of the Scheme to the extent of seventy-five per
Corporate Overview Near term
cent in respect of–
01 Commitment. Promise. Transparency. 1. Strengthen governance and underwriting framework
A redefined YES (a) Shares held by existing shareholders on the date of commencement of the 2. Rebuild liabilities and liquidity buffers
02 Key highlights FY 2019-20 scheme i.e. March 13, 2020 3. Optimise operating costs
(b) Shares allotted to the investors (as defined) under the scheme 4. Resolving stressed asset concerns
06 Geographical presence Provided that the said lock-in period does not apply to shareholders holding less Medium term
07 Message from the Chairman than one hundred shares 1. Stable liability mix and lower cost of funds: CASA Ratio>40%
2. Granular advances: Retail/MSME>60%
and CEO STATE OF THE AFFAIRS OF THE BANK
3. Corporate flows and cross sell through Transaction Banking
The Bank is actively pursuing robust recalibration to create increased value for 4. ROA>1% (1-3 years) and ROA>1.5% (3-5 years)
customers. The year 2019-20 was the most significant in the Bank’s lifecycle. The Bank
17 Customer focus
is working to build a stronger Bank with the novel insights and expertise that the new BUSINESS OUTLOOK
leadership brings to the table. For the new financial year, shareholders may expect the following:
25 Retail
Operationally, the Bank is happy to share that (1) the Provision Coverage Ratio (PCR) of • Credit opportunity in India with secular tailwinds
the Bank increased to 73.8% from 43.1% in FY 2018-19, the highest among peer banks • Market consolidating with banks that have stronger parentage
(2) higher PCR enhances the ability to offload these assets from the balance sheet • Technology as a key enabler in enhancing customer experience
31 Our strategy
to further release the capital (3) operating profits and sell downs will enable organic • Structural shift in household savings from physical to financial assets
36 Risk management
capital acceleration. • Private sector banks gaining market share
Our ESG focus • COVID-19 impact with expected revival in the second half.
43 Environment
54 Social
69 People
80 Governance
Statutory Reports
107
Directors’ Report
Financial Performance (Standalone) The Bank posted Net Loss of `164,180.31 million as a compared to gain of `17,202.79
Contents (` in million) million for the FY 2018-19. Net Interest income (NII) of the Bank decreased by 30.6%
Corporate Overview to `68,052.31 million during FY 2019-20 as compared to `98,090.31 million during FY
April 1, 2019 to April 1, 2018 to
01 Commitment. Promise. Transparency. Particulars Change
March 31, 2020 March 31, 2019 2018-19. The Net Interest Margin (NIM) was 2.2% in FY 2019-20. Please refer to the
A redefined YES
Deposits 1,053,639.43 2,276,101.82 -1,222,462.38 section on Financial and Operating Performance in the Management Discussion and
Borrowings 1,137,905.03 1,084,241.09 53,663.94 Analysis for a detailed analysis of financial data.
Advances 1,714,432.94 2,414,996.02 -700,563.08
05 Products and services DIVIDEND
Total Assets/Liabilities 2,578,269.23 3,808,261.65 -1,229,992.43
Net Interest Income 68,052.31 98,090.31 -30,038.00 The Bank has made loss during the year and as a consequence to that the Bank has
Non Interest Income 34,414.94 45,901.53 -11,486.59 not declared any dividend. Further, the Reserve Bank of India, vide its circular dated
Operating profit 35,175.14 81,349.07 -46,173.93 April 17, 2020, has informed all banks not to make any further dividend payouts from
and CEO
Provisions and Contingencies 327,584.34 57,775.60 269,808.74 profit pertaining to financial year ended March 31, 2020, until further instructions
Profit before Tax (292,409.20) 23,573.47 -315,982.67
15 COVID-19 response with the view to conserve capital in the environment of heightened uncertainly
Provision for taxes (65,259.44) 6,370.68 -71,630.13
17 Customer focus caused by COVID-19.
Net Profit/(Loss) from Ordinary (227,149.76) 17,202.79 -244,352.54
21 Technology and digital innovation Activities after tax As required under Regulation 43A of Securities and Exchange Board of India
25 Retail Extraordinary income (net of tax)- AT 1 62,969.45 - 62,969.45 (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing
Our approach to value creation write down Regulations”) the dividend policy of your Bank is available on the Bank’s website at the
NET PROFIT (164,180.31) 17,202.79 -181,383.10
29 Value creation model link: https://www.yesbank.in/about-us/corporate-governance.
Add: Surplus/(Deficit) brought forward 107,595.60 103,753.02 3,842.58
31 Our strategy
36 Risk management
from last period TRANSFER TO RESERVES
Amount available for appropriation (56,584.71) 120,955.80 -177,540.52
As per requirement of RBI regulations, the Bank has transferred the following amount
Our ESG focus Appropriations
to various reserves during Financial Year ended March 31, 2020:
43 Environment Statutory Reserve under section 17 of - 4,300.70 -4,300.70
54 Social the Banking Regulation Act, 1949 Amount transferred to ` in million
69 People Capital Reserve 6,655.51 1,010.10 5,645.41 Statutory Reserve (the Bank incurred a loss of `164,180.31 million) -
80 Governance Investment Reserve 147.23 6.71 140.52
Capital Reserve 6,655.51
Investment Fluctuation Reserve - 539.07 -539.07
Statutory Reports Investment Reserve 147.23
Dividend and Dividend Tax paid 5,586.43 7,503.64 -1,917.21
84 Management discussion and analysis Surplus carried to Balance Sheet (68,973.88) 107,595.60 -176,569.48 TRANSFER OF EQUITY SHARES UNPAID/ UNCLAIMED DIVIDEND TO THE
106 Directors’ report Key Performance Indicators
INVESTOR EDUCATION AND PROTECTION FUND
146 Report on corporate governance (excluding AT 1 write down)
187 Annual business responsibility report Net Interest Margin 2.2% 3.2% In accordance with the applicable provisions of the Companies Act, 2013 read with Rules
Return on Annual Average Assets -7.11% 0.50% made thereunder, the Bank has transferred to the credit of the Investor Education and
Financial Statements Return on Equity -113.13% 6.53% Protection Fund (‘IEPF’) set up by the Government of India, 17,538 number of equity
198 Standalone Financials Cost to Income Ratio 65.67% 43.50% shares and dividend amount of `14,31,976 which had remained unclaimed/ unpaid for
a period of seven (7) consecutive years.
108
Directors’ Report
CAPITAL RAISING & CAPITAL ADEQUACY RATIO (CAR) crore equity shares of `2 each pursuant to the YBL Reconstruction Scheme w.e.f.
Contents March 13, 2020.
During the financial year ended March 31, 2020, the Bank has successfully completed
Corporate Overview
capital raising of `19,304.65 million by way of Qualified Institutions Placement (QIP) AMENDMENT TO CHARTER DOCUMENTS
A redefined YES by issuing 2,31,055,018 equity shares of `2 each at an issue price of `83.55 per equity
During the year under review, the Memorandum of Association was altered for
02 Key highlights FY 2019-20 share including premium of `81.55 per equity share.
increase in Authorized Share Capital as above and the Articles of Association was
During the year under review, the Bank has also issued 43,84,174 equity shares of `2 amended under the YBL Reconstruction Scheme by deletion of Article Nos. 110 (b),
each, pursuant to the exercise of stock options aggregating to `8.77 million. Article 127 (b), Article 127A (a) and Article 127A (b) which were confirming special rights
to the promoters of the Bank.
07 Message from the Chairman Further in terms of the YBL Reconstruction Scheme and Order of Administrator dated
10 Message from the Managing Director March 14, 2020, the Bank issued and allotted 10,000 million Equity Shares of `2 each RECLASSIFICATION OF PROMOTER/PROMOTER GROUP
and CEO at a premium of `8 per share aggregating to `100,000 million to Banks/financial The YBL Reconstruction Scheme inter-alia provided for fresh capital infusion,
12 Key performance indicators institutions as mentioned hereinbefore under the YBL Reconstruction Scheme.
appointment of new Board of Directors of the Bank and deletion/omission of certain
17 Customer focus Post allotment of aforesaid equity shares, the issued, subscribed and paid up share articles from the Articles of Association of the Bank (“AoA”) which had the effect
21 Technology and digital innovation capital of the Bank stands at `25,100.94 million comprising of 12,550,472,231 equity of negating / nullifying the special rights conferred on the Promoters/Promoter
25 Retail shares of `2 each fully paid as on March 31, 2020. Group under the AoA.
Our approach to value creation The Bank has not issued any equity shares with differential voting rights during the year. Post implementation of the Scheme, (i) the combined shareholding of the Rana
29 Value creation model Kapoor Group and Madhu Kapur Group (the erstwhile promoters of the Bank) came
In terms of the YBL Reconstruction Scheme and the Order of Administrator of YBL, the down to 1.42% of the total paid up equity share capital of the Bank; (ii) they no longer
31 Our strategy
Perpetual Subordinated Basel III Compliant Additional Tier I Bonds issued by the Bank continued to exercise control over the affairs of the Bank directly and/or indirectly,
36 Risk management
for an amount of `3,000 crores and `5,415 crores on December 23, 2016 and October (iii) they do not have any special rights with respect to the Bank through formal and/
Our ESG focus 18, 2017, respectively, were fully written down and extinguished w.e.f. March 14, 2020. or informal arrangements, including through any shareholder agreements; (iv) they
43 Environment The bondholders and Axis Trustee Services Ltd., have filed a Writ Petition against the were not represented on the Board of Directors of the Bank (including through any
54 Social said action before the Hon’ble Bombay High Court and Madras High Court. The matter nominee director); and (v) they do not act as key managerial personnel in the Bank.
69 People is currently sub judice. Considering the said fact, an application was made to the Stock Exchanges for Re-
80 Governance
Capital Adequacy Ratio of your Bank stood at 8.5% as at March 31, 2020; of which Tier I classification of the Promoter and Promoter Group of the Bank. Simultaneously the
Statutory Reports Capital Ratio was 6.5% and Tier II Capital Ratio was 2.0%. As Tier I ratio of the Bank was Bank also made an application under Regulation 102 of the Listing Regulations to
84 Management discussion and analysis Securities & Exchange Board of India (SEBI) for exemption of applicability of certain
below the regulatory minimum requirements and hence as per RBI guidelines, Tier II
106 Directors’ report provisions of Regulation 31A of the Listing Regulations.
ratio of 6.37% is restricted to 2%.
187 Annual business responsibility report CHANGE IN THE AUTHORIZED SHARE CAPITAL OF THE BANK The Madhu Kapur Group had submitted express consent to the Bank to reclassify their
shareholding in the Bank as ‘Non-Promoter Shareholders’ (i.e. Public Shareholders)
Financial Statements During the year under review, the Authorised Share Capital of the Bank was increased
whereas, Rana Kapoor Group holds meagre 900 shares in the Bank.
198 Standalone Financials (i) from `800 crore to `1100 crore by addition of 150 crore equity shares of `2 each as
267 Consolidated Financials per the resolution passed by the shareholders at the extra ordinary general meeting
held on February 07, 2020 and (ii) from `1100 crore to `6200 crore by addition of 2,550
109
Directors’ Report
Based on the application and representation made by the Bank, SEBI vide its letter dated Compliance, Legal, Fraud Containment Unit, etc. set standards for management
Contents June 09, 2020 granted the exemptions as sought by the Bank from the applicability of and oversight of risks, including compliance with applicable laws, regulatory
Corporate Overview sub-regulation (3) and (4) of Regulation 31A and clause (a) & (b) of sub-regulation (8) of requirements and policies.
Regulation 31A of Listing Regulations for reclassification of the Promoter and Promoter
A redefined YES • Risk Management: Risk Management establishes policies and guidelines for risk
Group as the re-classification was a procedural formality and a consequence of the
02 Key highlights FY 2019-20 assessment and management and contributes to controls and tools to manage,
03 YES BANK at a glance YBL Reconstruction Scheme and gave certain directions to the Bank in this regard.
measure and mitigate risks faced by the Bank.
05 Products and services Following the SEBI letter, the stock exchanges have conveyed their approval for re-
06 Geographical presence classification of the following Promoter Shareholders to ‘Non-Promoter Shareholders’ • Credit Underwriting: The Credit team ensures an independent assessment of
07 Message from the Chairman (i.e. Public Shareholders) in their communications dated June 12, 2020: credit proposals and is responsible for monitoring the credit quality of the Bank’s
10 Message from the Managing Director portfolio and undertaking portfolio reviews.
1. Rana Kapoor
and CEO
2. Madhu Kapur • Compliance: The Compliance unit manages adherence to regulatory guidelines.
3. Morgan Credits Private Limited
15 COVID-19 response • Legal: Legal Risk Management Department (“LRM”) of the Bank undertakes various
17 Customer focus 4. Yes Capital (India) Private Limited
activities including advising business and operational management teams within
21 Technology and digital innovation 5. Mags Finvest Pvt Ltd
the Bank on various legal issues faced by them in their day to day business activities/
25 Retail Consequent to the above, as on date, the Bank do not have any identified Promoter(s). various contracts entered by them with counter parties/customers etc. LRM acts
Our approach to value creation as an independent control function while providing legal guidance, ensuring legal
MANAGEMENT DISCUSSION AND ANALYSIS
29 Value creation model compliance, assisting the Board and Committees of the Board regarding analysis
The Management Discussion and Analysis Report for the year under review as of laws and regulations, regulatory matters, disclosure matters, and potential
31 Our strategy
stipulated in Listing Regulations is presented in a separate section forming part of risks and exposures on key litigation and transactional matters. LRM is also
36 Risk management
the Annual Report. responsible for setting-up broad internal guidelines, practices and procedures to
Our ESG focus
RISK MANAGEMENT FRAMEWORK meet the requirements of all legal/statutory authorities and ensure continuing
43 Environment
enforceability of the various contracts/agreements entered by the Bank with its
54 Social The Bank’s Enterprise Risk Management framework encompasses the following:
various constituents & counter parties. LRM is also responsible for monitoring
69 People
• Risk Governance Framework: The Bank has implemented an Enterprise Risk and following up on legal claims made by and against the Bank and in this regard,
80 Governance
Governance framework to ensure non-silo based management and oversight of Risk. closely interact with external law firms.
Statutory Reports The Bank’s Risk Management philosophy is guided by the Three Lines of Defence:
• Finance: The Finance vertical provides key data and consultation to facilitate
106 Directors’ report −− First Line of Defence - Business Management: Each business segment of the sound decisions in support of the objectives of the Bank and the business verticals.
146 Report on corporate governance Bank has risk ownership and is responsible for assessment and management of Finance serves as an independent control function advising business management
187 Annual business responsibility report risks and has the overall responsibility of the management and mitigation of the and establishing policies or processes to manage risk.
Risk. The segments are required to implement appropriate procedures to fulfil
Financial Statements • Financial Markets: The Bank’s Financial Markets unit plays a very critical role by
their risk governance responsibilities.
198 Standalone Financials providing Risk Management solutions relating to foreign currency and interest rate
267 Consolidated Financials −− Second Line of Defence – Independent functions: The Bank’s independent exposures of its corporate clients. Financial Markets also conducts proprietary
oversight functions, such as, Risk Management, Credit Underwriting, trading across fixed income and global foreign exchange markets. Additionally, it
110
Directors’ Report
is responsible for Balance Sheet Management which includes Optimum Liquidity The Board has put in place four Board level Committees which inter-alia pertain to
Contents Management to minimize cost & maximize yield, Maintenance of Regulatory Reserves Risk Management, viz. Risk Management Committee (RMC), Audit Committee of the
Corporate Overview requirements and day-to-day fund management of the Bank. Subordinated and Board (ACB), Fraud, Wilful Defaulters and Non-Cooperative Borrowers Monitoring
hybrid debt capital for the Bank is also raised by the Financial Markets Group. Committee (FWD & NCBMC) and Board Credit Committee (BCC) to deal with risk
A redefined YES
management practices, policies, procedures and to have adequate oversight on the
02 Key highlights FY 2019-20 • FCU & AML: The Fraud Containment Unit (FCU) is responsible for prevention and
risks faced by the Bank.
detection of internal and external frauds in the areas of Liabilities, Product and
05 Products and services Support functions. The unit conducts transaction monitoring, forensic scrutiny, The Board Committees have set up various Executive level committees for oversight
06 Geographical presence employee awareness trainings and vulnerability assessments to help achieve the over specific risks.
07 Message from the Chairman said objective. The Anti Money Laundering Unit (AML) is responsible for identifying
10 Message from the Managing Director 1. Apex Management Committee
and reporting of suspicious transactions as prescribed under PMLA Act/Regulators,
and CEO
across all Business segments of the Bank. The AML unit is equipped with qualified, 2. Enterprise Risk, Reputation Risk, Model Assessment Committee
trained and experienced staff, which monitors various transactions undertaken
3. Management Credit Committee
17 Customer focus by customers with a view to combat financial crimes and prevents misuse of the
21 Technology and digital innovation accounts for money laundering. 4. Executive Credit Committee
25 Retail −− Third Line of Defence – The Bank’s Internal Audit function independently 5. Retail and Business Banking Credit Committee
Our approach to value creation reviews activities of the first two lines of defence based on a risk-based
6. Asset & Liability Management Committee
29 Value creation model audit plan and methodology approved by the Audit Committee of the Board.
31 Our strategy Internal Audit provides independent assurance to the Board, Audit Committee, 7. Operational Risk Management Committee
36 Risk management senior management and regulators regarding the effectiveness of the Bank’s
8. Standing Committee on Customer Service
governance and controls framework designed for risk mitigation.
Our ESG focus
9. Fraud Control & Suspicious Transaction Monitoring Committee
43 Environment The Board of Directors of the Bank has overall responsibility for Risk Management.
54 Social The Board oversees the Bank’s Risk and related control environment, reviews and 10. Committee for Classification of Wilful Defaulters
69 People approves the policies designed as part of overseeing the Risk Management practices.
11. Accountability Review Committee
80 Governance The Board ensures that comprehensive policies, systems and controls are in place to
identify, monitor and manage material risks at a Bank-wide level, with clearly defined 12. Whistle Blower, Disciplinary and Internal Committee
Statutory Reports
risk limits. The Board has laid down a Risk Appetite framework which articulates the
84 Management discussion and analysis 13. Steering Committee for IFRS (Ind AS)
106 Directors’ report quantum of risk the Bank is willing and able to assume in its exposures and business
146 Report on corporate governance activities in pursuit of its strategic objectives and desired returns. The Board has also 14. Product Process Approval Committee
187 Annual business responsibility report established policies governing risk management, such as, Credit Policy, Asset & Liability
15. IT Steering Committee
Management Policy, Operational Risk Management Policy, Information Security Policy,
Financial Statements Enterprise Risk Management Policy, Reputation Risk Management Policy, Group Risk 16. Security Council
198 Standalone Financials Management Policy, Model Risk & Governance Policy, etc.
267 Consolidated Financials 17. Stressed Asset Monitoring Committee
18. Sustainability Council
111
Directors’ Report
These Committees review various aspects / key risks and ensure that the best-in-class Sr.
Contents frameworks are in place to oversee day-to-day management of underlying business No.
Particulars ` in million
Corporate Overview activities, transactions and associated risks while dealing with internal and external 1 Gross NPAs as on March 31, 2019 as reported by the Bank 78,825.59
stakeholders. Further, Risk events, potential threats, performance of the Bank vis-à- 2 Gross NPAs as on March 31, 2019 as assessed by RBI 111,595.59
A redefined YES
vis Risk Limits and Risk Appetite, Risk Profile dashboard covering key risk indicators, 3 Divergence in Gross NPAs (2-1) 32,770.00
03 YES BANK at a glance etc. are presented to these Committees, with Q-o-Q/Y-o-Y trends highlighted, with 4 Net NPAs as on March 31, 2019 as reported by the Bank 44,848.49
05 Products and services level and direction of risk. The Bank also conducts a detailed Internal Capital Adequacy 5 Net NPAs as on March 31, 2019 as assessed by RBI 67,838.49
06 Geographical presence Assessment Policy (‘ICAAP’) review exercise to identify its Risk universe, internal 6 Divergence in Net NPAs (5-4) 22,990.00
07 Message from the Chairman controls and mitigation measures in place for the risks and capital requirements for 7 Provision for NPAs as on March 31, 2019 as reported by the Bank 33,977.10
10 Message from the Managing Director identified risks. The ICAAP findings are presented to the RMC and the Board. 8 Provision for NPAs as on March 31, 2019 as assessed by RBI 43,757.10
and CEO 9 Divergence in provisioning (8-7) 9,780.00
Additionally, in line with best Risk Governance practices, the Bank has further
12 Key performance indicators 10 Reported Net Profit after Tax (PAT) for the year ended March 31, 2019 17,202.79
strengthened the functioning of credit underwriting and risk management units by
11 Adjusted (notional) Net Profit after Tax (PAT) for the year ended 10,840.31
17 Customer focus creating separate verticals - an underwriting vertical consisting of Credit Units headed
March 31, 2019 after taking into account the divergence in
21 Technology and digital innovation by the Chief Credit Officer (CCO) and a risk controls and policy vertical consisting of provisioning
25 Retail various independent control units headed by the Chief Risk Officer (CRO). The CRO
reports to the Risk Management Committee while the CCO reports to the MD&CEO.
Our approach to value creation SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES AND
29 Value creation model DEPOSITS CONSOLIDATED FINANCIAL STATEMENTS
31 Our strategy Being a banking company, the disclosures required as per Rule 8(5)(v) & (vi) of the As on March 31, 2020, the Bank had three wholly-owned subsidiaries, YES Securities
36 Risk management Companies (Accounts) Rules, 2014, read with Sections 73 and 74 of the Companies Act, (India) Limited (‘YSIL’), YES Asset Management (India) Limited (‘YAMIL’) and YES Trustee
Our ESG focus 2013 are not applicable to your Bank. Limited (‘YTL’).
43 Environment DIVERGENCE IN ASSET CLASSIFICATION AND PROVISIONING FOR NPAs The Bank does not have any material subsidiary, associate and joint venture company.
54 Social
In terms of the RBI circular no. DBR.BP.BC.No.32/21.04.018/2018-19 dated April 1, 2019, Performance and Financial Position of YSIL, YAMIL and YTL is given in Management
69 People
banks are required to disclose the divergences in asset classification and provisioning Discussion & Analysis which forms part of this Annual Report.
80 Governance
consequent to RBI’s annual supervisory process in their notes to accounts to the
Statutory Reports financial statements, wherever either or both of the following conditions are satisfied: The brief details about business of the subsidiaries are as under:
84 Management discussion and analysis (a) the additional provisioning for NPAs assessed by RBI exceeds 10 per cent of the YES Securities (India) Limited (YSIL)
106 Directors’ report reported profit before provisions and contingencies for the reference period and
146 Report on corporate governance YSIL offers to retail, HNI and corporate customers, a comprehensive range of products
(b) the additional Gross NPAs identified by RBI exceed 15 per cent of the published
187 Annual business responsibility report and services, encompassing Wealth Broking, Investment Advisory, Investment Banking
incremental Gross NPAs for the reference period. As part of the Risk Based Supervision
(including a dedicated Sustainable Investment Banking practice), Merchant Banking,
Financial Statements (RBS) exercise for FY 2018-19 concluded in November 2019, the RBI has pointed out
Research and Institutional Equities services. YSIL is a SEBI registered Stock Broker
198 Standalone Financials certain retrospective divergence in the Bank’s asset classification and provisioning as
holding membership of National Stock Exchange (NSE), Bombay Stock Exchange (BSE),
267 Consolidated Financials on March 31, 2019. In conformity with the above mentioned RBI circular, the below
Multi Commodity Exchange (MCX) & National Commodity & Derivatives Exchange
table outlines divergences in asset classification and provisioning.
112
Directors’ Report
(NCDEX). YSIL is also a SEBI-registered Category I Merchant Banker, Investment financial year of the Bank i.e. March 31, 2020 and the date of the Directors’ Report
Contents Adviser and Research Analyst. i.e. June 25, 2020.
Corporate Overview
01 Commitment. Promise. Transparency. YES Asset Management (India) Limited (YAMIL) and YES Trustee Limited (YTL) UNCERTAINTY ESTIMATIONS OWING TO THE GLOBAL HEALTHCARE
A redefined YES YAMIL and YTL were incorporated as wholly owned subsidiaries on April 21, 2017 and CRISIS
May 3, 2017, respectively to carry on mutual fund business. During the year, the Bank decided to enhance its Provision Coverage Ratio on its NPA
loans over and above the RBI loan level provisioning requirements. This accounted
05 Products and services YAMIL was granted an approval by Securities and Exchange Board of India (“SEBI”)
for additional provisions of `154,220 million for the period ended December 31, 2019.
06 Geographical presence on July 3, 2018 to act as an Asset Management Company / Investment Manager to
07 Message from the Chairman YES Mutual Fund. Subsequently, RBI issued guidelines on COVID-19 regulatory package, under which,
10 Message from the Managing Director the Bank granted a moratorium of three months on payment of installments and/or
and CEO YAMIL had launched its First Mutual Fund Scheme YES Liquid Fund in January 2019 &
interest, as applicable, due between March 1, 2020 and May 31, 2020. For such accounts
12 Key performance indicators further followed by the launch of YES Ultra Short Term Fund and YES Overnight Fund
where the moratorium is granted [except advances at IFSC Banking Unit (IBU)], the
15 COVID-19 response in FY 2020. The average AUM of YAMIL for FY 2019-20 was `748.15 crores.
asset classification remains constant during the period (number of days past-due
17 Customer focus
YTL is acting as a Trustee Company to YES Mutual Fund (YMF). It will provide trusteeship shall exclude the moratorium for asset classification under income recognition and
services to all the funds launched by YMF. provisioning norms) and as the asset classification as on March 31, 2020 was retained,
25 Retail
based on the overdue status as on February 29, 2020. The RBI further extended the
The Consolidated Financial Statements of the Bank and its Subsidiaries prepared in
Our approach to value creation regulatory relief package by three months through a circular dated May 23, 2020. In
accordance with the requirement of Section 129(3) of the Companies Act, 2013 shall be
29 Value creation model accordance with regulatory package guidelines, the Bank is offering a three-months
laid before the ensuing AGM and it forms part of this Annual Report.
31 Our strategy moratorium extension on instalment payments, including principal and interest, due
36 Risk management Pursuant to the provisions of Section 129(3) of the Companies Act, 2013, a statement between June 1, 2020 to August 31, 2020.
Our ESG focus containing salient features of Financial Statements of subsidiaries in Form AOC-1
In line with RBI requirements, the Bank holds necessary provisions as at March 31,
43 Environment forms part of the Annual Report. The Financial Statements of the subsidiaries of the
2020 against the assets where the asset classification benefit has been extended on
54 Social Bank are available on the website of the Bank (www.yesbank.in). Financials of the Bank
account of standstill requirements.
69 People and its subsidiaries shall also be available for inspection by members or trustees of
80 Governance the holders of any debentures of the Bank at its Registered office. Disclosure under COVID19 Regulatory Package can be referred in the Financial
Statement - Notes to Accounts disclosure 18.6.24.
Statutory Reports INTERNAL FINANCIAL CONTROLS SYSTEMS AND THEIR ADEQUACY
84 Management discussion and analysis The Bank has implemented adequate procedures and internal controls which Further, the Bank is closely monitoring the potential impact of COVID on its borrowers
106 Directors’ report provide reasonable assurance regarding reliability of financial reporting and and is engaging with them for suitable resolutions and relaxations in line with
146 Report on corporate governance preparation of financial statements. The Bank also ensures that internal controls are RBI guidelines.
187 Annual business responsibility report operating effectively. RATINGS OF VARIOUS DEBT INSTRUMENTS
Financial Statements MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL The Credit Rating and change/revision in the Credit Ratings for various debt
198 Standalone Financials POSITION OF THE BANK instruments issued by the Bank from time to time are provided in the Corporate
Except as disclosed below there are no material changes and commitments, affecting Governance Report forming part of the Annual Report.
the financial position of the Bank which has occurred between the end of the
113
Directors’ Report
LOANS, GUARANTEES OR INVESTMENTS IN SECURITIES Further, at the 15th AGM of the Bank held on June 12, 2019, the shareholders,
Contents inter-alia, approved the following:
Pursuant to Section 186(11) of the Companies Act, 2013, loans made, guarantees
Corporate Overview
given or securities provided or acquisition of securities by a Banking company in the 1. Appointment of Mr. Uttam Prakash Agarwal, Mr. Thai Salas Vijayan, Mr. Maheswar
A redefined YES ordinary course of its business are exempted from disclosure requirements under Sahu and Mr. Anil Jaggia as Independent Directors.
02 Key highlights FY 2019-20 Section 134(3) (g) of the Companies Act, 2013.
03 YES BANK at a glance 2. Re-appointment of Mr. Brahm Dutt for the second term as an Independent
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES Director and Non-executive Part-time Chairman of the Bank.
06 Geographical presence There were no materially significant transactions with related parties including
3. Appointment of Mr. Ravneet Singh Gill as Managing Director & CEO and Key
07 Message from the Chairman promoters, directors, key managerial personnel, subsidiaries or relatives of the
Managerial Personnel of the Bank.
10 Message from the Managing Director Directors during the financial year which could lead to a potential conflict with the
and CEO interest between the Bank and these parties. The details of the transactions with In exercise of powers under Section 36AB of the BR Act, 1949, RBI had appointed Mr. R.
12 Key performance indicators related parties, if any, were placed before the Audit Committee from time to time. Gandhi, Ex- Deputy Governor, RBI as an Additional Director on the Board of the Bank
15 COVID-19 response There were no material individual transactions with related parties, which were not for a period of 2 years with effect from May 14, 2019 to May 13, 2021 or till further
17 Customer focus in the ordinary course of business of the Bank, nor were there any transactions with orders, whichever is earlier.
21 Technology and digital innovation related parties, which were not on arm’s length basis. Accordingly, the disclosure in
25 Retail Mr. Ajai Kumar, Lt. Gen. (Dr.) Mukesh Sabharwal (Retd.), and Mr. Uttam Prakash Agarwal
Form AOC-2 is not applicable to the Bank for the year under review. Suitable disclosure
tendered their resignations from the directorship of the Bank w.e.f. June 9, 2019, June
Our approach to value creation as required by the Accounting Standards (AS-18) has been made in the notes to the
10, 2019 and January 10, 2020, respectively.
29 Value creation model Financial Statements.
31 Our strategy Supersession of the Board
Prior omnibus approval for normal banking transactions is also obtained from the
36 Risk management As already mentioned earlier, RBI in exercise of the powers conferred under 36ACA
Audit Committee for the related party transactions which are repetitive in nature as
Our ESG focus well as for the normal banking transactions which cannot be foreseen and accordingly of the BR Act, in consultation with Central Government, superseded the entire Board
43 Environment the required disclosures are made to the Committee for their approval. of Directors of the Bank consisting of Mr. Brahm Dutt, Mr. Thai Salas Vijayan, Mr. Anil
54 Social Jaggia, Mr. Maheswar Sahu, Dr. Pratima Sheorey, Mr. Ravinder Kumar Khanna, Ms.
The policy on materiality of Related Party Transactions and also on dealing with Shagun Kapur Gogia, Mr. Subhash Chander Kalia and Mr. Ravneet Singh Gill for a
69 People
Related Party Transactions as approved by the Audit Committee and the Board of period of 30 days and Shri Prashant Kumar, was appointed as the administrator of the
80 Governance
Directors is uploaded on the website of the Bank and can be accessed at https://www. Bank. Accordingly, above-named Directors were ceased to be Directors of the Bank
Statutory Reports yesbank.in/about-us/corporate-governance. w.e.f. close of business hours on March 05, 2020.
106 Directors’ report DIRECTORS & KEY MANAGERIAL PERSONNEL Reconstitution of the Board as per YBL Reconstruction Scheme
146 Report on corporate governance During the year, Mr. Ravinder Kumar Khanna and Ms. Shagun Kapur Gogia were Pursuant to the YBL Reconstruction Scheme, nomination made by State Bank of India
187 Annual business responsibility report appointed as Additional Directors representing promoters of the Bank w.e.f. April 26, and Order passed by RBI under BR Act, the new Board of Directors was reconstituted
2019 and subsequently they were appointed as Directors by shareholders at the 15th with effect from March 26, 2020 comprising of the following persons:
AGM of the Bank held on June 12, 2019.
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Directors’ Report
Directors named under the YBL Reconstruction Scheme: Mr. Shivanand R. Shettigar continued to act as Group Company Secretary and the Key
Contents Managerial Personnel of the Bank.
(i) Mr. Prashant Kumar as Chief Executive Officer and Managing Director;
Corporate Overview
(ii) Mr. Sunil Mehta, as Non-Executive Chairman; STATEMENT ON DECLARATION BY INDEPENDENT DIRECTORS
A redefined YES (iii) Mr. Mahesh Krishnamurti as Non-Executive Director;
The Bank had received necessary declarations from each of the erstwhile Independent
02 Key highlights FY 2019-20 (iv) Mr. Atul Bheda as Non-Executive Director;
Directors under Section 149(6) and 149(7) of the Companies Act, 2013 and Regulation
State Bank of India nominated Directors: 16(1)(b) and Regulation 25(8) of the SEBI Listing Regulations, that they meet the criteria
(v) Mr. Partha Pratim Sengupta; of independence laid down thereunder.
07 Message from the Chairman (vi) Mr. Swaminathan Janakiraman However, pursuant to the YBL Reconstruction Scheme through which the new Board
10 Message from the Managing Director was appointed, none of the Directors are designated as Independent Directors.
The RBI appointed Additional Directors:
and CEO Hence, the Bank is not required to obtain declarations under Section 149(6) and 149(7)
12 Key performance indicators (vii) Mr. R. Gandhi as Additional Director; and
of the Companies Act, 2013 and Regulation 16(1)(b) and Regulation 25(8) of the SEBI
15 COVID-19 response (viii) Mr. Ananth Narayan Gopalakrishnan as Additional Director.
Listing Regulations.
17 Customer focus
As per the YBL Reconstruction Scheme, the new Board, other than the Additional
21 Technology and digital innovation STATEMENT REGARDING OPINION OF THE BOARD WITH REGARD TO
Directors appointed by RBI, shall hold office for a period of 1 year starting from March
25 Retail INTEGRITY, EXPERTISE AND EXPERIENCE (INCLUDING THE PROFICIENCY)
26, 2020 till March 25, 2021 or until an alternate Board is constituted by the Bank,
OF THE INDEPENDENT DIRECTORS APPOINTED DURING THE YEAR
Our approach to value creation whichever is later.
29 Value creation model Not Applicable as none of the Directors are designated as Independent Directors.
Additional Directors appointed by RBI shall hold office for a period of two years with
31 Our strategy
effect from March 26, 2020 or until further order from RBI, whichever is earlier. FAMILIARIZATION PROGRAMS FOR INDEPENDENT DIRECTORS
36 Risk management
The programs undertaken for familiarizing the Independent Directors and other Non-
Our ESG focus Key Managerial Personnel
Executive Directors are disclosed in detail in the Corporate Governance Report, which
43 Environment During the year, Mr. Anurag Adlakha was appointed as Chief Financial Officer (‘CFO’) forms part of the Annual Report.
54 Social and Key Managerial Personnel w.e.f. August 10, 2019 and Mr. Raj Ahuja ceased to be
69 People the CFO and Key Managerial Personnel w.e.f. August 10, 2019 on his assuming the NUMBER OF MEETINGS OF THE BOARD AND IT’S VARIOUS COMMITTEEs
80 Governance other role in the Bank. The details of Board meetings held during the year, attendance of Directors at the
meetings and constitution of various Committees of the Board are included separately
Statutory Reports Mr. Ravneet Singh Gill ceased to be MD & CEO and Key Managerial Personnel of the
in the Corporate Governance Report, which forms part of the Annual Report.
84 Management discussion and analysis Bank w.e.f. close of business hours on March 5, 2020 pursuant to the RBI’s press
106 Directors’ report release No. 2019-2020/2025 dated March 5, 2020. Mr. Prashant Kumar was appointed
146 Report on corporate governance as MD & CEO w.e.f. March 26, 2020, as per the YBL Reconstruction Scheme. He acted
187 Annual business responsibility report as Administrator of the Bank appointed by RBI for the period from March 06, 2020 to
Financial Statements March 25, 2020.
115
Directors’ Report
PERFORMANCE EVALUATION OF THE BOARD EMPLOYEE REMUNERATION

Contents
The Bank has laid down criteria for performance evaluation of the Directors including (a) The statement containing particulars of employees as required under Section
Corporate Overview
Chairman, MD & CEO, Board Level Committees and Board as a whole as well as the 197(12) of the Companies Act, 2013 read with Rule 5(3) of the Companies
A redefined YES evaluation process for the same, in line with the provisions of the Companies Act, (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms
02 Key highlights FY 2019-20 2013, Listing Regulations and SEBI Guidance Note on the Board Evaluation dated part of this report. In terms of Section 136 of the Companies Act, 2013, the same
03 YES BANK at a glance January 5, 2017. is open for inspection during working hours at the Registered Office of the Bank.
05 Products and services A copy of this statement may be obtained by the Members by writing to the
Considering the fact that the erstwhile Board was superseded by RBI from the
06 Geographical presence Company Secretary of the Bank.
close of business hours on March 05, 2020 and the new Board was constituted
on March 26, 2020, the performance evaluation of the members of the Board, the (b) The ratio of the remuneration of each Director and employees of the Bank as
and CEO Board Level Committees and Board as a whole was not carried out for FY 2019-20. required under the provisions of Section 197(12) of the Companies Act, 2013 read
12 Key performance indicators Additional information on the Board Evaluation Process forms part of the Report on with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial
15 COVID-19 response Corporate Governance. Personnel) Rules, 2014 is attached as Annexure 1 to the Report.
17 Customer focus
POLICY ON APPOINTMENT OF DIRECTORS EMPLOYEES STOCK OPTION SCHEME
25 Retail The Board of Directors of the Bank had formulated and adopted policy on “Board The Bank has instituted Stock Option Plans to enable its employees to participate in
Diversity and Fit & Proper Criteria and Succession Planning” for appointment the Bank’s future growth and financial success. In terms of compensation and benefit
Our approach to value creation of Directors on the Board of the Bank and succession planning. The details of the policy of the Bank, employees are granted options as part of Annual Performance
29 Value creation model same have been included in the Report on Corporate Governance, forming part of Review process based on their performance as well as to ensure their retention, and
31 Our strategy
this Annual Report. to hire the best talent for its senior management and key positions. The details of
36 Risk management
Employee Stock Option Schemes and related statutory disclosures are provided in
REMUNERATION POLICY
Our ESG focus Annexure 2 to this report.
43 Environment The Board of Directors of the Bank had formulated and adopted policies for
Remuneration of Employees of the Bank, Remuneration of Directors including the CORPORATE GOVERNANCE
54 Social
69 People Chairman of the Bank. The details of the same are made available on the Bank’s website The Bank is committed to follow best Corporate Governance practices and adheres to
80 Governance and can be accessed at https://www.yesbank.in/about-us/corporate-governance. the Corporate Governance requirements set by the Regulators under the applicable
laws/regulations. In line with the foregoing, the Bank has adopted a Code of Corporate
Statutory Reports Governance which acts as a guide to the Bank and the Board on the best practices in
the Corporate Governance.
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Directors’ Report
A separate section on Corporate Governance standards followed by the Bank and the The Directors recommend appointment of M/s M P Chitale & Co., Chartered
Contents relevant disclosures, as stipulated under Listing Regulations, Companies Act, 2013 and Accountants (ICAI Firm Registration Number 101851W) as the Statutory Auditors of
Corporate Overview rules made thereunder forms part of the Annual Report. the Bank for a period of four years from the conclusion of 16th AGM till the conclusion
of 20 th AGM, at the ensuing AGM and their appointment will be subject to approval by
A redefined YES A Certificate from M/s. Mehta & Mehta, Practicing Company Secretaries, conforming
RBI on an annual basis under above-mentioned RBI circulars.
compliance by the Bank to the conditions of Corporate Governance as stipulated
03 YES BANK at a glance under Listing Regulations, is annexed to the Report on Corporate Governance, which Qualification, reservation, adverse remark or disclaimer given by the
05 Products and services forms part of the Annual Report. Auditors in their Report
VIGIL MECHANISM The Report given by the Statutory Auditors on the Financial Statements of the Bank
for the financial year ended on March 31, 2020 forms part of this Annual Report. The
10 Message from the Managing Director In line with the provisions of Listing Regulations, the Companies Act, 2013 and the
and CEO auditors of the Bank have qualified their report to the extent and as mentioned in the
principles of good governance, the Bank has devised and implemented a vigil
12 Key performance indicators Auditors’ Report. The qualification in auditors’ report and Director’s response to such
mechanism, in the form of ‘Whistle-Blower Policy’. The policy devised is also aligned
15 COVID-19 response qualification are as under:
to the recommendations of Protected Disclosure Scheme for Private Sector and
17 Customer focus
Foreign Banks, instituted by RBI. Detailed information on the Vigil Mechanism of the 1. Details of Audit Qualification:
Bank is provided in the Report on the Corporate Governance which forms part of The Bank has breached CET 1 ratio and the tier 1 capital ratio as at March 31, 2020.
25 Retail
the Annual Report. CET 1 ratio stood at 6.3%.and Tier 1 ratio stood at 6.5 % as compared to the minimum
Our approach to value creation requirements of 7.375% and 8.875% respectively.
CORPORATE SOCIAL RESPONSIBILITY
31 Our strategy In compliance with Section 135 of the Companies Act, 2013 read with the Companies Response:
36 Risk management (Corporate Social Responsibility Policy) Rules, 2014, the Bank has constituted Corporate The Bank’s Capital Adequacy Ratio as at March 31, 2020 was lower than the minimum
Social Responsibility (‘CSR’) Committee and statutory disclosures with respect to regulatory requirement primarily due to lower than envisaged capital raise in FY 2019-
Our ESG focus
the CSR Committee and Annual Report on CSR Activities forms part of this Report 20 and higher NPA provision. The Bank had decided, on a prudent basis, to enhance
43 Environment
as Annexure 3. The CSR Policy is available on the website of the Bank and can be its Provision Coverage Ratio on its NPA loans over and above the RBI loan level
54 Social
accessed at https://www.yesbank.in/pdf/ybl_corporate_social_responsibility_policy. provisioning requirements. With the proposed capital infusion in FY 2020-21, internal
69 People
accretion of capital, expected recoveries of NPA and with selective disbursement
80 Governance AUDITORS & REPORTS OF THE AUDITORS
of loans to preserve RWA, the Bank expects CET ratio to be comfortably above the
Statutory Reports A. Statutory Auditors minimum regulatory requirement.
84 Management discussion and analysis In terms of RBI Circular Nos DBS.Nos.ARS.BC.8/ 08.91.001/2000-2001 dated January 30,
106 Directors’ report 2. Details of Audit Qualification:
2001 and DBS.ARS.BC.04/08.91.001/2017-2018 dated July 27, 2017, Statutory Auditors
146 Report on corporate governance for Private Banks cannot be appointed for more than four years. Accordingly, M/s. B S The Bank became aware in September, 2018 through communication from stock
187 Annual business responsibility report R & Co. LLP, Chartered Accountants (Firm Registration No. 101248W/W-100022) shall exchanges of an anonymous whistle-blower complaint alleging irregularities in the
retire at the ensuing Annual General Meeting. Bank’s operations, potential conflicts of interests in relation to the former MD and CEO
and allegations of incorrect NPA classification. The Bank conducted an internal enquiry
of these allegations, which resulted in a report that was reviewed by the Board of
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Directors’ Report
Directors in November, 2018. Based on further inputs and deliberations in December, During the year ended March 31, 2020, the Bank had received various whistleblower
Contents 2018, the Audit Committee of the Bank engaged an external firm to independently complaints against the Banks management, former MD & CEO and certain members of
Corporate Overview examine the matter. During the year ended March 31, 2020, the Bank identified the Board of Directors prior to being superseded by RBI. The NRC, basis investigations
certain further matters which arose from other independent investigations initiated conducted by the management has, post its review, concluded that they have no
A redefined YES
by the lead banker of a lenders’ consortium on the companies allegedly favoured by material impact on financial statements.
03 YES BANK at a glance the former MD and CEO. In March 2020, the Enforcement Directorate has launched
In January, 2020, the then Chairman of the Audit Committee of the Bank highlighted
05 Products and services an investigation into some aspects of dealings and transactions by the former MD
certain concerns around corporate governance and other operational matters
06 Geographical presence and CEO basis draft forensic reports from external agencies which further pointed
at the Bank. The then Board decided to get this investigated by an independent
07 Message from the Chairman out to conflict of interest between the former MD and CEO and certain companies
external firm. A preliminary report has been received by the Board. While most of
10 Message from the Managing Director and arrested him. In view of the fact that these enquiries and investigations are still
the allegations are unsubstantiated, the Board has requested the external firm for
and CEO ongoing, we are unable to comment on the consequential impact of the above matter
detailed recommendations highlighting areas where corporate governance can be
12 Key performance indicators on these standalone financial statements.
further strengthened.
17 Customer focus Response:
Also, no offence of fraud was reported by the Auditors of the Bank.
21 Technology and digital innovation The Bank conducted an internal enquiry of these allegations, which was carried out
25 Retail by management and supervised by the Board of Directors. The enquiry resulted in a B. Secretarial Auditors and Secretarial Audit Report
report that was reviewed by the Board in November, 2018. Based on further inputs and Pursuant to Section 204 of the Companies Act, 2013, the Bank had appointed M/s.
Our approach to value creation deliberations in December, 2018, the Audit Committee of the Bank engaged an external Mehta & Mehta, Practicing Company Secretaries, Mumbai as its Secretarial Auditors
29 Value creation model firm to independently examine the matter. In April, 2019, the Bank had received the to conduct the secretarial audit of the Bank for the FY 2019-20. The Bank provided
31 Our strategy
phase 1 report from the external firm and based on further review/ deliberations had all assistance and facilities to the Secretarial Auditors for conducting their audit. The
36 Risk management
directed a phase 2 investigation from the said firm. Further, during the quarter ended Report of Secretarial Auditors for the FY 2019-20 is annexed to this report as Annexure 4.
Our ESG focus December 31, 2019, the Bank received forensic reports on certain borrower groups
43 Environment commissioned by other consortium bankers, which gave more information regarding Observations, reservations or adverse remarks in the Secretarial Audit
54 Social the above mentioned allegations. The Bank at the direction of its Nomination and Report
69 People Remuneration Committee (NRC) obtained an independent legal opinion with respect The Observations of Secretarial Auditor and the response of directors on the same
80 Governance to these matters. In February, 2020, the Bank has received the final phase 2 report from are as follows:
the said external firm. Meanwhile, in March, 2020, the Enforcement Directorate has
Statutory Reports Observation No. A: Delay in sending intimation about investor meets to the Exchanges.
launched an investigation into some aspects of transactions of the founder and former
MD & CEO and alleged links with certain borrower groups. The ED is investigating Response: All Investors/Analysts meets in respect of which delay in sending intimation
146 Report on corporate governance allegations of money laundering, fraud and nexus between the founder and former has been reported were held on Friday late evening and the intimation for the same
187 Annual business responsibility report MD & CEO and certain loan transactions. The Bank is in the process of evaluating all were submitted to the exchanges on the next working day i.e. Monday.
of the above reports and concluding if any of the findings have a material impact on
Financial Statements Observation No. B : The Reserve Bank of India vide its Order dated April 22, 2019
financial statements/ processes and require further investigation. The Bank has taken
198 Standalone Financials imposed a penalty of `11,25,000 on the Bank under Section 30(1) of the Payment
this report to the newly constituted Audit Committee and Board and will progress
267 Consolidated Financials and Settlement Systems Act, 2007 for the violations of provisions of RBI circular
further action basis the guidance and recommendations.
on ‘Domestic Money Transfer - Relaxations’ and Master Direction on Issuance and
118
Directors’ Report
Operations of Prepaid Payment Instruments (PPIs) in the arrangement to issue a co- MAINTENANCE OF COST RECORDS
Contents branded open loop prepaid card (YBL-Zipcash card) in partnership with Zipcash Card Being a Banking Company, the Bank is not required to maintain cost records as per
Corporate Overview Services Pvt. Ltd. and the same was paid to RBI on May 7, 2019.
sub-section (1) of Section 148 of the Companies Act, 2013.
A redefined YES Response: This program was undertaken as a pilot project for digitizing the receivables BUSINESS RESPONSIBILITY REPORT
02 Key highlights FY 2019-20 of OLA Cab drivers by issuing prepaid cards which could be used for meeting day-to-
03 YES BANK at a glance As stipulated in Listing Regulations, the Business Responsibility Report describing
day operating expenses. As part of this program, 1,885 cards were activated, out of
05 Products and services the initiatives undertaken by the Bank from environmental, social and governance
which 1,605 cards were used to undertake a total of 14,260 transactions (85% usage at
06 Geographical presence perspective is separately attached as part of the Annual Report.
Fuel Stations and Toll Plazas). This program was launched in September, 2017, was put
07 Message from the Chairman on hold in March,2018 and was finally terminated in September, 2018. SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS
and CEO Observation No. C: The Bank and Compliance Officer has paid a settlement amount During the year under review, apart from the moratorium issued by Reserve Bank of
12 Key performance indicators of `51.6 Lakh and `14.45 Lakh respectively, to SEBI for incomplete disclosure of India and the YBL Reconstruction Scheme, made effective by the Central Government,
15 COVID-19 response information under Regulation 30 of Securities and Exchange Board of India (Listing no other significant and material orders were passed by the regulators or courts or
17 Customer focus Obligations and Disclosure Requirements) Regulations, 2015 with respect to the tribunals impacting the going concern status and Bank’s operation in future.
21 Technology and digital innovation report on Income Recognition, Asset Classification and Provisioning (IRACP) as issued AWARDS AND RECOGNITIONS
25 Retail by the Reserve Bank of India for FY 2018.
• YES BANK has been awarded 'Bank of the Year in India' at The Banker Awards 2019.
Our approach to value creation Response: The Bank and the Compliance Officer had paid a sum of `51.6 Lakh and The Banker magazine is part of The Financial Times Group, UK and this award is
29 Value creation model `14.45 Lakh respectively to settle the adjudication proceedings without admitting or widely regarded as one of the most prestigious awards of the Banking Industry.
31 Our strategy
denying the guilt.
36 Risk management • YES BANK has been adjudged Winner, Cyber Security in The Banker's Tech Projects
Observation No. D: Delay in submission of Quarterly Financial Results for the quarter Awards 2019 for successfully introducing and implementing robust security
Our ESG focus
ended December 31, 2019. procedures in corporate internet banking.
43 Environment
54 Social Response: As per the advance intimation given by the Bank to the Stock Exchanges on • YES BANK has been recognized with the Best Bond Adviser (India) and Best Green
69 People February 12, 2020, the Bank and its management was deeply engaged with the capital Bond (India) awards at the Asset Triple A Country Awards 2019. The Bank has won
80 Governance raising exercise which includes extensive work with its investment bankers, legal and based on the number, size and type of deals, industry spread, impact on capital
accounting advisors, the investors and the independent vendor/legal due diligence market, quality of execution, and secondary market performance.
Statutory Reports
commissioned for investors. Given the fact that said capital raising process had the
84 Management discussion and analysis • YES BANK ranked Third among ‘Top Sell-Side Firms’ in Secondary Market INR
106 Directors’ report Bank’s fullest attention, it was decided to publish its unaudited financial results for
Corporate Bonds, Third among the ‘Top Arrangers – Investors' Choice’ for Primary
146 Report on corporate governance the quarter and nine ended on March 14, 2020. Accordingly, the unaudited financial
Issuances INR Corporate Bonds, Third among ‘Top Investment Houses’ and Fourth
187 Annual business responsibility report results for the quarter and nine months ended on December 31, 2019 were then
among the ‘Top Arrangers - Investors' Choice’ for Primary Issuances INR Government
published on March 14, 2020 and a fine of `5000 per day aggregating to `1,35,000/- +
Financial Statements bonds in the Annual Local Currency Bond Investor Survey conducted by The Asset
18% GST i.e. 24,300/- [Total `1,59,300/- (Rupees One Lakh Fifty Nine Thousand Three
198 Standalone Financials Magazine, Hong Kong.
Hundred Only)] was paid to each of the Stock Exchanges, BSE Limited & National Stock
Exchange of India Limited.
119
Directors’ Report
• YES BANK recognised with the Best Trade Finance Bank in India Awards (5th year in Asia Region, which stand at ‘C’. YES BANK is also rated A- (Leadership Band) in the
Contents a row) at The Asian Banker Transaction Awards 2019. 2019 Supplier Engagement Rating by CDP.
Corporate Overview
01 Commitment. Promise. Transparency. • YES BANK won Qimpro Award for Best Improvement Project in Services and Best • YES BANK was Approved as “Accredited Entity” by the Green Climate Fund (GCF) –
A redefined YES Quality Fable in Services Category in 2019 one amongst only 11 private banks, globally
03 YES BANK at a glance • YES BANK recognised as the Best Corporate Trade Finance Deal in India and • YES BANK was included as a constituent of the FTSE4Good Emerging Index by FTSE
05 Products and services Best Financial Supply Chain Management in India at The Asian Banker Bankers Russell. YES BANK is the only Indian Bank to be included in the index for three
06 Geographical presence Choice Awards 2019 consecutive years (2017, 2018 and 2019)
07 Message from the Chairman • YES BANK recognised with Best Deal South Asia (India) - Transport Deal of the DISCLOSURES UNDER GREEN INFRA BONDS
Year, Utility Dealof the Year and Renewable Energy Deal of the Year – Solar (Highly Green Bonds have emerged as a mainstream financing mechanism for providing
and CEO
Commended) at The AssetTriple A Asia Infrastructure Awards 2019 finance to clean energy and are playing a pivotal role in realization of India’s renewable
15 COVID-19 response • YES BANK has been Ranked No. 1 for exemplary performance in Digital Payments energy potential. Since the maiden issuance by YES BANK, the Green Bonds market
17 Customer focus across public, private, foreign, and payment banks in India by Ministry of Electronics has witnessed a steady growth and is currently pegged at over USD 10 billion. Driven
21 Technology and digital innovation & Information Technology(MeitY) by the commitment of mobilizing USD 5 billion towards climate action by 2020, as
25 Retail taken during Paris Accord, YES BANK has issued three green bonds:
• YES BANK has been selected by Global Finance magazine as The Innovators in Trade
Our approach to value creation Finance and the 25 Best Financial Innovation Labs (YES FINTECH) • February, 2015: YES BANK issued India’s first-ever Green Infrastructure Bonds,
29 Value creation model raising an amount of `1000 crore. This 10 year tenor bond witnessed strong demand
31 Our strategy • YES BANK recognised with the Best Bank in India for SMEs at Asiamoney Country from leading investors including Insurance companies, Pension & Provident Funds,
36 Risk management Awards Hong Kong, 2019 Foreign Portfolio Investors, New Pension Schemes and Mutual Funds.
Our ESG focus • YES BANK recognised with India Domestic Cash Management, ProjectFinance & • August, 2015: YES BANK raised `315 crore through the issue of Green Infrastructure
43 Environment Trade Finance Bank of the Year, 2019 at the ABF Wholesale Banking Awards 2019 Bonds to International Finance Corporation on a private placement basis which is
54 Social the first investment by IFC in an Emerging Markets Green Bond issue in the world.
• YES BANK recognised with SME Bank of the Year – India at ABF Retail
69 People The bonds are for a tenor of 10 years. IFC paid for the placement using the proceeds
Banking Awards 2019
80 Governance from the first Green Masala Bond program that aimed at raising capital in the
• YES BANK won the CSR Journal Excellence Award for the ‘Best Project in the Health offshore rupee market.
Statutory Reports
and Sanitation’
• December, 2016: YES BANK raised `330 crore, through an issue of a 7-year Green
106 Directors’ report • YES BANK won the Platinum Award at the Apex India Excellence Award 2019 for its Infrastructure Bonds to FMO, the Dutch Development Bank, on a private placement
146 Report on corporate governance ‘Say YES to Safe and Clean Drinking Water’ project basis. This was FMO’s 1st investment in a Green Bond issued by a bank in India.
• YES BANK won Silver and Bronze at the 8th ACEF Asian Leaders Awards for FMO had paid for the placement using the proceeds from their sustainability bonds
Financial Statements Excellence in CSR issued in 2015.
• CDP has upgraded YES BANK’s rating from ‘C’ (Awareness Band) to 'A-' (Leadership The amount raised was used to finance Green Infrastructure Projects as per ‘Eligible
Band). YES BANK’s rating surpasses the averages for the Financial Services and the Projects’ outlined in the Bank’s internal guidelines that are in adherence to the Green
120
Directors’ Report
Bond Principles (GBP). For FY 2019-20, KPMG, India has provided limited assurance on other air pollutants associated with fossil fuel based energy generation. Estimated
Contents conformity of the use of proceeds, process for evaluation and selection of projects, CO2 emission reductions are shared along with project details.
Corporate Overview management of proceeds and reporting of these green bonds to GBP 2018.
01 Commitment. Promise. Transparency. List of projects against which green bonds proceeds have been allocated as on 31st
A redefined YES The GBP are voluntary guidelines, developed by the International Capital Markets March 2020 is provided below:
02 Key highlights FY 2019-20 Association, for broad use by the market that recommend transparency and disclosure,
Proceeds Utilization* Against Bond Issuance Size of `1,000 Cr (February 2015)
03 YES BANK at a glance and promote integrity in the development of the Green Bond market. They have the
05 Products and services following four key components and the bank showcases its adoption below: Total Fund Estimated** positive Known
Sr.
06 Geographical presence Project Based E&S impacts - CO2 significant
No Description
07 Message from the Chairman • Use of Proceeds: The proceeds raised by the Bank are used in eligible project Location Utilization, Emission Reduction negative E&S
` Cr (tCO2e / yr) Impacts
10 Message from the Managing Director categories and include all projects funded in whole, or in part, in the fields of
and CEO renewable and clean energy projects including Wind, Solar, Biomass, Hydropower 1 Maharashtra 31.5 MW wind energy 107.35 46,248.10 None
12 Key performance indicators and other such projects. project
15 COVID-19 response 2 Madhya 12 MW wind energy project 723.55 19,693.39 None
17 Customer focus • Process for Evaluation and Selection of Eligible Projects: The Bank’s process
Pradesh
21 Technology and digital innovation starts with interactions with potential borrowers to understand the overall aspects
3 Telangana 42 MW solar energy project 3.51 71,589.87 None
25 Retail of the project and a preliminary confirmation against the eligibility criteria. The
4 Karnataka 40 MW solar energy project 165.59 79,379.62 None
evaluation moves to risk assessment for confirmation of the eligibility, post which
Our approach to value creation Proceeds Utilization* Against Bond Issuance Size of `330 Cr (December 2016)
further documentation is sought as per the Bank’s policies and GBP.
31 Our strategy • Management of Proceeds: Green Bond allocations to eligible projects are tracked
36 Risk management by the Bank through an MIS based asset tagging system. The unallocated proceeds, Total Fund Estimated** positive Known
Sr.
if any, are placed in liquid instruments. Project Based E&S impacts - CO2 significant
Our ESG focus No Description
Location Utilization, Emission Reduction negative E&S
43 Environment • Reporting: The Bank’s communication to investors through an annual update ` Cr (tCO2 / yr) Impacts
54 Social includes:
1 Gujarat 30 MW wind energy project 38.17 53,111.88 None
69 People
−− List of projects to which proceeds have been allocated to, with brief description 2 Telangana 50 MW solar energy project 79.28 90,990.12 None
80 Governance
including amounts disbursed and installed capacity; 3 Rajasthan 300 MW solar energy 74.45 4,57,256.23 None
Statutory Reports project
−− Summary of Environment and Social (E&S) impacts associated with projects,
84 Management discussion and analysis 4 Rajasthan 200 MW solar energy 138.10 3,08,954.69 None
106 Directors’ report if any; and project
146 Report on corporate governance −− Information on investment of unallocated proceeds in liquid instruments. * The temporary unallocated proceeds (`315 Cr bond issued in August 2015) have been invested in
187 Annual business responsibility report Government Securities and will be allocated back to eligible projects, when available.
Impacts
Financial Statements ** The total CO2 emission reduction for individual projects have been calculated based on the
Through financing solar and wind power plants, these bonds strengthen India’s energy
198 Standalone Financials methodology outlined in the document ‘CO2 Baseline Database for the Indian Power Sector User
security while reducing fossil fuel dependency. These bonds have been crucial in Guide Version 15.0 dated December 2019’ (published by the Central Electricity Authority of India) along
financing climate change mitigation with avoidance of emissions of CO2, SO2, NOx and with other relevant factors such as project PLF/CUF estimates, installed project capacity, resultant
annual unit generation etc.
121
Directors’ Report
The assurance statement issued by KPMG India is attached as Annexure 5 to this report. provides for protection against sexual harassment of women at workplace and for
Contents prevention and redressal of complaints. Also, in its endeavour to spread awareness on
Corporate Overview STATUTORY DISCLOSURES
the aforementioned policy and ensure compliance by all the executives, the Bank has
01 Commitment. Promise. Transparency. The disclosures required to be made under Section 134(3)(m) of the Companies Act, implemented a plan of action to disseminate the information and train the executives
A redefined YES 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 on the conservation on the policy under the ambit of ‘Gender Respect and Commitment to Equality’
of energy, technology absorption and Foreign exchange earnings and outgo are (GRACE) program.
given as Annexure 6.
05 Products and services The Bank has complied with provisions relating to the constitution of Internal
06 Geographical presence ANNUAL RETURN Committee under the Sexual Harassment of Women at Workplace (Prevention,
07 Message from the Chairman Pursuant to the provisions of Section 134(3)(a) and Section 92(3) of the Companies Prohibition and Redressal) Act, 2013 (POSH).
Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules,
and CEO Number of cases filed and their disposal under Section 22 of the POSH are as follows:
2014, the Annual Return of the Bank as on March 31, 2020 is uploaded on the website
of the Bank and can be accessed at https://www.yesbank.in/about-us/investors- Particulars Numbers
relation/financial-information/annual-reports. Number of complaints carried forward from last year 2
17 Customer focus
Number of complaints filed during the financial year 8
21 Technology and digital innovation COMPLIANCE WITH SECRETARIAL STANDARDS Number of complaints disposed of during the financial year 8
25 Retail
The Board of Directors affirm that the Bank has complied with the applicable Number of complaints pending as on the end of the financial year 2
Our approach to value creation Secretarial Standards issued by the Institute of Companies Secretaries of India (SS1
DIRECTORS’ RESPONSIBILITY STATEMENT
29 Value creation model and SS2) respectively relating to Meetings of the Board, its Committees and the
31 Our strategy General Meetings. Pursuant to the requirement under Section 134(5) of the Companies Act, 2013, it is
36 Risk management hereby confirmed that:
PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE
Our ESG focus (a) in the preparation of the annual accounts, the applicable accounting standards
The Bank has Zero tolerance towards any act on the part of any executive which may
43 Environment had been followed along with proper explanation relating to material departures;
fall under the ambit of ‘Sexual Harassment’ at workplace, and is fully committed to
54 Social
uphold and maintain the dignity of every women executive working in the Bank. (b) the directors had selected such accounting policies and applied them consistently
69 People
The Policy regarding Prevention & Prohibition of Sexual Harassment at Workplace and made judgments and estimates that are reasonable and prudent so as to give
80 Governance
Statutory Reports
122
Directors’ Report
a true and fair view of the state of affairs of the Bank at the end of the financial Reserve Bank of India, Securities and Exchange Board of India, Government of India,
Contents year and of the loss of the Bank for that period; State Bank of India as well as other investor banks who have invested under the
Corporate Overview YBL Reconstruction Scheme and other Regulatory Authorities for their cooperation,
01 Commitment. Promise. Transparency. (c) the directors had taken proper and sufficient care for the maintenance of adequate
support and guidance. The Directors would like to express a deep sense of appreciation
A redefined YES accounting records in accordance with the provisions of the Companies Act, 2013
for the commitment shown by the employees in supporting the Bank. The Directors
02 Key highlights FY 2019-20 for safeguarding the assets of the Bank and for preventing and detecting fraud
03 YES BANK at a glance would also like to thank all our valued partners, vendors and stakeholders who have
and other irregularities;
05 Products and services played a significant role in continuing to support the Bank.
06 Geographical presence (d) the directors had prepared the annual accounts on a going concern basis;
For and on behalf of the Board of Directors
07 Message from the Chairman (e) the directors, had laid down internal financial controls to be followed by the YES BANK Limited
Bank and that such internal financial controls are adequate and were operating
and CEO
effectively; and Prashant Kumar Sunil Mehta
15 COVID-19 response (f) the directors had devised proper systems to ensure compliance with the Managing Director & CEO Non Executive Chairman
17 Customer focus (DIN: 07562475) (DIN: 00065343)
provisions of all applicable laws and that such systems were adequate and
21 Technology and digital innovation operating effectively.
25 Retail Place: Mumbai
ACKNOWLEDGMENT Date: June 29, 2020
The Directors take this opportunity to express their deep and sincere gratitude
to the customers of the Bank for their confidence and patronage, as well as to the
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
123
Annexure 1
DETAILS OF MANAGERIAL REMUNERATION AND EMPLOYEE REMUNERATION UNDER SECTION
197(12) OF THE COMPANIES ACT, 2013
Contents
Corporate Overview
01 Commitment. Promise. Transparency. The ratio of the remuneration of each director to the median employee’s remuneration and other details in terms of sub-section 12 of Section 197 read with Rule 5(1) of the
A redefined YES Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:
03 YES BANK at a glance Sr.
Requirements Disclosure
05 Products and services No.
06 Geographical presence I The ratio of the remuneration of each director to the median remuneration of Brahm Dutt 3.13x
07 Message from the Chairman the employees for the financial year Ex-MD & CEO- Ravneet Singh Gill 66.67x
Sunil Mehta N.A.
and CEO
MD & CEO - Prashant Kumar 0.36x
15 COVID-19 response II The percentage increase in remuneration of each director, CFO, CEO, CS in the Ex MD&CEO – Ravneet Singh Gill NIL
17 Customer focus financial year Brahm Dutt NIL
CFO 1 (Raj Ahuja) -14.0%
25 Retail
CFO 2 (Anurag Adlakha) N.A.
Our approach to value creation CS 20.5%
29 Value creation model Prashant Kumar N.A.
31 Our strategy Sunil Mehta N.A.
36 Risk management
Notes:
Our ESG focus 1. Mr. Ravneet Singh Gill demitted the office as MD& CEO w.e.f. close of business hours on March 5, 2020,
43 Environment pursuant to supersession of entire Board of Directors vide RBI press release.
54 Social
2. Mr. Brahm Dutt demitted the office as Part- time Chairman w.e.f. close of business hours on March 5, 2020,
69 People pursuant to supersession of entire Board of Directors vide RBI press release.
80 Governance
3. Mr. Raj Ahuja ceased to be the CFO w.e.f. August 10, 2019 on his assuming another role in the Bank
Statutory Reports
4. Mr. Anurag Adlakha was appointed as CFO w.e.f. August 10, 2019.
106 Directors’ report 5. Mr. Prashant Kumar was appointed as MD & CEO w.e.f. March 26, 2020, pursuant to the Reconstitution of the
146 Report on corporate governance Board as per ‘Yes Bank Limited Reconstruction Scheme, 2020.
187 Annual business responsibility report 6. Mr. Sunil Mehta was appointed as Non-Executive Chairman w.e.f. March 26, 2020 pursuant to the Reconstitution
of the Board as per ‘Yes Bank Limited Reconstruction Scheme, 2020'.
124
Annexure 1
Sr.
Contents No.
Requirements Disclosure
Corporate Overview
III The percentage increase in the median remuneration of employees in the The median remuneration of the employees in the financial year was increased by 12.01%. The
01 Commitment. Promise. Transparency. financial year calculation of % Increase in Median Remuneration is done based on comparable employees. For this
A redefined YES
we have excluded employees who were not eligible for any increment.
03 YES BANK at a glance IV The number of permanent employees on the rolls of the Bank There were 22,973 employees as on March 31, 2020
05 Products and services VIII Average percentile increase already made in the salaries of employees other Not Applicable to the Bank, as all the employees are considered under Managerial role.
06 Geographical presence than the managerial personnel in the last financial year and its comparison
with the percentile increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase in
the managerial remuneration
and CEO
12 Key performance indicators XII Affirmation that the remuneration is as per the remuneration policy of the Yes, it is confirmed.
company
17 Customer focus
General Notes :
25 Retail (1) Remuneration in case of MD & CEO is regulated by RBI guidelines.
Our approach to value creation (2) The Remuneration for the purpose of this table is defined as 'Total Cost to the Company (TCC) + Approved Bonus' for all the employees except for KMPs. KMPs remuneration
29 Value creation model is as per the Form 16 (on an annualized basis) excluding stock option exercised since it does not form part of TCC.
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
125
Annexure 2
DETAILS OF ESOP SCHEMES
The ESOP Schemes of the Bank are in compliance with SEBI (Share Based In accordance with the various Employee Stock Option Plans/ Schemes of the Bank
Contents Employee Benefits) Regulations, 2014 (“the Regulations”) and the details as per the as mentioned above, the Employees can exercise the options granted to them
Corporate Overview Regulations are as under: from time to time:
A redefined YES EMPLOYEES’ STOCK OPTIONS AS ON MARCH 31, 2020 JESOP/PESOP ESOP Scheme Exercise period
02 Key highlights FY 2019-20 JESOP JESOP IV 50% after 3 years and balance after 5 years
The Bank has Three Employee Stock Option Plans Schemes in operation viz: (i) YBL ESOP
03 YES BANK at a glance from the Grant date
(consisting of two sub schemes JESOP IV/PESOP I) (ii) YBL JESOP V/PESOP II (Consisting
05 Products and services JESOP V 50% after 3 years and balance after 5 years
of three sub schemes JESOP V/ PESOP II/PESOP II -2010); and (iii) YBL Employee Stock
06 Geographical presence from the Grant date
Option Scheme, 2018 (YBL ESOS 2018) which is consisting of YBL Joining Employee
Stock Option Plan, 2018 (JESOP 2018); YBL Performance Employee Stock Option Plan, JESOP 2018 50% after 3 years and balance after 5 years
10 Message from the Managing Director from the Grant date
and CEO 2018 (PESOP 2018), YBL Performance Employee Stock Option Plan, 2019 (PESOP 2019);
12 Key performance indicators and YBL MD&CEO (New) Stock Option Plan, 2019 (MD&CEO Plan 2019). MD&CEO Plan 2019 20%, 30% & 50% each year, from end of
1st year from the Grant date
Effective from June 13, 2018, all new options have been granted under the YBL ESOS PESOP PESOP I 25% after each year from the Grant date
17 Customer focus
2018 (which inter-alia consists of JESOP 2018, PESOP 2018 and MD & CEO Plan 2019). PESOP II 30%, 30% & 40% after each year from the
The YBL ESOS 2018 and plans formulated thereunder are in compliance with the SEBI Grant date
25 Retail
(Share Based Employees Benefits) Regulations, 2014 as amended from time to time. PESOP II – 2010 30%, 30% & 40% each year, from end of
Our approach to value creation Source of shares are primary in nature, since the Bank has been issuing new equity 3rd year from the Grant date
29 Value creation model shares upon exercise of options. PESOP 2018 30%, 30% & 40% each year, from end of
31 Our strategy 3rd year from the Grant date
JESOP I, JESOP II and JESOP III were in force for employees joining the Bank up to
36 Risk management
March 31, 2005, March 31, 2006 and March 31, 2007 respectively. Grants under PESOP 2019 30%, 30% & 40% each year, from end of
Our ESG focus PESOP II had been discontinued w.e.f. January 2, 2010. Grants under JESOP IV/PESOP 1st year from the Grant date
43 Environment I and JESOP V/ PESOP II -2010 had been discontinued w.e.f. April 07, 2018 pursuant to
54 Social Options under all the aforesaid plans are granted for a term of 10 years (inclusive
coming into effect of YBL ESOS 2018. However, any options already granted under
69 People of the vesting period) and are settled with equity shares being allotted to the
the abovementioned plans would be valid in accordance with the terms & conditions
80 Governance beneficiary upon exercise.
mentioned in the plans.
Statutory Reports
126
Annexure 2
Various details including option movement during the year under Schemes i.e. JESOP II, JESOP III, YBL ESOP and YBL JESOP V/PESOP II respectively are as follows:
Contents
Corporate Overview YBL ESOP YBL ESOP YBL PESOP – II JESOP YBL PESOP YBL PESOP
YBL MD&CEO
Fiscal year 2019-20 YBL JESOP V YBL PESOP II (NEW) STOCK
01 Commitment. Promise. Transparency. (JESOP IV) (PESOP I) 2010 2018 2018 2019**
PLAN 2019
A redefined YES
02 Key highlights FY 2019-20 Date of Shareholders’ Approval 29-Aug-07 29-Aug-07 18-Sep-08* 18-Sep-08* 18-Sep-08* 12-Jun-18 12-Jun-18 12-Jun-18 12-Jun-18
03 YES BANK at a glance Total Number of Options approved 25,000,000 25,000,000 47,500,000 76,140,000 101,360,000 20,000,000 30,000,000 10,000,000 15,000,000
05 Products and services Total Number of options outstanding at the - 125,375 12,837,326 753,600 33,875,140 417,500 265,000 - 5,000,000
06 Geographical presence Beginning of the period
07 Message from the Chairman Total No. of Options granted (during FY 2019-20) - - - - - 2,025,000 18,032,000 - -
and CEO The Pricing Formula Refer Note 1 Refer Note 1 Refer Note 1 Refer Note 1 Refer Note 1 Refer Note 1 Refer Note 1 Refer Note 1 Refer Note 1
12 Key performance indicators Options Vested (during FY 2019-20) - - 2,068,800 - 5,436,225 - - - 5,000,000
15 COVID-19 response Options Exercised (during FY 2019-20) - 125,375 346,499 753,600 3,158,700 - - -
17 Customer focus Total No of shares arising as a result of exercise - 125,375 346,499 753,600 3,158,700 - - - -
21 Technology and digital innovation of option
25 Retail
Options lapsed/ Forfeited (during FY 2019-20) - - 1,379,275 - 7,006,150 40,000 5,310,500 - -
29 Value creation model Total No of options outstanding at the end of - - 11,111,552 - 23,710,290 2,402,500 12,986,500 - 5,000,000
31 Our strategy the year
36 Risk management Total No of options exercisable at the end of the - - 5,650,302 - 16,388,915 - - - 5,000,000
year
Our ESG focus
Variation of terms of options Refer Note 2 Refer Note 2 Refer Note 3 Refer Note 3 Refer Note 3 Refer Note 3 Refer Note 3 Refer Note 3 Refer Note 3
43 Environment
Money realized by exercise of Options (during FY - 3,732,414 27,898,800 22,434,672 230,463,261 - - - -
54 Social
2019-20) (in `)
69 People
Total No of Options in force - - 11,111,552 - 23,710,290 2,402,500 12,986,500 - 5,000,000
80 Governance
Total No. of Options granted to:
Statutory Reports (i) Total No of Options granted to Senior - - - - - - - - -
84 Management discussion and analysis Management Personnel(SMP)
146 Report on corporate governance (ii) Any other employee who received a grant in - - Attached as Sub- - - - - - -
187 Annual business responsibility report any one year of options, amounting to 5% or table1
more of options granted during that year
127
Annexure 2
YBL MD&CEO
YBL ESOP YBL ESOP YBL PESOP – II JESOP YBL PESOP YBL PESOP
Contents Fiscal year 2019-20 YBL JESOP V YBL PESOP II (NEW) STOCK
(JESOP IV) (PESOP I) 2010 2018 2018 2019**
Corporate Overview PLAN 2019
01 Commitment. Promise. Transparency. (iii) Identified employees who are granted Nil Nil Nil Nil Nil
A redefined YES options, during any one year equal to
02 Key highlights FY 2019-20 or exceeding 1% of the issued capital
03 YES BANK at a glance (excluding outstanding warrants and
05 Products and services conversions) of the Company at the time of
grant
07 Message from the Chairman Diluted Earnings Per Share (EPS) of the Bank after considering the (56.06) (56.06) (56.06) (56.06) (56.06) (56.06) (56.06) (56.06)
10 Message from the Managing Director effect of potential equity shares on account of exercise of Options
and CEO Impact of the difference between the Intrinsic Value of the The Bank has charged Nil amount, being the intrinsic value of the stock options granted for the year ended March 31, 2020 and March 31, 2019.
12 Key performance indicators Options and the Fair Value of the Options on Profits and on EPS Had the Bank adopted the Fair Value method (based on Black- Scholes pricing model), for pricing and accounting of options, net profit /loss
15 COVID-19 response after tax would have been lower by `505.40 million (Previous year: `375.18 millions), the basic earnings per share would have been `(56.24)
17 Customer focus (Previous year: `7.29) per share instead of `(56.07) (Previous year: `7.45) per share; and diluted earnings per share would have been `(56.24)
21 Technology and digital innovation (Previous year: `7.22) per share instead of `(56.06) (Previous year: `7.38) per share.
25 Retail
Our approach to value creation Weighted average price of the shares exercised - 29.77 80.52 29.77 72.96 - - -
29 Value creation model during the year (in `)
31 Our strategy Weighted average fair values of the outstanding - - 177.79 - 152.41 92.80 275.00 231.15
36 Risk management options (in `)
Our ESG focus *The option under the scheme were increased subsequently from 1 crore to 3 crores and finally to 4.5 crores by the shareholders’ approval dated September 3, 2009 and June 28, 2011 respectively.
43 Environment **Original Budget was 40,000,000 options (YBL PESOP 2018) of which 10,000,000 options will now be utilized for PESOP 2019 plan.
54 Social
69 People MD&CEO (NEW) STOCK PLAN - 2019
80 Governance
March 31, 2020
Statutory Reports Risk free Interest Rate 6.29%-9.23%
84 Management discussion and analysis Expected life 1.5 yrs - 7.5 yrs
106 Directors’ report Expected Volatility** 25.01% - 48.72%
Expected dividends 1.10%
**Expected volatility is average volatility for expected life of the option.
Note 1: Being the closing price of the Equity Shares on the stock exchange with the highest trading volumes on the last working day prior to the date of grant.
267 Consolidated Financials Note 2: There is no variation in the terms of the options during the Financial Year ended March 31, 2020.
128
Annexure 2
Sub-table 1: Following are the total number of stock options that have been granted to Sub-table 2: Following are the details of the employees who have received the grant of
Contents Senior Management Personnel (“SMP”) during the financial year ended March 31, 2020: options amounting to 5% or more of options granted during the financial year ended
Corporate Overview March 31, 2020.
01 Commitment. Promise. Transparency. Options
Scheme Name Employee Name Designation Grant Price
A redefined YES Granted Options
Scheme Name Employee Name Designation Grant Price
02 Key highlights FY 2019-20 YBL JESOP 2018 Lata Pillai Group President 75,000 96.25 Granted
03 YES BANK at a glance YBL JESOP 2018 Rajeev Uberoi Senior Group President 500,000 96.25 YBL JESOP 2018 Rajeev Uberoi Senior Group President 500,000 96.25
05 Products and services YBL JESOP 2018 Anita Pai Senior Group President 500,000 38.55 YBL JESOP 2018 Anita Pai Senior Group President 500,000 38.55
YBL JESOP 2018 Anurag Adlakha Senior Group President II 500,000 51.2 YBL JESOP 2018 Anurag Adlakha Senior Group President II 500,000 51.2
YBL JESOP 2018 Jasneet Bachal Group President II 70,000 51.2 YBL PESOP 2018 Vinod Bahety Senior Group President 1,250,000 275.1
YBL PESOP 2018 Vinod Bahety Senior Group President 1,250,000 275.1 YBL PESOP 2018 Rajat Monga Senior Group President 3,000,000 275.1
and CEO
12 Key performance indicators YBL PESOP 2018 Devamalya Dey Senior Group President II 150,000 275.1 YBL PESOP 2018 Ashish Agarwal Senior Group President 2,500,000 275.1
15 COVID-19 response YBL PESOP 2018 Deodutta Kurane Senior Group President II 250,000 275.1
17 Customer focus YBL PESOP 2018 Rajat Monga Senior Group President 3,000,000 275.1
21 Technology and digital innovation YBL PESOP 2018 Ashish Agarwal Senior Group President 2,500,000 275.1
25 Retail YBL PESOP 2018 Amit Sureka Senior Group President II 250,000 275.1
YBL PESOP 2018 Vivek Kumar President 12,000 275.1
Our approach to value creation YBL PESOP 2018 Rajiv Anand Group President 300,000 275.1
YBL PESOP 2018 Sumit Gupta Senior Group President II 300,000 275.1
31 Our strategy
YBL PESOP 2018 Asit Oberoi Senior Group President II 100,000 275.1
36 Risk management
YBL PESOP 2018 Namita Vikas Senior Group President II 50,000 275.1
Our ESG focus YBL PESOP 2018 Dhavan Shah Group President 100,000 275.1
43 Environment YBL PESOP 2018 Jyoti Prasad Ratho Senior Group President II 100,000 275.1
54 Social YBL PESOP 2018 Ritesh Pai Senior Group President II 100,000 275.1
69 People YBL PESOP 2018 Rajanish Prabhu Senior Group President II 120,000 275.1
80 Governance YBL PESOP 2018 Rajan Pental Senior Group President 300,000 275.1
Statutory Reports YBL PESOP 2018 Kumar Senior Group President II 125,000 275.1
Padhmanabhan
106 Directors’ report YBL PESOP 2018 Raj Kumar Ahuja Senior Group President II 150,000 275.1
146 Report on corporate governance YBL PESOP 2018 Nirav Dalal Senior Group President II 250,000 275.1
187 Annual business responsibility report YBL PESOP 2018 Nikhil Sahni Senior Group President II 100,000 275.1
YBL PESOP 2018 Arun Agrawal Senior Group President II 150,000 275.1
Financial Statements YBL PESOP 2018 Shubhada Rao Senior Group President II 50,000 275.1
129
Annexure 3
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
A brief outline of the Bank’s CSR policy, including overview of projects or programs sustainable CSR models, new projects were launched in FY 2019-20 to scale societal
Contents proposed to be undertaken: and environmental impact.
Corporate Overview
01 Commitment. Promise. Transparency. YES BANK’S CSR POLICY: The key initiatives undertaken during the year were inter alia in-line with YES BANK's
A redefined YES Through its Responsible Banking ethos, YES BANK has created stakeholder value CSR focus areas.
by implementing projects based on unique models with scalable and sustainable WEB-LINK TO THE CSR POLICY:
impact. Guided by its Corporate Social Responsibility (‘CSR’) policy, the BANK has
05 Products and services https://www.yesbank.in/pdf/ybl_corporate_social_responsibility_policy
delivered internal and external positive socio-environmental impact by following a
unique approach. COMPOSITION OF CSR COMMITTEE:
10 Message from the Managing Director APPROACH TOWARDS CSR: YES BANK recognizes its responsibility towards the society and environment in which
and CEO it operates and accordingly has worked towards CSR and Sustainable Development
• Promote principles of social responsibility and inclusive growth through
12 Key performance indicators focusing on the ‘Triple Bottom line’ ethos since its inception. The Corporate Social
awareness and support
Responsibility Committee of the Bank monitors the CSR activities on a periodic basis.
17 Customer focus • Invest in socially and environmentally responsible activities to create positive impact.
21 Technology and digital innovation The Members of the Committee as on March 31, 2020 comprised of:
25 Retail • Engage with stakeholders to further the sustainability agenda of the Bank and
1. Mr. Atul Bheda, Non-Executive Director (Chairman)
empower with knowledge
Our approach to value creation 2. Mr. Mahesh Krishnamurti, Non-Executive Director
29 Value creation model • Collaborate with like-minded institutions and forge partnerships towards
31 Our strategy addressing the needs of the stakeholders 3. Mr. Swaminathan Janakiraman, SBI Nominee Director
36 Risk management
• Monitor the environmental and social investment of YES BANK Limited through AVERAGE NET PROFIT BEFORE TAX OF THE BANK FOR LAST THREE
Our ESG focus structured governance and transparent performance indicators FINANCIAL YEARS:
43 Environment `4,160 crore
YES BANK’S FOCUS AREAS UNDER CSR:
54 Social
69 People • Livelihood and Water Security PRESCRIBED CSR EXPENDITURE (TWO PER CENT OF THE AMOUNT AS ABOVE)
80 Governance • Employability and Entrepreneurship `83.19 crore
Statutory Reports • Environmental Sustainability DETAILS OF CSR SPENT DURING THE FINANCIAL YEAR:
(a) Total amount to be spent for the financial year: `83.19 crore.
106 Directors’ report • Social Transformation
146 Report on corporate governance The Bank has spent `40.54 crore during FY 2019-20.
OVERVIEW OF ACTIVITIES:
In line with the CSR policy and in accordance of Schedule VII of the Companies (b) Amount unspent, if any: `42.65 crore.
Financial Statements Act, 2013, YES BANK undertook unique initiatives during the year which positively
198 Standalone Financials impacted lives. With an objective to deliver an exponential impact and creating
130
Annexure 3
(c) Manner in which the amount spent during the financial year is detailed below:
Contents Amount spent
Corporate Overview Projects or programs
Amount on the projects or Cumulative
(1) Local area or
01 Commitment. Promise. Transparency. outlay programs Subheads: Expenditure Amount spent:
other (2) Specify the
A redefined YES Sr. CSR project or activity
Sector in which the project is covered State and district
(budget) (1) Direct up to the Direct or through
02 Key highlights FY 2019-20 No identified project or expenditure on Reporting implementing
where projects or
program wise projects or programs. Period agency
03 YES BANK at a glance Programs
` (2) Overheads `
05 Products and services was undertaken
`
06 Geographical presence 1 Livelihood and Water • Making available safe drinking water Maharashtra, 42.75 crore 21.31 crore 68.32 crore Direct
07 Message from the Chairman Security • Livelihood enhancement Madhya Pradesh, Dhan Development of Humane Action
10 Message from the Managing Director • Promoting preventive health care Rajasthan, Foundation, Watershed Organisation Trust,
and CEO and sanitation Karnataka, Goa, NM Sadguru Water and Development Foundation,
12 Key performance indicators Gujarat, NCR Swades Foundation, Jaldhaara Foundation,
15 COVID-19 response Dharmalife Foundation, Ammada Trust
17 Customer focus
2 Say YES to Sustainable • Ensuring environment sustainability Pan India 8.34 crore 1.89 crore 14.18 crore Direct
21 Technology and digital innovation MSMEs in India • Promoting preventive healthcare Foundation for MSME Clusters,
25 Retail • Promoting education Entrepreneurship Development Institute of India
Our approach to value creation 3 Employability and • Promoting education Pan India 17.07 crore 1.95 crore 80.08 crore Direct
29 Value creation model Entrepreneurship • Livelihood enhancement Trust for Retailers and Retail Association
31 Our strategy of India, Deshpande Foundation
36 Risk management 4 Environmental • Ensuring environment sustainability Sikkim, Madhya 7.8 crore 2.02 crore 11.2 crore Direct
Sustainability • Promoting education Pradesh, World Wide Fund For Nature - India, Eco Roots
Our ESG focus Rajasthan, Assam, Foundation, Bombay Natural Historical Society,
43 Environment Maharashtra, Wildlife Conservation Trust, Indian Institute of
54 Social Delhi, NCR Technology- Delhi YES FOUNDATION
69 People
80 Governance
5 Yes Community • Promoting education Delhi, 4 crore 1.44 crore 32.02 crore Direct
• Livelihood enhancement Maharashtra, Goa Synergie, Garbage concern welfare society,
Statutory Reports • Promoting preventive healthcare National Skills Foundation of India, Save the
84 Management discussion and analysis • Ensuring environment sustainability Children India, Museum of Christian Art
106 Directors’ report 6 Contribution towards Pan India - 10 crore 10 crore Direct
146 Report on corporate governance PM CARE fund to help
187 Annual business responsibility report fight COVID-19
Financial Statements 7 Expenditure on - 1.93 crore 10.62 crore

administrative overheads
267 Consolidated Financials TOTAL 40.54 crore 226.42 crore
131
Annexure 3
REASONS FOR NOT SPENDING PRESCRIBED CSR Amount: Given the critical role played by the MSME sector in India’s transition towards low
Contents carbon & sustainable economy, the Bank, in FY 2019-20, has supported 5,000 MSMEs
YES BANK, since inception has believed in creating sustained value for its stakeholders,
Corporate Overview to adopt industry best practices to enhance energy efficiency, adopt circular economy
through its Responsible Banking ethos, by contributing positively towards economic
development and socio-environmental objectives, thus playing a larger role in India’s business models, improve financial literacy levels and ensure occupational health &
A redefined YES
overall sustainable development. safety of their workers. In line with its focus on protecting India’s rich biodiversity, YES
03 YES BANK at a glance BANK has taken measures towards conservation of endangered/critically endangered
In FY 2019-20, with a focus on impact and scale, YES BANK has extensively species like Pangolin, Red Panda, Great Indian Bustard and House Sparrow, through
contributed towards areas of national importance, thereby creating shared value science based research, habitat restoration (protected & potential) and community-
for its stakeholders. The Bank has undertaken unique, scalable and sustainable CSR led interventions across Assam, Madhya Pradesh, NCR, Rajasthan and Sikkim. Training
programs focusing on Livelihood & Water Security, Employability & Entrepreneurship, of 39,292 students in 110 schools through House Sparrow nest building workshops,
and CEO Environmental Sustainability and Social Transformation. During the year, the Bank training of 78 villagers to reduce fuel wood consumption in Red Panda habitats,
12 Key performance indicators provided access to safe and clean drinking water to commuters at 1,005 railway stations restoration of 30 hectares of habitat for the Great Indian Bustards, tagging of 2
15 COVID-19 response across Maharashtra, Gujarat, Rajasthan, Goa and Karnataka through maintenance of pangolins for monitoring & data collection purpose and installation of cameras traps
17 Customer focus 1,029 water purification systems, installed by the Bank in previous years. at 50 sites to aid field surveys are some of the interventions undertaken to preserve
21 Technology and digital innovation natural capital. YES BANK, as the first Indian private sector bank to collaborate with the
The Bank expanded its Livelihood and Water Security program through various
25 Retail National Highways Authority of India (NHAI), is working towards the vision of creating
community-level interventions including restoration and rejuvenation of water
Our approach to value creation bodies, construction of traditional water conservation structures, building capacity of green highways. Under the Ministry of Road Transport and Highways ‘Adopt a Green
29 Value creation model farmers to create farmer associations, facilitating access to credit, ensuring affordable Highway’ initiative, the Bank has adopted a 40-kilometer stretch along the Mumbai–
31 Our strategy and sustainable access to safe and clean drinking water. These interventions have Nashik Highway. The Bank continues to maintain 45,462 trees along the stretch for a
36 Risk management positively impacted 84,127 individuals from rural communities in the states of five-year period.
Our ESG focus Maharashtra, Gujarat, Madhya Pradesh and Rajasthan. With the dual aim of promoting The Bank’s unique flagship community engagement program ‘YES Community’
43 Environment safe menstrual hygiene practices and creating women micro-entrepreneurs in the continued to spread awareness on pertinent social and environmental issues, through
54 Social rural areas of Rajasthan, the Bank launched Menstrual Hygiene Management program community engagement initiatives centered around waste management, financial
69 People in 40 villages. By creating community-level awareness about safe disposal of sanitary literacy, and Sustainable Development Goals (SDGs)—the SDG literacy program
80 Governance napkins and encouraging the use of environment friendly bio-degradable menstrual reached out to 28,916 students in Delhi, NCR, Mumbai and Pune. The Bank also
management options, the program touched 2,222 women and 3,800 adolescent extended rehabilitation support and provided relief kits to 25,000 families affected by
Statutory Reports school girls within reproductive age group. Cyclone Fani in Odisha.
106 Directors’ report YES BANK partnered with Deshpande Foundation and has provided employability As a public trust institution, being a responsible corporate citizen is a part of YES
146 Report on corporate governance training to 721 youth in Karnataka, under various focus sectors such as agriculture, BANK’s core values. With prudence it has been undertaking and investing in CSR
187 Annual business responsibility report accountancy, electrical works, BPO, soft skills and primary teachers training. The projects that are unique, scalable and sustainable, continuously delivering large scale
Bank also partnered with Trust for Retailers & Retail Associates of India (TRRAIN) to impact. This year the Bank has spent `40.54 crore (0.97 %) vis-a-vis budgeted `83.19
impart training to 410 underprivileged women (including women with disabilities). crore (2%), towards CSR as per Section 135 of the Companies, Act, 2013. The reason
The comprehensive industry training and mentorship program not only addresses for not spending the prescribed and budgeted 2% is on account of delays in identified
the recruitment challenges of corporate retailers in India, but enables the women project approvals, the factors leading up to the moratorium which resulted in delayed
participants to pursue a career in retail.
132
Annexure 3
fund deployment to implementation partners, and the RBI imposed moratorium on positive environmental impact through lending, investing and raising capital. The Bank
Contents YES BANK which was an unforeseen instance. continued to work extensively on livelihood enhancement programs especially with
Corporate Overview women, and financial inclusion with migrants. While these interventions are beyond
01 Commitment. Promise. Transparency. YES BANK believes in India’s developmental agenda and continues to focus on
the ambit of the definition of CSR under the Companies Act, 2013, it has supplemented
A redefined YES sustainable development and responsible banking. The Bank stands committed to
the Bank’s objectives, in creating a larger and deeper socio-economic impact.
02 Key highlights FY 2019-20 sustainable finance, which is the key to unlocking India’s potential and achieving
03 YES BANK at a glance sustainable developmental goals. In line with its COP 21 commitment, the Bank has The CSR Committee confirms that the implementation and monitoring of CSR
05 Products and services been successful in mobilizing USD 5 billion from 2015 to 2020, towards projects with Policy, is in compliance with CSR objectives and Policy of the Bank.
and CEO
17 Customer focus
25 Retail

31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
133
Annexure 4
FORM No. MR-3
Secretarial Audit Report
Contents For the financial year ended March 31, 2020
Corporate Overview
01 Commitment. Promise. Transparency. [Pursuant to Section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
A redefined YES
03 YES BANK at a glance To, (iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
05 Products and services The Members,
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made
06 Geographical presence YES BANK Limited,
there under to the extent of Foreign Direct Investment;
07 Message from the Chairman YES BANK Tower, IFC – 2,
10 Message from the Managing Director 15th Floor, Senapati Bapat Marg, (v) The following Regulations and Guidelines prescribed under the Securities and
and CEO Elphinstone (West), Exchange Board of India Act, 1992 (‘SEBI Act’):-
Mumbai – 400013
15 COVID-19 response (a) The Securities and Exchange Board of India (Substantial Acquisition of Shares
17 Customer focus We have conducted the secretarial audit of the compliance of applicable statutory and Takeovers) Regulations, 2011 ;
21 Technology and digital innovation provisions and the adherence to good corporate practices by YES BANK Limited
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading)
25 Retail (hereinafter called “the Bank”). Secretarial Audit was conducted in a manner that
Regulations, 2015;
provided us a reasonable basis for evaluating the corporate conducts/statutory
compliance and expressing our opinion thereon. (c) The Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018;
31 Our strategy Based on our verification of the Bank’s books, papers, minute books, forms and
36 Risk management returns filed and other records maintained by the Bank and also the information (d) The Securities and Exchange Board of India (Share Based Employee Benefits)
Our ESG focus provided by the Bank, its officers, agents and authorized representatives during Regulations, 2014;
43 Environment the conduct of secretarial audit, we hereby report that in our opinion, the Bank has,
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities)
54 Social during the audit period covering the financial year ended on March 31, 2020, complied
Regulations, 2008 (during the year under review not applicable to the Bank);
69 People with the statutory provisions listed hereunder and also that the Bank has proper
80 Governance Board processes and compliance mechanism in place to the extent, in the manner (f) The Securities and Exchange Board of India (Registrars to an Issue and Share
and subject to the reporting made hereinafter: Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing
Statutory Reports with client (during the year under review not applicable to the Bank);
84 Management discussion and analysis We have examined the books, papers, minute books, forms and returns filed and
106 Directors’ report other records maintained by the Bank for the financial year ended on March 31, 2020 (g) The Securities and Exchange Board of India (Delisting of Equity Shares)
146 Report on corporate governance according to the provisions of: Regulations, 2009 (during the year under review not applicable
187 Annual business responsibility report to the Bank);and
(i) The Companies Act, 2013 (‘the Act’) and the rules made thereunder;
Financial Statements (h) The Securities and Exchange Board of India (Buyback of Securities)
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules
198 Standalone Financials Regulations, 2018 (during the year under review not applicable to the Bank);
made thereunder;
134
Annexure 4
(vi) The Banking Regulation Act, 1949 and Notifications and circulars issued by the Rules, 1995 read with Section 15-I of SEBI Act, 1992 and Rule 4(1) of Securities
Contents Reserve Bank of India (‘RBI’) from time to time (‘BR Act’); Contract (Regulation) (Procedure for Holding Inquiry and Imposing Penalties by
Corporate Overview Adjudicating Officer) Rules, 2005 read with Section 23-I of Securities Contract
01 Commitment. Promise. Transparency. (vii) The Securities Exchange Board of India (Merchant Bankers) Regulation, 1992;
(Regulation) Act, 1956 with regard to Bank's disclosure of information under
A redefined YES
(viii) T he Securities Exchange Board of India (Depositories and Participants) Regulation 30 of Securities and Exchange Board of India (Listing Obligations and
03 YES BANK at a glance Regulations, 1996; Disclosure Requirements) Regulations, 2015 with respect to the report on Income
05 Products and services Recognition, Asset Classification and Provisioning (IRACP) as issued by the Reserve
(ix) The Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994;
06 Geographical presence Bank of India for the FY 2018. The Bank and Compliance Officer then filed an
07 Message from the Chairman We have examined compliance with the applicable clauses of the following: application for settlement under SEBI (Settlement Proceedings) Regulations, 2018
10 Message from the Managing Director vide letters dated June 21, 2019. Further, to settle the adjudication proceedings,
a) Secretarial Standards issued by the Institute of Company Secretaries of India;
and CEO the Internal Committee of SEBI had advised for payment of a sum of `51.6 Lakh
12 Key performance indicators b) Securities and Exchange Board of India (Listing Obligations and Disclosure and `14.45 Lakh by the Bank and the Compliance Officer respectively. The said
15 COVID-19 response Requirements) Regulations, 2015; amount was paid to SEBI on August 28, 2019. Accordingly, SEBI had disposed of the
17 Customer focus adjudication proceedings vide its Settlement Orders dated September 04, 2019.
21 Technology and digital innovation During the period under review the Bank has complied with the provisions of Act,
25 Retail Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the d) As per the advance intimation given by the Bank to the Stock Exchanges on
following observations: February 12, 2020, the Bank had submitted the financial statements for the quarter
Our approach to value creation and nine months ending December 31, 2019 on March 14, 2020 i.e. beyond the
29 Value creation model a) Intimations with respect to the Investor Meets held on March 29, 2019, May 06,
time frame of 45 days from the end of the relevant quarter as stipulated under
31 Our strategy 2019, May 13, 2019, May 30, 2019, June 10, 2019, June 17, 2019 and July 22, 2019
Regulation 33 of the Securities and Exchange Board of India (Listing Obligations
36 Risk management were made beyond 24 hours i.e. delay by a day without any explanations for such
and Disclosure Requirements) Regulations, 2015. Accordingly, a fine of `5000 per
delay as required under Schedule III, Part A of Securities and Exchange Board of
Our ESG focus day aggregating to `135,000 + 18% GST i.e. 24,300/- Total `159,300/- (Rupees One
India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
43 Environment Lakh Fifty Nine Thousand Three Hundred Only)] was paid to each of the Stock
54 Social b) The Reserve Bank of India (“RBI”) vide its Speaking Order dated April 22, 2019 Exchanges, BSE & NSE on March 20, 2020;
69 People imposed a penalty of `11,25,000 (Rupees Eleven Lakhs Twenty Five Thousand
We further report that:
80 Governance only) on the bank under Section 30(1) of the Payment and Settlement Systems Act,
2007 for the violations of provisions of RBI circular on ‘Domestic Money Transfer Pursuant to the YES Bank Limited Reconstruction Scheme, 2020 (‘the Scheme’),
Statutory Reports
- Relaxations’ and Master Direction on Issuance and Operations of Prepaid notified by the Ministry of Finance, Government of India on March 13, 2020, a new
Payment Instruments (PPIs) in the arrangement to issue a co-branded open loop Board was re-constituted on March 26, 2020 and the said Board has been constituted
146 Report on corporate governance prepaid card (YBL-Zipcash card) in partnership with Zipcash Card Services Pvt. as per the composition mentioned in the scheme which is not in line with the
187 Annual business responsibility report Ltd. and the same was paid to RBI on May 7, 2019; requirement of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015. The said Scheme has overriding effect to
Financial Statements c) The Securities and Exchange Board of India had issued a show cause notice dated
all other applicable laws, rules and regulations in respect of the matters specified in
198 Standalone Financials May 28, 2019 to the Bank and Compliance Officer under Rule 4(1) of the SEBI
267 Consolidated Financials (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer)
135
Annexure 4
the Scheme. The said view of the Bank has been duly endorsed by the National Stock (b) The Nomination and Remuneration Committee has allotted the following shares
Contents Exchange of India Limited and BSE Limited. pursuant to exercise of Stock Options by the employees of the Bank:
Corporate Overview
01 Commitment. Promise. Transparency. The erstwhile Board of Directors of the Bank was duly constituted with proper balance Sr. No. Shares
Allotment date Name of the Plans
A redefined YES of Executive Directors, Non-Executive Directors and Independent Directors before No. Allotted
02 Key highlights FY 2019-20 the implementation of the Scheme. The changes in the composition of the Board of 1. 10,04,949 April 11, 2019 JESOP V, PESOP I, PESOP II and PESOP II- 2010
03 YES BANK at a glance Directors that took place during the period under review before the implementation 2. 3,96,250 April 25, 2019 JESOP V, PESOP II and PESOP II- 2010
05 Products and services of the Scheme were carried out in compliance with the provisions of the Act. 3. 4,30,250 May 16, 2019 PESOP I, PESOP II and PESOP II- 2010
4. 94,250 May 29, 2019 JESOP V, PESOP I, PESOP II and PESOP 1I- 2010
07 Message from the Chairman Adequate notices were given to all Directors for scheduled Board Meetings, agenda
5. 6,73,050 June 11, 2019 JESOP V, PESOP I, PESOP II and PESOP II- 2010
10 Message from the Managing Director and detailed notes on agenda were sent at least seven days in advance, and a system
6. 12,58,275 June 26, 2019 PESOP I and PESOP II- 2010
and CEO exists for seeking and obtaining further information and clarifications on the agenda
7. 1,53,250 July 16, 2019 ESOP plans JESOP V and PESOP II- 2010
12 Key performance indicators items before the meeting and for meaningful participation at the meeting.
15 COVID-19 response 8. 2,11,600 August 10, 2019 JESOP V and PESOP II – 2010
17 Customer focus Majority of decisions were carried through while the dissenting members’ views, if 9. 22,300 September 16, 2019 YBL JESOP V/PESOP II-2010
21 Technology and digital innovation any, were captured and recorded as part of the Minutes. 10. 1,40,000 November 13, 2020 YBL JESOP V/PESOP II-2010
25 Retail We further report that there are adequate systems and processes in the Bank (c) The Capital Raising Committee of the Bank (“Committee”) on August 15, 2019,
Our approach to value creation commensurate with the size and operations of the Bank to monitor and ensure approved the issue and allotment of 231,055,018 equity shares of face value `2
29 Value creation model compliance with applicable laws, rules, regulations and guidelines. each to the eligible qualified institutional buyers at the issue price of `83.55 per
31 Our strategy Equity Share aggregating to `19,30,46,46,753.90/- (Rupees One Thousand Nine
We further report that during the audit period, the Bank had the following specific
36 Risk management Hundred Thirty Crore Forty-Six Lacs Forty Six Thousand Seven Hundred Fifty
events / actions having a major bearing on the Bank’s affairs in pursuance of the above
Our ESG focus referred laws, rules, regulations, guidelines, standards, etc: Three and Ninety Paise Only);
43 Environment (d) The Reserve Bank of India vide its letter no.DBR.PSBD.No.9661/16.05.004/2018-
(a) The members of the Bank at their Annual general meeting held on June 12, 2019
54 Social 19 dated May 14, 2019 informed that in exercise of powers conferred under sub-
approved the following:
69 People section (1) of Section 36AB of the Banking Regulation Act, 1949, it had appointed
80 Governance • Raising of capital upto USD 1 Billion or its Indian Rupee equivalent by way Shri R. Gandhi, Ex. Deputy Governor, Reserve Bank of India as an Additional
of public issue, preferential issue, qualified institutions placement, private Director on the Board of the Bank for a period of 2 years with effect from May 14,
Statutory Reports
placement or a combination thereof through ADRs/GDRs or FCCBs or any other 2019 to May 13, 2021 or till further orders, whichever is earlier.
methods by issue of shares or convertible securities in one or more tranches.
(e) During the year, pursuant to invocation of pledge of shares, the Bank had:
146 Report on corporate governance • Approval for borrowing/ raising funds in Indian/ Foreign currency by issue of
187 Annual business responsibility report debt securities up to `20,000 Crore (the “NCDs”) to eligible investors on private • acquired 8,00,50,000 equity shares having nominal value of `2 per share,
placement basis constituting 12.79% of the post-issue paid-up share capital as at March 31,
2019, of a listed company, namely, CG Power and Industrial Solutions Limited.
198 Standalone Financials • Declaration of Dividend at the rate of `2 per Equity Share.
136
Annexure 4
• acquired 6,81,80,149 equity shares having nominal value of `5 per share, of `100/- each aggregating to `200,00,00,000 (Rupees Two Hundred Crore
Contents constituting 9.47% of the post-issue paid-up share capital as at July 3, 2019 of a only) to `1100,00,00,000 (Rupees Eleven Hundred Crore only) divided into
Corporate Overview listed company, namely, Eveready Industries India Limited. 450,00,00,000 (Four Hundred Fifty Crore) equity shares of `2/- each aggregating
to `900,00,00,000 (Rupees Nine Hundred Crore only) and 2,00,00,000 (Two
A redefined YES • acquired 40,00,00,000 equity shares having nominal value of `10 per share,
Crore) preference shares of `100/- each aggregating to `200,00,00,000 (Rupees
02 Key highlights FY 2019-20 constituting 20% of the post-issue paid-up share capital as at July 4, 2019, of an
03 YES BANK at a glance Two Hundred Crore only).
unlisted company, namely, Vadraj Cement Limited.
05 Products and services • Authorization for capital raising through issuance of equity shares or other
06 Geographical presence • acquired 3,27,50,139 equity shares having nominal value of `5 per share,
convertible securities aggregating to `10,000 crores.
07 Message from the Chairman constituting 18.55%of the post-issue paid-up share capital, of a listed company,
10 Message from the Managing Director namely, Cox & Kings Limited. (g) In exercise of the powers conferred under Section 36ACA of the Banking
and CEO Regulation Act 1949, the Reserve Bank of India on March 05, 2020 superseded
• acquired 34,080 equity shares having nominal value of `10 per share,
12 Key performance indicators the entire Board of Directors of the Bank for a period of 30 days and Shri Prashant
constituting 30% of the post-issue paid-up share capital, of an unlisted
Kumar, was appointed as the administrator under Section 36ACA (2) of the
17 Customer focus company, namely, Ezeego One Travel & Tours Limited.
Banking Regulation Act 1949.
21 Technology and digital innovation • acquired 60,00,000 equity shares having nominal value of `10 per share,
25 Retail (h) Further to the aforesaid, on the recommendation of the Reserve Bank of India
constituting approx. 10.25% of the post-issue paid-up share capital of a listed
the Central Government on March 05, 2020 imposed a moratorium on the Bank
Our approach to value creation company, namely, SICAL Logistics Limited
under Section 45 of the Banking Regulation Act, 1949.
29 Value creation model • acquired 12,73,21,500 equity shares having nominal value of `10 per
31 Our strategy (i) Pursuant to the Yes Bank Limited Reconstruction Scheme (notified with effect
share, constituting approx. 29.97% of the post-issue paid-up share capital
36 Risk management from March 13, 2020) (‘the Scheme’) following changes took place:
of Rosa Power Supply Company Limited, a wholly owned subsidiary of
Our ESG focus Reliance Power Limited • The authorised capital of the Bank was increased to `6200,00,00,000 (Rupees
43 Environment Six thousand two hundred crore only) divided into 3000,00,00,000 (Three
(f) The members of the Bank at their Extra-Ordinary General Meeting held on
54 Social thousand crore) equity shares of `2 only each, aggregating to `6000,00,00,000
February 07, 2020 approved the following:
69 People (Rupees Six thousand crore only) and preference share capital of
80 Governance • Increase in the Authorized Share Capital of the Bank from `800,00,00,000 `200,00,00,000 (Rupees two hundred crore only) divided into 200,00,000 (Two
(Rupees Eight Hundred Crore only) divided into 300,00,00,000 (Three Hundred crore) preference shares of `100 each.
Statutory Reports
Crore) equity shares of `2/- each aggregating to `600,00,00,000 (Rupees
106 Directors’ report Six Hundred Crore only) and 2,00,00,000 (Two Crore) preference shares
137
Annexure 4
• Pursuant to clause 3(3) & 3(6) of the Scheme, the Bank allotted shares to the • The office of the Administrator of the Bank, appointed by the Reserve Bank
Contents following persons on March 14, 2020 at a premium of `8/- per share: of India, was vacated on March 26, 2020 and a new Board of Directors was
Corporate Overview reconstituted comprising of the following persons, namely:-
01 Commitment. Promise. Transparency. Sr. No. Shares
Name of the Person/Entity Sr.
A redefined YES No. Allotted Name Designation
No.
02 Key highlights FY 2019-20 1 State Bank of India 6,05,00,00,000
03 YES BANK at a glance 1 Shri Prashant Kumar Managing Director & CEO
2 Housing Development Finance Corporation Limited 1,00,00,00,000
05 Products and services 2 Shri Sunil Mehta Non-Executive Chairman
3 ICICI Bank Limited 1,00,00,00,000
06 Geographical presence 3 Shri Mahesh Krishnamurti Non-Executive Director
4 Axis Bank Limited 60,00,00,000
07 Message from the Chairman 4 Shri Atul Bheda Non-Executive Director
5 Kotak Mahindra Bank Limited 50,00,00,000
10 Message from the Managing Director 5 Shri Swaminathan Janakiraman Nominee Director of State Bank of India
and CEO
6 The Federal Bank Limited 30,00,00,000
6 Shri Partha Pratim Sengupta Nominee Director of State Bank of India
12 Key performance indicators 7 Bandhan Bank Limited 30,00,00,000
7 Shri R. Gandhi RBI appointed Additional Director
15 COVID-19 response 8 IDFC First Bank Limited 25,00,00,000
8 Shri Ananth Narayan Gopalakrishnan RBI appointed Additional Director
17 Customer focus TOTAL 10,00,00,00,000
21 Technology and digital innovation ote: Due to lockdown under COVID-19, Certification on this Form MR-3 is done on the basis
N
• Pursuant to clause 3(3) & 3(4) of the Scheme post infusion of Equity Capital as of documents made available to us in electronic form (i.e. scanned documents sent through
25 Retail e-mail) by the Secretarial Team of the Bank and such documents will be verified physically
stated aforesaid the State Bank of India held 48.21% paid-up share capital of
after the lockdown is lifted.
Our approach to value creation the Bank as on March 31, 2020.
29 Value creation model For Mehta & Mehta
• The following clauses of Articles of Association of the Bank were omitted,
31 Our strategy Company Secretaries
namely:– (i) article 110(b); (ii) article 127(b); (iii) article 127A (a); and
36 Risk management (ICSI Unique Code P1996MH007500)
(iv) article 127A (b).
Our ESG focus
• The moratorium imposed on the Bank by Reserve Bank of India was lifted with Ashwini Inamdar
43 Environment
effect from March 18, 2020. Place: Mumbai Partner
54 Social
Date: June 25, 2020 PCS No: 9409
69 People
UDIN: F009409B000377733 CP No: 11226
80 Governance
ote: This report is to be read with our letter of even date which is annexed as ‘ANNEXURE A’
N
Statutory Reports and forms an integral part of this report.
138
Annexure A
To,
Contents The Members
Corporate Overview YES BANK Limited,
YES BANK Tower, IFC - 2, 15th Floor,
A redefined YES
Senapati Bapat Marg, Elphinstone (West),
03 YES BANK at a glance Mumbai – 400013
05 Products and services Our report of even date is to be read along with this letter.
07 Message from the Chairman 1) Maintenance of secretarial record is the responsibility of the management of the in Form No. MR-3 the adherence and compliance to the requirements of the said
10 Message from the Managing Director Bank. Our responsibility is to express an opinion on these secretarial records regulations is the responsibility of management. Our examination was limited
and CEO based on our audit. to checking the execution and timeliness of the filing of various forms, reports,
12 Key performance indicators returns and documents that need to be filed by the Bank with various authorities
2) We have followed the audit practices and processes as were appropriate to obtain
reasonable assurance about the correctness of the contents of the secretarial under the said regulations. We have not verified the correctness and coverage of
17 Customer focus
records. The verification was done on test basis to ensure that correct facts are the contents of such forms, reports, returns and documents.
25 Retail reflected in secretarial records. We believe that the processes and practices we 7) The secretarial audit report is neither an assurance as to the future viability of
followed provide a reasonable basis for our opinion. the Bank nor of the efficacy or effectiveness with which the management has
3) We have not verified the correctness and appropriateness of financial records conducted the affairs of the Bank.
31 Our strategy and Books of Accounts of the Bank. For Mehta & Mehta
36 Risk management Company Secretaries
4) Wherever required, we have obtained the Management representation about the
compliance of laws, rules and regulations and happening of events etc. (ICSI Unique Code P1996MH007500)
Our ESG focus
43 Environment
5) The compliance of the provisions of corporate laws, rules, regulations, standards Ashwini Inamdar
54 Social
is the responsibility of management. Our examination was limited to the Place: Mumbai Partner
69 People
verification of procedures on test basis. Date: June 25, 2020 PCS No: 9409
80 Governance UDIN: F009409B000377733 CP No: 11226
6) As regard the books, papers, forms, reports and returns filed by the Bank under
Statutory Reports
the provisions referred to in points vi, vii, viii & ix of our Secretarial Audit Report
139
Annexure 5
ASSURANCE STATEMENT BY KPMG INDIA FOR GREEN BOND
Contents
Corporate Overview Independent Assurance Statement Specific limitations and exclusions
01 Commitment. Promise. Transparency. To the management of YES BANK Limited, YES BANK Tower, IFC-2, 15th Floor, Senapati Our assurance process was subject to the following limitations as we have not
A redefined YES Bapat Marg, Elphinstone (W), Mumbai- 400013, Maharashtra, India. been engaged to:
03 YES BANK at a glance Introduction • Determine which, if any, recommendations should be implemented
05 Products and services We were engaged by YES BANK Limited (‘Issuer’) to undertake an independent review • Provide assurance on information outside the defined reporting boundary and period
06 Geographical presence of the following green bonds: • Verify the Issuer’s financial statements and economic performance
07 Message from the Chairman • Verify the Issuer’s statements that describe expression of opinion, belief, aspiration,
10 Message from the Managing Director • Green bonds for `1,000 crore issued on 24 February, 2015 expectation, aim or future intention and national or global socio-economic and
and CEO • Green bonds for `315 crore issued on 05 August, 2015 environmental aspects provided by the Issuer
12 Key performance indicators • Green bonds for `330 crore issued on 29 December, 2016
15 COVID-19 response Work undertaken
17 Customer focus Our responsibility was to provide 'limited assurance' on conformance of the
We planned and performed our work to obtain all the evidence, information and
21 Technology and digital innovation aforementioned green bonds and the accompanying report 'Disclosures under Green
explanations that we considered necessary to obtain a meaningful level of assurance
25 Retail Infrastructure Bonds Financial Year (FY) 2019-20' with the Green Bond Principles, 2018
in relation to the above scope. The procedures we performed, which are set out in
for the period October 1, 2019 - March 31, 2020.
Our approach to value creation detail below, were based on our professional judgment and included, as appropriate,
29 Value creation model Assurance Standards inquiries, observation of processes performed, inspection of documents, analytical
31 Our strategy We conducted our engagement in accordance with requirements of ‘Limited Assurance’ procedures, evaluating the appropriateness of quantification methods and reporting
36 Risk management as per International Federation of Accountants’ (IFAC) International Standard on policies and agreement or reconciliation with underlying records. We believe that the
Assurance Engagements [ISAE 3000 (Revised), Assurance Engagements Other than procedures we have performed and the evidence we have obtained are sufficient and
Our ESG focus
Audits or Reviews of Historical Financial Information]. appropriate to provide a basis for our limited assurance conclusion.
43 Environment
54 Social Assurance scope and level of assurance To reach our conclusion we:
69 People
Our scope of assurance included information on material aspects of the green bond • Checked the Issuer’s Green Bond Framework that includes processes, systems and
80 Governance
during October 1, 2019 - March 31, 2020. based on the requirements of the Green controls in place for management of bond proceeds; investment areas for green
Statutory Reports Bond Principles, 2018 as listed below: bond proceeds and intended types of temporary investment instruments for the
84 Management discussion and analysis management of unallocated proceeds;
106 Directors’ report • Use of Proceeds
146 Report on corporate governance • Process for Project Evaluation and Selection • Read sections of the bond disclosure documentation that also support the objects
187 Annual business responsibility report • Management of Proceeds of the green bond issue, investment areas for proceeds and intended types of
• Reporting temporary investment instruments for the management of unallocated proceeds;
140
Annexure 5
• Conducted interviews with management and key staff responsible for the green confidentiality and professional behaviour. We have systems and processes in place to
Contents bond to understand how the processes, systems and controls defined in the Green monitor compliance with the Code and to prevent conflicts regarding independence.
Corporate Overview Bond Framework have been implemented in the financial year; We apply ISQC 1 and comply with the applicable independence and other ethical
requirements of the IESBA code.
A redefined YES • Checked the list of projects to which bond proceeds have been allocated in the
02 Key highlights FY 2019-20 financial year and their conformance with the criteria defined in the Green Management’s responsibility
03 YES BANK at a glance Bond Framework; The Management of the Issuer is responsible for ensuring that the Issuer and their
• Confirmed the amount of bond proceeds allocated to projects at the end of green bond complies with the requirements of the Green Bond Principles, 2018.
each quarter in the financial year through examination of a sample set of This responsibility includes designing, implementing and maintaining systems and
statements of accounts; processes relevant for the management of green bond proceeds.
and CEO The Management of the Issuer is also responsible for preventing and detecting fraud
• Confirmed the allocation of unallocated bond proceeds to government securities
at the end of the financial year through examination of statements from Financial and for identifying and ensuring that Issuer complies with laws and regulations
Management team of the Issuer; and applicable to its activities.
17 Customer focus
21 Technology and digital innovation • Recalculated estimated carbon dioxide emission reductions from projects using Our responsibility
25 Retail information collected by the Issuer. Our responsibility is to report in the form of an independent limited assurance
Our approach to value creation conclusion in relation to the above scope based on the procedures performed and the
Conclusions
29 Value creation model evidence obtained. We conducted our engagement with a multidisciplinary team which
The following conclusion is based on the work performed and evidence obtained and included professionals with suitable skills and experience in auditing environmental,
31 Our strategy
the scope of our assurance engagement described above. social and economic information in line with the requirements of ISAE 3000 standard.
36 Risk management
Our ESG focus Nothing has come to our attention to suggest that the green bonds issued in February This assurance report is made solely to Issuer in accordance with the terms of our
43 Environment 2015, August 2015 and December 2016 by the Issuer and the accompanying report engagement, which include agreed arrangements for disclosure. Our work has been
54 Social 'Disclosures under Green Infrastructure Bonds FY 2019-20' are not, in all material undertaken so that we might state to Issuer those matters we have been engaged to
69 People respects, conforming to the requirements of the Green Bond Principles, 2018, during state in this assurance report and for no other purpose. Our assurance report should
80 Governance the period October 1, 2019 - March 31, 2020. not be regarded as suitable to be used or relied on by any party wishing to acquire
Independence rights against us other than Issuer for any purpose or in any context. Any party other
Statutory Reports
than Issuer who obtains access to our assurance report or a copy thereof and chooses
84 Management discussion and analysis The assurance was conducted by a multidisciplinary team including professionals
106 Directors’ report to rely on our assurance report (or any part thereof) will do so at its own risk. To
with suitable skills and experience in auditing environmental, social and economic
146 Report on corporate governance the fullest extent permitted by law, we accept or assume no responsibility and deny
information in line with the requirements of ISAE 3000 standard. Our work was
187 Annual business responsibility report any liability to any party other than Issuer for our work, for this independent limited
performed in compliance with the requirements of the IFAC Code of Ethics for
assurance report, or for the conclusions we have reached.
Financial Statements Professional Accountants, which requires, among other requirements, that the
198 Standalone Financials members of the assurance team (practitioners) as well as the assurance firm Manpreet Singh
267 Consolidated Financials (assurance provider) be independent of the assurance client, in relation to the scope Partner
of this assurance engagement. The Code also includes detailed requirements for KPMG India
practitioners regarding integrity, objectivity, professional competence and due care, April 26, 2020
141
Annexure 6
INFORMATION ON ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO
Contents
Corporate Overview
(A) CONSERVATION OF ENERGY build a more secure, resilient, and seamless way of interacting and transacting for
A redefined YES I. The steps taken or impact on conservation of energy: customers. It will further enforce YES BANK’s endeavors to become a technology-
02 Key highlights FY 2019-20 led company in the business of banking.
• The Bank has been migrating to LED lighting in phases. In present financial
year Bank has replaced 3700 LED units. During FY 2019-20, several new initiatives were completed successfully, as well
as systems were upgraded to latest versions to support the growing needs of the
06 Geographical presence • The Bank is in the process of phasing out air conditioning systems that use
Bank. The key Bank-wide projects completed during FY 2019-20 were:
07 Message from the Chairman ozone depleting coolants, and in the current reporting cycle, the Bank has
10 Message from the Managing Director replaced 648 R22 air conditioners that are more than 10 years old with energy • I-AM: A leader in Next Generation Cyber Security Solution. YES BANK’s
and CEO efficient (star rated) systems that use eco-friendly coolants, thus reducing its Leadership team had an opportunity to meet and present I-AM, PI – Control
environmental footprint, which have potential saving of 10 to 15 %. Platform to the MeitY team. Developed by YES BANK in partnership with
FortyTwo42 Labs, the solution is one of the first of its kind solution that
17 Customer focus • YES BANK’s energy management initiatives aim at reducing 15-20% energy
provides 'real-time cryptographic digital transaction signing' at massive scale.
21 Technology and digital innovation consumption by introducing Energy management system, wherein the
The new e-Signature technology (I-AM CI3 multiparty e-Sign), can provide
25 Retail consumption will be monitored centrally using IOT.
carrier-grade (scalable and low cost) cryptographic security to all digital users
Our approach to value creation II. The steps taken by the bank for utilising alternate sources of energy: in India to secure the Digital India Infrastructure. The objective was to share
29 Value creation model YES BANK has explored the potential of using alternate sources of energy by product capabilities and its potential to leverage at the national level
31 Our strategy
installing 5 KVA solar power system at Pune Bundh garden branch. In FY 2019‑20, • YES MSME: One-Click Overdraft Facility for MSME Users, YES MSME is
36 Risk management
the branch drew an estimated 4.5 MWh of electricity (16.2 GJ of energy BANK’s key digital Banking suite, this helped introduce instant approval and
Our ESG focus consumption) through this system, avoiding 3.72 tCO2e emissions. YES BANK disbursement of unsecured overdraft at a click of a button. The YES MSME
43 Environment would continue to explore alternative sources of energy in future. platform is a digital solution which enables small business owners to view
54 Social and take complete control of their business finances from a single place, even
III. The capital investment on energy conservation equipment:
69 People when they are on the move
80 Governance
`1.53 crore spent in present financial year (including AC retrofitting, LED projects
and signage replacements at corporate offices and branch locations). • YES TRANSACT: This initiative facilitated the launch of a completely new
Statutory Reports digital YES TRANSACT Outward Remittances MTO Platform. The initiative is in
84 Management discussion and analysis (B) TECHNOLOGY ABSORPTION
partnership with Western Union and is enabled with e-KYC
106 Directors’ report I. Efforts Towards Technology Absorption
146 Report on corporate governance • YES CODE: This application was launched for Emerging local Corporates and
The advancements in Information Technology (IT) have led to accelerated
187 Annual business responsibility report will further be deployed for other wholesale banking segments. With the
development in newer technologies, resulting in higher demand for digital
implementation of YES CODE the entire sanctioning CAM process is digitized,
Financial Statements solutions to create alternative banking products that deliver customer delight
this has improved the efficiency and contributes to real time status tracking of
198 Standalone Financials through a better service delivery framework.
the Credit Appraisal Memorandum
Since inception, YES BANK has been at the forefront of technology innovation and
adoption, and will continue its focus on technology. This will enable the Bank to
142
Annexure 6
• Digital Payment UPI 2.0: Enabled UPI 2.0 to support mandate and IPO • Centralized Paperless Approval Workflow: YES BANK now follows a paperless
Contents participation, Re-architected UPI application and migrated to new super cluster approval practice. This initiative has helped us to fully leverage our digital DNA,
Corporate Overview environment, enabled YES MONEY DMT SOR application to manage domestic save cost and drive GO GREEN thinking, the entire approval process has been
money limits at agent and customer level and enabled AEPS on YES MONEY automated by creating a SharePoint Online based application. This application
A redefined YES
(RKB Application). Recognized for being top bank (40% market share) in AEPS is very convenient and intelligent to use. This initiative helped on standardizing
03 YES BANK at a glance transactions, top BANK (39% market share) in UPI transactions and significant the document formats and processes across the organization. In the current
05 Products and services market share (10%) in IMPS transactions phase this project has digitized all types of requests and captures all the details
06 Geographical presence required for departments across the Bank
• Apollo Program: Apollo Program is a continuous delivery program to review,
07 Message from the Chairman re-imagine, re-engineer every business operations process, keeping customer II. Proposed New Projects
at the forefront with the objective to ensure efficiency, productivity, risk There is a healthy pipeline of exciting new initiatives, which will enable YES
and CEO
management, and compliance - 106 workflows have been automated till now BANK to deliver world-class digital-first customer service in both assisted and
and 120 projects are in progress self-help mode.
17 Customer focus • Robotic Automation Process (RPA): RPA has been adopted across the • Conversational Banking: From voice assistant to digital branch and digital RM.
21 Technology and digital innovation organization to ease manual processes while cutting costs, saving man hours YES BANK is leveraging Artificial Intelligence backed by machine learning and
25 Retail on repetitive, labor-intensive tasks. RPA has proven operational benefits across (AI)-powered chatbots to communicate with Bank’s customers through voice-
Our approach to value creation various business operation within the Bank and dramatically streamlined a based interfaces to enable a two-way digital customer experience leveraging
29 Value creation model wide variety of back office processes. Automation Edge (Intelligent Robotic Alexa, Google, Siri. For instance, if a customer wants information on Balance,
31 Our strategy Process Automation product) upgraded to latest version and introduced FD, RD, Last 3 statement, interest rates etc, all they must do is say, “Alexa,
36 Risk management WorkFusion to accelerate intelligent automation process what is the interest rate on an FD?” and the app responds with the necessary
Our ESG focus • Omnichannel Marketing Platform, Adobe: The omnichannel platform aims information. These services powered by machine learning are powerful tools
43 Environment at providing a holistic customer experience across multiple channels and in the Digital age. The adoption can help customers utilize full digital services
54 Social through multi-waves. It aims at bringing synergy across all internal & external with ease of voice over actions completing the transactions required. This is
69 People marketing & technology channels to make optimum & effective use of Digital being created with full scale security protocols in mind and will be one of the
80 Governance & Offline channels across YES BANK, by abandoning the product-centric most highly secured products to come
business models • Integrated Payment Hub: The project objectives are to accelerate
Statutory Reports
84 Management discussion and analysis • Application Supported by Blocked Amount (ASBA): New API based ASBA implementation of Cash Management Transformation Program for Corporate
106 Directors’ report implemented within 6 months and smoothly transitioned without any impact Net Banking and Corporate H2H Channel Implementation. The program will
146 Report on corporate governance to existing day to day processes. ASBA is a process developed by the India’s be able to drive implementation of consolidation of applications into a single
187 Annual business responsibility report Stock Market Regulator SEBI for applying to IPO. It is a system of blocking the unified channel for YES BANK's customers and support the requirements and
funds of applicants of IPOs in their respective accounts and release the funds solutions on corporate to BANK initiatives and driving deliveries for corporate
to the Company from such blocked accounts only after the allotment to the and institutional clients/partners
267 Consolidated Financials extent of allotment made and unblock the remaining amount in the account • Oracle Business Digital Experience: The project aims to create a differential
retail net banking experience. This will be an overhaul of our current retail net
143
Annexure 6
banking system to a new, faster and integrated retail net banking application. • Enterprise Collateral Management: Enterprise Limits and Collateral
Contents The project objectives are to elevate the holistic experience for retail Management system provides a single consolidated view of the enterprise-
Corporate Overview customers using our net banking platform and give them connected service wide Credit exposure with Limits, Utilization and Collaterals. It provides
and experience around the same significant benefits to the BANK in (a) Process standardization (b) Provides
A redefined YES
efficiency and real time management of Limits, Collaterals, exceptions and
02 Key highlights FY 2019-20 • YES SEVA: As an impact towards service digitization and business
03 YES BANK at a glance covenants (c) Information delivery to all stake-holders (d) Better insight and
transformation for retail asset customers, YES SEVA was launched as a customer
05 Products and services controls. This system provides a comprehensive view of limits, collaterals and
service request initiation, this service can be availed through our website
06 Geographical presence utilization and facilitates the BANK to act on pending tasks with collaterals, and
07 Message from the Chairman • Transaction Processing Hub: In line with the increasing digitization in the facilities due for review, follow-ups, and exceptions
10 Message from the Managing Director payments space YES BANK expects electronic payments volumes to increase
• Analytics: Analytics in one of the centers of excellence at YES BANK. There are
and CEO exponentially, to cope with the increase in payments volumes, BANK’s payments
multiple new initiatives that are contributing to digital customer interactions,
12 Key performance indicators IT architecture needs to be streamlined to make it more scalable and robust
allowing us to position our services and create business moments with less
and to create channel-agnostic payments solutions and a flexible workflow-
17 Customer focus intrusive conversations with our clients. Some of the projects under analytics
based payment processing architecture. Towards this objective, BANK’s
21 Technology and digital innovation COE include (Transaction Categorization for inference of Customer Persona
Technology team is planning to setup Transaction Processing Hub (TPH) for
25 Retail Attributes), Constellation – Ecosystem Discovery, Self-Service Tool for MSME
processing of all payments. The TPH would be the landing and exit point for all
discovery, Future Ready Hadoop Platform to accelerate growth by smartly using
Our approach to value creation incoming and outgoing payments, as well as the central system for payments
business intelligence and data objective to ensure Efficiency, Productivity, Risk
29 Value creation model processing across multiple channels and products. The core functions of TPH
Management, and Compliance
31 Our strategy would include User Interface, Validations and Exceptions, Workflows, Parsing,
36 Risk management Enrichment, Routing, Accounting, Dashboard and Monitoring, Reporting, • Hercules: The project will refresh the Branch infrastructure including moving
Charging and Billing, Rule Engine, User Management, Liquidity Management, to Windows 10. Windows 7 is no longer certified, and all Windows devices
Our ESG focus
Alerts, Advices, Payment Prioritization, Beneficiary Maintenance, Volume and all the new peripheral hardware require Windows 10. Windows 10
43 Environment
Throttling, Virtual Accounts Management offers enhanced flexibility, on-going updates, enterprise data protection and
54 Social
improved desktop experience
69 People
80 Governance
Statutory Reports
144
Annexure 6
iii. In case of Imported Technology (Imported during the last three years (C) FOREIGN EXCHANGE EARNINGS AND OUTGO
Contents reckoned from the beginning of the financial year): The Foreign Exchange earned in terms of actual inflows during the year and the
Corporate Overview
01 Commitment. Promise. Transparency. if not fully absorbed, Foreign Exchange outgo during the year in terms of actual outflows.
Whether the
areas where
A redefined YES Year of Technology During the year ended March 31, 2020 the Bank earned `11,841.17 million and spent
Details of Technology Imported absorption has not
02 Key highlights FY 2019-20 Import been fully
absorbed
taken place, and the `16,512.96 million in foreign currency. This does not include foreign currency cash
03 YES BANK at a glance reasons thereof
flows in derivatives and foreign currency exchange transactions.
05 Products and services Up gradation of Murex 2.11 to Murex 3.1 Apr-17 Yes NA
06 Geographical presence Cisco CUCM Dec-17 Yes NA For and on behalf of the Board of Directors
07 Message from the Chairman Portwise Nexus Hybrid Access Gateway Oct-18 Yes NA YES BANK Limited
Palo Alto Firewall Feb-19 Yes NA
and CEO Prashant Kumar Sunil Mehta
Adobe Omni Channel Marketing Platform Feb-19 Yes NA
12 Key performance indicators Managing Director & CEO Non Executive Chairman
FICO Blaze Dec-19 NO This is under
15 COVID-19 response (DIN: 07562475) (DIN: 00065343)
UAT phase
17 Customer focus
21 Technology and digital innovation Logi Analytics HA & DR Upgrade Jan-19 Yes NA
25 Retail IS - Morphisec EP protection June-19 Yes NA
Murex Southeast Asia Pte Ltd – AMC ID’s Jan-19 Yes NA
Our approach to value creation Swift Alliance Implementation Aug-19 Yes NA
29 Value creation model Technology Nexus Secured Business Apr-19 Yes NA
31 Our strategy Solutions AB, Portwise Upgrade Project
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
145
Report on Corporate Governance
(The Report on Corporate Governance forms part of the Directors’ Report for the year ended March 31, 2020)
Contents
Corporate Overview
In compliance with Regulation 34(3) and Schedule V of the Securities and Exchange crucial in achieving competitive advantage and positively impacting profitability.
A redefined YES Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 YES BANK endeavors to benchmark itself with the best of companies in India and
02 Key highlights FY 2019-20 (“SEBI LODR Regulations”), a Report on Corporate Governance for the Financial Year globally, to maintain the highest ratings for its Environmental, Social and Governance
03 YES BANK at a glance 2019-20 is presented below: (ESG) practices.
1. Bank’s Philosophy On Code Of Governance We are pleased to advise you that in FY 2019-20, YES BANK became the only Indian
YES BANK, now backed by India’s largest public sector bank, is committed to achieve bank to be included in FTSE4Good Emerging Index for the 3rd consecutive year (2017,
higher standards of Corporate Governance and is on the road of re-gaining the trust 2018 & 2019). The Bank was also awarded ‘PRIME’ status by ISS ESG (previously known
and CEO and faith of the stakeholders by strengthening its governance and disclosure practices. as OEKOM Research AG) for the 2nd consecutive year (2018 and 2019). These selections
12 Key performance indicators highlight YES BANK’s continued leadership in ESG performance. Further the Bank
Effective Corporate Governance is the interaction between various participants continues to adhere to GRI standards and Integrated Reporting guidelines of the
17 Customer focus (Shareholders, Board of Directors, and Company’s Management) in shaping Bank’s International Integrated Reporting Council. YES BANK has also received ISO 27001
21 Technology and digital innovation performance. Transparency and Accountability are the fundamental principles to certification for its information security management system and data privacy policies.
25 Retail sound Corporate Governance, which ensures that the organization is managed and
monitored in a responsible manner for ‘creating and sharing value’. Governance Structure
Our approach to value creation YES BANK’s Corporate Governance Structure has been designed keeping in view of the
29 Value creation model With a view to bring in more transparency and accountability, the Bank upgrades its
regulatory and business requirements, which provides a comprehensive framework
31 Our strategy systems and policies regularly, to meet the challenges of dynamic and challenging
to (i) enhance accountability to shareholders and other stakeholders, (ii) ensure timely
36 Risk management business environment and to provide reasonable assurance with regards to
implementations of the plans and accurate disclosures of all material matters, (iii)
maintaining of proper internal controls and monitoring of operations. YES BANK’s new
Our ESG focus deal fairly with shareholders and other stakeholder interests, and (iv) maintain high
Board is committed to adhere to highest standard of ethics, transparency, disclosures
43 Environment standards of business ethics and integrity.
and governance in order to protect the interest of all its stakeholders. The Board is
54 Social
focused on ensuring both the Corporate Governance and Risk Controls of the Bank. 2. BOARD OF DIRECTORS
69 People
80 Governance YES BANK’s Corporate Governance framework ensures that timely disclosures are (a) Composition and Category of Directors:
made and accurate information is shared regarding the financial performance, During the Financial Year 2019-20, the Bank has witnessed many changes amongst the
Statutory Reports
operations as well as the leadership and governance of the Bank. Board of Directors triggered by the regulatory intervention. The details of which are
106 Directors’ report given under the head “YES BANK LIMITED RECONSTRUCTION SCHEME, 2020” (“YBL
During the year, several Corporate Governance issues were raised by Stakeholders
146 Report on corporate governance Reconstruction Scheme”) in Directors’ Report. During the year, two of the Directors
and Regulators. Taking a positive note of such observations, the Bank is working to
187 Annual business responsibility report resigned in the month of June, 2019, one director resigned in the month of January,
further strengthen its governance and disclosure practices to make it more effective
2020 and two Indian Partner representative Directors were appointed in the month
Financial Statements from regulatory and market perspective.
of April, 2019. In the month of March, Reserve Bank of India (“RBI”) in exercise of the
198 Standalone Financials Environmental, Social & Governance Rating powers conferred under 36ACA of the Banking Regulations Act, 1949 (“BR Act”) in
Corporate Governance has emerged as an essential tool in the organizational consultation with Central Government, superseded the Board of Directors of the Bank
management globally. Strong Corporate Governance practices have become and in the interim Mr. Prashant Kumar was appointed as the administrator under
146
Section 36ACA (2) of the BR Act for a period of 30 days and all powers of the Board as per Articles of the Bank/under SEBI Listing Regulations. The Reserve Bank of India
Contents of Directors were vested in him. The Bank was under the control of Administrator for as well as the Stock Exchanges viz. National Stock Exchange of India Limited and BSE
Corporate Overview the period, from March 06, 2020 to March 25, 2020. Under the YBL Reconstruction Limited had confirmed the above view of the Bank over an email communication.
Scheme, new Board of Directors of the Bank was constituted, which took charge with
A redefined YES The details of the Board of Directors, category and changes amongst them during the
effect from March 26, 2020.
02 Key highlights FY 2019-20 year are as follows:
03 YES BANK at a glance The new Board of Directors consist of Eight Directors including One Non-executive
05 Products and services Name & DIN of the Director Category Details of Change
Chairman, One Managing Director & Chief Executive Officer, Two Non-executive
06 Geographical presence Mr. Ravneet Singh Gill Managing Director & Chief Appointment - Mar 01, 2019
Directors as named under the YBL Reconstruction Scheme, Two Directors nominated
07 Message from the Chairman (DIN: 00091746) Executive Officer Cessation - Mar 05, 2020 *
by the State Bank of India and Two Directors appointed by the Reserve Bank of India
10 Message from the Managing Director Mr. Brahm Dutt Non-Executive Independent Appointment - Jul 24, 2013
as Additional Directors.
and CEO (DIN: 05308908) Director & Part-time Chairman Cessation- Mar 05, 2020 *
12 Key performance indicators Accordingly, the Bank has eminent personalities from diverse fields and long banking Lt. Gen. (Dr.) Mukesh Non-Executive Independent Appointment - Apr 25, 2012
15 COVID-19 response experience as the Directors on its Board. The composition of Board of Directors Sabharwal (Retd.) Director Cessation - Jun 10, 2019 #
17 Customer focus represents the optimal mix of professionalism, qualification, knowledge, skill sets, (DIN: 05155598)
21 Technology and digital innovation track record, integrity, expertise and diversity of experience as required in the Mr. Thai Salas Vijayan Non-Executive Independent Appointment – Dec 03, 2018
25 Retail Banking Business. The responsibilities of the Board inter alia include revival of the (DIN: 00043959) Director Cessation- Mar 05, 2020 *
Our approach to value creation Bank, ensure adequate capitalization, formulation of overall strategy for the group, Mr. Maheswar Sahu Non-Executive Independent Appointment – Jan 24, 2019
29 Value creation model taking new initiatives, formulating policies, performance review, monitoring of plans, (DIN: 00034051) Director Cessation- Mar 05, 2020 *
31 Our strategy pursuing of policies and procedures. Mr. Anil Jaggia Non-Executive Independent Appointment – Jan 24, 2019
36 Risk management (DIN: 00317490) Director Cessation- Mar 05, 2020 *
With regard to qualification for being Director and composition of the Board, Clause
Mr. Uttam Prakash Agarwal Non-Executive Independent Appointment – Nov 14, 2018
Our ESG focus 5(6) of the YBL Reconstruction Scheme provides that “The appointment of the
(DIN: 00272983) Director Cessation- Jan 10, 2020 #
43 Environment directors shall have effect, notwithstanding non-fulfilment of any requirement as to
Dr. Pratima Sheorey Non-Executive Independent Appointment – Apr 26, 2018
54 Social minimum shareholding, qualification, experience or any other condition, for being a
(DIN: 08120130) Director Cessation- Mar 05, 2020 *
69 People director of the reconstructed bank.” Further, Clause 5 (7) states that “The members
Mr. R. Gandhi Additional Director appointed Appointment – May 14, 2019
80 Governance of the Board, other than the additional directors, so appointed shall continue in office
(DIN: 03341633) by RBI Cessation- Mar 05, 2020 *
for a period of one year, or until an alternate Board is constituted by reconstructed
Statutory Reports Mr. Ajai Kumar Non-Executive Appointment – Jan 29, 2016
bank in accordance with the procedure laid down in its memorandum and articles of
84 Management discussion and analysis (DIN: 02446976) Non-Independent Director Cessation- Jun 09, 2019 #
106 Directors’ report association, whichever is later.
Mr. Subhash Chander Kalia Non-Executive Appointment – Apr 03, 2018
146 Report on corporate governance Accordingly, the provisions of SEBI LODR Regulations on Board composition with (DIN: 00075644) Non‑Independent Director Cessation- Mar 05, 2020 *
187 Annual business responsibility report regard to minimum number of Independent Directors, Committee composition with Mr. Ravinder Kumar Khanna+ Non-Executive Appointment-Apr 26, 2019
Financial Statements respect to Nomination & Remuneration Committee, Audit Committee, Committee of (DIN: 00305025) Non-Independent Director Cessation- Mar 05, 2020 *
198 Standalone Financials Independent Directors are not applicable, till the new Board of the Bank is constituted
147
Name & DIN of the Director Category Details of Change Profile of Board of Directors:
Contents Ms. Shagun Kapur Gogia+ Non-Executive Appointment-Apr 26, 2019 Mr. Prashant Kumar
Corporate Overview (DIN: 01714303) Non-Independent Director Cessation- Mar 05, 2020 *
(Appointed as Managing Director & Chief Executive Officer of the Bank w.e.f.
Mr. Prashant Kumar Managing Director & Appointment – Mar 26, 2020 March 26, 2020)
A redefined YES
(DIN: 07562475) Chief Executive Officer $
Mr. Sunil Mehta Non- Executive Chairman Appointment - Mar 26, 2020 Mr. Prashant Kumar joined State Bank of India (‘SBI’) in 1983 as Probationary Officer
(DIN: 00065343) $ and since then he held various important portfolios in the Bank. He has over 35
Mr. Mahesh Krishnamurti Non-Executive Director Appointment - Mar 26, 2020 years of experience in the Banking field. In his long service in the Bank, he had the
(DIN: 02205868) $ opportunity to work in various areas of banking such as Credit, Retail Banking, Human
Mr. Atul Bheda Non-Executive Director Appointment - Mar 26, 2020 Resources & Strategic Training and Finance.
and CEO (DIN: 03502424) $ He held the position of General Manager in Mumbai and Chief General Manager of
12 Key performance indicators Mr. R. Gandhi Additional Director Appointment - Mar 26, 2020 Kolkata Circle in SBI. After elevation to the position of Deputy Managing Director, he
15 COVID-19 response (DIN: 03341633) appointed by RBI $ held the position of Chief Operating Officer, Corporate Development Officer (HR) and
17 Customer focus Mr. Ananth Narayan Additional Director Appointment - Mar 26, 2020 Chief Financial Officer of SBI at its Corporate Office in Mumbai.
21 Technology and digital innovation Gopalakrishnan appointed by RBI $
25 Retail (DIN: 05250681) He is a Science graduate and a law graduate from Delhi University.
Our approach to value creation Mr. Partha Pratim Sengupta Nominee Director appointed by Appointment - Mar 26, 2020 Mr. Sunil Mehta
29 Value creation model (DIN: 08273324) State Bank of India $ (Appointed as Non-Executive Chairman of the Bank w.e.f. March 26, 2020)
31 Our strategy Mr. Swaminathan Nominee Director appointed by Appointment – Mar 26, 2020
Janakiraman State Bank of India $ Mr. Sunil Mehta has over three and a half decades of proven leadership experience
36 Risk management
(DIN: 08516241) in banking, financial services, insurance and investments with Citibank and AIG. In
Our ESG focus 2013, he left AIG where he was the Country Head & CEO for AIG India since 2000.
43 Environment # Resignation * Supersession of Board by RBI $ Pursuant to the YBL Reconstruction Scheme. Subsequently, he started SPM Capital Advisers Pvt. Ltd. Mr. Mehta is the Chairman
54 Social + Indian Partner Representative Directors and Managing Director of SPM Capital Advisers Pvt. Ltd., a leading business advisory
69 People and consulting firm in India.
80 Governance Lt. Gen. (Dr.) Mukesh Sabharwal (Retd.) and Mr. Uttam Prakash Agarwal have given
detailed reasons for their resignations and have also confirmed that there is no other As Country Head & CEO for AIG in India, Mr. Sunil Mehta was responsible for all AIG
Statutory Reports material reason than the one specified in their resignation letters/Email. businesses in India covering Insurance, Financial Services, Real Estate and Investments
amongst other businesses. He set up AIG’s insurance JVs with Tatas and was also
responsible for expanding AIG’s presence across ten businesses in India which
included Life & Non-Life Insurance, Private Equity, Asset Management, Real Estate,
Home Finance, Consumer Finance, Software Development, Mortgage Guaranty and
Financial Statements Aircraft Leasing. He was on the Board of all AIG Companies in India and also on the
198 Standalone Financials Board of IDFC Ltd. for several years.
148
Prior to joining AIG, Mr. Sunil Mehta worked with Citibank for over 18 years where he Mr. Mehta is a graduate from Shri Ram College of Commerce, Delhi University. He is a
Contents held various senior positions covering operations, sales & risk process re-engineering, Fellow Member of the Institute of Chartered Accountants of India and an Alumni of the
Corporate Overview risk management, public sector business and corporate banking. His last assignment Wharton School of Management, University of Pennsylvania, USA.
was Corporate Bank Head for Citibank India and Senior Credit Officer.
A redefined YES Mr. Mahesh Krishnamurti
02 Key highlights FY 2019-20 Mr. Mehta was Non-Executive Chairman of Punjab National Bank from March 2017 till (Appointed as Non-Executive Director of the Bank w.e.f. March 26, 2020)
03 YES BANK at a glance February 2020. He was an Independent Director on the Board of State Bank of India
05 Products and services Mr. Mahesh Krishnamurti has extensive experience in partnering closely with senior
from June 2014 to March 2017. He is presently a Board Member of ACC Ltd. (A subsidiary
06 Geographical presence leadership teams in some of the most dynamic companies in the world. In December
of Lafarge Holcim Group), Sashakt India Asset Management Ltd., Welmo Fintech Pvt.
07 Message from the Chairman 2018, he left RGP, a leading Nasdaq-listed global consultancy (“RECN”), where he had
Ltd. and Bodytronix Fitness Pvt. Ltd. Mr. Sunil Mehta was on the Board of a startup
10 Message from the Managing Director been India MD & Country head and member of the Global Leadership Team since
digital non-life insurance company - Acko General Insurance Ltd. till October 2018.
and CEO 2007. He was selected by the Board to establish and lead RGP India, and relocated to
12 Key performance indicators In addition to the above, he is a Senior Advisor to notable International/Domestic Mumbai from New York in 2007. At RGP, Mr. Mahesh Krishnamurti advised large MNCs
15 COVID-19 response Firms amongst his other business responsibilities at SPM Capital Advisers Pvt. Ltd. on operational and strategic initiatives. Prior to his India assignment, Mr. Mahesh
17 Customer focus Krishnamurti’s career in the US variously covered senior operational, sales, finance,
21 Technology and digital innovation Mr. Mehta was asked to Chair the Committee on Resolution of Stressed Assets by
planning, entrepreneurial, and consultancy roles at Digital Equipment Corporation,
25 Retail the Honorable Finance Minister of India. Other Members of the Committee included
Symbol Technologies, Goldman Sachs, Worth Media, and RGP.
the Chairman of State Bank of India, Managing Director of Bank of Baroda and
Our approach to value creation Deputy Managing Director of SBI. The Committee presented the Sashakt Report He is also an LP and Advisor to the founders of Arka Venture Labs, a cross-border B2B
29 Value creation model on Resolution of Stressed Assets to the Finance Minister on July 2, 2018. The report deep-tech seed fund focused on supporting early-stage technology ventures in India
31 Our strategy
is under implementation and made significant progress with adoption of the Inter and transitioning them to the Silicon Valley ecosystem. Mr. Mahesh Krishnamurti is
36 Risk management
Creditor Agreement (ICA) by the Regulator and all major Banks/NBFC’s in addition to a Supervisory Board member at MyCFO, a well-established consultancy with a large
Our ESG focus other recommendations. client portfolio that is adept at implementing practical solutions. As an Impact Advisor,
43 Environment he is deeply interested in Sustainability, and Environmental, Social, Governance
Mr. Mehta is closely engaged with various Think Tanks and Chambers of Commerce.
54 Social (ESG) challenges. He is Advisor/Partner with BuzzOnEarth Media, a fast-growing
He is the founding Board Member of the Asia Society India Centre and a Past Chairman
69 People online media platform with a global audience that engages the masses and actively
of American Chamber of Commerce (AMCHAM India). He is currently on the India
80 Governance influences them towards positive action on Sustainability Development Goals. Mr.
Advisory Board of US India Strategic Partnership Forum (USISPF).
Mahesh Krishnamurti is also advising various other promising social impact and
Statutory Reports
Mr. Mehta has strong interests in building sustainable communities and is the technology start-ups.
106 Directors’ report immediate Past Chairman of Action for Ability Development and Inclusion (Formerly
Mr. Krishnamurti is innately international and culturally versatile, having lived in
146 Report on corporate governance The Spastics Society of North India). He is actively engaged with The United Way
Thailand (childhood), Switzerland (schooling), UK, US, and India. He is conversant in
187 Annual business responsibility report and on the Boards of United Way India and Mumbai. He was also the Chairman
French, Thai, Tamil, Telugu, and Hindi, having been raised in a United Nations family.
of both these organizations and also member of the Global Transition Board of
Financial Statements United Way Worldwide. He has been Chairman, American Chamber of Commerce, India Western Region;
198 Standalone Financials Committee Member, Policy Research & Development, Bombay Chamber of Commerce;
Charter Member TiE; BIMTECH Advisory Council Member; Rotarian.
149
Mr. Krishnamurti holds a B.Sc. (Economics) from the London School of Economics seasoned and accomplished central banker. He had a three year secondment to the
Contents and Political Science, and an MBA (Finance) from NYU, Stern School of Business. He Securities and Exchange Board of India (SEBI), the capital market regulator. He also
Corporate Overview has also attended management programs at the Wharton School, and MIT, Sloan held the charge of Director of the Institute for Development and Research in Banking
School of Management. Technology (IDRBT), Hyderabad.
A redefined YES
02 Key highlights FY 2019-20 Mr. Atul Bheda In his long and illustrious career, Mr. Gandhi has been associated with various
03 YES BANK at a glance (Appointed as Non-Executive Director of the Bank w.e.f. March 26, 2020) committees, working groups and task forces, both domestic and international. He
05 Products and services was one of the initial members of the Monetary Policy Committee (MPC) and was a
06 Geographical presence CA Mr. Atul Bheda is a practicing Chartered Accountant with a degree in law and
member of the Basel Committee on Banking Supervision (BCBS) and the Committee
07 Message from the Chairman Information Systems Audit (ISA). He is in practice since 34 years. He has experience in
on Global Financial Systems (CGFS), Basel. At present, he advises banks, finance
10 Message from the Managing Director the areas of Tax, Bank and other Audits, Computer Software Development, Finance,
companies and fintech entities.
and CEO Corporate laws etc.
12 Key performance indicators Mr. Gandhi has a master’s degree in Economics from the Annamalai University, in
He has been a Member of the Central Council of the Institute of Chartered Accountants
15 COVID-19 response Tamil Nadu, India. He completed post graduate level certificates in Management
17 Customer focus of India (ICAI) from 2007 to 2013 and has been contributing to the ICAI by chairing
Information System from the American University, Washington DC, USA and in Capital
21 Technology and digital innovation various committees like Information Technology (IT), Indirect Tax (IDTC), Ethical
Market from the City University of New York, New York, USA. His technical education
25 Retail Standards Board (ESB), and the Expert Advisory Committee (EAC) and has represented
includes a certificate course in System Programming from the IBM Education, Sydney,
ICAI on committees of SEBI, RBI, IRDA and XBRL International. He was a member of
Our approach to value creation Australia. He also has a certificate in Gandhian Thoughts from the Madurai University,
Accounting Standards Board, Corporate Laws and Corporate Governance Committee,
29 Value creation model Tamil Nadu, India.
Internal Audit Standards Board, Committee on Banking, Insurance & Pension,
31 Our strategy
Auditing and Assurance Standards Board, Board of Studies, Examination Committee, Mr. Ananth Narayan Gopalakrishnan
36 Risk management
Disciplinary Committee of ICAI. (Additional Director appointed by RBI w.e.f. March 26, 2020)
Our ESG focus
He has been the founder director of XBRL Limited in India. He was Chairman of Mr. Ananth Narayan Gopalakrishnan is an Associate Professor, SPJIMR and Senior
43 Environment
Taxonomy Development and Review Committee of XBRL India. India Analyst, Observatory Group LLC. He is an Independent Director on the boards
54 Social
of SBI Capital Markets Ltd., Clearcorp Dealing Systems Ltd., CARE Ratings Ltd., Agappe
69 People He was Chairman of The Western India Regional Council (WIRC of ICAI) which is the
Diagnostics Ltd., Southern Ridges Macro Fund and Southern Ridges Master Macro
80 Governance largest Regional Council of The Institute of Chartered Accountants of India (ICAI).
Fund. He is a member of SEBI’s Mutual Fund Advisory Committee, FICCI’s Capital
Statutory Reports He has also contributed to many Education and Charitable Organisations in markets Committee, and Kerala Infrastructure Fund Management Ltd.’s Investment
84 Management discussion and analysis various capacities. Committee. He has over 24 years of experience in banking and financial markets –
106 Directors’ report with Standard Chartered Bank, Deutsche Bank and Citibank. Till December 2017, he
146 Report on corporate governance Mr. R. Gandhi
was MD & Regional Head of Financial Markets, ASEAN & South Asia with Standard
187 Annual business responsibility report (Additional Director appointed by RBI w.e.f. March 26, 2020)
Chartered Bank. Previously, he was SCB’s Head of Financial Markets & Co-Head of
Financial Statements Mr. R. Gandhi is a financial sector policy expert and adviser. His expertise includes Wholesale Banking for South Asia between 2012-15, and Regional Head of FX, Rates &
198 Standalone Financials banking and non-banking regulation, payment systems, financial markets, FinTech Credit Trading South Asia, between 2009-12.
267 Consolidated Financials and currency management. He served as a Deputy Governor of the Reserve Bank of
Prior to Standard Chartered Bank he was with Citibank in Mumbai till 2005 (Director &
India for three years from 2014 to 2017. With 37 years of experience, he has been a
Head of FICC Trading), and with Deutsche Bank in Mumbai (Managing Director & Head
150
of Global Rates, South Asia – till August 2009). He served as the Chairman of the board Mr. Swaminathan was the head of the SBI’s Hyderabad Circle overseeing the Bank’s
Contents of Standard Chartered Nepal Ltd. between 2016–2017. He was Vice Chairman on the business in the State of Telangana, handling a wide spectrum of Retail Banking under
Corporate Overview board of Fixed Income Money Market and Dealers Association (FIMMDA) and Foreign various customer segments, through its 1,150 branches.
Exchange Dealers Association of India (FEDAI), between 2012 and 2017.
A redefined YES During his stint in SBI's International Banking Group, Mr Swaminathan served as
02 Key highlights FY 2019-20 He was on the Board of Central Depository Services Ltd. (CDSL) and Standard General Manager (FIG), Corporate Centre Mumbai, which handles SBI’s correspondent
03 YES BANK at a glance Chartered Securities India Ltd. (SCSI) between 2013 and 2017. He has been a part of banking relationships including Institutional Sales, Trade Finance and Payments
05 Products and services various RBI committees (including the one that launched FX Options in India, Interest Products. As a DGM, he was head of Global Trade Services, responsible for Trade
06 Geographical presence Rate Futures, Financial Stability, Financial Benchmarks etc). He has a B.Tech (Electrical) Finance business and Trade Operations of SBI’s overseas offices. He was also Head of
07 Message from the Chairman from IIT Bombay and a PGDM from IIM Lucknow. Trade Finance at SBI’s Branch in New York. As SBI’s nominee, he served on the Board
of Bank of Bhutan, an SBI JV in Bhutan.
and CEO Mr. Partha Pratim Sengupta
12 Key performance indicators (Nominee Director appointed by State Bank of India w.e.f. March 26, 2020) As SBI's nominee, Mr. Swaminathan was a Director on the boards of NPCI, NPCI
15 COVID-19 response International and Jio Payments Bank. Mr Swaminathan is currently the SBI’s nominee
17 Customer focus Mr. Partha Pratim Sengupta, Deputy Managing Director, State Bank of India (SBI), a
director and Chairman of the Board of SBI Payments Services Pvt Ltd, an SBI Hitachi
21 Technology and digital innovation career banker, joined SBI as a Probationary officer in February 1987. Before assuming
JV. He is a Certified Anti-Money Laundering Specialist (CAMS) as well as Certified
25 Retail charge as Deputy Managing Director & Chief Credit Officer in September 2018, he was
Documentary Credit Specialist (CDCS).
the Chief General Manager of SBI, Kolkata Circle. Prior to this, he was General Manager
Our approach to value creation at Mid Corporate Regional office, Pune and Deputy General Manager, IFB Mumbai. He (b) Board Meetings, Attendance & Committee Memberships:
29 Value creation model has been instrumental in changing the Credit Underwriting and Monitoring Processes The Board of Directors of the Bank has decided to conduct at least Six meetings in
31 Our strategy
in SBI. He is also chairing the Corporate Centre Credit Committee of SBI, the highest a year instead of minimum Four quarterly meetings as a good governance practice.
36 Risk management
committee in SBI. In view of business requirements, Eleven Meetings of the Board were held during
Our ESG focus the Financial Year ended, March 31, 2020 on April 26, 2019, May 16, 2019, June 12,
Mr. Swaminathan Janakiraman
43 Environment 2019, July 17, 2019, August 10, 2019, August 30, 2019, November 01, 2019, November
(Nominee Director appointed by State Bank of India w.e.f. March 26, 2020)
54 Social 29, 2019, December 10, 2019, January 10, 2020 and March 26, 2020. Further, the
69 People Mr. Swaminathan Janakiraman is the Dy. Managing Director (Finance) of State Bank Meeting of Administrator appointed by RBI was held on March 14, 2020 at which the
80 Governance of India (‘SBI’). Mr. Swaminathan, in a career spanning over 31 years with SBI, has Administrator had considered and approved results for the Quarter and nine months
held various assignments across Corporate and International Banking, Trade Finance, ended December 31, 2019 and other related matter which was duly recorded in the
Statutory Reports
Retail and Digital Banking and Branch Management. minutes of the meeting for the purpose of compliance and recording. The maximum
106 Directors’ report In his current assignment as DMD Finance, he oversees Budgeting, Capital Planning, gap between any two Board meetings was less than One Hundred and Twenty days.
146 Report on corporate governance Financial Reporting, Taxation, Audit, Economic Research, Investor Relations and The names of the members of the Board, their status, their attendance at the Board
187 Annual business responsibility report Secretarial Compliance. Prior to this as Chief Digital Officer of SBI, he served as the Meetings and the last Annual General Meeting (AGM), number of other Directorships
Financial Statements head of Digital & Transaction Banking verticals of the Bank. Prior to that, as a CGM, and Committee membership(s)/chairmanship(s) of each Director as on March 31,
198 Standalone Financials 2020 are as under:
151
Number of (ii) Directorship and Committee membership / chairmanship details of the Previous Board of
Number of other
Contents No. of Board Attendance
Committee Directors are taken as on their date of cessation.
meetings at AGM Directorships
Corporate Overview Name, DIN & Category
attended/ held on
memberships (iii) # Includes directorship(s) held in Foreign Companies, Private Limited Companies and Section 8
01 Commitment. Promise. Transparency. of the Director Of Indian (Chairmanship) Companies in India.
held during June 12, Of other
Public Limited in other
A redefined YES their Tenure 2019* Companies* (iv) ** Includes membership(s) of Audit Committee and Stakeholders’ Relationship Committee
Companies companies **
02 Key highlights FY 2019-20 of all Indian Public Limited Companies; figures in brackets indicate number of Committee
03 YES BANK at a glance Present Board (w.e.f. March 26, 2020) Chairmanship(s) as per Regulation 26 of the Listing Regulations.
05 Products and services Mr. Prashant Kumar 1/1 N.A. - - -
(v) Directorship details are given excluding directorship in the Bank.
06 Geographical presence Mr. Sunil Mehta 1/1 N.A. 3 3 2 (1)
07 Message from the Chairman Mr. Mahesh Krishnamurti 1/1 N.A. - - - (c) Disclosure of relationships between Directors inter-se:
10 Message from the Managing Director Mr. Atul Bheda 1/1 N.A. - - - None of the present Directors are having any inter-se relationship and each one
and CEO Mr. Partha Pratim Sengupta 1/1 N.A. 1 - 2 (0) of them are Independent to each other, except that Nominee Directors of State
12 Key performance indicators Mr. Swaminathan Janakiraman 1/1 N.A. - 2 - Bank of India and Additional Directors appointed by RBI are representing their
15 COVID-19 response Mr. R. Gandhi 1/1 N.A. 5 3 2 (0) respective organizations.
17 Customer focus Mr. Ananth Narayan 1/1 N.A. 4 2 4 (0)
21 Technology and digital innovation Gopalakrishnan (d) Number of shares and convertible instruments held by Non-Executive
25 Retail Previous Board – up to March 05, 2020 Directors:
Our approach to value creation Mr. Ravneet Singh Gill6 10/10 Yes - - - The details of shareholding of Non-Executive Directors is as under:
29 Value creation model Mr. Brahm Dutt6 10/10 Yes - - -
Name of the Director No. of Shares held
31 Our strategy Lt. Gen. (Dr.) Mukesh 2/ 2 N.A. 1 - -
Sabharwal (Retd.)1 Mr. Sunil Mehta NIL
36 Risk management
Mr. Mahesh Krishnamurti NIL
Mr. Thai Salas Vijayan6 10/10 Yes 3 - 2 (2)
Our ESG focus Mr. Atul Bheda 150
Mr. Maheswar Sahu6 10/10 Yes 8 7 4 (3)
43 Environment Mr. R. Gandhi NIL
Mr. Anil Jaggia6 10/10 Yes - 1 -
54 Social Mr. Ananth Narayan Gopalakrishnan NIL
Mr. Uttam Prakash Agarwal2 9/9 Yes 1 2 1 (1)
69 People Mr. Partha Pratim Sengupta NIL
Dr. Pratima Sheorey4 10/10 Yes - - -
80 Governance Mr. Swaminathan Janakiraman 800
4
Mr. R. Gandhi6 9/9 Yes 4 3 2 (0)
Statutory Reports Mr. Ajai Kumar3 2/2 N.A. 1 - - (e) Familiarization Program for Board Members:
84 Management discussion and analysis Mr. Subhash Chander Kalia6 10/10 Yes 2 1 2 (0)
106 Directors’ report In compliance with the requirement of the Listing Regulations, the Bank had
5
Mr. Ravinder Kumar Khanna6 9/9 Yes - 2 -
146 Report on corporate governance conducted various familiarization programmes during the financial year to familiarize
5
Ms. Shagun Kapur Gogia6 8/9 Yes - 5 -
187 Annual business responsibility report Independent Directors as well as the Non-Executive Non-Independent Directors, of
Notes: the Bank and its management, about their roles, rights, responsibilities in the Bank,
Financial Statements (i) 1
Ceased to be Director w.e.f. Jun 10, 2019 | 2 Ceased to be Director w.e.f. Jan 10, 2020 nature of the Banking Industry, Business Model, Risk Management System and
198 Standalone Financials 3
Ceased to be Director w.e.f. Jun 09, 2019 | 4 Appointed w.e.f. May 14, 2019 Technology Architecture of the Bank for the purpose of contributing significantly
267 Consolidated Financials 5
Appointed w.e.f. Apr 26, 2019 |6 Ceased to be Director w.e.f. Mar 05, 2020
towards the growth of the Bank. The said programmes aimed to provide and to
152
familiarize the newly appointed Director of the Bank, with the nature of the industry List and Category of
Contents in which the Bank operates, Strategic Objectives of the Bank, Business Model of the Name of the Director
Special Knowledge / Practical Experience / Skills /
Directorship in other
Expertise / Competencies
Corporate Overview Bank etc. so as to help them contribute significantly during the deliberations in the Listed Companies
Board/ Committee meetings. Mr. R. Gandhi Regulatory experience at top level positions, Nil
A redefined YES
Payment systems and information technology,
02 Key highlights FY 2019-20 The Directors attended/received trainings being organized by various Regulators/ Financial Markets (money, securities, forex and
03 YES BANK at a glance Bodies/ Institutions on Digital Technologies that enable Banking, the latest trend in capital market) Operations and Regulation,
05 Products and services IT Strategy, Cyber Security, Corporate Loan Fraud Management, Risk and Governance Currency Operations and Management,
06 Geographical presence issues, etc. The details of such familiarization programs are displayed on the Personnel and Human Resources Management,
07 Message from the Chairman website of the Bank and the web link thereto is https://www.yesbank.in/about-us/ Industrial Credit and International Banking
corporate-governance. Mr. Ananth Narayan Banking and Financial Markets CARE Ratings Ltd
and CEO
Gopalakrishnan as Independent
12 Key performance indicators (f) A chart or a matrix setting out the skills/expertise/competence of the Director
15 COVID-19 response Board of Directors:
17 Customer focus (g) Confirmation about Independence:
The Board of Directors have identified the following Core Skills/ Practical Experience/
Special Knowledge/ Competencies as required in the context of its business(es) and According to the documents received from the erstwhile Board members, the current
25 Retail
sector(s) for it to function effectively. The Composition of the Board of Directors of Board of Directors hereby confirms that the Independent Directors who were holding
Our approach to value creation the Bank as on March 31, 2020, including skill sets/ expertise/ competencies/ practical Independent Directorship in Bank before the Board of Directors being superseded
29 Value creation model knowledge and list & category of Directorship in other listed companies are as follows: by RBI, fulfill all the conditions specified in the SEBI Listing Regulations and were
31 Our strategy Independent of the Management. As already mentioned under para 2(a) of this report,
List and Category of
36 Risk management Special Knowledge / Practical Experience / Skills /
Name of the Director Directorship in other the current composition of the Board does not entail Independent Director on the
Expertise / Competencies
Listed Companies Board of the Bank.
Our ESG focus
43 Environment Mr. Prashant Kumar Banking, Finance Nil
(h) Terms and Conditions for Appointment of Independent Directors:
54 Social Mr. Sunil Mehta Banking, Finance, Insurance and Investments ACC Limited as
Independent Director A formal Letter of Appointment is addressed to Independent Directors at the time
69 People
Mr. Mahesh Strategy, Governance, Risk Management, Nil
of their appointment. The terms and conditions of Appointment of Independent
80 Governance
Krishnamurti Technology and Finance Directors has been disclosed on the website of the Bank at https://www.yesbank.in/
Statutory Reports about-us/corporate-governance.
Mr. Atul Bheda Tax, Audits, Computer Software Development, Nil
Finance, corporate laws (i) Policy on Appointment of Directors:
Mr. Partha Pratim Banking Nil
146 Report on corporate governance The Bank has a Board approved ‘Policy on Board Diversity and Fit & Proper Criteria
Sengupta
187 Annual business responsibility report and Succession Planning’ (‘Fit & Proper Policy’) which comprises of the detailed
Mr. Swaminathan Banking Nil
process for appointment of Directors including the required skill sets, experience,
Financial Statements Janakiraman
etc. The Policy covers all the aspects of Board composition, track record, skill sets,
diversification of the Board of Directors as required under the Companies Act, 2013,
SEBI LODR Regulations, the BR Act and other regulatory and business requirements.
153
The Nomination & Remuneration Committee (NRC) is being guided by the said policy However, current composition of the Board of Directors of the Bank is governed
Contents while recommending appointment of Directors. As per the Fit & Proper Policy of under the YBL Reconstruction Scheme and hence, the Bank is not compelled to have
Corporate Overview the Bank, Bank to ensures that not less than 51% of the total number of members Independent Directors on the Board of the Bank.
of the Board of Directors shall have special knowledge or practical experience in (i)
A redefined YES (l) Information Supplied / Available to the Board:
accountancy, (ii) agriculture and rural economy, (iii) banking, (iv) co-operation, (v)
economics, (vi) finance, (vii) law, (viii) small-scale industry, (ix) Information Technology The Directors are presented with important/critical information on the operations of
(x) Payment & Settlement Systems (xi) Human Resources (xii) Risk Management (xiii) the Bank as well as that which requires deliberations at the highest level. The Board
Business Management (xiv) any other skill/ special knowledge/ practical experience as has complete access to all the relevant information within the Bank and also access to
may be specified by RBI from time to time. the Top Management of the Bank and any additional information to make informed
and timely decisions. All Board and Committee meetings are governed by structured
(j) Process for Appointment of Directors: Agenda Notes which are backed by comprehensive background papers along with
and CEO
12 Key performance indicators In terms of the Fit & Proper Policy, NRC of the Board identifies and scrutinizes the relevant annexures.
15 COVID-19 response prospective candidates for the position of Director keeping in view the requisite
Since 2016, as a part of green initiative by the Bank, all relevant agenda papers
17 Customer focus qualifications, expertise, skill sets, track record, due diligence etc. relevant to the
pertaining to the Board/ Committee are being circulated well in advance to the Board
21 Technology and digital innovation Banking Business and as per the Statutory / Regulatory requirements and as prescribed
of Directors through web-based portal to facilitate easy access of agenda on iPad
25 Retail under the aforesaid Policy. The NRC, post assessing the fulfillment of fit and proper
which would provide sufficient time to the Board for reading and understanding the
criteria by the candidate on the basis of various declarations and disclosures received
Our approach to value creation proposals placed in a meeting.
from the candidate, makes the recommendation for the appointment of proposed
Director to the Board for its approval. The Board, thereafter, having considered the The Board was presented with the information on various important matters of capital
31 Our strategy
recommendation of NRC, makes its own assessment on the proposal for appointment raising activity, operations, risk management and business, new initiatives in business,
36 Risk management
of Director, basis the Business as well as Statutory / Regulatory requirements. The budgets, financial results, update on corporate social responsibility activities, minutes
Our ESG focus Board also recommends the appointment of Managing Director & CEO and the of Board and Committees of the Board, appointment and remuneration of the Senior
43 Environment Non-Executive Chairman for the approval of RBI. The Board then recommends Management, appointment/cessation of Key Managerial Personnel, details of joint
54 Social the appointment/re-appointment of Directors to the Shareholders for approval, ventures or collaborations, if any, information on subsidiaries, sale of investments,
69 People after taking into consideration the results of performance evaluation, and other assets which are material in nature and not in the normal course of business, foreign
80 Governance statutory requirements. exposure and non-compliance, if any with regulatory or statutory guidelines or in the
Statutory Reports SEBI Listing Regulations, etc., and other matters which are required to be placed before
(k) Criteria for Appointment of Independent Directors:
84 Management discussion and analysis the Board in terms of the Companies Act, 2013, SEBI Listing Regulations and Theme
106 Directors’ report The NRC while considering the proposal for appointment of Independent Directors Based Review agenda as prescribed by RBI, etc. The Board and other Committees also
146 Report on corporate governance also considers the criteria of independence prescribed under the Companies Act, 2013 approve various business proposals and regulatory approvals through circulations.
187 Annual business responsibility report and SEBI Listing Regulations.
(m) Post Meeting Communication / Follow up System:
Financial Statements The Directors holding Independent Directorship in Bank before the Board of Directors
The Bank has an effective post meeting follow up procedure. The Bank has a mechanism
198 Standalone Financials was superseded by RBI, confirmed that they met the criteria of independence laid
to track important decisions taken at the Board/Committee meetings till the closure
267 Consolidated Financials down under the Companies Act, 2013 and the SEBI Listing Regulations at the start of
of such decisions and a report on ongoing actionables (Action Taken Report) are being
the FY 2019-2020 and they were Independent from the Management.
154
placed before the meeting of the Board/Committees of the Board from time to time. The Board Level Committees are briefly described below:
Contents Action Taken Report on the decisions taken in a meeting is placed at the succeeding
Corporate Overview a) Audit Committee:
meeting(s) of the Board/Board Level Committees.
01 Commitment. Promise. Transparency. 3.a.1 Constitution & Composition:
A redefined YES (n) Succession Planning:
02 Key highlights FY 2019-20 The constitution and composition of the Audit Committee during the year was as under:
The Bank believes that a sound Succession Plan for the Directors and Senior
03 YES BANK at a glance Date of
Management executives is important for creating a robust leadership pipeline for Date of
05 Products and services Name of Member Position Category Appointment in
the Bank. Accordingly, the Bank has put in place policies for Succession Planning of Committee
Cessation
Directors and Senior Management executives.
07 Message from the Chairman From March 26, 2020 onwards
10 Message from the Managing Director 3. COMMITTEES: Mr. Atul Bheda Chairman Non-Executive Mar 26, 2020 N.A.
and CEO Director
In order to focus on Strategic and key financial issues, the Bank is required to have
certain Board Level Committees. The Companies Act, 2013, SEBI LODR Regulations Mr. R. Gandhi Member Additional Director Mar 26, 2020 N.A.
and BR Act mandates for constitution of certain Board Level Committees. The Bank, appointed by RBI
17 Customer focus
prior to the suppression of the Board on March 05, 2020, had the Thirteen Board level Mr. Ananth Narayan Member Additional Director Mar 26, 2020 N.A.
Committees, which were constituted over a period of time in compliance with the Gopalakrishnan appointed by RBI
25 Retail
aforesaid regulatory requirements and as per the requirement of the business with Mr. Partha Pratim Member Nominee Director of Mar 26, 2020 N.A.
Our approach to value creation specified terms of reference of each of the Committees. The Board Level Committees Sengupta State Bank of India
29 Value creation model focus on specific areas and take informed decisions on the specific businesses Upto March 05, 2020
31 Our strategy Mr. Uttam Prakash Agarwal Chairman Non-Executive Nov 15, 2018 Jan 10, 2020
assigned to them in the best interest of the Bank. The Committees also make
36 Risk management Independent Director
specific recommendations to the Board on various matters whenever required. All
Our ESG focus observations, recommendations and decisions of the Committees are placed before Mr. Brahm Dutt Member Non-Executive Oct 10, 2014 Mar 05, 2020
43 Environment the Board for information or for approval. All the Committees were re-constituted Independent Director
54 Social post Re-Constitution of the Board with effect from March 26, 2020 on taking charge Mr. Anil Jaggia Member Non-Executive Jan 29, 2019 Mar 05, 2020
69 People by the new Board pursuant to the YBL Reconstruction Scheme. In order to keep the Independent Director
80 Governance Committee structure lean, “Fraud Monitoring Committee” and “Board Committee on Mr. Maheswar Sahu Member Non-Executive Aug 10, 2019 Mar 05, 2020
Wilful Defaulters and Non Co-operative Borrowers” were merged into one committee Independent Director
Statutory Reports
and re-named as “Fraud, Wilful Defaulters and Non-Cooperative Borrowers Monitoring Mr. R. Gandhi Member Additional Director May 16, 2019 Mar 05, 2020
Committee”. Also, “Service Excellence, Branding and Marketing Committee” and appointed by RBI
“Stakeholder Relationship Committee” were merged into one committee and re- Mr. Ravinder Kumar Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
named as “Stakeholders Relationship & Customer Service Committee”. Further, “Risk Khanna Independent Director
Monitoring Committee” was re-named as “Risk Management Committee”. Accordingly, Mr. Subhash Chander Member Non-Executive Non- Apr 26, 2018 Aug 10, 2019
Financial Statements post reconstitution, the Bank now has nine Board Level Committees as on March 31, Kalia Independent Director
198 Standalone Financials 2020. The Company Secretary, acts as the Secretary to all the Board Level Committees.
155
Date of issued by RBI, report on compliance of Corporate Governance and requirement of

Contents Name of Member Position Category Appointment in
Date of
Regulators in Host Countries, performance of auditors, adequacy of the internal
Cessation
Corporate Overview Committee control systems, compliance with SEBI (Prohibition of Insider Trading) Regulations,
Dr. Pratima Sheorey Member Non-Executive Mar 28, 2019 Aug 10, 2019 2015, reports on violations and remedial/punitive action, housekeeping, report on
A redefined YES
Independent Director Revenue leakage, the findings of any internal investigations into matters of suspected
03 YES BANK at a glance Mr. Ajai Kumar Member Non-Executive Non- Jan 29, 2019 Jun 09, 2019 fraud or irregularity or a failure of internal control systems and reporting the matter
Independent Director to the Board, internal audit policy and IS Audit policy, Internal Audit plan and status
06 Geographical presence of achievement, System Audit, compliance of concurrent audit with respect to
The Chief Financial Officer is permanent invitee in all meetings of the Audit Committee.
07 Message from the Chairman adherence to KYC / AML guidelines, exposure to sensitive sectors, information on
The Company Secretary is the Secretary of the Audit Committee. All members of the
10 Message from the Managing Director violations by various functionaries, equity share holdings in borrower companies
Audit Committee are financially literate and Chairman of the Committee has accounting
and CEO more than 30% of their paid up capital, report on fraudulent transactions relating to
and financial management expertise. The Statutory Auditors and Internal Auditors are
12 Key performance indicators Internet Banking, Bank's financial and risk management policies, penalties imposed /
also invited to the meetings to discuss their Reports. The erstwhile Chairman of the
penal action taken against bank, information on management discussion and analysis
17 Customer focus Audit Committee, Mr. Uttam Prakash Agarwal was present at the last AGM.
of financial condition and results of operations, Management letters of internal
21 Technology and digital innovation 3.a.2 Terms of Reference: control weaknesses issued by the statutory auditors, Scrutiny of inter-corporate
25 Retail loans and investments compliance framework, policies and its implementation,
The terms of reference of the Audit Committee cover all the areas mentioned
Our approach to value creation under Section 177 of the Companies Act, 2013 and Regulation 18 read with Part minutes of executive committees, valuation of undertakings or assets of the Bank,
29 Value creation model C of Schedule II of SEBI LODR Regulations. The broad terms of reference of the substantial defaults, Policies on Insider Trading, storage and retrieval of books of
31 Our strategy Audit Committee includes - to oversee entire audit function (internal and external), accounts maintained in electronic mode, to approve the concurrent audit policy and
36 Risk management Bank’s financial reporting process and disclosure, communication with auditors, to recommend appointment of CFO etc.
Our ESG focus recommend appointment/removal of auditors and to decide their scope and to 3.a.3 Internal Audit:
43 Environment fix their fees and payments, to identify framework, to review adequacy of internal
The Internal Audit Department of the Bank conducts internal audit on a pan India basis
54 Social audit function and Internal Financial Control (IFC) of the Bank and Subsidiaries
and is also supported by external agency in some of the areas of internal audit. The
69 People and also to evaluate Risk Management Systems, to discuss the nature and scope
Chief Internal Auditor presents his report to the Audit Committee on quarterly basis.
80 Governance of audit and ascertain any area of concern post audit, to engage with auditor on
observations on IFC, to ensure independence of auditors, to engage with, discuss 3.a.4 Meetings & Attendance:
Statutory Reports and review reports of auditors, to review - the results/financial statements Nine Meetings of Audit Committee were held during FY 2019-20 i.e. on April 25, 2019,
Director’s Responsibility Statement, accounting policies and practices and changes, July 16, 2019, July 29, 2019, August 10, 2019, September 16, 2019, October 09, 2019,
compliance with accounting standards, major accounting entries, significant November 01, 2019, November 20, 2019 and February 26, 2020 and not more than
adjustments, related party transactions, qualifications/ modified opinion in the one hundred and twenty days lapsed between two consecutive meetings of the
draft audit report, Company’s earnings, press releases, effects of alternative GAAP Audit Committee.
Financial Statements methods, contingent liabilities, off-balance-sheet structures, earnings guidance,
198 Standalone Financials Tax Audit statements, Long Form Audit Report, legal audits of title deeds, credit
267 Consolidated Financials exposure above `50 MM, financial statements and investments made by the unlisted
subsidiary, Whistle blower policy and complaints, compliance in respect of reports
156
No. of Meetings Date of

Contents Name of Member / Invitee
Held Eligible to attend@ Attended Name of Member Position Category Appointment in
Date of
Cessation
Corporate Overview Committee
Mr. Uttam Prakash Agarwal 9 8 8
Mr. Brahm Dutt 9 9 9 Upto March 05, 2020
A redefined YES
Mr. Anil Jaggia 9 9 9 Mr. Thai Salas Vijayan Chairman Non-Executive Jan 24, 2019 Mar 05,
Mr. Maheswar Sahu 9 5 4 Independent Director 2020
05 Products and services Mr. R. Gandhi 9 8 8 Mr. Brahm Dutt Member Non-Executive Apr 26, 2019 Mar 05,
06 Geographical presence Mr. Ravinder Kumar Khanna 9 5 5 Independent Director 2020
07 Message from the Chairman Mr. Subhash Chander Kalia 9 4 4 Mr. Anil Jaggia Member Non-Executive Aug 10, 2019 Mar 05,
10 Message from the Managing Director Dr. Pratima Sheorey 9 4 4 Independent Director 2020
and CEO Mr. Ajai Kumar 9 1 1 Dr. Pratima Sheorey Member Non-Executive Aug 10, 2019 Mar 05,
12 Key performance indicators Invitees Independent Director 2020
15 COVID-19 response Mr. Subhash Chander Kalia N.A. N.A. 4 Lt. Gen. (Dr.) Mukesh Member Non-Executive Oct 23, 2012 Jun 10, 2019
17 Customer focus Mr. Ravneet Singh Gill N.A. N.A. 8 Sabharwal (Retd.) Independent Director
21 Technology and digital innovation Mr. R. Gandhi Member Non-Executive Jun 12, 2019 Nov 27,
25 Retail @ Number of meetings held during the tenure of the Director as a Member/Chairman of the Committee
Independent Director 2019
Note: No meeting of the Audit Committee was held from the date of re-constitution i.e. Mar 26, 2020 Mr. Subhash Chander Kalia Member Non-Executive Non- Jun 12, 2018 Mar 05,
Our approach to value creation till the end of the financial year.
29 Value creation model Independent Director 2020
31 Our strategy b) Nomination & Remuneration Committee:
3.b.2 Terms of Reference:
36 Risk management 3.b.1 Constitution & Composition:
The terms of reference of the Nomination & Remuneration Committee cover all the
Our ESG focus The constitution and composition of the Nomination & Remuneration Committee areas mentioned under Section 178 of the Companies Act, 2013 and Regulation 19
43 Environment during the year was as under: read with Part D of Schedule II of SEBI LODR Regulations. The broad terms of reference
54 Social of the Nomination & Remuneration Committee includes - to review the current Board
69 People Date of
Name of Member Position Category Appointment in
Date of composition, its governance framework, composition of committees of the Board and
80 Governance Cessation
their terms of reference, to examine on annual basis the qualification, knowledge, skill
Committee
Statutory Reports From March 26, 2020 onwards sets and experience of directors for fitment, scrutinize and recommend nomination
84 Management discussion and analysis Mr. Mahesh Krishnamurti Chairman Non-Executive Mar 26, 2020 N.A. for directorship, identify candidate for directorship and senior management
106 Directors’ report Director position and to recommend their appointment and removal, to formulate criteria
146 Report on corporate governance Mr. Sunil Mehta Member Non-Executive Mar 26, 2020 N.A. for performance evaluation, to carry on evaluation of performance of directors, to
187 Annual business responsibility report Director decide about extension of term of independent directors, to validate ‘fit & proper’
Mr. Atul Bheda Member Non-Executive Mar 26, 2020 N.A. status of directors, to recommend board corporate governance guidelines and
Director implement relevant policies and processes, to formulate criteria for qualification and
Mr. Swaminathan Member Nominee Director of Mar 26, 2020 N.A. positive attitude and independence of director(s), devise a policy on Board diversity,
Janakiraman State Bank of India to recommend a policy relating on remuneration for the directors, key managerial
157
personnel and other employees including performance/achievement bonus, No. of Meetings

Contents perquisites, retirals, sitting fee etc. based on laid down principles, to review the Bank's
Name of Member / Invitee
Held Eligible to attend@ Attended
Corporate Overview overall compensation structure, grant of ESOPs and allot shares pursuant thereto, to Invitees
function as the Compensation Committee, to review annual Human Capital Capacity Mr. Prashant Kumar N.A. N.A. 1
A redefined YES
Planning, list of risk takers, HCM Policies, Succession Planning and to perform any Mr. Ravneet Singh Gill N.A. N.A. 10
03 YES BANK at a glance other function as may be stipulated under the Companies Act, SEBI Regulations, BR Mr. R. Gandhi N.A. N.A. 1
05 Products and services Act or RBI circulars/directives. Mr. Brahm Dutt N.A. N.A. 2
06 Geographical presence 3.b.3 Meetings & Attendance: @ Number of meetings held during the tenure of the Director as a Member/Chairman of the Committee
Eleven Meetings of Nomination & Remuneration Committee were held during FY Note: Due to business exigencies, several resolutions were passed through Circulation and the said
2019-20 i.e. on April 17, 2019, April 25, 2019, May 16, 2019, June 11, 2019, July 16, 2019, resolutions have been noted at the subsequent committee meetings.
and CEO
12 Key performance indicators August 10, 2019, September 16, 2019, October 24, 2019, December 05, 2019, January 3.b.4 Board Level Performance Evaluation Criteria including for Independent
15 COVID-19 response 10, 2020 and March 26, 2020. Directors:
17 Customer focus
The participation of the Members at the Meetings of the Committee held during the The Bank has in place a Board Evaluation Framework setting out the process and the
year were as under: criteria for the Performance Evaluation. The said process is in line with the provisions
25 Retail
of the Companies Act, 2013, Regulations 17 & 19 of the SEBI Listing Regulations and
No. of Meetings
Our approach to value creation Name of Member / Invitee SEBI guidance note on the Board Evaluation dated January 05, 2017, which provides
29 Value creation model for carrying out the Performance Evaluation of the Individual Directors including
31 Our strategy From March 26, 2020 onwards
Independent Directors, Non-Independent Directors, Managing Director & CEO and
36 Risk management Mr. Mahesh Krishnamurti 11 1 1
Chairman, Committees of the Board and the Board as a whole.
Mr. Sunil Mehta 11 1 1
Our ESG focus Mr. Atul Bheda 11 1 1 The framework is monitored, reviewed and updated by the Board as and when
43 Environment Mr. Swaminathan Janakiraman 11 1 1 required, in consultation with the Nomination & Remuneration Committee, based on
54 Social Upto March 05, 2020 need and new compliance requirements, if any.
69 People
Mr. Thai Salas Vijayan 11 10 10
80 Governance Annual Performance Evaluation of Board of Directors could not be carried out for the
Mr. Brahm Dutt 11 8 8
FY 2019-20 in view of supersession of the entire Board of Directors of the Bank (which
Statutory Reports Mr. Anil Jaggia 11 4 4
was functional during the year) and Administrator was appointed by RBI for a period
84 Management discussion and analysis Dr. Pratima Sheorey 11 4 4
of 30 days. The new Board was re-constituted under the YBL Reconstruction Scheme
106 Directors’ report Lt. Gen. (Dr.) Mukesh Sabharwal (Retd.) 11 3 3
just before the end of the financial year 2019-20.
146 Report on corporate governance Mr. R. Gandhi 11 4 4
187 Annual business responsibility report Mr. Subhash Chander Kalia 11 10 10 3.b.5 Remuneration of Directors:
Financial Statements (a) Remuneration Policy:
198 Standalone Financials The Bank has formulated and adopted a Remuneration Policy for its Directors,
267 Consolidated Financials Key Managerial Personnel, Senior Management, Chairman and other employees of
the Bank, in terms of Section 178 of the Companies Act, 2013, the relevant Rules made
158
thereunder, Regulation 19 of the SEBI Listing Regulations and Guidelines / Circular (Amount in `)
Contents issued by RBI, in this regard, from time to time. Commission for Commission for
Corporate Overview Name of the Director Salary Others Sitting Fees Total
FY 2018-19 $ FY 2019-20
01 Commitment. Promise. Transparency. The Remuneration Policy has been disclosed on the website of the Bank at https://
Mr. Atul Bheda - - 150,000 - - -
A redefined YES www.yesbank.in/about-us/corporate-governance.
Mr. Ananth Narayan - - 100,000 - - -
(b) Directors’ Remuneration: Gopalakrishnan
05 Products and services The details of the remuneration paid to the Executive Directors during FY 2019-20 Mr. Partha Pratim - - 100,000 - - -
06 Geographical presence are given below: Sengupta
07 Message from the Chairman Mr. Swaminathan - - 150,000 - - -
i) Executive Directors:
10 Message from the Managing Director Janakiraman
(Amount in `)
and CEO Mr. R. Gandhi - - 2,650,000 - 2,650,000 -
12 Key performance indicators Mr. Prashant Mr. Ravneet Singh
Name of the Director Lt. Gen. Dr. Mukesh - - 800,000 1,000,000 1,800,000 -
Kumar (MD & CEO) Gill (ex-MD & CEO)
15 COVID-19 response Sabharwal (Retd.)
17 Customer focus Salary 3,22,600 5,50,00,000
Mr. Brahm Dutt 2,790,323 - 5,275,000 780,822 88,46,145 -
21 Technology and digital innovation Stock Options - -
Mr. Ravinder Kumar - - 3,375,000 - 3,375,000 -
25 Retail Performance linked incentives - - Khanna
Value of perquisites u/s 17(2) Income-tax Act, 1961 - 17,82,307
Our approach to value creation Mr. Ajai Kumar - - 875,000 916,667 1,791,667 -
Others - 26,40,000
29 Value creation model Mrs. Shagun Kapur - - 2,900,000 - 2,900,000 -
Commission for FY 2018-19 $ - - Gogia
31 Our strategy
Total 3,22,600 5,94,22,307
36 Risk management Mr. Subhash Chander - - 6,025,000 1,000,000 7,025,000 -
Commission for FY 2019-20 # - - Kalia
Our ESG focus
Note: The Bank had executed a service contract with Mr. Ravneet Singh Gill which includes notice Dr. Pratima Sheorey - - 2,575,000 750,000 3,325,000 -
43 Environment period of three months subject to approval RBI. He was granted 50 lacs Stock Options on March 1, 2019 Mr. Uttam Prakash - - 2,550,000 250,000 2,800,000 -
54 Social at Fair Market Value (FMV) and could exercise the Options granted as per the vesting schedule given
Agarwal
69 People under the YBL MD & CEO (New) Stock Option Plan 2019 which is 20%, 30% & 50% each year, from the
end of 1st year from the grant date. Mr. Thai Salas Vijayan - - 2,425,000 250,000 2,675,000 -
80 Governance
Mr. Maheswar Sahu - - 3,250,000 250,000 3,500,000 -
Statutory Reports ii) Non-Executive Directors: Mr. Anil Jaggia - - 3,625,000 250,000 3,875,000 -
84 Management discussion and analysis The details of the remuneration paid to the Non-Executive Directors during FY 2019- Mr. Vasant Gujrathi - - - 250,000 250,000 -
106 Directors’ report 20 are given below: Mr. Rentala - - - 250,000 250,000 -
146 Report on corporate governance Chandrashekhar
(Amount in `)
Commission for Commission for $ Commission pertaining to FY 2018-19 paid during FY 2019-20
Name of the Director Salary Others Sitting Fees Total
Financial Statements FY 2018-19 $ FY 2019-20
198 Standalone Financials Mr. Sunil Mehta 40,323 - 150,000 - - -
267 Consolidated Financials Mr. Mahesh - - 150,000 - - -
Krishnamurti
159
Notes: Name of Member Position Category

Contents Mr. Mahesh Krishnamurti Chairman Non-Executive Director
Corporate Overview a) The Non-Executive Directors were paid sitting fees of `100,000 for attending
Mr. Atul Bheda Member Non-Executive Director
01 Commitment. Promise. Transparency. each meeting of the Board of Directors and `75,000 for attending Board Level
Mr. Partha Pratim Sengupta Member Nominee Director of State Bank of India
A redefined YES Committee meetings and the sitting fees were revised to `50,000 for attending
Mr. Swaminathan Janakiraman Member Nominee Director of State Bank of India
Board Level Committee meetings with effect from March 26, 2020.
03 YES BANK at a glance The composition of erstwhile Stakeholders Relationship Committee which was
05 Products and services b) The Bank did not pay any amount to Directors by way of salary and perquisites
effective till March 05, 2020 was as under:
06 Geographical presence except to the MD & CEO and Non-Executive Chairman.
Name of Member Position Category Date of Appointment Date of Cessation
07 Message from the Chairman c) Commission is paid to the Directors pursuant to the approval of the shareholders’
10 Message from the Managing Director Mr. Maheswar Sahu Chairman Non-Executive Jan 29, 2019 Mar 05, 2020
at the Annual General Meeting held on June 07, 2016, for payment of profit based Independent Director
and CEO
commission from April 01, 2015 onwards and as per the provisions of Companies Mr. Brahm Dutt Member Non-Executive Jan 29, 2019 Apr 26, 2019
Act, 2013 and RBI Guidelines. Independent Director
17 Customer focus d) The Bank does not grant any Stock Options to any Non-Executive Directors of Mr. Uttam Prakash Member Non-Executive Nov 15, 2018 Jan 10, 2020
21 Technology and digital innovation the Bank. Agarwal Independent Director
25 Retail Mr. Thai Salas Vijayan Member Non-Executive Apr 26, 2019 Aug 10, 2019
e) There were no other pecuniary relationships or transactions of non-executive Independent Director
Our approach to value creation Directors vis-à-vis the Bank (except normal banking transactions).
29 Value creation model Dr. Pratima Sheorey Member Non-Executive Aug 10, 2019 Mar 05, 2020
f) Please refer date of appointment and cessation in point no. 2(a). Mr. Vasant Independent Director
31 Our strategy
36 Risk management Gujarathi and Mr. Retala Chandrasekhar have resigned w.e.f. November 14, 2018 Ms. Shagun Kapur Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
and November 19, 2018 respectively. Gogia Independent Director
Our ESG focus
43 Environment c) STAKEHOLDERS RELATIONSHIP & CUSTOMER SERVICE COMMITTEE: The composition of erstwhile Service Excellence, Branding and Marketing Committee
54 Social During the year, “Stakeholders Relationship Committee” and “Service Excellence, which was effective till March 05, 2020 was as under:
69 People Branding and Marketing Committee” (formed as per RBI requirement to handle Name of Member Position Category Date of Appointment Date of Cessation
80 Governance customer grievances) were merged on March 26, 2020 into one Committee and Lt. Gen. Dr. Mukesh Chairman* Non-Executive Apr 27, 2016 Jun 10, 2019
Statutory Reports the Committee was re-named as Stakeholders Relationship Committee & Service Sabharwal (Retd.) Independent Director
84 Management discussion and analysis Excellence Committee. On June 25, 2020, Committee was further re-named as Mr. Ravneet Singh Member Executive Director Mar 01, 2019 Mar 05, 2020
106 Directors’ report “Stakeholders Relationship Committee & Customer Service Committee” in order to Gill (MD&CEO)
146 Report on corporate governance strictly follow the nomenclature as provided in the Companies Act and RBI Circular. Dr. Pratima Chairperson# Non-Executive Jun 12, 2018 Mar 05, 2020
Sheorey Independent Director
3.c.1 Constitution & Composition: Mr. Anil Jaggia Member Non-Executive Jan 29, 2019 Aug 10, 2019
Financial Statements The Stakeholders Relationship Committee & Customer Service Committee was re- Independent Director
198 Standalone Financials constituted effective from March 26, 2020 as under: Mr. Maheswar Member Non-Executive Jan 29, 2019 Aug 10, 2019
267 Consolidated Financials Sahu Independent Director
160
Name of Member Position Category Date of Appointment Date of Cessation Stakeholders’ Relationship Committee:
Contents Mr. R. Gandhi Member Additional Director Jun 12, 2019 Aug 10, 2019 No. of Meetings
Corporate Overview appointed by RBI
Name of Member
01 Commitment. Promise. Transparency. Mr. Uttam Prakash Member Non-Executive Aug 10, 2019 Jan 10, 2020
A redefined YES Mr. Maheswar Sahu, Chairman 2 2 2
Agarwal Independent Director
02 Key highlights FY 2019-20 Mr. Brahm Dutt 2 0 0
Mr. Thai Salas Member Non-Executive Aug 10, 2019 Mar 05, 2020
03 YES BANK at a glance Mr. Uttam Prakash Agarwal 2 1 1
Vijayan Independent Director
05 Products and services Mr. Thai Salas Vijayan 2 - -
* ceased to be Chairman w.e.f. April 26, 2019
06 Geographical presence Dr. Pratima Sheorey 2 2 2
#
appointed as Chairperson w.e.f. April 26, 2019
07 Message from the Chairman Ms. Shagun Kapur Gogia 2 2 2
10 Message from the Managing Director 3.c.2 Terms of Reference: Invitee
and CEO The terms of reference of the Stakeholders Relationship Committee & Customer Service Mr. Ravneet Singh Gill N.A. N.A. 1
Committee cover all the areas mentioned under Section 178 (6) of the Companies @ Number of meetings held during the tenure of the Director as a Member/Chairman of the Committee
Act, 2013, Regulation 20(4) read with Part D of Schedule II of SEBI LODR Regulations
17 Customer focus Service Excellence, Branding and Marketing Committee:
and RBI circular on the Customer Service Committee. The broad terms of reference in
21 Technology and digital innovation No. of Meetings during the year
relation to investors include - to review and redress complaints from various security Name of Member
25 Retail Held Eligible to attend@ Attended
holders, measures and initiatives taken by the Bank for reducing the complaints,
Our approach to value creation matters connected with transfers, transmissions, dematerialization, rematerialisation, Lt. Gen. Dr. Mukesh Sabharwal (Retd.) 2 0 0
29 Value creation model splitting and consolidation of securities, performance of the Registrar and Transfer Mr. Ravneet Singh Gill 2 2 2
31 Our strategy Agent of the Bank and recommends measures for overall improvement in the quality Dr. Pratima Sheorey, Chairperson 2 2 2
36 Risk management of investor services, effective exercise of voting rights by shareholders, adherence Mr. Anil Jaggia 2 0 0
to the service standards and review Bank’s perception amongst stakeholders. The Mr. Maheswar Sahu 2 0 0
Our ESG focus
broad terms of reference in relation to customers services includes to review product Mr. R. Gandhi 2 0 0
43 Environment
approval process, comprehensive deposit policy, customer feedback, measures for Mr. Uttam Prakash Agarwal 2 1 1
54 Social
69 People enhancing the quality of customer services, findings of triennial audit, branding, Mr. Thai Salas Vijayan 2 2 1
80 Governance marketing and customer engagement activities, activities undertaken to promote @ Number of meetings held during the tenure of the Director as a Member/Chairman of the Committee
digital payments, update on executive level committee, update on customer liability
Statutory Reports cases, internal ombudsman activities, control measure for ATMs & reporting of denial 3.c.4 Status of Investor Complaints:
of ATM services and its reconciliation, trends of customer grievances, mis-selling of
106 Directors’ report Shareholders’ Complaints during FY 2019-20:
third party products, appropriateness of products to different customer segments,
146 Report on corporate governance Particulars No. of Complaints
and Reconciliation of transactions at ATMs failure etc.
187 Annual business responsibility report Investor complaints pending as at April 1, 2019 27
3.c.3 Meetings & Attendance: Investor complaints received during the year ended on March 31, 2020 2,421
198 Standalone Financials Two meetings of Stakeholders Relationship Committee were held during FY 2019-20 Investor complaints resolved during the year ended March 31, 2020 2,444
267 Consolidated Financials i.e. on October 9, 2019 and February 26, 2020 and Two meetings of Service Excellence, Investor complaints pending as on March 31, 2020 4
Branding and Marketing Committee were held during FY 2019-20 i.e. on September 27,
2019 and February 26, 2020, the details of attendance at the said meetings are as under:
161
Shareholders’ Requests during FY 2019-20: Name of Member Position Category Date of Appointment Date of Cessation
Contents Particulars No. of Requests Mr. Partha Pratim Member Nominee Director of Mar 26, 2020 N.A.
Corporate Overview Sengupta State Bank of India
Investor requests pending as at April 1, 2019 13
01 Commitment. Promise. Transparency. Mr. Swaminathan Member Nominee Director of Mar 26, 2020 N.A.
A redefined YES Investor requests received during the year ended on March 31, 2020 1,452
Janakiraman State Bank of India
02 Key highlights FY 2019-20 Investor requests resolved during the year ended March 31, 2020 1,433
Mr. Prashant Kumar Member Executive Director Mar 26, 2020 N.A.
03 YES BANK at a glance Investor requests pending as on March 31, 2020 32
(MD&CEO)
05 Products and services Upto March 05, 2020
The Bank receives investor complaints through various sources and informs the
06 Geographical presence Mr. Thai Salas Chairman* Non-Executive Aug 10, 2019 Mar 05, 2020
Stakeholders Relationship Committee of the Board on the resolution and redressal of
07 Message from the Chairman Vijayan Independent Director
the complaints, and also to the Board on quarterly basis. The Bank receives investor
10 Message from the Managing Director Mr. Ravneet Member Executive Director Mar 01, 2019 Mar 05, 2020
and CEO complaints from Stock Exchanges, SEBI Complaints Redress System (SCORES), Registrar
Singh Gill (MD&CEO)
12 Key performance indicators of Companies, Mumbai, through the Bank’s Registrar and Transfer Agents, directly
Mr. Brahm Dutt Member Non-Executive April 27, 2016 Mar 05, 2020
15 COVID-19 response from investors’ correspondence and from the investors personal visits to the Bank. Independent Director
17 Customer focus Mr. Anil Jaggia Member Non-Executive Aug 10, 2019 Mar 05, 2020
The Bank has designated Email IDs namely shareholders@yesbank.in for Equity
21 Technology and digital innovation Independent Director
investors and bondholders@yesbank.in for bond holders for reporting complaints/
25 Retail Lt. Gen. (Dr.) Mukesh Member Non-Executive Nov 15, 2018 Jun 10, 2019
grievances. The said email Ids are also displayed on the website of the Bank.
Sabharwal (Retd.) Independent Director
3.c.5 Details of Compliance Officer: Mr. R. Gandhi Member Additional Director Jun 12, 2019 Mar 05, 2020
appointed by RBI
31 Our strategy Mr. Shivanand R. Shettigar, Group Company Secretary also acts as the Compliance
Mr. Ajai Kumar Member Non-Executive Non- Apr 27, 2016 Jun 09, 2019
36 Risk management Officer of the Bank.
Independent Director
Our ESG focus d) RISK MANAGEMENT COMMITTEE: Mr. Subhash Chander Chairman Non-Executive Non- Apr 26, 2018 Aug 10, 2019
43 Environment Kalia Independent Director
The Committee was re-named as “Risk Management Committee” from “Risk Monitoring
54 Social Mr. Subhash Chander Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
Committee” in the Board meeting held on June 25, 2020. Kalia Independent Director
69 People
3.d.1 Constitution & Composition: Ms. Shagun Kapur Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
80 Governance
Gogia Independent Director
The constitution and composition of the Risk Management Committee during the
Statutory Reports * appointed as Chairman w.e.f. Aug 10, 2019 in place of Mr. Subhash Chander Kalia
year was as under:
106 Directors’ report Name of Member Position Category Date of Appointment Date of Cessation 3.d.2 Terms of Reference:
146 Report on corporate governance From March 26, 2020 onwards The terms of reference of the Risk Management Committee encompasses the
187 Annual business responsibility report Mr. Sunil Mehta Chairman Non-Executive Mar 26, 2020 N.A. review items as required by the Reserve Bank of India and it also cover entire gamut
Financial Statements Director of risk management for the organization as a whole. The broad terms of reference
198 Standalone Financials Mr. Atul Bheda Member Non-Executive Mar 26, 2020 N.A. of Risk Management Committee includes - to promote prudent risk culture in the
Director bank, assessment of risk universe for adequacy, to monitor risk profile of the Bank
(including credit risk, market risk, liquidity risk, IRRBB, operational risk, model risk,
162
reputation risk, information security risk, cyber security related risk, etc.) as outlined e) Corporate Social Responsibility Committee:
Contents in the ICAAP document, to evaluate the adequacy of the risk management function 3.e.1 Constitution & Composition:
Corporate Overview and competency of the risk team, to oversee enterprise risk management framework,
01 Commitment. Promise. Transparency. The constitution and composition of the Corporate Social Responsibility Committee
to review and approve risk management policies, processes & risk management
A redefined YES during the year was as under:
framework and its effectiveness to review, assess and approve Bank’s Risk Appetite
03 YES BANK at a glance & limits and stress testing scenarios and its monitoring, to provide direction for Name of Member Position Category Date of Appointment Date of Cessation
05 Products and services corrective action, to review bank’s portfolio and provide guidance, to review minutes From March 26, 2020 onwards
06 Geographical presence of the various executive committees setup under the risk framework etc. Mr. Atul Bheda Chairman Non-Executive Mar 26, 2020 N.A.
07 Message from the Chairman Director
3.d.3 Meetings & Attendance:
10 Message from the Managing Director Mr. Mahesh Member Non-Executive Mar 26, 2020 N.A.
and CEO Four meetings of the Risk Management Committee were held during FY 2019-20 i.e. on Krishnamurti Director
12 Key performance indicators April 25, 2019, July 16, 2019, September 16, 2019 and October 24, 2019. Mr. Swaminathan Member Nominee Director of Mar 26, 2020 N.A.
15 COVID-19 response Janakiraman State Bank of India
The participation of the Members at the Meetings of the Committee held during the
17 Customer focus Upto March 05, 2020
year were as under:
21 Technology and digital innovation Mr. Brahm Dutt Chairman* Non-Executive Apr 26, 2019 Mar 05, 2020
25 Retail No. of Meetings during the year Independent Director
Held Eligible to attend@ Attended Mr. Maheswar Sahu Member† Non-Executive Jan 29, 2019 Mar 05, 2020
29 Value creation model Mr. Thai Salas Vijayan 4 2 2 Independent Director
31 Our strategy Mr. Ravneet Singh Gill 4 4 4 Lt. Gen. (Dr.) Mukesh Member Non-Executive Jun 12, 2018 Jun 10, 2019
36 Risk management Mr. Brahm Dutt 4 4 4 Sabharwal (Retd.) Independent Director
Mr. Anil Jaggia 4 2 2 Dr. Pratima Sheorey Member Non-Executive Jun 12, 2018 Mar 05, 2020
Our ESG focus Lt. Gen. (Dr.) Mukesh Sabharwal (Retd.) 4 1 1 Independent Director
43 Environment Mr. R. Gandhi 4 3 2 Ms. Shagun Kapur Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
54 Social
Mr. Ajai Kumar 4 1 1 Gogia Independent Director
69 People
Mr. Subhash Chander Kalia 4 4 4 Mr. Ravneet Singh Member Executive Director Mar 01, 2019 Mar 05, 2020
80 Governance
Ms. Shagun Kapur Gogia 4 2 2 Gill (MD&CEO)
Statutory Reports @ Number of meetings held during the tenure of the Director as a Member/Chairman of the Committee * Appointed as Chairman w.e.f. Apr 26, 2019
106 Directors’ report † Ceased to be a Chairman w.e.f. Apr 26, 2019
187 Annual business responsibility report 3.e.2 Terms of Reference:
Financial Statements The terms of reference of the Corporate Social Responsibility (CSR) Committee cover
198 Standalone Financials all the areas mentioned under Section 135 (3) of the Companies Act, 2013. The broad
267 Consolidated Financials terms of reference of the CSR committee include - to formulate and recommend a
Corporate Social Responsibility Policy, to recommend amount of expenditure for CSR
163
activities, to monitor CSR Policy, to institute a transparent monitoring mechanism Name of Member Position Category Date of Appointment Date of Cessation
Contents for implementation of CSR projects or programs or activities, to consider and Mr. Swaminathan Member Nominee Director of Mar 26, 2020 N.A.
Corporate Overview recommend the Annual CSR Report, to formulate and recommend to the Board, the Janakiraman State Bank of India
BANK's Donation Policy, review the functioning of the Sustainability Council, review Mr. Prashant Kumar Member Executive Director Mar 26, 2020 N.A.
A redefined YES
and recommend to the Board, the Third party Assurance provider for assurance (MD&CEO)
03 YES BANK at a glance services on non-financial reporting, review the functioning of YES FOUNDATION and Upto March 05, 2020
05 Products and services to perform any other function as may be statutorily prescribed from time to time. Mr. Ajai Kumar Chairman Non-Executive Non- Apr 27, 2016 Jun 09, 2019
06 Geographical presence Independent Director
3.e.3 Meetings & Attendance:
07 Message from the Chairman Lt. Gen. (Dr.) Mukesh Member Non-Executive Jun 12, 2018 Jun 10, 2019
Three meetings of the Corporate Social Responsibility Committee were held during Sabharwal (Retd.) Independent Director
and CEO FY 2019-20 i.e. on April 25, 2019, July 16, 2019 and October 10, 2019. The participation Mr. Subhash Chander Chairman* Non-Executive Non- Jun 12, 2018 Mar 05, 2020
12 Key performance indicators of the Members at the Meeting of the Committee held during the year were as under: Kalia Independent Director
15 COVID-19 response Mr. Brahm Dutt Member Non-Executive Jan 18, 2018 Mar 05, 2020
No. of Meetings during the year
17 Customer focus Name of Member / Invitee Independent Director
Held Eligible to attend @
Attended
21 Technology and digital innovation Mr. Maheswar Sahu Member Non-Executive Jun 12, 2019 Mar 05, 2020
25 Retail Independent Director
Mr. Maheswar Sahu 3 3 3
Our approach to value creation Lt. Gen. (Dr.) Mukesh Sabharwal (Retd.) 3 1 1 Mr. Ravinder Kumar Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
29 Value creation model Khanna Independent Director
Dr. Pratima Sheorey 3 3 3
31 Our strategy Ms. Shagun Kapur Gogia 3 1 1 Ms. Shagun Kapur Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
36 Risk management Gogia Independent Director
Mr. Ravneet Singh Gill 3 3 3
Mr. Ravneet Singh Member Executive Director Dec 10, 2019 Mar 05, 2020
Our ESG focus @ Number of meetings held during the tenure of the Director as a member/Chairman of the Committee Gill (MD&CEO)
43 Environment
54 Social f) Board Credit Committee: *Appointed as Chairman w.e.f. Jun 12, 2019
69 People 3.f.1 Constitution & Composition:
3.f.2 Terms of Reference:
80 Governance The constitution and composition of the Board Credit Committee during the
The broad terms of reference of the Board Credit Committee include - to approve
Statutory Reports year was as under:
credit proposals or any other aspects related to it as outlined in the Credit Policy
Name of Member Position Category Date of Appointment Date of Cessation and investment proposals as per Investment policy, to review specific cases/matters
From March 26, 2020 onwards referred to it by executive committees, credit status of approved accounts and the
Mr. Sunil Mehta Chairman Non-Executive Mar 26, 2020 N.A. minutes of executive committees, to perform any other function as may be required
Director statutorily or suggested by the regulators.
Financial Statements Mr. Mahesh Member Non-Executive Mar 26, 2020 N.A.
198 Standalone Financials Krishnamurti Director
164
3.f.3 Meetings & Attendance: g) IT Strategy Committee:

Contents
Nineteen Meetings of the Board Credit Committee were held during the FY 2019-20 i.e. 3.g.1 Constitution & Composition:
Corporate Overview
on April 24, 2019, May 17, 2019, June 13, 2019, June 24, 2019, July 12, 2019, July 29, 2019, The constitution and composition of the IT Strategy Committee during the
A redefined YES August 26, 2019, September 16, 2019, September 27, 2019, October 10, 2019, October year was as under:
02 Key highlights FY 2019-20 23, 2019, November 06, 2019, November 20, 2019, December 04, 2019, December 18,
2019, January 08, 2020, January 22, 2020, February 07, 2020 and February 25, 2020. Name of Member Position Category Date of Appointment Date of Cessation
05 Products and services From March 26, 2020 onwards
The participation of the Members at the Meetings of the Committee held during the Mr. Mahesh Chairman Non-Executive Mar 26, 2020 N.A.
year were as under: Krishnamurti Director
10 Message from the Managing Director No. of Meetings during the year Mr. Sunil Mehta Member Non-Executive Mar 26, 2020 N.A.
and CEO Name of Member / Invitee Director
Held Eligible to attend @
Attended
12 Key performance indicators Mr. Partha Pratim Member Nominee Director of Mar 26, 2020 N.A.
Mr. Ajai Kumar 19 2 2
15 COVID-19 response Sengupta State Bank of India
Lt. Gen. (Dr.) Mukesh Sabharwal (Retd.) 19 2 2
17 Customer focus Mr. Prashant Kumar Member Executive Director Mar 26, 2020 N.A.
Mr. Subhash Chander Kalia 19 19 19
21 Technology and digital innovation (MD&CEO)
25 Retail Upto March 05, 2020
Our approach to value creation Mr. Ravinder Kumar Khanna 19 13 13 Mr. Anil Jaggia Chairman Non-Executive Jan 29, 2019 Mar 05, 2020
29 Value creation model Independent Director
Ms. Shagun Kapur Gogia 19 13 12
31 Our strategy Mr. Ravneet Singh Gill 19 5 4 Mr. Ajai Kumar Member Non-Executive Non- Apr 27, 2016 Jun 09, 2019
36 Risk management Independent Director
Invitee
Mr. Ravneet Singh Gill N.A. N.A. 12 Mr. Maheswar Sahu Member Non-Executive Jan 29, 2019 Aug 10, 2019
Our ESG focus Independent Director
43 Environment @ Number of meetings held during the tenure of the Director as a member/Chairman of the Committee Dr. Pratima Sheorey Member Non-Executive Jun 12, 2018 Aug 10, 2019
54 Social
Note: (i) Due to business exigencies, several resolutions were passed through Circulation and the said Independent Director
69 People resolutions have been noted at the subsequent committee meetings. Mr. Thai Salas Vijayan Member Non-Executive Apr 26, 2019 Aug 10, 2019
80 Governance
Independent Director
Statutory Reports Mr. R. Gandhi Member Additional Director Jun 12, 2019 Nov 27, 2019
84 Management discussion and analysis appointed by RBI
106 Directors’ report Mr. Uttam Prakash Member Non-Executive Aug 10, 2019 Jan 10, 2020
146 Report on corporate governance Agarwal Independent Director
187 Annual business responsibility report Mr. Subhash Chander Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
Financial Statements Kalia Independent Director
198 Standalone Financials Mr. Ravinder Kumar Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
267 Consolidated Financials Khanna Independent Director
165
3.g.2 Terms of Reference: No. of Meetings during the year

The broad terms of reference of the IT Strategy Committee includes - to perform
Corporate Overview
oversight over executive level committee - IT Steering Committee, to investigate any Invitee
IT related activities, to approve IT strategy in alignment with business strategy, to Mr. Ravneet Singh Gill N.A. N.A. 2
A redefined YES
02 Key highlights FY 2019-20 approve IT Policy, Cyber Security Policy and Cyber Crisis Management Plan, to provide @ Number of meetings held during the tenure of the Director as a member/Chairman of the Committee
03 YES BANK at a glance guidance on IT organization structure, to review effectiveness of strategic planning
05 Products and services process and its implementation to ensure IT delivers value to the business, to review h) Fraud, Wilful Defaulters and Non-Cooperative Borrowers Monitoring
06 Geographical presence IT & Security tools investments and budgets with balance of risk and benefit and Committee:
07 Message from the Chairman sustaining of bank’s growth, to review performance of IT function, to review cyber During the year, “Board Committee on Wilful Defaulters and Non Co-operative
10 Message from the Managing Director security tools and processes in line with regulatory directives, to review Prepaid Borrowers” was consolidated into “Fraud Monitoring Committee” on March 26, 2020
and CEO Instruments Security Policy, to monitor effective deployment and use and of IT and the Committee was re-named as Fraud, Wilful Defaulters and Non-Cooperative
12 Key performance indicators resources, to familiarize with IT risks and controls and global cyber security threat Borrowers Monitoring Committee.
landscape and provide guidance to the management, to assess performance of senior
17 Customer focus 3.h.1 Constitution & Composition:
management in implementing IT strategies, to issue high level policy guidance related
21 Technology and digital innovation The Fraud, Wilful Defaulters and Non-Cooperative Borrowers Monitoring Committee
to risk, funding or sourcing tasks, to provide guidance in designing IT architecture for
25 Retail was re-constituted effective from March 26, 2020 as under:
the business, to review Uptime Threshold for the ATMs, to review key achievements
Our approach to value creation and metrics for digital channel and payment products, disaster recovery readiness Name of Member Position Category
29 Value creation model and; to perform any other function as may be required statutorily or directed or Mr. Prashant Kumar Chairman Executive Director (MD&CEO)
31 Our strategy suggested by the regulators. Mr. Atul Bheda Member Non-Executive Director
36 Risk management
3.g.3 Meetings & Attendance: Mr. Partha Pratim Sengupta Member Nominee Director of State Bank of India
Our ESG focus Mr. Swaminathan Janakiraman Member Nominee Director of State Bank of India
Four meetings of the IT Strategy Committee were held during FY 2019-20 i.e. on April
43 Environment
24, 2019, July 16, 2019, October 09, 2019 and January 22, 2020. The participation of the The composition of erstwhile Fraud Monitoring Committee which was effective till
54 Social
Members at the Meetings of the Committee held during the year were as under: March 05, 2020 was as under:
69 People
80 Governance No. of Meetings during the year Name of Member Position Category Date of Appointment Date of Cessation
Statutory Reports Mr. Ravneet Singh Gill Chairman Executive Director Mar 01, 2019 Mar 05, 2020
84 Management discussion and analysis Mr. Anil Jaggia 4 4 4 (MD&CEO)
106 Directors’ report Mr. Ajai Kumar Member Non-Executive Non- Jan 29, 2019 Jun 09, 2019
146 Report on corporate governance Independent Director
Dr. Pratima Sheorey 4 2 2
187 Annual business responsibility report Mr. Subhash Chander Member Non-Executive Non- Apr 26, 2018 Aug 10, 2019
Kalia Independent Director
Financial Statements Mr. R. Gandhi 4 2 2
198 Standalone Financials Mr. Uttam Prakash Agarwal 4 1 1 Mr. Uttam Prakash Member Non-Executive Nov 15, 2018 Aug 10, 2019
Mr. Subhash Chander Kalia 4 2 2 Agarwal Independent Director
Mr. Ravinder Kumar Khanna 4 2 2
166
Name of Member Position Category Date of Appointment Date of Cessation 3.h.2 Terms of Reference:
Contents Mr. Anil Jaggia Non-Executive Jan 29, 2019 Aug 10, 2019 The terms of reference of the Fraud, Wilful Defaulters and Non-Cooperative Borrowers
Corporate Overview Independent Director
Monitoring Committee includes terms of reference of both the erstwhile committees.
Mr. Thai Salas Vijayan Member Non-Executive Aug 10, 2019 Mar 05, 2020 The broad terms of reference includes – to monitor and review in detail all frauds,
A redefined YES
Independent Director involving an amount of `1 Crore and above so as to - identify the systematic lacunae
03 YES BANK at a glance Dr. Pratima Sheorey Member Non-Executive Aug 10, 2019 Mar 05, 2020 and plug the same, identify reasons for delay in detection and reporting of frauds,
Independent Director monitor progress of the investigations by investigating agencies and recovery position
06 Geographical presence Mr. R. Gandhi Member Additional Director Aug 10, 2019 Mar 05, 2020 thereof, ensure that staff accountability and action against staff is completed quickly,
07 Message from the Chairman appointed by RBI review the efficacy of the remedial action taken to prevent recurrence of frauds;
10 Message from the Managing Director Mr. Ravinder Kumar Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020 to review the report on the Red Flag Accounts (RFA); to review electronic banking
and CEO Khanna Independent Director frauds; to review and confirm the order of the executive committee for classification
12 Key performance indicators Ms. Shagun Kapur Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020 of borrowers as “Non-Cooperative Borrowers” (NCB) or “Wilful Defaulter”(WD); half
15 COVID-19 response Gogia Independent Director yearly review of status of NCB & WD; to decide on removal of the names from NCB
17 Customer focus
The composition of erstwhile Board Committee on Wilful Defaulters and Non Co- or WD list reported to CRILC; to review or consider publication of the photographs of
operative Borrowers which was effective till March 05, 2020 was as under: wilful defaulters; and to perform any other function as may be required statutorily or
25 Retail
directed or suggested by the regulators.
Our approach to value creation Name of Member Position Category Date of Appointment Date of Cessation
Mr. Ravneet Singh Gill Chairman Executive Director Mar 01, 2019 Mar 05, 2020 3.h.3 Meetings & Attendance:
31 Our strategy (MD&CEO) No meeting of the Fraud, Wilful Defaulters and Non-Cooperative Borrowers Monitoring
36 Risk management Mr. Ajai Kumar Member Non-Executive Non- Jan 29, 2019 Jun 09, 2019 Committee was held from the date of re-constitution i.e. Mar 26, 2020 till the end of
Independent Director the financial year.
Our ESG focus
Mr. Uttam Prakash Member Non-Executive Nov 15, 2018 Jan 10, 2020
43 Environment Fraud Monitoring Committee:
Agarwal Independent Director
54 Social Four Meetings of the erstwhile Fraud Monitoring Committee were held during FY
Mr. Subhash Chander Member Non-Executive Non- Nov 15, 2018 Mar 05, 2020
69 People 2019-20 i.e. on April 25, 2019, June 16, 2019, October 10, 2019 and January 22, 2020.
Kalia Independent Director
80 Governance The participation of the Members at the Meetings of the Committee held during the
Mr. Anil Jaggia Member Non-Executive Jan 29, 2019 Mar 05, 2020
year were as under:
Statutory Reports Independent Director
No. of Meetings during the year
84 Management discussion and analysis Mr. Maheswar Sahu Member Non-Executive Aug 10, 2019 Mar 05, 2020 Name of Member / Invitee
106 Directors’ report Independent Director
146 Report on corporate governance Mr. Ravneet Singh Gill 4 4 4
Mr. Ravinder Kumar Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020
187 Annual business responsibility report Mr. Ajai Kumar 4 1 1
Khanna Independent Director
Mr. Subhash Chander Kalia 4 2 2
Financial Statements Mr. Uttam Prakash Agarwal 4 2 2
Mr. Anil Jaggia 4 2 2
167
No. of Meetings during the year i) CAPITAL RAISING COMMITTEE:

3.i.1 Constitution & Composition:
Corporate Overview Dr. Pratima Sheorey 4 2 2
01 Commitment. Promise. Transparency. The constitution and composition of the Capital Raising Committee during the
Mr. R. Gandhi 4 2 1
A redefined YES year was as under:
Mr. Ravinder Kumar Khanna 4 2 2
Ms. Shagun Kapur Gogia 4 2 2 Name of Member Position Category Date of Appointment Date of Cessation
05 Products and services From March 26, 2020 onwards

@ Number of meetings held during the tenure of the Director as a member/Chairman of the Committee
06 Geographical presence Mr. Sunil Mehta Chairman Non-Executive Mar 26, 2020 N.A.
07 Message from the Chairman Board Committee on Wilful Defaulters and Non Co-operative Borrowers: Director
10 Message from the Managing Director Three meetings of the erstwhile Board Committee on Wilful Defaulters and Non Co- Mr. Mahesh Member Non-Executive Mar 26, 2020 N.A.
and CEO operative Borrowers were held during FY 2019-20 i.e. on April 16, 2019, October 24, Krishnamurti Director
12 Key performance indicators 2019 and February 25, 2020. The participation of the Members at the Meetings of the Mr. Atul Bheda Member Non-Executive Mar 26, 2020 N.A.
15 COVID-19 response Committee held during the year were as under: Director
17 Customer focus Mr. Swaminathan Member Nominee Director of Mar 26, 2020 N.A.
21 Technology and digital innovation No. of Meetings during the year
Name of Member / Invitee Janakiraman State Bank of India
25 Retail Held Eligible to attend @
Attended
Mr. Prashant Kumar Member Executive Director Mar 26, 2020 N.A.
Mr. Ravneet Singh Gill 3 3 3 (MD&CEO)
29 Value creation model Upto March 05, 2020
Mr. Uttam Prakash Agarwal 3 2 2
31 Our strategy Mr. Ravneet Singh Chairman† Executive Director Mar 01, 2019 Mar 05, 2020
Mr. Subhash Chander Kalia 3 3 3 Gill (MD&CEO)
36 Risk management
Mr. Anil Jaggia 3 3 3
Mr. Brahm Dutt Chairman† Non-Executive Apr 26, 2019 Mar 05, 2020
Our ESG focus Mr. Maheswar Sahu 3 2 2 Independent Director
43 Environment Mr. Ravinder Kumar Khanna 3 2 2
Mr. Ajai Kumar Member Non-Executive Non- Apr 27, 2016 Jun 09, 2019
54 Social
@ Number of meetings held during the tenure of the Director as a member/Chairman of the Committee Independent Director
69 People
Mr. Subhash Member Non-Executive Non- Jan 29, 2019 Aug 10, 2019
80 Governance
Chander Kalia Independent Director
Statutory Reports Mr. Subhash Member Non-Executive Non- Jan 10, 2020 Mar 05, 2020
84 Management discussion and analysis Chander Kalia Independent Director
106 Directors’ report (Re-appointment)
146 Report on corporate governance Mr. Thai Salas Member Non-Executive Apr 26, 2019 Aug 10, 2019
187 Annual business responsibility report Vijayan Independent Director
Financial Statements Mr. Anil Jaggia Member Non-Executive Aug 10, 2019 Mar 05, 2020
198 Standalone Financials Independent Director
168
Name of Member Position Category Date of Appointment Date of Cessation No. of Meetings during the year
Contents Mr. Uttam Prakash Member Non-Executive Aug 10, 2019 Jan 10, 2020
Corporate Overview Agarwal Independent Director Mr. Uttam Prakash Agarwal 11 5 5
Mr. Ravinder Kumar Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020 Mr. Ravinder Kumar Khanna 11 9 9
A redefined YES
Khanna Independent Director Ms. Shagun Kapur Gogia 11 9 9
03 YES BANK at a glance Ms. Shagun Kapur Member Non-Executive Non- Aug 10, 2019 Mar 05, 2020 Invitee
Gogia Independent Director Mr. Subhash Chander Kalia N.A. N.A. 3
06 Geographical presence † Mr. Brahm Dutt was appointed as Chairman in place of Mr. Ravneet Singh Gill w.e.f. Aug 10, 2019 @ Number of meetings held during the tenure of the Director as a member/Chairman of the Committee
3.i.2 Terms of Reference: Note: (i) Due to business exigencies, several resolutions were passed through Circulation and the said
resolutions have been noted at the subsequent committee meetings.
and CEO The broad terms of reference of the Capital Raising Committee include - to analyze
capital raising options through various securities; to approve issue of securities in j) Meeting of the Independent Directors:
one or more tranches and determine price/price range for the securities; to engage/ The current composition of Board of Directors of the Bank does not comprise of
17 Customer focus
appoint market intermediaries and experts for management of issue; to approve Independent Director as it is governed under of the YBL Reconstruction Scheme, 2020
expenditure relating to capital and fund raising exercise; to perform all issue related notified by the Government of India.
25 Retail
activities and to do all such acts, deeds as the Board may delegate in connection with
The Independent Directors of the Bank held a meeting on April 26, 2019 and
Our approach to value creation the capital and fund-raising exercise.
October 10, 2019 without the presence of the non-independent Directors and senior
3.i.3 Meetings & Attendance: management team of the Bank. All the Independent Directors as on the date of the
31 Our strategy
Eleven Meetings of the Capital Raising Committee were held during FY 2019-20 i.e. on respective meeting had attended the meetings. The Independent Directors discussed
36 Risk management
April 18, 2019, August 08, 2019, August 30, 2019, October 10, 2019, November 14, 2019, matters as required under the relevant provisions of the Companies Act, 2013 and the
Our ESG focus SEBI Listing Regulations.
November 29, 2019, January 09, 2020, January 21, 2020, January 28, 2020, February 06,
43 Environment
2020 and February 17, 2020. The participation of the Members at the Meetings of the k) Empowered Committee of the Board (ECB):
54 Social
Committee held during the year were as under:
69 People The Empowered Committee of Board was constituted with effect from December 23,
80 Governance No. of Meetings during the year 2019 for limited period with specific purpose to focus on cost optimization measures
Held Eligible to attend@ Attended and evaluating plan B, in case Bank could not raise Capital on time.
Statutory Reports
84 Management discussion and analysis Mr. Ravneet Singh Gill 11 11 10
Six Committee Meeting of Empowered Committee of the Board were held during FY
106 Directors’ report Mr. Brahm Dutt 11 10 10
2019-20 i.e. on December 23, 2019, December 30, 2019, January 07, 2020 and January
146 Report on corporate governance Mr. Ajai Kumar 11 1 1
09, 2020, January 21, 2020 and January 28, 2020.
187 Annual business responsibility report Mr. Subhash Chander Kalia 11 6 6
Mr. Thai Salas Vijayan 11 1 1 Pursuant to notification of YBL Reconstruction Scheme, 2020 entire Board
Financial Statements Mr. Anil Jaggia 11 9 9 was superseded and therefore this Committee was automatically dissolved
198 Standalone Financials on March 5, 2020.
169
4. DISCLOSURES: Forty Five Thousand only) was paid by the Compliance Officer of the Bank in a matter
Contents regarding disclosure of Nil divergence to Stock Exchange. The amount was paid in
Corporate Overview
(a) Related Party Transactions:
terms of Securities and Exchange Board of India (Settlement proceeding) Regulations,
01 Commitment. Promise. Transparency. During the year, the Bank has entered into transactions with the related parties in the
2018 without admitting or denying the guilt.
A redefined YES ordinary course of business. The Bank has not entered into any materially significant
02 Key highlights FY 2019-20 transactions with the related parties including Promoters, Directors, Key Managerial (c) Whistle Blower Policy:
03 YES BANK at a glance Personnel, Subsidiaries or Relatives of the Directors, which could lead to a potential In compliance with the provisions of SEBI Listing Regulations, Companies Act, 2013 and
05 Products and services conflict with the interest between the Bank and these parties. The details of the other applicable laws and in accordance with principles of good corporate governance,
06 Geographical presence transactions with related parties, if any, were placed before the Audit Committee the Bank has devised and implemented a vigil mechanism, in the form of ‘Whistle
07 Message from the Chairman from time to time. There were no material individual transactions with related parties, Blower Policy’. The policy devised is also aligned to the recommendations of Protected
which were not in the ordinary course of business of the Bank, nor were there any Disclosure Scheme for Private Sector Banks and Foreign Banks, instituted by RBI.
and CEO
transactions with related parties, which were not on arm’s length basis. There are no
Related Party Transactions to be reported under Section 188(1) of the Companies Act, This policy enables a Whistle Blower to raise concerns relating to reportable matters
2013, in form AOC-2. Suitable disclosure as required by the Accounting Standards (AS- (as elucidated in the said policy) such as breach of Bank’s Code of Conduct, fraud,
17 Customer focus
18) has been made in the notes to the Financial Statements. bribery, corruption, employee misconduct, illegality, health & safety, environmental
issues and wastage/misappropriation of bank funds/assets, etc., without fear of
25 Retail The Board of Directors has formulated a policy on materiality of Related Party reprisals and to provide for independent investigation. The framework of the policy
Our approach to value creation Transactions and also on dealing with Related Party Transactions pursuant to endeavors to simplify and smoothen the process for Whistle Blower and foster
29 Value creation model the provisions of the Companies Act, 2013 and SEBI Listing Regulations. The same responsible reporting, a Whistle Blower cannot resort to the Whistle Blower Policy to
31 Our strategy is displayed on the website of the Bank at https://www.yesbank.in/about-us/ report his/ her personal grievances.
36 Risk management corporate-governance.
The concerns can be raised through 'Corporate Whistle Blower Initiative (CWI)
Our ESG focus (b) Strictures and Penalties: portal, which is an independent online reporting service aimed at facilitating a
43 Environment During the year, Reserve Bank of India (“RBI”) vide its Speaking Order dated April 22, secure communication between the Whistle Blower and independent Whistleblower
54 Social 2019 imposed a penalty of `1,125,000/- (Rupees Eleven Lakhs Twenty Five Thousand Committee constituted by the Bank.
69 People only) under Section 30(1) of the Payment and Settlement Systems Act, 2007 on the Bank.
80 Governance The policy has provisions to safeguard Whistle Blower against victimization. As a
The Bank has also paid fine of `159,300 (Rupees One Lakh Forty Five Thousand Eight responsible and vigilant organization, the Bank encourages responsible and fearless
Statutory Reports Hundred only) (including applicable taxes) to BSE Limited and National Stock Exchange reporting of genuine concerns or grievances and also provides for direct access to the
of India Limited for delay in publishing its results for the quarter and nine months ended Chairman of the Audit Committee, in exceptional cases.
December 31, 2019 in terms of the provisions of SEBI Standard Operating Process.
146 Report on corporate governance The functioning of the Vigil Mechanism is reviewed by the Audit Committee regularly.
The delay in filing the financial results was due to the capital raising activities being
187 Annual business responsibility report None of the Whistle Blowers have been denied access to the Audit Committee. The
undertaken by the Bank and a detailed reason was filed with the Exchanges for delay.
details of the Whistle Blower Policy are available on the website of the Bank https://
Further the Bank has paid a settlement amount of `5,160,000 (Rupees Fifty One www.yesbank.in/about-us/corporate-governance.
Lakhs and Sixty Thousand only) and a sum of `1,445,000 (Rupees Fourteen Lakhs and
170
(d) Compliance with Mandatory Requirements of the Listing Regulations & (f) Disclosure of commodity price risks and commodity hedging activities:
Contents Adoption of Non-mandatory Requirements of the Listing Regulations: Information on the commodity price risk or foreign exchange risk and hedging
Corporate Overview
The Board of Directors reviews the compliance of all applicable laws every quarter. activities in the Bank:
A redefined YES Bank has compliance framework for adherence to the mandatory requirements of The Bank has Board approved Market Risk policy which defines risk control framework
02 Key highlights FY 2019-20 Corporate Governance norms as specified in Regulations 17 to 27 and clauses (b) to for undertaking any Commodity price risk and Foreign exchange risk. Vide Market Risk
03 YES BANK at a glance (i) of sub-regulation (2) of Regulation 46 of the SEBI Listing Regulations to the extent policy, Board of the Bank has defined overall Net Overnight Open Position (NOOP)
05 Products and services applicable to the Bank. Limit, Stop Loss Limit, Aggregate Gap limit (AGL), Value at Risk (VaR) limit to control
06 Geographical presence the Commodity Price / Foreign exchange risk within its risk control framework. The
In addition to the mandatory requirements, the Bank has also adopted the
07 Message from the Chairman Bank has not undertaken any commodity price risk during the period. The Bank has
following non-mandatory requirements as suggested in Regulation 27(1) of the SEBI
Listing Regulations: undertaken all commodity transactions on back to back basis. Further, the Bank has
and CEO
not exceeded any of its Board approved risk limit framework with respect to Foreign
12 Key performance indicators Separate posts of Chairman and Chief Executive Officer:
Exchange Risk during the period.
17 Customer focus The Bank has separate positions of the Non-Executive Chairman and the Managing
The Bank uses Derivatives including Forwards & swaps for hedging its currency risk
21 Technology and digital innovation Director & Chief Executive Officer of the Bank.
in its balance sheet, customer offerings and proprietary trading in compliance with
25 Retail Reporting of Internal Auditors: overall risk limit and control framework. The management of these products and
Our approach to value creation The Head of Internal Audit reports functionally to the Audit Committee. businesses is governed by Board approved Market Risk Policy, Investment Policy,
29 Value creation model Derivatives Policy, Hedging Policy and ALM policy of the Bank.
31 Our strategy
(e) Subsidiary Companies:
Whether the commodity price risks and commodity hedging activities are
36 Risk management The Bank did not have any material subsidiary during the financial year 2019-20. The
disclosed to the shareholders/publically:
Bank has formulated a policy for determining ‘material’ subsidiaries pursuant to the
Our ESG focus The Bank has not undertaken any commodity price risk during the period. The Bank
provisions of the SEBI Listing Regulations and the same is displayed on the website of
43 Environment has undertaken all commodity transactions on back to back basis.
the Bank https://www.yesbank.in/about-us/corporate-governance
54 Social
69 People The Bank has three subsidiaries as of March 31, 2020 viz., YES Securities (India) Limited (g) Details of utilization of funds raised through Qualified Institutions
80 Governance (‘YSIL’), YES Asset Management (India) Limited (‘YAMIL’) and YES Trustee Limited (‘YTL’) Placement as specified under Regulation 32 (7A):
and the Audited Annual Financial Statements of all the subsidiaries have been provided The Bank has utilized the funds raised through qualified institutions placement
Statutory Reports
to the Audit Committee of the Bank. Further, the minutes of the meetings of the Board made by the Bank during FY 2019-20 for the purposes which was stipulated in the
106 Directors’ report of subsidiary companies are placed in the meetings of the Board of Directors of the Placement Document.
146 Report on corporate governance Bank for their review. Statement of significant transactions/arrangements entered
(h) Certificate under Regulation 34(3) of SEBI Listing Regulations:
187 Annual business responsibility report into by the unlisted subsidiary companies of the Bank are also placed at the meetings
of the Board of Directors of the Bank on Quarterly basis, for their review. A Certificate pursuant to the Regulation 34(3) read with Schedule V of the SEBI Listing
Financial Statements Regulations, from M/s. U. Hedge & Associates, Practicing Company Secretaries,
198 Standalone Financials confirming that none of the Directors on the Board of the Bank have been debarred or
267 Consolidated Financials disqualified from being appointed or continuing as Directors of the Companies either
by Securities and Exchange Board of India or the Ministry of Corporate Affairs or any
other Statutory Authorities to form part of this report.
171
(i) Recommendation of Committee not accepted by Board: (m) Compliance Certificate for the Corporate Governance:
Contents
There are no recommendations of the Committees that are not accepted by the The Bank has obtained certificate affirming the Compliances of conditions of Corporate
Corporate Overview
Board of Directors. Governance from M/s. Mehta & Mehta, Company Secretaries which is annexed to the
A redefined YES Directors’ Report. M/s. Mehta & Mehta has confirmed that the Bank has complied with
(j) Fees paid to Statutory Auditors:
02 Key highlights FY 2019-20 the conditions of Corporate Governance as prescribed under SEBI Listing Regulations
03 YES BANK at a glance The total fees incurred by the Bank and its subsidiaries on a consolidated basis, for with exception reported therein.
05 Products and services services rendered by Statutory auditors and its affiliates entities, is given below:
(n) Disclosures with respect to Demat Suspense Account/ Unclaimed
Particulars
FY 2019-20 Suspense Account:
07 Message from the Chairman (` in million)
10 Message from the Managing Director During the year, no shares have been transferred from Demat Suspense Account to
Audit Fees 24.31
and CEO Investor Education and Protection Fund Account.
12 Key performance indicators Statutory Certificates 13.00
15 COVID-19 response Fees for other services* 15.68 (o) Managing Director & CEO / CFO Certification:
17 Customer focus Reimbursement of Expenses 0.78 The Managing Director & CEO and the Chief Financial Officer (‘CFO’) have issued
21 Technology and digital innovation Total 53.76 certificate pursuant to the provisions of Regulation 17(8) of the Listing Regulations, for
25 Retail *includes fees adjusted from Share Premium account, towards certification and other attest services the Financial Year 2019-2020 and the same was placed before the Board of Directors
in respect of capital raised during the year. at its meeting held on May 6, 2020.
29 Value creation model (k) Disclosures in relation to the Sexual Harassment of Women at The Certificate certifies that the Financial Statements do not contain any materially
31 Our strategy Workplace (Prevention, Prohibition and Redressal) Act, 2013: untrue statement and these statements represent a true and fair view of the
36 Risk management Company’s affairs. They also certify that, to the best of their knowledge and belief, no
Particulars No. of Complaints
Our ESG focus Number of Complaints carried forward from last year 2
transactions entered into during the year were fraudulent, illegal or violative of the
43 Environment Number of complaints filed during the financial year 8
code of conduct of the Bank, they are responsible for establishment and maintenance
54 Social Number of complaints disposed of during the financial year 8
of the Internal Financial Controls for financial reporting and they have indicated to the
69 People Number of complaints pending as on the end of the financial year 2
auditors and the Audit Committee about any significant changes in internal control
80 Governance over financial reporting, significant changes in the accounting policies and instances
(l) Code of Conduct and Ethics: of significant frauds, if any, which they were aware. The said certificate is annexed and
Statutory Reports forms part of this Annual Report.
The Board has formulated and adopted Code of Conduct and Ethics for the Board of
106 Directors’ report Directors and Senior Management. The said code has been hosted on the website of (p) Code of Conduct for Prevention of Insider Trading:
146 Report on corporate governance the Bank at https://www.yesbank.in/about-us/corporate-governance.
The Bank has in accordance with the Securities and Exchange Board of India (SEBI)
187 Annual business responsibility report The Declaration signed by the Managing Director & CEO of the Bank stating that the (Prohibition of Insider Trading) Regulations, 2015 (SEBI PIT Regulations) as amended
Financial Statements members of Board of Directors and Senior Management Personnel have affirmed from time to time, formulated the ‘Code of Conduct for Prevention of Insider Trading’
198 Standalone Financials compliance with the Code of Conduct of Board of Directors and Senior Management is in Bank’s Securities (Bank’s Code) and the ‘Code of Conduct for dealing in securities of
267 Consolidated Financials annexed and forms part of this Report. other Listed and to be Listed entities’ and also the ‘Code of Practices and Procedures
for Fair Disclosure of Unpublished Price Sensitive Information.
172
The amended Code is now only applicable to the ‘Designated Persons’ of the Bank The Bank has organized awareness sessions at the Corporate Office for the benefit of
Contents and its Subsidiary companies. The Designated Persons are required to ensure fullest employees with a view to enlighten employees about the applicability of the Bank’s
Corporate Overview compliance with the Bank’s Code at the time of dealing in Bank’s Securities, which Code and reporting requirements under the Bank’s Code.
inter alia includes equity shares and debentures, (by way of Buy/ Sell/ ESOP exercise/
A redefined YES (q) Dividend Distribution Policy:
Pledge Creation/ Pledge Revocation and Invocation of Pledge, etc.). The dealing in
Securities also covers Securities acquired by way of transmission (as a legal heir)/ Gift/ In terms of the provisions of Regulation 43A of the SEBI Listing Regulations, the Board
Off-market Transactions, etc. of Directors of the Bank has formulated and approved the Dividend Distribution Policy
with the objective of providing clarity to its stakeholders on the profit distribution
06 Geographical presence For the ease of convenience of the employees and as a part of Bank’s digitization strategies of the Bank. The policy is in line with the parameters prescribed thereunder
07 Message from the Chairman initiative, the reporting mechanism/ process which facilitates employees in reporting for payment / distribution of dividend to the shareholders. The said Policy has been
of transactions in Securities of the Bank was automated by the Bank and made hosted on the Bank’s website under Corporate Governance Section and can be
and CEO
available to the employees under the head of ‘YES ACTS’ and can be accessed by the accessed at the link https://www.yesbank.in/about-us/corporate-governance.
employees through intranet. The said system also helps the Compliance Officer in
monitoring of transactions done by Insiders and for sending advisories to the defaulting (r) Integrated Reporting:
17 Customer focus
21 Technology and digital innovation employees who failed to ensure compliance with the Bank’s Code, which may result in SEBI issued a circular dated February 6, 2017 on ‘Integrated Reporting by Listed Entities’
25 Retail monetary implications for defaulting employees as may be decided by the Disciplinary advising top 500 listed entities, which are required to prepare Business Responsibility
Committee depending on the instance of default. The system also allows employees Report, to adopt Integrated Reporting (‘IR’) on a voluntary basis from the FY 2017-
Our approach to value creation to submit online disclosures while dealing in the Securities of the Bank, i.e. submission 18 onwards. As a frontrunner in mainstreaming triple bottom line reporting, Bank
29 Value creation model of initial and continual disclosures and obtaining of pre-clearances and also to submit was India’s 1st Bank to release its annual report in line with International Integrated
31 Our strategy
periodic declarations and updating UPSI recipients’ database etc. Reporting Council’s Integrated Reporting (IR) guidelines with Annual Report for FY
36 Risk management
2015-16. The Bank continues to publish its Annual Report in line with IR guidelines
The Bank has also put in place a ‘Code of Conduct for dealing in Securities of other
Our ESG focus for FY 2019-20.
Listed and to be Listed entities by the employees of specified departments (‘Grey List
43 Environment
Entities’) as the employees of such departments might have access to UPSI of Grey List
54 Social
entities for various reasons, viz., Business relationship and exposure, etc.
69 People
80 Governance
Statutory Reports
173
5. SHAREHOLDERS INFORMATION: Meeting Type and Day,

Contents Date and time
Special Resolution
Corporate Overview
(a) General Body Meetings:
13th Annual 1. Approval for increase in the borrowing limits from `50,000
01 Commitment. Promise. Transparency. The details of General Body Meeting(s) for the previous three financial years held at
General Meeting crores to `70,000 crores
A redefined YES Hall of Culture, Ground Floor, Nehru Centre, Discovery of India, Dr. A. B. Road, Worli, Tuesday, June 06, 2017 2. Approval for borrowing/ raising funds in Indian/foreign
02 Key highlights FY 2019-20 Mumbai 400018 and the special resolutions passed thereat are given below: at 4:00 P.M. currency by issue of debt securities including but not limited
03 YES BANK at a glance to non-convertible debentures, MTN (Medium-Term Notes),
05 Products and services Meeting Type and Day,
Special Resolution bonds upto `20,000 crores to eligible investors on private
Date and time
06 Geographical presence placement basis
07 Message from the Chairman Extra-Ordinary 1. To Authorize Capital Raising Through Issuance of Equity Shares
10 Message from the Managing Director General Meeting or Other Convertible Securities (b) Passing of Resolution through Postal Ballot:
and CEO Friday, February 7, 2020
During the year under review, no resolution was passed through Postal Ballot.
12 Key performance indicators at 11:00 A.M.
However, in the current Financial Year 2020-21, the Bank has sought approval of the
15 COVID-19 response 15th Annual General 1. Re-appointment Mr. Brahm Dutt (DIN: 05308908) as an Shareholders through postal ballot by passing the resolution for raising the additional
17 Customer focus Meeting Independent Director for the second term.
capital up to `5,000 Crore through any of the permitted modes.
21 Technology and digital innovation Wednesday, June 12, 2. Authorisation for capital raising through an issuance of debt
25 Retail 2019 at 11.00 A.M. instruments. (c) Procedure for Postal Ballot:
3. Authorisation for capital raising through issuance of Equity
Our approach to value creation Shares or other convertible securities. In accordance with the General Circular No. 14/ 2020 dated April 8, 2020 and the
29 Value creation model General Circular No. 17/ 2020 dated April 13, 2020, in relation to “Clarification on
14th Annual 1. Approval for increase in the borrowing limits from `70,000
31 Our strategy General Meeting Crores to `110,000 Crores.
passing of ordinary and special resolutions by companies under the Companies Act,
36 Risk management Tuesday, June 12, 2018 2. Approval for borrowing/ raising funds in Indian/ foreign 2013 and the rules made thereunder on account of the threat posed by Covid - 19”
at 11.00 A.M. currency by issue of debt securities upto `30,000 Crore (the issued by the Ministry of Corporate Affairs, Government of India (the “MCA Circulars”)
Our ESG focus
‘NCDs’) to eligible investors on private placement basis. the approval of the shareholders of the Bank for authorizing capital raising through
43 Environment 3. Approval for raising of capital upto USD 1 Billion by issue issuance of equity shares or other convertible securities was obtained through postal
54 Social of shares or convertible securities in one or more tranches ballot (only through the remote e-voting process).
69 People provided however that the aggregate amount raised shall not
80 Governance result in increase of the issued and subscribed equity share Further, In compliance with Regulation 44 of the Securities and Exchange Board
capital of the Bank by more than 10% of the then issued and of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
Statutory Reports subscribed equity shares of the Bank. pursuant to the provisions of Sections 108 and 110 of the Act read with the Rules and
84 Management discussion and analysis 4. Approval of Employee Stock Option Scheme of the Bank - YBL
106 Directors’ report the MCA Circulars, the Bank had extended only the remote e-voting facility for its
ESOS-2018.
146 Report on corporate governance 5. Approval for extending the benefits of Employee Stock Option
Members, to enable them to cast their votes electronically instead of submitting the
187 Annual business responsibility report Scheme to the eligible Employees of the Subsidiary Companies postal ballot form.
of the Bank.
Financial Statements The Board of Directors had appointed Ms. Ashwini Inamdar, Partner, M/s Mehta and
198 Standalone Financials Mehta, Practicing Company Secretaries, failing her, Mr. Atul Mehta, Partner, M/s Mehta
267 Consolidated Financials and Mehta, Practicing Company Secretaries, as a Scrutinizer for conducting the postal
ballot (remote e-voting process).
174
Further, the Bank had engaged the services of KFin Technologies Private Limited (2) The Financial Results, Official News Releases and Presentations are also
Contents (“KFintech”) for providing remote e-voting facilities to the Members, enabling them to displayed on the website of the Bank ( HYPERLINK "http://www.yesbank.in"
Corporate Overview cast their vote in a secure manner. www.yesbank.in).
A redefined YES In compliance with the requirements of MCA circulars, the Bank had completed (3) The presentations made to Institutional Investors and Financial Analysts on
02 Key highlights FY 2019-20 sending of Postal Ballot Notice dated April 21, 2020, on April 22, 2020, by email to only the Company’s Financial Results are displayed on the website of the Bank (
03 YES BANK at a glance those members who have their email addresses registered with the Bank/Depository HYPERLINK "http://www.yesbank.in" www.yesbank.in). The Bank also informs the
05 Products and services Participants. The Postal Ballot Notice was sent by email to all those members, whose Schedule of meeting with the Institutional Investors and Financial Analysts to the
06 Geographical presence names were appearing on the Register of Members/List of Beneficial Owners, received Stock Exchanges.
07 Message from the Chairman from NSDL and CDSL as on the cut-off date i.e. April 17, 2020. To facilitate shareholders
10 Message from the Managing Director (4) The Financial and other information filed by the Bank from time to time is also
whose email address was not registered to receive the notice electronically and cast
and CEO available on the websites of the Stock Exchanges, i.e., BSE Limited (BSE) at
their vote electronically, Bank had made special arrangement with its Registrar & Share
12 Key performance indicators HYPERLINK "http://www.bseindia.com" www.bseindia.com and the National
Transfer Agent for registration of email addresses in terms of the General Circular No.
Stock Exchange of India Limited (NSE) at HYPERLINK "http://www.nseindia.com"
17 Customer focus 17/2020 issued by Ministry of Corporate Affairs dated April 13, 2020. The process for
www.nseindia.com.
21 Technology and digital innovation registration of email addresses was provided to the shareholders.
25 Retail (5) Filings are also made to the London Stock Exchange, Singapore Stock Exchange
The e-voting period was kept open from Thursday, April 23, 2020 (10:00 hours IST) and
and India International Exchange IFSC Limited.
Our approach to value creation ended on Friday, May 22, 2020 (17:00 hours IST).
29 Value creation model (6) The Bank has established systems and procedures to disseminate relevant
Post-closing of voting period at 17:00 hours (IST) on Friday, May 22, 2020, the
31 Our strategy information to its stakeholders, including shareholders, analysts, suppliers,
Scrutinizer submitted their report to the Chairman and the result of the postal ballot
36 Risk management customers, employees and the society at large. It also conducts earning calls with
was declared by the Chairman on the same day i.e. May 22, 2020.
analysts and investors.
Our ESG focus
The Special Resolution, as set out in the Postal Ballot Notice dated April 21, 2020 was
43 Environment (7) Documents like Notices of General Meetings, Annual Reports, ECS advises for
passed with Requisite Majority.
54 Social Dividends, etc. are sent to the shareholders at their e-mail address, as registered
69 People (d) Means of Communication: with their Depository Participants / Company / Registrar & Transfer Agents (RTA).
80 Governance The Bank has provided adequate and timely information to its members inter-alia This helps prompt delivery of document, reduce paper consumption, save trees
through the following means: and avoid loss of documents in transit.
Statutory Reports
(1) Quarterly Results are announced through a Press Conference and/or a Press (e) Changes in Equity Share Capital of the Bank:
Release sent to leading media publications. The results are also communicated As on March 31, 2020, the paid-up equity share capital of the Bank was 12,550,472,231
through newspaper advertisements in prominent national and regional dailies (One thousand two hundred fifty-five crore four lakhs seventy-two thousand two
like the Economic Times, Mint, Free Press Journal, Navshakti, Financial Express, hundred and thirty one only) equity shares of `2 each aggregating to `25,100,944,462
Financial Statements DNA Money and Hindu Business Line as well as important investor magazines (Rupees Two thousand Five Hundred Ten crore nine lakhs forty-four thousand four
198 Standalone Financials such as Dalal Street and Capital Market. hundred and sixty-two only).
175
The table below gives details of equity evolution of the Bank during the The Dividend History of the Bank for past seven years is given below:
Contents year under review:
Corporate Overview Cumulative DIVIDEND
Face (%)
01 Commitment. Promise. Transparency. No. of Equity Equity Share
Date of Allotment Type of Issue Value
A redefined YES Shares Allotted Capital
(in `)
02 Key highlights FY 2019-20 (No. of shares) 135
03 YES BANK at a glance April 11, 2019 ESOPs 1,004,949 2.00 2,316,037,988 120
05 Products and services April 25, 2019 ESOPs 396,250 2.00 2,316,434,238
06 Geographical presence May 16, 2019 ESOPs 430,250 2.00 2,316,864,488 100 100
90
07 Message from the Chairman May 29, 2019 ESOPs 94,250 2.00 2,316,958,738
80
10 Message from the Managing Director June 11, 2019 ESOPs 673,050 2.00 2,317,631,788
and CEO June 26, 2019 ESOPs 1,258,275 2.00 2,318,890,063 60
12 Key performance indicators July 16, 2019 ESOPs 153,250 2.00 2,319,043,313
15 COVID-19 response August 10, 2019 ESOPs 211,600 2.00 2,319,254,913
17 Customer focus August 15, 2019 QIP 231,055,018 2.00 2,550,309,931
September 16, 2019 ESOPs 22,300 2.00 2,550,332,231
25 Retail
November 13, 2019 ESOPs 140,000 2.00 2,550,472,231
Our approach to value creation March 14, 2020 Allotment under YBL 10,000,000,000 2.00 12,550,472,231 2013 2014 2015 2016 2017 2018 2019
29 Value creation model Reconstruction Scheme
31 Our strategy
36 Risk management
(e) Dividend: (f) Unclaimed Dividend and Transfer of Dividend and Shares to IEPF:
In view of the lack of distributable surplus and the directions from the Reserve Bank of In terms of the provisions of Section 124(5) of the Companies Act, 2013 read with the
Our ESG focus
India vide circular DOR.BP.BC.No.64/21.02.067/2019-20 dated April 17, 2020 to all the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and
43 Environment
Banks not to pay any dividend till further notice, the Board of Directors of the Bank Refund) Rules, 2016, as amended from time to time, the Bank is statutorily required to
54 Social
has not recommend dividend for the F.Y 2019-2020. transfer to the Investor Education & Protection Fund (‘IEPF’), established by the Central
69 People
80 Governance Government, all dividends remaining unpaid / unclaimed for a period of 7 (Seven)
years, thereon, from the date of transfer of such Dividend to the Unpaid Dividend
Statutory Reports Account. Once such amounts are transferred to IEPF, no claim of the shareholder shall
lie against the Bank. However, the shareholders may claim their unclaimed amount
as per the procedures / guidelines issued by the Ministry of Corporate Affairs (MCA).
Dividends for and upto the Financial Year ended March 31, 2012 have already been
transferred to the IEPF and Dividend for the Financial Year ended March 31, 2013 shall
Financial Statements be transferred to IEPF after the due date i.e. July 09, 2020.
176
The details of Unclaimed Dividends for the Financial Year 2012-13 onwards and the last The aforesaid Rules also prescribe the procedure to be followed by an investor to claim
Contents date for claiming such Dividends are given below: the Shares / Dividend amount transferred to IEPF. Shares which are transferred to the
Corporate Overview IEPF Demat Account can be claimed back by the shareholder from IEPF Authority by
01 Commitment. Promise. Transparency. Dividend for the year ended Date of Declaration of Dividend Last date of claiming Dividend
following the procedure prescribed under the aforesaid rules.
A redefined YES March 31, 2013 June 8, 2013 July 09, 2020
02 Key highlights FY 2019-20 March 31, 2014 June 14, 2014 July 17, 2021 The information pertaining to unpaid / unclaimed dividends for last seven years and the
03 YES BANK at a glance March 31, 2015 June 06, 2015 July 05, 2022 details of such members whose unclaimed dividend / shares have been transferred to
05 Products and services March 31, 2016 June 07, 2016 July 06, 2023 IEPF Authority is also available on the Bank’s website https://www.yesbank.in/about-
06 Geographical presence us/investors-relation/ shareholder-information/ir-regulations.
March 31, 2017 June 06, 2017 July 05, 2024
March 31, 2018 June 12, 2018 July 11, 2025
10 Message from the Managing Director Intimation to the Investors for claiming of Dividends:
March 31, 2019 June 12, 2019 July 11, 2026
and CEO Intimation has been sent to the relevant shareholders at regular intervals for encashing
12 Key performance indicators of unclaimed dividend on equity shares declared by the Bank from time to time and
Shareholders who have not encashed their Dividend Warrants relating to the
Dividends as specified above are advised to send their request letter for issue of corresponding equity shares.
17 Customer focus
demand drafts to KFin Technologies Private Limited (Formerly known as Karvy Fintech
21 Technology and digital innovation Guidelines to claim Unclaimed Dividends/Shares:
Private Limited) or Nodal officer of the Bank, Mr. Shivanand R. Shettigar. The details
25 Retail Unclaimed Dividends/Shares which have been transferred to the designated
of unpaid/unclaimed dividends are available on the website of the Bank https://www.
Our approach to value creation yesbank.in/about-us/investors-relation/shareholder-information/ir-regulations. account of the IEPF Authority, in accordance with the said Rules, can be claimed by
29 Value creation model the Shareholders through the website of the IEPF Authority (http://www.iepf.gov.in).
Transfer of ‘Underlying Shares’ in respect of which Dividend has not been Please follow the steps detailed below:
31 Our strategy
claimed for seven consecutive years or more, to the IEPF:
36 Risk management
(i) Download the Form IEPF - 5 from the website of IEPF (http://www.iepf.gov.in).
In terms of Section 124 (6) of the Companies Act, 2013 read with Investor Education
Our ESG focus Read the instructions provided on the instructions kit along with the e-form
and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016,
43 Environment carefully before filling the form.
as amended from time to time, members are requested to note that the shares in
54 Social
respect of which dividends have been unpaid or unclaimed for seven consecutive years (ii) After filling the form save it on the computer and submit the duly filled form by
69 People
or more shall be credited to the IEPF Demat Account maintained with depositories. following the instructions given in the upload link on the IEPF website.
80 Governance
Upon transfer of such shares, all benefits (eg. bonus, spilt etc.), if any, accruing on such
(iii) On successful uploading, the acknowledgment will be generated indicating the
Statutory Reports shares shall also be credited to the IEPF Demat Account and the voting rights on such
SRN. This SRN is to be used for future tracking of the form.
84 Management discussion and analysis shares shall remain frozen till the rightful owner claims the shares.
106 Directors’ report (iv) After uploading the form, submit the following documents to Nodal Officer (IEPF)
146 Report on corporate governance In this connection, the Bank had sent intimation letters to members in respect of the
of the Bank in an envelope marked “Claim for refund from the IEPF Authority:
187 Annual business responsibility report shares on which dividend had remained unpaid or unclaimed for seven consecutive
years or more, requesting them to claim such dividend so as to avoid the corresponding a. Self-attested copy of e-Form.
Financial Statements shares being transferred to the IEPF authority. Simultaneously, an advertisement to
198 Standalone Financials b. Indemnity Bond in original.
this effect was published in leading English and vernacular newspapers.
c. Copy of acknowledgment.
d. Other documents as mentioned in the Form IEPF-5.

177
The general information of the Bank, required for filing the aforesaid Form, are as under: (b) Financial Year:
Contents
i) Corporate Identification Number (CIN) of Company: L65190MH2003PLC143249 The Financial Year of the Company starts on April 1 and ends on March
Corporate Overview
31 of next year.
ii) Name of the Company: YES Bank Limited
A redefined YES (c) Cut-off Dates:
02 Key highlights FY 2019-20 iii) Address of Registered Office of the Company: ‘YES BANK Tower, IFC -2, 15th Floor,
03 YES BANK at a glance The Cut Off Date for determining shareholders who will be entitled to vote
Senapati Bapat Marg, Elphinstone (W), Mumbai – 400013, Maharashtra.
05 Products and services electronically on the resolutions mentioned in the Notice convening the Annual
06 Geographical presence (g) Queries at Annual General Meeting: General Meeting by remote e-Voting and also vote on AGM at the appointed time
07 Message from the Chairman Shareholders desiring any information with regard to the accounts are requested will be mentioned in the AGM Notice.
10 Message from the Managing Director to write to the Bank at an early date so as to enable the management to keep the (d) Dividend Payment Date:
and CEO information ready. The queries relating to operational and financial performance may
12 Key performance indicators The Bank has not proposed any Dividend for the Financial Year 2019-20.
be raised at the Annual General Meeting (AGM).
(e) Listing on Stock Exchanges, ISIN & Stock Code:
17 Customer focus The Shareholders can post Questions/ Comments at the time of AGM (till the end of
21 Technology and digital innovation the meeting) and view the answers for the same during the live webcast of AGM. The Securities of the Bank are listed on following stock exchanges.
25 Retail Domestic Listing – New ISIN INE528G01035 Old ISIN-INE528G01027
(h) Details of utilization of funds:
Our approach to value creation (Equity Shares) (Equity Shares & Debt Securities)
During the year under review, the Bank has made an issue of Equity Shares through
29 Value creation model National Stock Exchange of India Limited BSE Limited
Qualified Institutional Placement Process. The funds were utilized for the purpose
31 Our strategy Exchange Plaza, Plot no. C - 1, Block G, Phiroze Jeejeebhoy Towers,
which was stated in the Placement Document
36 Risk management Bandra Kurla Complex, Bandra (E) Dalal Street, Mumbai- 400001.
(i) Policies of the Bank: Mumbai - 400 051.
Our ESG focus
As a part of good Corporate Governance, the Bank has from time to time adopted Stock Code: YESBANK Stock Code: 532648
43 Environment
54 Social various policies/codes which are hosted on the website of the Bank at https://www. Note:
69 People yesbank.in/about-us/corporate-governance. (1) Listing Fees for the Financial Year 2020-21 has been paid to the above-mentioned stock
80 Governance 6. General Shareholders Information: exchanges.
Statutory Reports (a) Date, time & venue of the Annual General Meeting: (2) The Equity Shares of the Bank have not been suspended from trading on the said Stock
84 Management discussion and analysis Exchanges or by any Regulatory/ Statutory Authority.

The date, time and venue of the 16th Annual General Meeting of the
106 Directors’ report (3) 75% of shares held by existing shareholder as on March 13, 2020 and 75% of shares
Company is as under:
146 Report on corporate governance allotted to the investors (except State Bank of India) under the YBL Reconstruction
187 Annual business responsibility report Date : 10/09/2020 Time: 11.00 a.m. Scheme are locked in for a period of 3 years from March 13, 2020
Financial Statements Venue : T
hrough VC/OAVM. The deemed venue of the meeting is YES BANK Tower,
198 Standalone Financials IFC -2, Senapati Bapat Marg, Elphinstone (W), Mumbai – 400013.
178
International Listing (Medium Term Note) (g) Performance of the Bank’s Equity Shares as compared with Indices:
Contents
The Singapore Exchange Securities Trading Ltd. The London Stock Exchange
Corporate Overview NSE NIFTY Indices during the F.Y. 2019-20
2, Shenton Way #02-02, SGX Centre 1, International Securities Market
Singapore – 068804. 10, Paternoster Square, London,
A redefined YES 13000
02 Key highlights FY 2019-20 EC4M 7LS, United Kingdom. 265
12000
03 YES BANK at a glance India International Exchange IFSC Limited 215
05 Products and services 11000
1st Floor, Unit No. 101, The Signature, Building
06 Geographical presence 165
no. 13B, Road 1C, Zone 1, GIFT SEZ, GIFT City, 10000
07 Message from the Chairman 115
Gandhinagar, Gujarat – 382355, India. 9000
and CEO 8000 65
(f) Market Price Data: High, Low during each month in last financial year:
7000 15
15 COVID-19 response NSE BSE
Month
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
17 Customer focus High (`) Low (`) Volume High (`) Low (`) Volume
21 Technology and digital innovation Apr-19 286 165.6 813,184,121 285.9 165.3 68,842,526
25 Retail May-19 178 132.45 1,565,618,537 178.05 133.05 121,299,641
Jun-19 153.85 98.7 1,716,032,479 153.8 98.75 124,912,380 Nifty Closing Value YBL Closing Price (NSE)
29 Value creation model Jul-19 110.5 79.15 3,317,065,684 110.6 81.75 220,435,456
31 Our strategy Aug-19 92.45 53.2 3,748,508,516 92.4 53.15 269,785,073
Sep-19 75.45 40.95 4,276,976,041 72.55 40.95 302,934,076 S&P BSE SENSEX during the F.Y. 2019-20
36 Risk management
Oct-19 78.7 29 7,440,593,360 76.65 29.05 543,757,406
Our ESG focus Nov-19 75.3 56.65 5,262,615,947 75.35 59.95 435,561,026 45000
43 Environment 265
Dec-19 69.3 40.75 5,713,962,071 70.5 40.7 385,773,545 40000
54 Social 215
Jan-20 48.5 36.55 3,628,930,807 48.5 36.55 190,687,546
69 People 35000
Feb-20 40.75 33.6 2,869,682,109 40.7 33.6 164,468,609 165
80 Governance
Mar-20 87.3 5.65 5,956,997,149 87.95 5.55 493,071,748
30000 115
Statutory Reports
84 Management discussion and analysis 25000 65
20000 15
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
267 Consolidated Financials Sensex Closing Value YBL Closing Price (BSE)
179
(h) Registrar and Share Transfer Agents: Further, Members who hold shares in physical form are advised that SEBI has
Contents mandated that no transfer of shares in physical form will be permitted. In view of
Corporate Overview EQUITY DEBT
KFin Technologies Private Limited Link Intime India Private Limited
the same, the Members are requested to kindly dematerialize their holdings in the
(Formerly known as Karvy Fintech Private C 101, 247 Park, L B S Marg, securities of the Bank.
A redefined YES
Limited) Vikhroli West, Mumbai 400 083.
02 Key highlights FY 2019-20 (iii) Reconciliation of Share Capital Audit:
Selenium Building, Tower-B, Plot No 31 & 32, Tel No: +91 22 4918 6000
Financial District, Nanakramguda, Fax: +91 22 4918 6060 Reconciliation of Share Capital Audit, as mandated by SEBI, has been carried out by
Serilingampally, Hyderabad, Contact Person: Company Secretary in Practice on quarterly basis, and reports on the reconciliation
Rangareddi, Telangana, India - 500 032 Mr. Ganesh Jadhav/Mr. Sharad Amin of total issued and listed capital with that of total share capital admitted/ held in
07 Message from the Chairman Phone No: 040- 6716 2222 E-mail: mumbai@linkintime.co.in dematerialized form with NSDL and CDSL and those held in physical form.
10 Message from the Managing Director Fax No: 040-2300 1153
and CEO Contact Person: Ms. Shobha Anand / The Report in this regard has been submitted to stock exchanges viz., National Stock
12 Key performance indicators Mr. Sridhar Balamurli Exchange of India Ltd. and BSE Ltd. on a quarterly basis and being placed before the
15 COVID-19 response E-mail: einward.ris@kfintech.com Board of Directors of the Bank for its review.
17 Customer focus International Listing (Medium Term Note)
21 Technology and digital innovation The Hongkong and Shanghai Banking (j) Distribution of Shareholding as on March 31, 2020:
25 Retail Corporation Limited Sr. No. Category (Shares) No. of Holders % To Holders No. of Shares % To Equity
Level 30, HSBC Main Building,
Our approach to value creation 1 1 - 5000 19,88,242 97.35 88,34,79,457 7.04
1 Queen’s Road Central, Hong Kong.
29 Value creation model 2 5001 - 10000 31,384 1.54 22,41,49,205 1.79
31 Our strategy 3 10001 - 20000 13,654 0.67 19,08,10,266 1.52
(i) Share Transfer System:
36 Risk management 4 20001 - 30000 3,962 0.19 9,74,47,438 0.78
The Board has delegated the authority for approving transfer, transmission, etc. of the
Our ESG focus 5 30001 - 40000 1,685 0.08 5,90,40,070 0.47
Bank’s securities to the Managing Director & CEO and the Group Company Secretary.
43 Environment 6 40001 - 50000 924 0.05 4,19,53,583 0.33
54 Social The Bank’s shares are traded under compulsory dematerialized mode. A half-yearly 7 50001 - 100000 1,569 0.08 10,89,85,634 0.87
69 People certificate of compliance with the share transfer formalities as required under 8 100001 and above 981 0.05 10,94,46,06,578 87.21
80 Governance Regulation 40(9) of the Listing Regulations is obtained from the Company Secretary in TOTAL: 20,42,401 100.00 12,55,04,72,231 100.00
Practice and a copy of the certificate is filed with the Stock Exchanges.
Statutory Reports
84 Management discussion and analysis (ii) Updation of Permanent Account Number (PAN) and Bank Details:
106 Directors’ report Members’ attention is invited to SEBI’s circular no SEBI/HO/MIRSD/0081/CIR/P/2018/73
146 Report on corporate governance dated April 20, 2018 pursuant to which the Bank has written to shareholders holding
187 Annual business responsibility report shares in physical form requesting them to furnish their PAN and Bank details for
Financial Statements payment of dividend through electronic mode. Those shareholders who are yet to
198 Standalone Financials respond to the Bank’s request in this regard are once again requested to take action
267 Consolidated Financials in the matter at the earliest.
180
Shareholding Pattern as on March 31, 2020: Sr. No. Category of shareholders No. of shares %
Contents V Other Non-Institutions
Sr. No. Category of shareholders No. of shares %
Corporate Overview Bodies Corporate 9,94,45,566 0.79
01 Commitment. Promise. Transparency. I Promoter & Promoter Group
Rana Kapoor 0 0.00 NBFCs Registered with RBI 3,18,275 0.00
A redefined YES
02 Key highlights FY 2019-20 Madhu Kapur 14,07,25,000 1.12 IEPF 1,34,274 0.00
03 YES BANK at a glance Morgan Credit Private Limited 0 0.00 Trusts 25,40,236 0.02
05 Products and services Yes Capital India (Private) Limited 900 0.00 Clearing Members 16,48,79,623 1.31
06 Geographical presence Mags Finvest Private Ltd 3,72,15,025 0.30 Sub-Total 26,73,17,974 2.13
07 Message from the Chairman Sub-Total 17,79,40,925 1.42 VI Individuals
10 Message from the Managing Director II Other Institutions Individuals holding nominal share capital up to `2 lakh 1,47,96,04,034 11.79
and CEO Individuals holding nominal share capital in excess of 12,27,01,989 0.98
Mutual Funds /UTI 6,98,72,294 0.56
12 Key performance indicators `2lakh
Alternate Investment Funds 75,546 0.00
15 COVID-19 response HUF 3,04,57,277 0.24
Foreign Portfolio Investors 23,37,24,036 1.86
17 Customer focus Non-Resident Indians 6,41,73,454 0.51
Qualified Institutional Buyer 4,81,949 0.00
21 Technology and digital innovation Non-Resident Indian Non-Repatriable 1,81,69,404 0.14
Sub-Total 30,41,53,825 2.42
25 Retail Foreign Nationals 2,129 0.00
III Financial Institutions /Banks
Our approach to value creation Employees 2,26,59,703 0.18
ICICI Bank Ltd 1,00,02,00,610 7.97
29 Value creation model Sub-Total 1,73,77,67,990 13.85
State Bank of India 6,05,00,00,000 48.21
31 Our strategy Total 12,55,04,72,231 100.00
Axis Bank Limited 60,00,00,000 4.78
36 Risk management The Federal Bank Ltd 24,13,32,522 1.92
Our ESG focus IDFC First Bank Limited 20,97,94,680 1.67
43 Environment Bandhan Bank Limited 30,00,00,000 2.39
54 Social Kotak Mahindra Bank Ltd 45,27,50,000 3.61
69 People Housing Development Finance Corporation Limited 1,00,00,00,000 7.97
80 Governance other FIs/Bank 11,640 0.00
Sub-Total 9,85,40,89,452 78.52
Statutory Reports
IV Insurance Companies
LIC Of India Along With Its Various Schemes 20,55,15,999 1.64
Other Insurance Companies 36,86,066 0.03
Sub-Total 20,92,02,065 1.67
181
Shareholding pattern (%) (n) Plant Locations:

Contents
Being a Banking Company, the Bank operates its business through a network of 1135
Corporate Overview
01 Commitment. Promise. Transparency. Banks/Financial Institutions - 78.52 branches located all across the India. The details of the Branch Addresses are available
A redefined YES on the website of the Bank.
02 Key highlights FY 2019-20 Individuals - 13.85
(o) Address for Correspondence for investors:
03 YES BANK at a glance Promoter & Promoter Group - 1.42
05 Products and services Mr. Shivanand R. Shettigar, Group Company Secretary
06 Geographical presence Other Institutions (MF/AIF/FPI/QIB) - 2.42 YES Bank Tower, IFC 2, 15th Floor, Senapati Bapat Marg,
07 Message from the Chairman Elphinstone Road (West), Mumbai 400013.
Insurance Companies - 1.67
10 Message from the Managing Director Phone No.: 022-33669000/33478301 Fax No.: 022-24214521
and CEO Other Non-Institutions (Bodies Email: shareholders@yesbank.in
12 Key performance indicators Corporates/NBFC/Trust/IEPF/Clearing
(p) Credit Ratings and Change/Revisions in Credit Ratings for Debt
Members) - 2.13
17 Customer focus Instruments:
21 Technology and digital innovation MF - Mutual Funds /UTI (1) CRISIL A2; (CRISIL A2) rating from CRISIL to the Certificate of Deposit Program
25 Retail AIF - Alternate Investment Funds of the Bank
FPI- Foreign Portfolio Investors
Our approach to value creation (2) ‘CARE D; (Single D) rating from CARE to the Additional Tier – I Basel III Compliant
QIB - Qualified Institutional Buyer
29 Value creation model Bond Issue of the Bank
31 Our strategy
(k) Dematerialization of shares and liquidity: (3) ‘CARE C; Credit watch with developing implications’ (Single C; Credit watch
36 Risk management
with developing implications) rating from CARE to the Basel III Compliant Tier II
Our ESG focus As on March 31, 2020, the Share Capital of the Bank was held in the dematerialized
Bond Issue of the Bank
43 Environment form comprising of 12,550,368,946 Equity Shares of face value of `2 each (99.99%), out
54 Social of which (94.99%) with NSDL and (5.01%) with CDSL, only 103,285 shares were being (4) ‘CARE D; (Single D) rating from CARE to the Tier I Perpetual Bond Issue of the Bank-
69 People held in physical form (0.01%).
(5) ‘CARE C; Credit watch with developing implications’ (Single C; Credit watch with
80 Governance Shareholders are requested to convert their physical holdings into electronic holdings developing implications) rating from CARE to the Upper Tier II Issue of the Bank
Statutory Reports which will negate risks associated with physical certificates.
(6) ‘ CARE B; Credit watch with developing implications’ (Single B; Credit watch with
(l) Outstanding GDRs/ADRs/Warrants or any Convertible instruments, developing implications) rating from CARE to the Lower Tier II Issue of the Bank
conversion date and likely impact on equity:
146 Report on corporate governance (7) ‘CARE B; Credit watch with developing implications’ (Single B; Credit watch
187 Annual business responsibility report The Bank does not have any Outstanding GDRs / ADRs / Warrants or any other with developing implications) rating from CARE to the Infrastructure Bond
Convertible instrument as on date. Issue of the Bank
198 Standalone Financials (m) Commodity Price Risk or Foreign Exchange Risk and Hedging activities: (8) ‘[ICRA]D (hyb); (ICRA D Hybrid) rating from ICRA to the Additional Tier – I
267 Consolidated Financials The information on the Commodity Price Risk or Foreign Exchange Risk and Hedging Basel III Compliant Bond Issue of the Bank
activities is explained elsewhere in this report.
182
(9) ‘[ICRA]BB (hyb); Rating Watch with Developing Implications’ (ICRA Double B (19) ‘ BWR D; (BWR Single D) rating from Brickworks to the Upper Tier II Issue of the Bank
Contents Hybrid ; Outlook: Rating Watch with Developing Implications’) rating from ICRA to
Corporate Overview (20) ‘ BWR D; (BWR Single D) rating from Brickworks to the Lower Tier II Issue of the Bank
the Basel III Compliant Tier II Bond Issue of the Bank
(q) Debenture Trustees:
A redefined YES (10) ‘ [ICRA]D; (ICRA D) rating from ICRA to the Tier I Perpetual Bond Issue of the Bank
02 Key highlights FY 2019-20 IDBI Trusteeship Services Limited Axis Trustee Services Limited
03 YES BANK at a glance (11) ‘[ICRA]BB; Rating Watch with Developing Implications’ (ICRA Double B ;
Asian Building, Ground Floor, Axis House, Ground floor,
05 Products and services Outlook: Rating Watch with Developing Implications’) rating from ICRA to the 17, R Kamani Marg, Ballard Estate, Wadia International Centre,
06 Geographical presence Upper Tier II Issue of the Bank Mumbai – 400 001. Pandurang Budhkar Marg, Worli,
07 Message from the Chairman Contact Person: Mumbai – 400025
(12) ‘[ICRA]BB+; Rating Watch with Developing Implications’ (ICRA Double B plus;
10 Message from the Managing Director Mr. Sunny Nihalani, Vice President Contact Person:
Outlook: Rating Watch with Developing Implications’) rating from ICRA to the Phone No: 022 – 4080 7001 Mr. Anil Grover – Deputy General Manager
and CEO
Lower Tier II Issue of the Bank Fax No.: 022 – 6631 1776 Phone no: 022 – 6226 0084
15 COVID-19 response Fax No: 022 – 2425 4200
(13) ‘[ICRA]BB+; Rating Watch with Developing Implications’ (ICRA Double B plus;
17 Customer focus Outlook: Rating Watch with Developing Implications’) rating from ICRA to the
21 Technology and digital innovation Infrastructure Bond Issue of the Bank For and on behalf of the Board of Directors
25 Retail YES BANK Limited
(14) ‘IND B+; Rating Watch Evolving’ (Single B Plus; Outlook: Rating Watch Evolving)
Our approach to value creation rating from India Ratings to the Basel III Compliant Tier II Bond Issue of the Bank
29 Value creation model Prashant Kumar Sunil Mehta
31 Our strategy (15)
‘ IND BB-; Rating Watch Evolving (Double B minus; Outlook: Rating Watch Managing Director & CEO Non Executive Chairman
36 Risk management Evolving) rating from India Ratings to the Infrastructure Bond Issue of the Bank (DIN: 07562475) (DIN: 00065343)
Our ESG focus (16) Caa1; Outlook: Positive rating from Moody’s Investors Service to the Long Place: Mumbai
43 Environment term rating of the bank Date: June 29, 2020
54 Social
(17) NP rating from Moody’s Investors Service to the Short term rating of the bank
69 People
80 Governance (18) ‘BWR D; (BWR Single D) rating from Brickworks to the Tier I Perpetual Bond
Issue of the Bank
Statutory Reports
183
Compliance with the Code of Conduct and Ethics
I confirm that all Directors and Members of the Senior Management have affirmed compliance with YES BANK Code of Conduct and Ethics.
Contents
Corporate Overview For YES BANK Limited
A redefined YES Prashant Kumar
02 Key highlights FY 2019-20 Managing Director & CEO Place: Mumbai
03 YES BANK at a glance (DIN: 07562475) Date: June 29, 2020
CEO / CFO Certification

and CEO
17 Customer focus We, Mr. Prashant Kumar, Managing Director & CEO and Mr. Anurag Adlakha, Group d. We have indicated, to the Auditors and the Audit Committee:
21 Technology and digital innovation Chief Financial Officer, of YES Bank Limited (the “Bank”) hereby certify that:
i. significant changes in internal control over financial reporting during the year;
25 Retail a. We have reviewed Financial Statements and the Cash Flow Statement for the
ii. significant changes in accounting policies during the year and that the same
Our approach to value creation Financial Year ended March 31, 2020 of the Bank and that to the best of our
have been disclosed in the notes to the financial statements; and
29 Value creation model knowledge and belief:
31 Our strategy iii. instances of significant fraud of which we have become aware and the
i. these statements do not contain any materially untrue statement or omit
36 Risk management involvement therein, if any, of the management or an employee having
any material fact or contain any statements that might be misleading;
significant role in the Bank’s internal control system over financial reporting.
Our ESG focus
ii. these statements together present a true and fair view of the Bank’s affairs
43 Environment Yours faithfully
and are in compliance with existing accounting standards, applicable laws
54 Social For YES BANK Limited
and regulations.
69 People
80 Governance b. There are, to the best of our knowledge and belief, no transactions entered into Prashant Kumar Anurag Adlakha
by the Bank during the year which are fraudulent, illegal or violative of the Bank’s Managing Director & CEO Group Chief Financial Officer
Statutory Reports
Code of Conduct. (DIN: 07562475)
106 Directors’ report c. We accept responsibility for establishing and maintaining internal controls for Place: Mumbai
146 Report on corporate governance financial reporting and that we have evaluated the effectiveness of internal Date: May 06, 2020
187 Annual business responsibility report control systems of the Bank pertaining to financial reporting and have disclosed
Financial Statements to the Auditors and Audit Committee, deficiencies in the design or operation of
198 Standalone Financials such internal controls, if any, of which we are aware and the steps we have taken
267 Consolidated Financials or proposed to take to rectify these deficiencies.
184
Certificate on Corporate Governance
To, This certificate is issued solely for the purposes of complying with Listing Regulations
Contents The Members, and may not be suitable for any other purpose.
Corporate Overview YES Bank Limited
01 Commitment. Promise. Transparency. Notes:
A redefined YES We have examined the compliance of conditions of Corporate Governance by Yes
• Pursuant to the Yes Bank Limited reconstruction Scheme, 2020, notified by the
02 Key highlights FY 2019-20 Bank Limited (hereinafter referred as “Company”) for the Financial year ended March
03 YES BANK at a glance Ministry of Finance, Government of India, effective from March 13, 2020 a new Board
31, 2020 as prescribed under Regulations 17 to 27, clauses (b) to (i) of sub-regulation
05 Products and services was appointed on March 26, 2020 & post the Reconstruction Scheme 2020, the
(2) of regulation 46 and paras C, D and E of Schedule V of Securities and Exchange
06 Geographical presence composition of the said Board was not in accordance with Regulation 17 of Listing
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
07 Message from the Chairman Regulations. The said Scheme has overriding effect to all other applicable laws, rules
(hereinafter referred as “Listing Regulations”).
10 Message from the Managing Director and regulations in respect of the matters specified in the Scheme.
and CEO We state that compliance of conditions of Corporate Governance is the responsibility of
• Due to lockdown under COVID-19, Certification on this Certificate on Corporate
12 Key performance indicators the management, and our examination was limited to procedures and implementation
Governance is done on the basis of documents made available to us in electronic
thereof adopted by the Bank for ensuring compliance with conditions of Corporate
17 Customer focus form (i.e. scanned documents sent through e-mail) by the Secretarial Team of the
Governance. It is neither an audit nor an expression of opinion on the financial
21 Technology and digital innovation Bank and such documents will be verified physically after the lockdown is lifted.
statements of the Bank.
25 Retail For Mehta & Mehta,
In our opinion, and to the best of our information and according to our examination
Our approach to value creation Company Secretaries
of the relevant records and the explanations given to us, we certify that the Bank
29 Value creation model (ICSI Unique Code P1996MH007500)
has complied with the conditions of Corporate Governance as prescribed under
31 Our strategy
Listing Regulations.
36 Risk management
Ashwini Inamdar
We further state that such compliance is neither an assurance as to the future viability
Our ESG focus Partner Place : Mumbai
of the Bank nor the efficiency or effectiveness with which the management has
43 Environment FCS No : 9409 Date : June 25, 2020
conducted the affairs of the Bank.
54 Social CP No. : 11226 UDIN : F009409B000377744
69 People
80 Governance
Statutory Reports
185
Certificate Under Regulation 34(3) of SEBI Listing Regulations
To,
The Members of YES Bank Limited
Contents YES Bank Tower, IFC–II, 15th Floor,
Corporate Overview Senapati Bapat Marg, Elphinstone (W), Mumbai 400013
I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of YES Bank Limited having CIN L65190MH2003PLC143249 and
A redefined YES
having registered office at YES Bank Tower, IFC–II, 15th Floor, Senapati Bapat Marg, Elphinstone (W), Mumbai 400013 (hereinafter referred to as ‘the Company’), produced
before me by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (as amended from to time). In my opinion and to the best of my information and according to the verifications
(including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its Officers,
I hereby certify that none of the Directors on the Board of the Company as stated below have been debarred or disqualified from being appointed or continuing as Directors
of Company for the Financial Year ending March 31, 2020, by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authority.
and CEO Sr. No. Name of the Director DIN Date of Appointment
1. Mr. Prashant Kumar 07562475 26-03-2020
2. Mr. Sunil Mehta 00065343 26-03-2020
17 Customer focus
3. Mr. Mahesh Krishnamurti 02205868 26-03-2020
21 Technology and Digital Innovation
4. Mr. Atul Bheda 03502424 26-03-2020
25 Retail
5. Mr. Rama Subramaniam 03341633 26-03-2020
Our approach to value creation 6. Mr. Ananth Narayan Gopal Krishnan 05250681 26-03-2020
29 Value creation model 7. Mr. Partha Sengupta 08273324 26-03-2020
31 Our strategy 8. Mr. Swaminathan Janakiraman 08516241 26-03-2020
36 Risk management
The aforesaid Directors were appointed in pursuance of Yes Bank Limited Reconstruction Scheme, 2020 notified by Reserve Bank of India (RBI) and in accordance with the
Our ESG focus
Clause 5(6) of the said scheme which is stated hereunder:
43 Environment
54 Social “The appointment of the directors shall have effect, notwithstanding non-fulfillment of any requirement as to minimum shareholding, qualification, experience or any other
69 People condition, for being a director of the reconstructed bank”.
80 Governance
Further ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. My responsibility is to
Statutory Reports express an opinion on these based on my verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
84 Management discussion and analysis which the management has conducted the affairs of the Company.
146 Corporate governance report For U. Hegde & Associates,
187 Business Responsibility Report Company Secretaries,
Financial Statements Umashankar K Hegde

(Proprietor)
267 Consolidated Financials Place: Mumbai C.P. No- 11161 # M.No- ACS 22133
Date : August 06, 2020 ICSI UDIN: A022133B000554951
186
Annual Business Responsibility Report (ABRR)
Section A: General Information about the Company b. Number of National Locations

Contents
1. Corporate Identity Number (CIN) of the Company: L65190 MH 2003 PLC 143249 The Bank has 1,135 branches, two National Operating Centers in Mumbai

Corporate Overview
01 Commitment. Promise. Transparency. 2. Name of the Company: YES BANK Limited and New Delhi, one National Centralized Operations Management and
A redefined YES Services Delivery facility in Chennai and 1,423 ATMs, as on March 31, 2020.
02 Key highlights FY 2019-20 3. Registered address: YES BANK Tower, IFC – 2, 15th Floor, Senapati Bapat Marg,
03 YES BANK at a glance Elphinstone (W), Mumbai 400 013, India 10. Markets served by the Company – Local/State/National/International/
05 Products and services YES BANK is a pan-India Bank, with branches and ATMs in all states and

4. Website: www.yesbank.in
06 Geographical presence Union Territories of India. YES BANK operates one Representative Office in
07 Message from the Chairman 5. E-mail id: yestouch@yesbank.in Abu Dhabi (UAE) to enhance its engagement with businesses and Indians
6. Financial Year reported: FY 2019-20 in GCC regions and an IFSC Banking Unit (IBU) in Gujarat International
and CEO
Finance Tec-City (GIFT) which is akin to a foreign branch and caters to the
7. Sector(s) that the Company is engaged in (industrial activity code-wise): requirements of clients based in overseas and domestic jurisdictions, as
17 Customer focus As per India’s National Industrial Classification 2008 (NIC-2008): permitted by RBI from time to time.
21 Technology and digital innovation Section B: Financial Details of the Company
Section K – Financial and Insurance Activities
25 Retail
1. Paid up Capital (`): 2,510.0944 crore
Division 64 - Financial service activities, except insurance and pension funding
2. Total Turnover (`): 37,923.0977 crore
29 Value creation model 8. List three key products/services that the Company manufactures/provides (as in
31 Our strategy balance sheet): 3. Total profit after taxes (`): Loss of 16,418.031 crore
36 Risk management
a) Retail Banking 4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit
Our ESG focus after tax (%): 0.97% (% calculated based on average net profits of previous 3
43 Environment b) Corporate Banking
financial years calculated as per Section 198 of the Companies Act, 2013)
54 Social c) Treasury
69 People 5. List of activities in which expenditure in 4 above has been incurred:-
80 Governance 9. Total number of locations where business activity is undertaken by the Company
i. Livelihood and Water Security
Statutory Reports a. Number of International Locations (Provide details of major 5)
ii. Employability and Entrepreneurship
wo – The Bank has representative offices in Abu Dhabi. The Bank also
T
106 Directors’ report iii. Environmental Sustainability
operates an IFSC Banking Unit (IBU) in Gujarat International Finance
Tec-City (GIFT). Section C: Other Details
1. Does the Company have any Subsidiary Company/ Companies?
198 Standalone Financials Yes (three subsidiaries)
187
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the 2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)
Contents parent company? If yes, then indicate the number of such subsidiary company(s): S.No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Corporate Overview
01 Commitment. Promise. Transparency. Some BR activities of YES BANK’s three subsidiary companies are conducted
1. Do you have a policy/policies for.... Y Y Y Y5 Y Y Y Y9 Y1
A redefined YES as part of the parent company. 2. Has the policy being formulated in consultation Y Y Y Y Y Y Y Y Y
02 Key highlights FY 2019-20 with the relevant stakeholders?
03 YES BANK at a glance 3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company 3. Does the policy conform to any national / Y* Y* Y* Y* Y* Y* Y* Y* Y*
05 Products and services does business with, participate in the BR initiatives of the Company? If yes, international standards? If yes, specify?
06 Geographical presence then indicate the percentage of such entity/entities? [Less than 30%, 30- (50 words)
07 Message from the Chairman 60%, More than 60%] 4. Has the policy being approved by the Board? Y Y Y Y Y Y Y Y Y
10 Message from the Managing Director If yes, has it been signed by MD/owner/CEO/
No
and CEO appropriate Board Director?
12 Key performance indicators Section D: BR Information 5. Does the company have a specified committee Y Y Y Y Y Y Y Y Y
1. Details of Director/Directors responsible for BR of the Board/ Director/Official to oversee the
17 Customer focus implementation of the policy?
21 Technology and digital innovation a) Details of the Director/Director responsible for implementation of the BR
policy/policies 6. Indicate the link for the policy to be viewed Y1 Y3 N4 Y5 Y6 Y7 Y8 Y5 Y1
25 Retail
online?
Our approach to value creation The Managing Director and CEO is responsible for implementation of the BR
7. Has the policy been formally communicated to Y1 Y3 Y4 Y Y2 Y Y Y Y
29 Value creation model policy/policies all relevant internal and external stakeholders?
31 Our strategy 8. Does the company have in-house structure to Y Y Y Y Y Y Y Y Y
b) Details of the BR head
36 Risk management implement the policy/policies.
S.No. Particulars Details
Our ESG focus 1. DIN Number (if applicable) n/a 9. Does the Company have a grievance redressal Y1 Y Y Y Y Y Y Y Y
mechanism related to the policy/policies to
43 Environment 2. Name Mr Srinath Komarina
address stakeholders’ grievances related to the
54 Social 3. Designation Senior President, Responsible Banking
policy/policies?
69 People 4. Telephone number +91 22 3347 9852
10. Has the company carried out independent Y2 Y2 Y Y Y2 Y2 Y2 Y Y2
80 Governance 5. e-mail id responsible.banking@yesbank.in
audit/evaluation of the working of this policy
Statutory Reports by an internal or external agency?
* All policies of the Bank have been developed as a result of detailed consultations and research on
the best practices adopted by banks and organizations across the national and international industry
146 Report on corporate governance norms, and per the requirements of the Bank.
188
1. The Code of Ethics for employees and certain policies, including the Citizen’s The Bank’s complete response to its environmental priorities and commitments,
Contents Charter, Charter of Customer Rights, Grievance Redressal and Banking Practice through business activities, CSR, and other activities, is available in its
Corporate Overview Code are available on the website at https://www.yesbank.in/regulatory_policies. Sustainability Report, accessible at https://www.yesbank.in/about-us/investor-
relations/yes-bank-sustainability-report
A redefined YES 2. Yes, for certain policies and procedures.
02 Key highlights FY 2019-20 8. The Bank aims to take a leadership position in influencing public policy and
03 YES BANK at a glance 3. The Bank has in place the Environment & Social Policy, which integrates
discourse by hosting and participating in thought platforms and through
05 Products and services environmental and social risks into its overall credit risk assessment framework.
knowledge research. Details can be accessed at https://www.yesbank.in/
06 Geographical presence The Summary of the Policy is available at https://www.yesbank.in/beyond-
beyond-banking. For additional details, please refer to the responses to
07 Message from the Chairman banking/responsible-banking/responsible-banking/facilitating-responsible-
Principle 7 in this BRR.
10 Message from the Managing Director investments/environmental-and-social. The Bank has the Environmental
and CEO Management Policy which focuses on achieving greater environmental 9. In addition to the Bank’s business activities focusing on inclusive growth, and
12 Key performance indicators sustainability within the Bank’s operations. The Policy is accessible at https:// equitable and sustainable development, highlighted in Point 5 above, the Bank
15 COVID-19 response www.yesbank.in/regulatory_policies. creates a positive impact through its CSR activities. The activities and impact are
17 Customer focus included in the Sustainability Disclosures that is a part of this Annual Report.
21 Technology and digital innovation 4. Employee focused policies are accessible only by employees and are not shared
25 Retail in the public domain. The bank’s Human Capital Management practices and 2a. If answer to S.No. 1 against any principle, is ‘No’, please explain why:
activities can be accessed at https://www.yesbank.in/work-with-us. (Tick up to 2 options)
29 Value creation model 5. YES BANK views the unbanked and under-banked population in rural and urban – Not applicable
31 Our strategy India as a primary stakeholder for financial inclusion. Through its products and
services focused at the Base of the Pyramid, the Bank aims to positively impact S.No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
36 Risk management
this marginalized and disadvantaged stakeholder group. The Bank has policies in 1. The company has not understood the
Our ESG focus Principles
place, and adheres to regulatory guidelines, to drive its business practices. The
43 Environment 2. The company is not at a stage where it finds
Bank as a Code of Commitment to the MSME Sector, accessible at https://www.
54 Social itself in a position to formulate and implement
yesbank.in/footer/regulatory-policies/banking-practice-code.
69 People the policies on specified principles
80 Governance 6. The Bank has several policies and guidelines in place for ensuring all stakeholder 3. The company does not have financial or
rights and the regulatory laws are adhered to in its operations. Through its policies manpower resources available for the task
Statutory Reports
on environmental and social risk assessment, the Bank ensures compliance of all 4. It is planned to be done within next 6 months
106 Directors’ report pertinent regulations in its lending portfolio as well. Similarly, the Bank ensures 5. It is planned to be done within the next 1 year
146 Report on corporate governance that all regulations are adhered to in its CSR activities. 6. Any other reason (please specify)
187 Annual business responsibility report 7. The Bank’s Environmental Management Policy is available on the Bank’s website
Financial Statements at https://www.yesbank.in/pdf/emp. The Bank’s CSR Policy is accessible at https://
198 Standalone Financials www.yesbank.in/pdf/ybl_corporate_social_responsibility_policy.
189
3. Governance related to BR Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /

Contents Others?
• Indicate the frequency with which the Board of Directors, Committee of
Corporate Overview
the Board or CEO to assess the BR performance of the Company. Within 3 The Anti-Bribery and Anti-Corruption Policy is implemented to all the agents,
A redefined YES months, 3-6 months, Annually, More than 1 year associates, consultants, advisors, contractors, sub-contractors, suppliers of
02 Key highlights FY 2019-20 goods and/or services, representatives or intermediaries engaged by the Bank.
The Bank has a Corporate Social Responsibility (CSR) Committee of the Board,
03 YES BANK at a glance These entities shall also be required to follow the Policy while carrying on their
which meets at least twice in a year. The Managing Director & CEO and the
05 Products and services assignments with the Bank. Further, the Bank shall in all respects be within its
Senior President, Responsible Banking, attend all meetings of CSR Committee.
06 Geographical presence rights to inspect the books of accounts and other documents of all such agents,
07 Message from the Chairman The Bank has an internal system in place for reviewing the BR performance, associates, consultants, advisors, contractors, sub-contractors, suppliers of goods
10 Message from the Managing Director headed by the Senior President, Responsible Banking which is further reviewed and/or services, representatives or intermediaries, as part of an investigation in
and CEO by Managing Director and CEO. The Senior President, Responsible Banking alleged/identified case(s) of corruption/bribery.
12 Key performance indicators is also a part of a seven member management level Internal CSR Expense
15 COVID-19 response 2. How many stakeholder complaints have been received in the past financial
Committee (ICEC) whose working is overseen at CSR Committee of the Board.
17 Customer focus year and what percentage was satisfactorily resolved by the management?
21 Technology and digital innovation • Does the Company publish a BR or a Sustainability Report? What is the If so, provide details thereof, in about 50 words or so.
25 Retail hyperlink for viewing this report? How frequently it is published?
Please refer to page numbers 263 for Customer Complaints and page number 161
Our approach to value creation YES BANK publishes its Sustainability Disclosures as part of its Annual Report for Shareholder Complaints, in this Annual Report.
29 Value creation model which is based on the GRI framework. The Disclosures for FY 2019-20 are
31 Our strategy included in this Annual Report and can be accessed at https://www.yesbank. For Employee complaints, please refer to page 192 in this Annual Report.
36 Risk management in/about-us/investors-relation/financial-information/annual-reports. Principle 2
Our ESG focus The Bank also reports on its sustainability performance in its annual 1. List up to three of your products or services whose design has incorporated
43 Environment Sustainability Report, based on UN Principles for Responsible Banking and social or environmental concerns, risks and/or opportunities.
54 Social Taskforce on Climate-related Financial Disclosures.
69 People Digital Banking – YES MONEY, YES PAY, Aadhar Enabled Payment Scheme
i.
80 Governance Section E: Principle-wise performance (AEPS), Smart City mobile application for Coimbatore City Municipal Corporation,
Principle 1 Yuva Pay solution
Statutory Reports
84 Management discussion and analysis 1. Does the policy relating to ethics, bribery and corruption cover only the ii. Inclusive and Social Banking – YES LEAP/YES Joint Liability Group (Women
106 Directors’ report company? Yes/ No. Group lending), Micro Individual Business Loan, Micro Insurance, Asset & Liability
146 Report on corporate governance No services through BC Managed Banking Outlets (BCBOs), digital interventions
187 Annual business responsibility report include on-boarding of customers through M-Keys, digital field reporting in
Microsoft Kaizala, digital training modules, semi-automated loan management
system (Ganaseva), cashless disbursements
190
iii. Strategic Government Advisory – YES BANK working with various state certified for ISO 14001:2015 Environment Management System, under which the
Contents governments and their entities to support them in their sustainable mobility Bank makes maximum effort to raise awareness among its customers on efficient
Corporate Overview initiatives across Punjab, Rajasthan, Telangana and Goa resource consumption.
A redefined YES Sustainable Investment Banking and Corporate Finance – Lending and
iv. The Bank is rapidly adopting technology to digitize its operations and product
02 Key highlights FY 2019-20 advisory in clean energy offerings, and has witnessed a strong growth in adoption of mobile banking,
03 YES BANK at a glance mobile wallets and internet banking, thus reducing the incidence of paper usage
05 Products and services 2. For each such product, provide the following details in respect of resource
and travel among its customers. The impact achieved through related initiatives
06 Geographical presence use (energy, water, raw material etc.) per unit of product (optional):
is included in the Sustainability Disclosures, as a part of this Annual Report.
07 Message from the Chairman i. Reduction during sourcing/production/ distribution achieved since the
10 Message from the Managing Director 3. Does the company have procedures in place for sustainable sourcing
previous year throughout the value chain?
and CEO (including transportation)?
12 Key performance indicators On account of the nature of its services, the major resources consumed at the
i. If yes, what percentage of your inputs was sourced sustainably? Also, provide
Bank are grid electricity and paper. During the reporting period, the Bank has
17 Customer focus details thereof, in about 50 words or so.
launched several key initiatives and achieved significant traction on on-going
21 Technology and digital innovation initiatives, towards achieving internal resource efficiencies, focused on product Given that the Banking sector’s primary product offering is financial services,
25 Retail and process digitization, greater employee awareness, reduction in waste the Bank does not have any raw material requirements. The primary resources
Our approach to value creation generation, and improved waste management. consumed for its day-to-day operations are paper, grid electricity, water and
29 Value creation model diesel, for DG sets in locations with erratic availability of electricity, which are
In the reporting year, YES BANK continues to be 14001:2015 Environment
31 Our strategy procured centrally, led by the Strategic Procurement Unit. The Bank strives to
Management System certified. As on March 31, 2020, YES BANK is leading the
36 Risk management achieve greater transparency, compliance and adoption of environmental and
BFSI sector globally with the highest number of ISO 14001 certified green facilities
labor best practices in its procurement process.
Our ESG focus with 732 certified locations, including 5 corporate offices, YES SECURITIES and the
43 Environment Abu Dhabi Representative Office. This marks the latest milestone achieved by the 4. Has the company taken any steps to procure goods and services from local
54 Social Bank in its journey in becoming a leading environmentally friendly bank. & small producers, including communities surrounding their place of work?
69 People
Please refer to page numbers 45 for key initiatives focusing on achieving resource If yes, what steps have been taken to improve their capacity and capability of
80 Governance
consumption efficiency at the Bank, and the impact achieved, in this Annual Report. local and small vendors?
Statutory Reports
ii. Reduction during usage by consumers (energy, water) has been achieved Yes. The Bank’s award-winning product for the Bottom of the Pyramid – YES
since the previous year? MONEY, is based on the Business Correspondent (BC) model that enrols local
146 Report on corporate governance small business owners as BC Agents (BCA) to provide remittance services to local
Given that the Bank’s primary product offerings are financial services, resource
187 Annual business responsibility report communities. These BCAs are trained in remittance operations and basic banking.
consumption during usage by consumers is not a significant material issue for the
Financial Statements banking sector in general. During the year, the Bank’s 732 locations, including 5 In addition to the Bank’s procurement largely carried out through the Strategic
198 Standalone Financials corporate offices, YES SECURITIES and the Abu Dhabi Representative Office were Procurement Unit, given that the Bank has branches in all states and Union
267 Consolidated Financials Territories in India, it also procures locally for daily use items and services such
191
as stationary, food and beverages and local transport. It works with most local 4. Please indicate the Number of permanent employees with disabilities
Contents vendors to align them with the Bank’s procurement requirements and standards. The Bank, being an Equal Opportunity Employer, makes no distinction between
Corporate Overview The Bank has centrally defined Procurement Policy and practices which govern
employees on the basis of disabilities.
such engagement models.
A redefined YES 5. Do you have an employee association that is recognized by management?
02 Key highlights FY 2019-20 5. Does the company have a mechanism to recycle products and waste? If
03 YES BANK at a glance The Bank does not have an employee association.
yes, what is the percentage of recycling of products and waste (separately
05 Products and services as <5%, 5-10%, >10%). 6. What percentage of your permanent employees is members of this
06 Geographical presence recognized employee association?
07 Message from the Chairman Also, provide details thereof, in about 50 words or so.
Not applicable as the Bank does not have an employee association.
Yes. As the Banking sector’s primary product offering is financial services, its
and CEO 7. Please indicate the Number of complaints relating to child labour, forced
waste is related to paper, municipal waste, and electronic waste. The Bank has
strong policies and practices in place for responsible disposal of all such waste labour, involuntary labour, sexual harassment in the last financial year and
through authorized third party vendors. For waste paper disposal, the Bank has pending, as on the end of the financial year.
17 Customer focus
21 Technology and digital innovation local authorized vendors to ensure near 100% recycling of waste paper, and has No of complaints
No of complaints
25 Retail partnered with a vendor which provides stationary from recycled paper, in return S.No. Category filed during the
pending as
on end of the
for the paper disposal. For e-waste handling, the bank has a national authorized financial year
financial year
Our approach to value creation vendor for centralized collection and handling of e-waste to ensure near 100% of
29 Value creation model 1. Child labour/forced labour/involuntary labour Nil Nil
e-waste management.
31 Our strategy 2. Sexual harassment 8 2
36 Risk management The Bank’s waste management practices are a part of this Annual Report. 3. Discriminatory employment Nil Nil
Our ESG focus Principle 3 8. What percentage of your under mentioned employees were given safety &
43 Environment 1. Please indicate the Total number of employees. skill up- gradation training in the last year?
54 Social
YES BANK had 22,973 employees as on March 31, 2020. i. Permanent Employees
69 People
80 Governance 2. Please indicate the Total number of employees hired on temporary/ The Bank, through a dedicated team, YES SCHOOL OF BANKING, provides training
contractual/casual basis. in banking, skill development and personality development, among others. The
Statutory Reports
Bank’s training programs are divided into 5 broad categories: Behavioural and
84 Management discussion and analysis Fixed Term Contract/ Employees
Financial Year ending Leadership Skills, Employee Induction, Mandatory Policies and Compliance,
106 Directors’ report (Trainee/Advisor, etc.)
146 Report on corporate governance Head Count as on March 31, 2018 67 Process Training and Product Training. In the reporting period, 74.7% (17,161)
187 Annual business responsibility report Head Count as on March 31, 2019 39 employees were trained under 5,044 classroom-based training programs.
Head Count as on March 31, 2020 25 ii. Permanent Women Employees
198 Standalone Financials 3. Please indicate the Number of permanent women employees. 3,255 women employees were imparted classroom-based training during the
The Bank had 4,256 permanent women employees on March 31, 2020. year, which is over 76.48 % of the Bank’s total women employees.
192
iii. Casual/Temporary/Contractual Employees Principle 5

Contents
The Bank provides training on the Bank’s policies and process to advisors, 1. Does the policy of the company on human rights cover only the company or
Corporate Overview
01 Commitment. Promise. Transparency. trainees, etc. as and when required. extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?
A redefined YES The Bank has in place policies and processes that cover various aspects of Human
iv. Employees with Disabilities
Rights, specific to employees, and external stakeholders such as its CSR partners,
03 YES BANK at a glance The Bank, being an Equal Opportunity Employer, makes no distinction between supply chain and corporate customers. In addition, the Bank’s corporate whistle
05 Products and services employees on the basis of disabilities. All employees are imparted training basis blower program covers all its internal and external stakeholders.
06 Geographical presence their training requirements and profile.
07 Message from the Chairman 2. How many stakeholder complaints have been received in the past financial
10 Message from the Managing Director Principle 4 year and what percent was satisfactorily resolved by the management?
and CEO 1. Has the company mapped its internal and external stakeholders?
12 Key performance indicators The Bank did not receive any complaint related to human rights violations from
15 COVID-19 response Yes internal or external stakeholders. Complaints related to sexual harassment are
17 Customer focus covered separately under Principle 3.
2. Out of the above, has the company identified the disadvantaged,
vulnerable & marginalized stakeholders? Principle 6
25 Retail
The under-banked and unbanked population in rural and urban India, which is 1. Does the policy related to Principle 6 cover only the company or extends to
Our approach to value creation the Group/Joint Ventures/Suppliers/Contractors/NGOs/others.
still not entirely integrated into India’s mainstream economy, can be vulnerable
to socio-economic exploitation. The Bank focuses on financial inclusion as a key The Bank has multiple policies that directly and indirectly communicate its
31 Our strategy
business priority to positively impact this stakeholder group. support and adherence of Principle 6.
36 Risk management
Our ESG focus 3. Are there any special initiatives taken by the company to engage with the The Environment & Social Policy (ESP) is based on international best practices
43 Environment disadvantaged, vulnerable and marginalized stakeholders? If so, provide such as the Equator Principles and the IFC Guidelines. Under the Policy, the Bank
54 Social details thereof, in about 50 words or so. ensures environment and social risk is integrated with the overall credit risk
69 People Yes. The Bank engages with such stakeholders in multiple ways. Through its appraisal process. The Policy also includes an exclusion list to flag socially and/or
80 Governance focused Business Units such as Inclusive and Social Banking, Digital Banking, environmentally irresponsible proposals, and guides the Bank in engaging with
Agribusiness Product Banking and Rural Retail Banking, the Bank offers financial clients towards adopting best practices.
Statutory Reports
84 Management discussion and analysis products and services to diverse stakeholders in rural and urban India. Details The Environmental Management Policy guides the Bank towards, achieving
106 Directors’ report on the Bank’s business units can be accessed in the Management Discussion & internal resource efficiency, creating employee awareness and communicating
146 Report on corporate governance Analysis in this Annual Report. positive environmental action among its stakeholders.
The Bank has high-impact CSR initiatives underway on key areas of socio- The CSR Policy of the Bank includes Environment Sustainability as one of its
Financial Statements economic development and community impact. These include YES COMMUNITY, focus areas. The Bank has undertaken several CSR initiatives with positive direct
198 Standalone Financials its innovative branch-based community engagement initiative, and other environmental impact or towards creating awareness among stakeholders.
267 Consolidated Financials initiatives focusing on skill development in rural India, environmental efficiency
in the MSME sector, and livelihood and water security, among others. Details are The Bank also has in place a Supplier Code of Conduct that promotes ESG best
available in the Sustainability Disclosures section in this Annual Report. practices among its supplier base.
193
2. Does the company have strategies/ initiatives to address global YES BANK is the first bank globally to migrate to the ISO 14001:2015 certification
Contents environmental issues such as climate change, global warming, etc.? Y/N for Environment Management System, with 732 certified locations, including
Corporate Overview 5 corporate offices, YES SECURITIES and the Abu Dhabi Representative office.
01 Commitment. Promise. Transparency. Yes.
Guided by the certification and its Environmental Management Policy, the Bank
A redefined YES
If yes, please give hyperlink for webpage etc. assesses the environment risks of its operations.
03 YES BANK at a glance YES BANK is a signatory to international protocols and initiatives, such as the UNEP As part of its overall risk management framework, the Bank has a Reputational
05 Products and services Finance Initiative, UN Global Compact, CDP (formerly Carbon Disclosure Project), Risk Management Committee overseeing its E&S risk preparedness across its
06 Geographical presence the Natural Capital Finance Alliance, where it works on creating awareness and business operations and community activities.
07 Message from the Chairman impact at a global level, on issues of environmental and social significance.
10 Message from the Managing Director 4. Does the company have any project related to Clean Development
and CEO YES BANK is among the leaders in the Indian banking sector in driving climate Mechanism? If so, provide details thereof, in about 50 words or so. Also, if
12 Key performance indicators finance. In 2015, the Bank had taken a commitment to target mobilizing USD 5 Yes, whether any environmental compliance report is filed?
15 COVID-19 response billion up to 2020 for climate action, and reports its Renewable energy funding
17 Customer focus There is no project funded by the Bank which is linked to Clean Development
portfolio annually. The Bank had also taken a commitment to mobilize USD 1
21 Technology and digital innovation Mechanism (CDM) / availing Certified Emission Reduction (CER) certificates.
billion till 2023, and USD 5 billion till 2030 for solar projects.
25 Retail 5. Has the company undertaken any other initiatives on – clean technology,
In addition, through the Environment & Social Policy, the Bank incorporates
Our approach to value creation energy efficiency, renewable energy, etc. Y/N.
Environmental and social risk assessment into its overall credit risk
29 Value creation model assessment process. Yes
31 Our strategy
36 Risk management The Bank is the first bank globally to migrate to the ISO 14001:2015 certification If yes, please give hyperlink for web page etc.
for Environment Management System, and as on March 31, 2020, YES BANK is
Our ESG focus YES BANK has a significant debt and advisory portfolio in the Indian banking
leading the BFSI sector globally with the highest number of ISO 14001 certified
43 Environment space, in renewable energy. In December 2015, on the occasion of COP21 at
green facilities with 732 certified locations, including 5 corporate offices,
54 Social Paris, the Bank took a public commitment to mobilize funding of USD 5 billion
YES SECURITIES and the Abu Dhabi Representative Office.
69 People for climate action up to 2020. The Bank had also taken a commitment to mobilize
80 Governance The details can be accessed in the Bank’s Sustainability Report at https://www. USD 1 billion till 2023, and USD 5 billion till 2030 for solar projects.
yesbank.in/about-us/investor-relations/yes-bank-sustainability-report.
Statutory Reports The Bank’s clean technology portfolio in debt and advisory is included in the
84 Management discussion and analysis 3. Does the company identify and assess potential environmental risks? Y/N Sustainability Disclosures section of this Annual Report.
146 Report on corporate governance Yes. The Bank assesses its environmental risk in multiple ways. The Bank’s Internally, under its ISO 14001:2015 certification for Environment Management
187 Annual business responsibility report Environment and Social Policy, which is based on international best practices System, the Bank has launched several initiatives to rationalize resource
such as the Equator Principles and IFC Guidelines, integrates Environmental and consumption, reduce waste consumption and pilot projects involving usage of
Financial Statements Social risks into its overall credit risk assessment mechanism. alternate sources of energy.
194
As part of its CSR commitments, the Bank is driving several initiatives that focus If yes specify the broad areas (drop box: Governance and Administration,
Contents on energy efficiency in the MSME sector, provide clean and safe drinking water Economic Reforms, Inclusive Development Policies, Energy security, Water,
Corporate Overview for rural communities, and support protection of endangered species. Food Security, Sustainable Business Principles, Others)
A redefined YES The Bank’s initiatives and actions are included in this Annual Report. The Bank, through broad level actions and initiatives, actively works towards
02 Key highlights FY 2019-20 influencing national and global policy and industry action on pertinent causes
03 YES BANK at a glance 6. Are the Emissions/Waste generated by the company within the permissible
such as climate action, digital economy, and economic reforms. The Bank is a
05 Products and services limits given by CPCB/SPCB for the financial year being reported?
member of protocols and alliances in India and abroad that bring like-minded
06 Geographical presence Yes. The Bank’s primary wastes – paper and electronic waste, are recycled to the stakeholders together on specific issues.
07 Message from the Chairman maximum extent possible through third party vendors. The Bank’s emissions and
10 Message from the Managing Director Principle 8
waste are within permissible limits of the laws applicable. At the branches, where
and CEO 1. Does the company have specified programmes/initiatives/projects in
the Bank uses Diesel generator sets due to erratic electricity supply, it ensures
it only uses low noise and low emission sets with proper procedures in place to pursuit of the policy related to Principle 8? If yes details thereof.
17 Customer focus handle the used oil. Yes. The Bank has focused Business Units whose products and services promote
21 Technology and digital innovation 7. Number of show cause/ legal notices received from CPCB/SPCB which are inclusive growth and equitable development in India. The Inclusive and Social
25 Retail pending (i.e. not resolved to satisfaction) as on end of Financial Year. Banking unit has a range of financial products and services targeting the Bottom
of the Pyramid in rural and urban India.
Our approach to value creation The Bank has not received any notice during the reporting year.
29 Value creation model Through the Digital Banking unit, the Bank is driving digital payments across all
31 Our strategy Principle 7 economic sections of the economy and is driving the use of rising mobile and
36 Risk management 1. Is your company a member of any trade and chamber or association? If Yes, internet connectivity among Indians for banking activities.
Our ESG focus Name only those major ones that your business deals with:
Through its CSR mandate, the Bank is driving key initiatives in livelihood and water
43 Environment a. CII security, skill development, and environmental sustainability, among others.
54 Social
69 People b. FICCI The details of the Bank’s key programs and initiatives are included in the
80 Governance Sustainability Disclosures as a part of this Annual Report.
c. ASSOCHAM
Statutory Reports 2. Are the programmes/projects undertaken through in-house team/own
d. Indian Banks Association
84 Management discussion and analysis foundation/external NGO/government structures/any other organization?
106 Directors’ report e. AIMA
The Bank’s products and services catering to the Bottom of the Pyramid and
MD & CEO is the official representative at these industry bodies. digital banking services are driven directly by the Banking Units, which may
partner with Business Correspondents, technology providers, and others, to
2. Have you advocated/lobbied through above associations for the
Financial Statements drive the projects on-ground.
advancement or improvement of public good? Yes/No;
The Bank’s CSR projects are driven primarily by the Responsible Banking unit in
267 Consolidated Financials Yes
conjunction with pertinent Business Units. In addition, YES FOUNDATION, the
195
Bank’s social development arm, is a separate charitable Trust driving several Principle 9
Contents initiatives of its own across India. The Bank partners with NGOs for several of its 1. What percentage of customer complaints/consumer cases are pending as
Corporate Overview CSR projects to drive implementation on the ground.
on the end of financial year.
A redefined YES 3. Have you done any impact assessment of your initiative? Please refer to page number 263 in this Annual Report.
03 YES BANK at a glance Yes. The socio-economic and environmental impact of the Bank’s products and 2. Does the company display product information on the product label,
05 Products and services services catering to the Bottom of the Pyramid and its CSR initiatives are included over and above what is mandated as per local laws? Yes/No/N.A. /
06 Geographical presence in the Sustainability Disclosures section of this Annual Report. Remarks(additional information)
07 Message from the Chairman 4. What is your company’s direct contribution to community development Yes. The Bank follows the highest standards of product and service responsibility,
projects- Amount in INR and the details of the projects undertaken. in complete compliance with all the regulations set by the Reserve Bank of India.
and CEO
12 Key performance indicators In FY 2019-20, YES BANK spent `40.54 Crore on CSR, in accordance with Schedule The Bank is a member of the Banking Codes and Standards Board of India (BCSBI),
15 COVID-19 response VII of the Companies Act 2013. which is an independent watchdog for service quality of the Banking sector.
17 Customer focus
A brief outline of the Bank’s direct contribution to community development is Under the aegis of the YES SCHOOL OF BANKING, all employees are trained on
included in Annexure 1 – The Annual Report on Corporate Social Responsibility pertinent regulations and requirements, and employees in client-facing roles
25 Retail
(CSR) Activities, on page 54 of this Annual Report. are provided enhanced training on product suitability and appropriateness. As
Our approach to value creation per regulatory guidelines, all notices, regulations and policies are mandatorily
29 Value creation model 5. Have you taken steps to ensure that this community development displayed at the Bank’s branches.
31 Our strategy initiative is successfully adopted by the community? Please explain in 50
words, or so. A comprehensive list of Regulatory Policies can be accessed on the Bank’s website
36 Risk management
at https://www.yesbank.in/regulatory_policies.
Our ESG focus YES BANK’s community development initiatives are driven by its five-pronged
43 Environment approach towards CSR – Promote, Invest, Engage, Collaborate and Monitor. The 3. Is there any case filed by any stakeholder against the company regarding
54 Social Bank’s CSR Policy guides the Bank in ensuring that its initiatives are mapped to unfair trade practices, irresponsible advertising and/or anti-competitive
69 People the focus areas and are relevant, effective and replicable. All projects have clear
80 Governance feedback mechanisms weaved into them, with a focus on long term sustainability
and active community ownership.
Statutory Reports
196
behaviour during the last five years and pending as on end of financial are of critical importance. The Bank put in place a very robust customer survey
Contents year. If so, provide details thereof, in about 50 words or so. process where in we measure transactional Net Promoter Score (known as NPS)
Corporate Overview across channels and business’s like Branch Banking, Call Centers, Relationship
01 Commitment. Promise. Transparency. Please refer to page 246 of this Annual Report for Section 18.6.2 - Disclosure of
Manager, Rural Banking Group, Digital Channels, ATM’S and Assets. In addition to
A redefined YES Penalties imposed by RBI.
this the Bank also conducts periodic customer satisfaction surveys, and there are
03 YES BANK at a glance 4. Did your company carry out any consumer survey/ consumer satisfaction strong systems in place for internal checks of branch quality and physical safety.
05 Products and services trends? The Bank’s Complaints Management System is ISO 10002:2004 certified.
06 Geographical presence Yes. As the Bank operates in the highly customer-centric banking sector hence
07 Message from the Chairman customer satisfaction, service experience and overall Customer Experience
and CEO
17 Customer focus
25 Retail

31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
197
Independent Auditor’s Report
To the Members of there is uncertainty around RBI's potential action for such a breach. We are unable
Contents YES Bank Limited to comment on the consequential impact of the above regulatory breach on these
Corporate Overview standalone financial statements.
01 Commitment. Promise. Transparency. Report on the audit of the standalone financial statements
A redefined YES Qualified Opinion We draw attention to Note 18.6.69 to the Standalone financial statements, which
02 Key highlights FY 2019-20 discloses that the Bank became aware in September 2018 through communications
03 YES BANK at a glance We have audited the standalone financial statements of YES Bank Limited (the ‘Bank’),
from stock exchanges of an anonymous whistle-blower complaint alleging irregularities
05 Products and services which comprise the standalone balance sheet as at 31 March 2020, the standalone
in the Bank’s operations, potential conflicts of interests in relation to the former
06 Geographical presence profit and loss account, the standalone cash flow statement for the year then ended,
MD and CEO and allegations of incorrect NPA classification. The Bank conducted an
07 Message from the Chairman and notes to the standalone financial statements, including a summary of the
internal enquiry of these allegations, which resulted in a report that was reviewed by
10 Message from the Managing Director significant accounting policies and other explanatory information.
the Board of Directors in November 2018. Based on further inputs and deliberations
and CEO
In our opinion and to the best of our information and according to the explanations in December 2018, the Audit Committee of the Bank engaged an external firm to
given to us, except for the effect of the matters described in the ‘Basis of Qualified independently examine the matter. During the year ended 31 March 2020, the Bank
17 Customer focus opinion’ section of our report, the aforesaid standalone financial statements give the identified certain further matters which arose from other independent investigations
21 Technology and digital innovation information required by the Banking Regulation Act, 1949 as well as the Companies initiated by the lead banker of a lenders’ consortium on the companies allegedly
25 Retail Act, 2013 (the ‘Act’) in the manner so required for banking companies and give a true favoured by the former MD and CEO. In March 2020, the Enforcement Directorate
and fair view in conformity with the accounting principles generally accepted in India, has launched an investigation into some aspects of dealings and transactions by
Our approach to value creation of the state of affairs of the Bank as at 31 March 2020, and its loss, and its cash flows the former MD and CEO basis draft forensic reports from external agencies which
29 Value creation model for the year ended on that date. further pointed out to conflict of interest between the former MD and CEO and certain
31 Our strategy
companies and arrested him. In view of the fact that these enquiries and investigations
36 Risk management Basis of Qualified opinion
are still ongoing, we are unable to comment on the consequential impact of the above
Our ESG focus We draw attention to Note 18.3 of the standalone Financial Statements, which indicates matter on these standalone financial statements.
43 Environment that during the year ended 31 March 2020, the Bank has breached the regulatory
requirements of the Reserve Bank of India (‘RBI’) regarding maintaining the minimum We conducted our audit in accordance with the Standards on Auditing (‘SAs’) specified
54 Social
Common Equity Tier (‘CET’) 1 and Tier 1 capital ratios which indicates the position of under Section 143 (10) of the Act. Our responsibilities under those SAs are further
69 People
capital adequacy of a bank. The breach is primarily on account of the increase in the described in the Auditor’s Responsibilities for the Audit of the Standalone Financial
80 Governance
provision for advances during the year ended 31 March 2020 as the Bank has decided, Statements section of our report. We are independent of the Bank in accordance with
Statutory Reports on a prudent basis, to enhance its Provision Coverage Ratio on its Non-Performing the Code of Ethics issued by the Institute of Chartered Accountants of India together
84 Management discussion and analysis with the ethical requirements that are relevant to our audit of the standalone financial
Asset (NPA) loans over and above minimum RBI loan level provisioning. Further, the
106 Directors’ report statements under the provisions of the Act and the Rules thereunder, and we have
write back of the Additional Tier (‘AT’) 1 bonds on 14 March 2020 also resulted in the
146 Report on corporate governance fulfilled our other ethical responsibilities in accordance with these requirements and
breach of Tier 1 capital ratio as at 31 March 2020. The CET1 ratio and the Tier 1 capital
187 Annual business responsibility report the Code of Ethics. We believe that the audit evidence we have obtained, is sufficient
ratios for the Bank as at 31 March 2020 stood at 6.3% and 6.5 % as compared to
Financial Statements the minimum requirements of 7.375% and 8.875% respectively. This implies that the and appropriate to provide a basis for our qualified opinion on the standalone financial
198 Standalone Financials Bank will have to take effective steps to augment its capital base in the year 2020- statements.
267 Consolidated Financials 21. Further, in view of the RBI norms relating to the breach of the aforesaid ratios,
198
Material uncertainty related to going concern Scheme. A new Board of Directors, CEO and MD and Non Executive Chairman have
Contents also been appointed pursuant to the Scheme. In addition, the moratorium imposed
We draw attention to Note 18.3 of the Standalone Financial Statements, which
Corporate Overview on the Bank on 5 March 2020 was vacated on 18 March 2020 as per the Scheme.
indicates that the Bank has incurred a loss of `16,418 crores for the year ended 31
March 2020. Particularly during the last six months, there has also been a significant RBI has also granted short-term funding to the Bank for the period of 90 days. The
A redefined YES
decline in the Bank’s deposit base, an increase in their NPA ratios resulting in breach Bank has submitted a proposal seeking extension for a period of one year. The draft
03 YES BANK at a glance of loan covenants on its foreign currency debt and credit rating downgrades resulting reconstruction scheme proposed on 6 March 2020 had also envisaged that the Bank
05 Products and services in partial prepayment of foreign currency debt linked to external credit rating. would be able to write back Additional Tier 1 (AT1) securities amounting to `8,695
06 Geographical presence The Bank has also breached minimum Statutory Liquidity Ratio (SLR) and Liquidity crores to equity. However, the final Scheme issued by the Government of India on 13
07 Message from the Chairman Coverage Ratio requirements of RBI during the year and has provided an amount of March 2020 does not contain any reference to the write back of the AT1 securities.
10 Message from the Managing Director `334 crores for the expected penalty on the SLR breach. The Bank has also breached Based on the legal advice on the contractual terms of the AT 1 bonds, the Bank has
and CEO the RBI mandated CET1 ratio and Tier 1 capital ratio which stood at 6.3%.and 6.5% fully written back AT 1 bonds aggregating to `8,415 crores on 14 March 2020. This
12 Key performance indicators as compared to the minimum requirements of 7.375% and 8.875% respectively. This action by the Bank has been legally challenged through a writ petition in the Hon’ble
15 COVID-19 response Bombay High court.
requires the Bank to take effective steps to augment its capital base in the year 2020-
17 Customer focus
21. The breach of the CET1 and Tier 1 requirements was also impacted by the decision In line with the RBI’s COVID-19 Regulatory Package dated 27 March 2020 and 17 April
of the Bank to enhance its Provision Coverage Ratio, on a prudent basis, on its NPA 2020, the Bank has granted a moratorium of three months on the payment of all
25 Retail
loans over and above RBI’s minimum loan provisioning norms. Further, on 5 March instalments and/or interest, as applicable, falling due between 1 March 2020 and 31
Our approach to value creation 2020, the Central Government, based on the RBI’s application imposed a moratorium May 2020 to all eligible borrowers classified as Standard, even if overdue, as on 29
29 Value creation model under section 45 of the Banking Regulation Act, 1949 for a period of 30 days effective February 2020.
31 Our strategy 5 March 2020. The RBI, in consultation with the Central Government and in exercise
36 Risk management of the powers under section 36ACA of the Banking Regulation Act 1949, superseded In the opinion of the Bank, based on the financial projections prepared by the Bank
the Board of Directors of the Bank on 5 March 2020. The above indicators of financial and approved by the Board for the next 3 years, the capital infusion, lines of liquidity
Our ESG focus
stress and actions taken by the RBI resulted in a significant withdrawal of deposits. provided by RBI and the reconstruction Scheme, the Bank will be able to realize its
43 Environment
assets (including its deferred tax asset) and discharge its liabilities in its normal
54 Social On 13 March 2020, the Government of India notified the Yes Bank Limited course of business and hence the financial statements have been prepared on a going
69 People Reconstruction Scheme 2020 (‘the Scheme’) [notified by the Central Government, in concern basis. The said assumption of going concern is inter-alia dependent on the
80 Governance exercise of the powers conferred by sub section (4) and subsection 7 of section 45 of Bank’s ability to achieve improvements in liquidity, asset quality and solvency ratios
Statutory Reports the Banking Regulation Act, 1949]. Under this Scheme the authorized share capital of and mitigate the impact of Covid-19 and thus a material uncertainty exists that may
84 Management discussion and analysis the Bank was increased to `6,200 crores. The Bank has received capital from investors cast a significant doubt on the Bank’s ability to continue as a going concern. However,
106 Directors’ report amounting to `10,000 crores on 14 March 2020. The State Bank of India (SBI) and other as stated above, as per management and the Board, there are mitigating factors to
146 Report on corporate governance banks and financial institutions invested in the Bank at a price of `10 per equity share such uncertainties including the amount of capital funds that have been raised in
187 Annual business responsibility report of the Bank (`2 face value with a `8 premium). SBI is required to hold upto 49% with a March 2020, the nature and financial resources of new investors who have infused
minimum holding of 26% by SBI in the Bank (which is subject to a 3 year lock in). Other funds in the Bank, the new Board of Directors, CEO and MD and part time Chairman
investors are subject to a 3 year lock in for 75% of the investments they make in the appointed as per the Scheme and the extent of regulatory support provided to the
Bank under this Scheme. Existing investors (other than investors holding less than Bank by the RBI.
100 shares) in the Bank are also subject to a lock in for 75% of their holding as per this
199
Our conclusion on the Standalone Financial Statements is not modified in respect of Key audit matter How the matter was addressed in our audit
Contents this matter. Identification of Non-Performing Assets (‘NPAs’) and Provisions on Advances
Corporate Overview Charge: `27,806 crores for year ended 31 March 2020
01 Commitment. Promise. Transparency. Emphasis of matter
Provision: `24,253 crores at 31 March 2020
A redefined YES We draw attention to Note 18.6.51 of the standalone financial statements, which states
02 Key highlights FY 2019-20 Refer to the accounting policies in the standalone financial statements: “Significant Accounting
that the Bank has a total deferred tax asset of `8,281 crores as at 31 March 2020. As per
03 YES BANK at a glance Policies- use of estimates” and “Note18.5.3 to the standalone financial statements: Advances”
the requirements of AS 22 – Income Taxes, based on the financial projections prepared
05 Products and services Significant estimates and judgment Our key audit procedures included:
by the Bank and approved by the Board of Directors, the Bank has assessed that there involved
is reasonable certainty that sufficient future taxable income will be available against Test of design / controls
07 Message from the Chairman Identification of NPAs and provisions in
which such deferred tax assets can be realized. The Bank expects to have a taxable - Assessed the design, implementation
10 Message from the Managing Director respect of NPAs and restructured advances
and CEO profit for the future years. Our conclusion is not modified in respect of this matter. and operating effectiveness of key
are made based on management’s
12 Key performance indicators internal controls over approval, recording
We draw attention to Note 18.4 of the standalone financial statements which states assessment of the degree of impairment of
15 COVID-19 response and monitoring of loans, monitoring
that the Bank had made an additional provision of `15,422 crores for the period ended the advances subject to and guided by the
process of overdue loans, measurement
17 Customer focus minimum provisioning levels prescribed
31 December 2019 on a prudent evaluation of the status of NPAs based on discussion of provisions, identification of NPA
21 Technology and digital innovation under the RBI guidelines with regard to the
with regulator over and above the RBI norms relating to the minimum provision to be accounts and assessing the reliability
25 Retail Prudential Norms on Income Recognition,
made by banks on their loans and advances. The additional provision is judgmental of management information (including
Asset Classification & Provisioning,
Our approach to value creation based on the quality and status of specific loans identified by the Bank as at 31 overdue reports). In addition, for
prescribed from time to time. The provision
corporate loans we tested controls over
29 Value creation model March 2020. We believe that this judgment exercised by the Bank is appropriate. Our on NPA are also based on the valuation of
the internal ratings process, monitoring
31 Our strategy conclusion is not modified in respect of this matter. the security available. In case of restructured
of stressed accounts including credit file
36 Risk management accounts, provision is made for erosion/
Key audit matters review processes and review controls
diminution in fair value of restructured
Our ESG focus over the approval of significant individual
loans, in accordance with the RBI guidelines.
Key audit matters are those matters that, in our professional judgment, were of most impairment provisions.
43 Environment
significance in our audit of the standalone financial statements of the current period. We identified identification of NPAs and
54 Social - Evaluated the design, implementation
These matters were addressed in the context of our audit of the standalone financial provision on advances as a key audit
69 People and operating effectiveness of key
matter because of the level of management
80 Governance statements as a whole, and in forming our opinion thereon, and we do not provide a internal controls over the valuation of
judgement involved in determining the
separate opinion on these matters. In addition to the matter described in the Material security for NPAs.
provision (including the provisions on assets
Statutory Reports Uncertainty Related to Going Concern section, we have determined the matters which are not classified as NPAs) and the - Tested management review controls
described below to be the key audit matters to be communicated in our report. valuation of the security of the NPA loans over measurement of provisions
and on account of the significance to these including documentation of the relevant
146 Report on corporate governance estimates to the financial statements of the approvals along with basis and rationale
187 Annual business responsibility report Bank. of the provision and disclosures in
Financial Statements financial statements.
On 11 March 2020, the World Health
198 Standalone Financials Organisation declared the Novel Coronavirus - Obtained and reviewed the Bank’s policy
267 Consolidated Financials (COVID-19) outbreak to be a pandemic. and application of moratorium provided
to customers in response to COVID 19.
200
Key audit matter How the matter was addressed in our audit Key audit matter How the matter was addressed in our audit
Contents Identification of Non-Performing Assets (‘NPAs’) and Provisions on Advances (continued) Identification of Non-Performing Assets (‘NPAs’) and Provisions on Advances (continued)
Corporate Overview
We have identified the impact of, and - Involved information system specialists credit review of customer, review of
01 Commitment. Promise. Transparency. uncertainty related to the COVID-19 in the audit of this area to gain comfort
A redefined YES Special Mention Accounts reports and
pandemic as a key event and consideration over data integrity and calculations,
02 Key highlights FY 2019-20 other related documents to assess
for recognition and measurement of NPAs including system reconciliations.
03 YES BANK at a glance on account of application of regulatory recoverability and the classification of the
05 Products and services Substantive tests facility in accordance with the Prudential
package and relaxations announced by the
06 Geographical presence Reserve Bank of India on asset classification, - Test of details for a selection of exposures Norms on Income Recognition, Asset
07 Message from the Chairman regulatory reporting and provisioning. over calculation of NPA provisions Classification and Provisioning issued by
10 Message from the Managing Director including valuation of collaterals for the RBI; and
Management has conducted an assessment
and CEO NPAs as at 31 March 2020; the borrower-
of the loan portfolio which may be impacted • For a risk based sample of corporate loans
12 Key performance indicators wise NPA identification and provisioning
on account of COVID-19 with respect
15 COVID-19 response determined by the Bank and also tested not identified as displaying indicators of
to moratorium benefit, and provision
17 Customer focus related disclosures by assessing the impairment by management, challenged
computation to borrowers prescribed by the
21 Technology and digital innovation completeness, accuracy and relevance this assessment by reviewing the
regulatory package.
25 Retail
of data and to ensure that the same is historical performance of the customer
in compliance with the RBI guidelines
and assessing whether any impairment
Our approach to value creation with regard to the Prudential Norms on
Income Recognition, Asset Classification indicators were present.
31 Our strategy & Provisioning. Information technology
36 Risk management - We tested computations of provisions IT systems and controls Our key IT audit procedures included:
established by the Bank in response
Our ESG focus The Bank’s key financial accounting and - We focused on user access management,
to the RBI’s guidance on customers for
43 Environment reporting processes are highly dependent on change management, segregation of
which COVID related moratoriums have
54 Social information systems including automated duties, system reconciliation controls
been provided.
69 People controls in systems, such that there exists a and system application controls over
80 Governance - We also selected a sample of high risk risk that gaps in the IT control environment key financial accounting and reporting
borrowers to test potential cases of could result in the financial accounting and systems.
Statutory Reports loans repaid during the period, from reporting records being misstated. Amongst,
- We tested a sample of key controls
84 Management discussion and analysis fresh disbursement(s) made to these its multiple IT systems, seven systems are
operating over the information
106 Directors’ report borrowers. key for its overall financial reporting.
technology in relation to financial
146 Report on corporate governance - We selected a sample (based on In addition, large transaction volumes and accounting and reporting systems,
187 Annual business responsibility report quantitative and qualitative thresholds) the increasing challenges to protect the including system access and system
of large corporate clients and performed integrity of the Bank’s systems and data, change management, program
the following procedures: cyber security has become a more significant development and computer operations.
risk in recent periods.
267 Consolidated Financials • Reviewed the statement of accounts, - We tested the design and operating
approval process, board minutes, effectiveness of key controls over user
201
Key audit matter How the matter was addressed in our audit Key audit matter How the matter was addressed in our audit
Contents Information technology (continued) Valuation of Investments
Corporate Overview
Further, the prevailing COVID-19 situation, access management which includes Refer to the accounting policies in the standalone financial statements: “Significant Accounting
01 Commitment. Promise. Transparency. has caused the required IT applications to granting access right, new user creation,
A redefined YES Policies- use of estimates”, “Note 18.5.2 to the standalone financial statements: Investments”
be made accessible on a remote basis. removal of user rights and preventive
02 Key highlights FY 2019-20 controls designed to enforce segregation Subjective estimates and judgment Our key audit procedures included:
03 YES BANK at a glance We have identified ‘IT systems and controls’ involved
of duties.
as key audit matter because of the high level Test of design / controls
automation, significant number of systems - For a selected group of key controls Investments
06 Geographical presence - Assessed the design, implementation
being used by the management and the over financial and reporting systems, we
07 Message from the Chairman Investments are classified into ‘Held for and operating effectiveness of
complexity of the IT architecture. independently performed procedures to
10 Message from the Managing Director Trading’ (‘HFT’), ‘Available for Sale’ (‘AFS’) management’s key internal controls over
determine that these controls remained
and CEO and ‘Held to Maturity’ (‘HTM’) categories at classification and valuation.
unchanged during the year or were
12 Key performance indicators the time of purchase. Investments, which
changed following the standard change - Read investment agreements / term
15 COVID-19 response the Bank intends to hold till maturity are
management process. sheets entered into during the current
17 Customer focus classified as HTM investments.
year, on a sample basis, to understand
21 Technology and digital innovation - Other areas that were assessed
Investments classified as HTM are carried the relevant investment terms and
included password policies, security
25 Retail at amortised cost. Where, in the opinion identify any conditions that were relevant
configurations, system interface controls,
of management, a diminution other than to the valuation of financial instruments.
Our approach to value creation controls over changes to applications
temporary, in the value of investments has
29 Value creation model and databases and that business users Substantive tests
taken place, appropriate provisions are
31 Our strategy and controls to ensure that developers
required to be made. - For sample of instruments we re-
36 Risk management
and production support did not have
performed valuations. For cases where
access to change applications, the Investments classified as AFS and HFT are
no direct observable inputs were
Our ESG focus operating system or databases in the marked- to-market on a periodic basis as
used, we examined and challenged
43 Environment production environment. per the relevant RBI guidelines.
the assumptions used by the Bank
54 Social - Security configuration review and We identified valuation of investments in determination of Net assets and
69 People related tests on certain critical as a key audit matter because of the cashflows while using a discounted
80 Governance aspects of cyber security on network management judgement involved in cashflow method.
security management mechanism, determining the value of certain investments
Statutory Reports operational security of key information (Bonds and Debentures, Commercial papers
- Assessed whether the financial statement
84 Management discussion and analysis disclosures appropriately reflect the
infrastructure, data and client and Certificate of deposits, security receipts)
106 Directors’ report Bank’s exposure to investments with
information management, monitoring based on the policy and methodology
146 Report on corporate governance reference to the requirements of the
and emergency management. developed by the Bank, impairment
prevailing RBI guidelines.
187 Annual business responsibility report assessment for HTM book and the overall
- Assessment of data security controls in
significant investments to the financial
Financial Statements the context of a large population of staff
statements of the Bank.
198 Standalone Financials working from remote location at the
267 Consolidated Financials year end.
202
Information other than the standalone financial statements and Auditor’s controls that were operating effectively for ensuring the accuracy and completeness
Contents Report thereon of the accounting records, relevant to the preparation and presentation of the
Corporate Overview standalone financial statements that give a true and fair view and are free from
The Bank’s management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Bank’s material misstatement, whether due to fraud or error.
A redefined YES
02 Key highlights FY 2019-20 Annual report, but does not include the standalone financial statements and our In preparing the standalone financial statements, the Management and Board of
03 YES BANK at a glance auditor’s report thereon. The Annual report is expected to be made available to us Directors are responsible for assessing the Bank’s ability to continue as a going concern,
05 Products and services after the date of this auditor's report. disclosing, as applicable, matters related to going concern and using the going concern
06 Geographical presence basis of accounting unless the Management and Board of Directors either intends to
Our opinion on the standalone financial statements does not cover the other
07 Message from the Chairman liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
information and we will not express any form of assurance conclusion thereon.
and CEO In connection with our audit of the standalone financial statements, our responsibility The Board of Directors is also responsible for overseeing the Bank’s financial reporting
12 Key performance indicators is to read the other information identified above when it becomes available and, in process.
doing so, consider whether the other information is materially inconsistent with the Auditor’s Responsibilities for the Audit of the Standalone Financial
17 Customer focus
standalone financial statements or our knowledge obtained in the audit or otherwise Statements
appears to be materially misstated. If, based on the work we have performed, we
25 Retail Our objectives are to obtain reasonable assurance about whether the standalone
conclude that there is a material misstatement of this other information, we are
financial statements as a whole are free from material misstatement, whether due to
Our approach to value creation required to report that fact.
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
When we read the Bank’s Annual Report, if we conclude that there is a material assurance is a high level of assurance, but is not a guarantee that an audit conducted
31 Our strategy
misstatement therein, we are required to communicate the matter to those charged in accordance with SAs will always detect a material misstatement when it exists.
36 Risk management
with governance. Misstatements can arise from fraud or error and are considered material if, individually
Our ESG focus or in the aggregate, they could reasonably be expected to influence the economic
43 Environment Management’s and Board of Director’s Responsibility for the Standalone
decisions of users taken on the basis of these standalone financial statements. As part
54 Social Financial Statements
of an audit in accordance with SAs, we exercise professional judgment and maintain
69 People The Bank’s management and Board of Directors are responsible for the matters professional skepticism throughout the audit. We also:
80 Governance stated in Section 134(5) of the Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the state of affairs, loss and cash • identify and assess the risks of material misstatement of the standalone financial
Statutory Reports statements, whether due to fraud or error, design and perform audit procedures
flows of the Bank in accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under Section 133 of the Act, responsive to those risks, and obtain audit evidence that is sufficient and
provisions of Section 29 of the Banking Regulation Act, 1949 and the circulars and appropriate to provide a basis for our opinion. The risk of not detecting a material
guidelines issued by Reserve Bank of India (‘RBI’) from time to time. This responsibility misstatement resulting from fraud is higher than for one resulting from error, as
also includes maintenance of adequate accounting records in accordance with the fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
Financial Statements provisions of the Act, for safeguarding of the assets of the Bank and for preventing the override of internal control.
198 Standalone Financials and detecting frauds and other irregularities; selection and application of appropriate • obtain an understanding of internal control relevant to the audit in order to design
accounting policies; making judgments and estimates that are reasonable and audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
prudent; and design, implementation and maintenance of adequate internal financial of the Act, we are also responsible for expressing our opinion on whether the bank
203
has adequate internal financial controls with reference to financial statements in adverse consequences of doing so would reasonably be expected to outweigh the
Contents place and the operating effectiveness of such controls. public interest benefits of such communication.
Corporate Overview
01 Commitment. Promise. Transparency. • evaluate the appropriateness of accounting policies used and the reasonableness Report on other legal and regulatory requirements
A redefined YES of accounting estimates and related disclosures in the standalone financial The standalone balance sheet and the standalone profit and loss account have been
02 Key highlights FY 2019-20 statements made by the Management and Board of Directors. drawn up in accordance with the provisions of Section 29 of the Banking Regulation
• conclude on the appropriateness of the Management and Board of Directors use of Act, 1949 and Section 133 of the Act.
06 Geographical presence the going concern basis of accounting and, based on the audit evidence obtained, A. As required by sub-section (3) of Section 30 of the Banking Regulation Act, 1949,
07 Message from the Chairman whether a material uncertainty exists related to events or conditions that may cast we report that:
10 Message from the Managing Director significant doubt on the Bank’s ability to continue as a going concern. If we conclude
and CEO that a material uncertainty exists, we are required to draw attention in our auditor’s (a) we have obtained all the information and explanations which, to the best of
12 Key performance indicators report to the related disclosures in the standalone financial statements or, if such our knowledge and belief, were necessary for the purpose of our audit and
15 COVID-19 response disclosures are inadequate, to modify our opinion. Our conclusions are based on have found them to be satisfactory;
17 Customer focus the audit evidence obtained up to the date of our auditor’s report. However, future (b) the transactions of the Bank, which have come to our notice, have been
21 Technology and digital innovation events or conditions may cause a Bank to cease to continue as a going concern. within the powers of the Bank; and
25 Retail
• evaluate the overall presentation, structure and content of the standalone financial (c) since the key operations of the Bank are automated with the key applications
Our approach to value creation statements, including the disclosures, and whether the standalone financial integrated to the core banking systems, the audit is carried out centrally as
29 Value creation model statements represent the underlying transactions and events in a manner that all the necessary records and data required for the purposes of our audit are
31 Our strategy
achieves fair presentation. available therein. However, during the course of our audit we have visited 24
36 Risk management
We communicate with those charged with governance regarding, among other branches.
Our ESG focus
matters, the planned scope and timing of the audit and significant audit findings, B. Further, as required by Section 143(3) of the Act, we report that:
43 Environment
including any significant deficiencies in internal control that we identify during our
54 Social (a) we have sought and obtained all the information and explanations which to
audit.
69 People the best of our knowledge and belief were necessary for the purposes of our
80 Governance We also provide those charged with governance with a statement that we have audit;
complied with relevant ethical requirements regarding independence, and to
Statutory Reports (b) in our opinion, proper books of account as required by law have been kept by
communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards. the Bank so far as it appears from our examination of those books;
146 Report on corporate governance From the matters communicated with those charged with governance, we determine (c) the standalone balance sheet, the standalone profit and loss account, and the
187 Annual business responsibility report those matters that were of most significance in the audit of the standalone financial standalone cash flow statement dealt with by this Report are in agreement
statements of the current period and are therefore the key audit matters. We with the books of account;
198 Standalone Financials describe these matters in our auditor’s report unless law or regulation precludes (d) in our opinion, the aforesaid standalone financial statements comply with the
267 Consolidated Financials public disclosure about the matter or when, in extremely rare circumstances, we Accounting Standards specified under Section 133 of the Act, to the extent
determine that a matter should not be communicated in our report because the they are not inconsistent with the accounting policies prescribed by RBI;
204
(e) on the basis of the written representations received from the directors as iv. The disclosures required on holdings as well as dealing in Specified bank
Contents on 31 March 2020 taken on record by the Board of Directors, none of the notes during the period from 8 November 2016 to 30 December 2016 as
Corporate Overview directors is disqualified as on 31 March 2020 from being appointed as a envisaged in notification G.S.R. 308(E) dated 30 March 2017 issued by the
director in terms of Section 164 (2) of the Act; and Ministry of Corporate Affairs is not applicable to the Bank.
A redefined YES
02 Key highlights FY 2019-20 (f) with respect to the adequacy of the internal financial controls with D. With respect to the matter to be included in the Auditors’ Report under section
03 YES BANK at a glance reference to standalone financial statements of the Bank and the operating 197(16) of the Act:
05 Products and services effectiveness of such controls, refer to our separate Report in ‘Annexure A’.
06 Geographical presence The Bank is a banking company as defined under Banking Regulation Act, 1949.
07 Message from the Chairman C. With respect to the other matters to be included in the Auditor’s Report in Accordingly, the requirements prescribed under Section 197 of the Companies Act,
10 Message from the Managing Director accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in 2013 do not apply.
and CEO our opinion and to the best of our information and according to the explanations
12 Key performance indicators given to us:
17 Customer focus i. the Bank has disclosed the impact of pending litigations as at 31 March
For B S R & Co. LLP
21 Technology and digital innovation 2020 on its financial position in its standalone financial statements - Refer
Chartered Accountants
25 Retail Note18.6.70 to the standalone financial statements; Firm’s Registration No: 101248W/W-100022
Our approach to value creation ii. the Bank has made provision, as required under the applicable law or Venkataramanan Vishwanath
29 Value creation model accounting standards, for material foreseeable losses, if any, on long- Partner
31 Our strategy term contracts including derivative contracts - Refer Note 18.6.67 to the Membership No: 113156
36 Risk management standalone financial statements; Mumbai UDIN:20113156AAAABL2843
May 6, 2020
Our ESG focus iii. there has been no delay in transferring amounts, required to be transferred,
43 Environment to the Investor Education and Protection Fund by the Bank - Refer Note
54 Social 18.6.59 to the standalone financial statements; and
69 People
80 Governance
Statutory Reports
205
Annexure A
Annual Repor t 2019 -20 to the Independent Auditor’s Report of even date on the standalone financial statements of YES Bank Limited for the year ended 31 March 2020
Report on the Internal Financial Controls with reference to the aforesaid Auditor’s Responsibility
Contents standalone financial statements under Clause (i) of Sub-section 3 of Section 143 Our responsibility is to express an opinion on the Bank's internal financial controls
Corporate Overview of the Companies Act, 2013 (“the Act”)
with reference to standalone financial statements based on our audit. We conducted
A redefined YES (Referred to in paragraph (B)(f) under ‘Report on Other Legal and Regulatory our audit in accordance with the Guidance Note and the Standards on Auditing,
02 Key highlights FY 2019-20 Requirements’ section of our report of even date) prescribed under section 143(10) of the Act, to the extent applicable to an audit of
03 YES BANK at a glance internal financial controls with reference to financial statements. Those Standards
05 Products and services Opinion and the Guidance Note require that we comply with ethical requirements and plan
06 Geographical presence We have audited the internal financial controls with reference to standalone financial and perform the audit to obtain reasonable assurance about whether adequate
07 Message from the Chairman statements of YES Bank Limited (“the Bank”) as of 31 March 2020 in conjunction with internal financial controls with reference to financial statements were established and
10 Message from the Managing Director our audit of the standalone financial statements of the Bank for the year ended on maintained and whether such controls operated effectively in all material respects.
and CEO that date.
12 Key performance indicators Our audit involves performing procedures to obtain audit evidence about the
15 COVID-19 response In our opinion, the Bank has, in all material respects, adequate internal financial adequacy of the internal financial controls with reference to financial statements and
17 Customer focus controls with reference to standalone financial statements and such internal financial their operating effectiveness. Our audit of internal financial controls with reference
21 Technology and digital innovation controls were operating effectively as at 31 March 2020, based on the internal financial to standalone financial statements included obtaining an understanding of internal
25 Retail controls with reference to standalone financial statements criteria established by the financial controls, assessing the risk that a material weakness exists, and testing and
Bank considering the essential components of internal control stated in the Guidance evaluating the design and operating effectiveness of internal control based on the
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the assessed risk. The procedures selected depend on the auditor’s judgment, including
Institute of Chartered Accountants of India (the “Guidance Note”). the assessment of the risks of material misstatement of the standalone financial
31 Our strategy
statements, whether due to fraud or error.
36 Risk management Management’s Responsibility for Internal Financial Controls
Our ESG focus The Bank’s management and Board of Directors are responsible for establishing We believe that the audit evidence we have obtained is sufficient and appropriate
43 Environment and maintaining internal financial controls based on the internal financial control to provide a basis for our audit opinion on the Bank’s internal financial controls with
54 Social with reference to financial statement criteria established by the Bank considering reference to standalone financial statements.
69 People the essential components of internal control stated in the Guidance Note. These Meaning of Internal Financial Controls with Reference to
80 Governance responsibilities include the design, implementation and maintenance of adequate Financial Statements
internal financial controls that were operating effectively for ensuring the orderly
Statutory Reports A company's internal financial controls with reference to standalone financial
and efficient conduct of its business, including adherence to the Bank’s policies, the
84 Management discussion and analysis statements is a process designed to provide reasonable assurance regarding the
106 Directors’ report safeguarding of its assets, the prevention and detection of frauds and errors, the
reliability of financial reporting and the preparation of standalone financial statements
146 Report on corporate governance accuracy and completeness of the accounting records, and the timely preparation of
for external purposes in accordance with generally accepted accounting principles.
187 Annual business responsibility report reliable financial information, as required under the Companies Act, 2013 (“the Act”).
206
Annexure A
A company's internal financial control with reference to financial statement includes management override of controls, material misstatements due to error or fraud
Contents those policies and procedures that (1) pertain to the maintenance of records that, may occur and not be detected. Also, projections of any evaluation of the internal
Corporate Overview in reasonable detail, accurately and fairly reflect the transactions and dispositions financial controls with reference to standalone financial statements to future periods
of the assets of the company; (2) provide reasonable assurance that transactions are subject to the risk that the internal financial control with reference to standalone
A redefined YES
are recorded as necessary to permit preparation of standalone financial statements financial statement become inadequate because of changes in conditions, or that the
03 YES BANK at a glance in accordance with generally accepted accounting principles, and that receipts and degree of compliance with the policies or procedures may deteriorate.
05 Products and services expenditures of the company are being made only in accordance with authorisations
06 Geographical presence of management and directors of the company; and (3) provide reasonable assurance
For B S R & Co. LLP
07 Message from the Chairman regarding prevention or timely detection of unauthorised acquisition, use, or
10 Message from the Managing Director disposition of the company's assets that could have a material effect on the standalone Firm’s Registration No: 101248W/W-100022
and CEO financial statements.
12 Key performance indicators Venkataramanan Vishwanath
Inherent Limitations of Internal Financial Controls with Partner
17 Customer focus Reference to Financial Statements Membership No: 113156
21 Technology and digital innovation Because of the inherent limitations of internal financial controls with reference to Mumbai UDIN:20113156AAAABL2843
May 6, 2020
25 Retail standalone financial statements, including the possibility of collusion or improper
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
207
Standalone Balance Sheet
Annual Repor t 2019 -20 as at March 31, 2020
(` in thousands)
Contents As at As at
Corporate Overview Schedule
March 31, 2020 March 31, 2019
A redefined YES
Capital and Liabilities
Capital 1 25,100,944 4,630,066
03 YES BANK at a glance Reserves and surplus 2 192,161,992 264,411,895
05 Products and services Deposits 3 1,053,639,434 2,276,101,818
06 Geographical presence Borrowings 4 1,137,905,026 1,084,241,089
07 Message from the Chairman Other liabilities and provisions 5 169,461,829 178,876,786
10 Message from the Managing Director TOTAL 2,578,269,225 3,808,261,654
and CEO Assets
12 Key performance indicators Cash and balances with Reserve Bank of India 6 59,436,550 107,977,369
15 COVID-19 response Balances with banks and money at call and short notice 7 24,393,460 160,917,748
17 Customer focus Investments 8 439,148,259 895,220,327
21 Technology and digital innovation Advances 9 1,714,432,943 2,414,996,024
25 Retail Fixed assets 10 10,090,882 8,169,955
Our approach to value creation Other assets 11 330,767,131 220,980,231
29 Value creation model TOTAL 2,578,269,225 3,808,261,654
31 Our strategy Contingent liabilities 12 4,585,260,892 6,541,580,198
36 Risk management Bills for collection 51,201,926 50,592,373
Significant Accounting Policies and Notes to Accounts forming part of financial statements 18
Our ESG focus
43 Environment
54 Social As per our report of even date attached.
69 People
80 Governance
For B S R & Co. LLP For and on behalf of the Board of Directors
Chartered Accountants YES BANK Limited
Statutory Reports Firm’s Registration No: 101248W/W-100022
Venkataramanan Vishwanath Prashant Kumar Sunil Mehta Atul Bheda
Partner Managing Director & CEO Chairman Director
Membership No: 113156 (DIN: 07562475) (DIN: 00065343) (DIN: 03502424)
Partha Pratim Sengupta Anurag Adlakha Shivanand R. Shettigar
Financial Statements Director Group Chief Financial Officer Group Company Secretary
198 Standalone Financials (DIN: 08273324)
267 Consolidated Financials Mumbai
May 6, 2020
208
Standalone Profit and Loss
Annual Repor t 2019 -20 for the period ended March 31, 2020
(` in thousands)
Contents For the year ended For the year ended
March 31, 2020 March 31, 2019
A redefined YES
I. Income
Interest earned 13 260,666,039 296,247,473
03 YES BANK at a glance Other income 14 118,564,938 45,901,526
05 Products and services TOTAL 379,230,977 342,148,999
06 Geographical presence II. Expenditure
07 Message from the Chairman Interest expended 15 192,613,725 198,157,160
10 Message from the Managing Director Operating expenses 16 67,292,114 62,642,768
and CEO Provisions and contingencies 17 283,505,448 64,146,283
12 Key performance indicators TOTAL 543,411,287 324,946,211
15 COVID-19 response III. Profit
17 Customer focus Net profit for the year (164,180,310) 17,202,788
21 Technology and digital innovation Profit brought forward 107,595,597 103,753,016
25 Retail TOTAL (56,584,713) 120,955,804
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
209
Standalone Profit and Loss
Annual Repor t 2019 -20 for the period ended March 31, 2020
(` in thousands)
March 31, 2020 March 31, 2019
IV. Appropriations
A redefined YES
Transfer to Statutory Reserve - 4,300,697
03 YES BANK at a glance Transfer to Capital Reserve 6,655,507 1,010,096
05 Products and services Transfer to Investment Reserve 147,226 6,707
06 Geographical presence Transfer to Investment Fluctuation Reserve - 539,066
07 Message from the Chairman Dividend paid 4,633,917 6,223,989
10 Message from the Managing Director Tax on Dividend paid 952,516 1,279,652
and CEO Balance carried over to balance sheet (68,973,879) 107,595,597
12 Key performance indicators TOTAL (56,584,713) 120,955,804
15 COVID-19 response Significant Accounting Policies and Notes to Accounts forming part of financial statements 18
17 Customer focus Earning per share (Refer Sch. 18.6.39)
21 Technology and digital innovation Basic (`) (56.07) 7.45
25 Retail Diluted (`) (56.06) 7.38
Our approach to value creation (Face Value of Equity Share is `2/-)
31 Our strategy
As per our report of even date attached.
36 Risk management
Our ESG focus For B S R & Co. LLP For and on behalf of the Board of Directors
43 Environment Chartered Accountants YES BANK Limited
54 Social Firm’s Registration No: 101248W/W-100022
69 People
80 Governance Partner Managing Director & CEO Chairman Director
Statutory Reports Membership No: 113156 (DIN: 07562475) (DIN: 00065343) (DIN: 03502424)
84 Management discussion and analysis Partha Pratim Sengupta Anurag Adlakha Shivanand R. Shettigar
106 Directors’ report Director Group Chief Financial Officer Group Company Secretary
146 Report on corporate governance (DIN: 08273324)
187 Annual business responsibility report Mumbai
May 6, 2020
210
Standalone Cash Flow Statement
Annual Repor t 2019 -20 for the year ended March 31, 2020
(` in thousands)
Contents Year ended Year ended
Corporate Overview March 31, 2020 March 31, 2019
A redefined YES
Cash flow from Operating Activities
Net profit before taxes (208,259,197) 23,573,471
03 YES BANK at a glance Adjustment for
05 Products and services Depreciation for the year 3,356,319 3,015,420
06 Geographical presence Amortization of premium on investments 2,459,276 2,102,585
07 Message from the Chairman Provision for investments 64,819,073 6,824,889
10 Message from the Managing Director Provision for standard advances (19,410,781) 22,514,059
and CEO Provision/write off of non performing advances 278,060,357 25,669,535
12 Key performance indicators Other provisions 4,115,686 2,767,116
15 COVID-19 response AT1 Write-down (84,150,000) -
17 Customer focus (Profit)/Loss on sale of land, building and other assets (3,282) (3,947)
21 Technology and digital innovation (i) 40,987,451 86,463,128
25 Retail Adjustments for :
Our approach to value creation Increase / (Decrease) in Deposits (1,222,462,384) 268,720,342
29 Value creation model Increase/(Decrease) in Other Liabilities 54,542,767 38,016,714
31 Our strategy (Increase)/Decrease in Investments 241,926,711 (160,198,010)
36 Risk management (Increase)/Decrease in Advances 422,502,724 (405,326,931)
(Increase)/Decrease in Other assets (108,247,101) (48,182,922)
Our ESG focus
(ii) (611,737,283) (306,970,807)
43 Environment
Payment of direct taxes (iii) (5,655,486) (26,103,985)
54 Social
Net cash generated from / (used in) operating activities (A) (i+ii+iii) (576,405,318) (246,611,664)
69 People
Cash flow from Investing Activities
80 Governance
Purchase of fixed assets (5,339,514) (2,912,885)
Statutory Reports Proceeds from sale of fixed assets 65,547 55,372
84 Management discussion and analysis Investment in subsidiaries (150,000) (1,185,000)
106 Directors’ report (Increase) / Decrease in Held To Maturity (HTM) securities 147,017,008 (58,775,403)
146 Report on corporate governance Net cash generated / (used in) from investing activities (B) 141,593,041 (62,817,916)
211
Standalone Cash Flow Statement
(` in thousands)
Cash flow from financing activities
A redefined YES
Increase in Borrowings 141,354,847 313,708,193
03 YES BANK at a glance Tier II Debt raised - 30,420,000
05 Products and services Innovative Perpetual Debt (paid)/raised - (1,754,400)
06 Geographical presence Tier II Debt repaid during the year (4,024,500) (5,430,400)
07 Message from the Chairman Proceeds from issue of Share Capital (net of share issue expense) 118,639,176 953,472
10 Message from the Managing Director Dividend paid during the year (4,633,917) (6,223,989)
and CEO Tax on dividend paid (952,516) (1,279,652)
12 Key performance indicators Net cash generated from / (used in) financing activities (C) 250,383,090 330,393,224
15 COVID-19 response Effect of exchange fluctuation on translation reserve (D) (635,925) 587,809
17 Customer focus Net increase in cash and cash equivalents (A+B+C+D) (185,065,112) 21,551,453
21 Technology and digital innovation Cash and cash equivalents as at April 1st 268,895,117 247,343,664
25 Retail Cash and cash equivalents as at Mar 31st 83,830,009 268,895,117
Our approach to value creation Notes to the Cash flow statement:
29 Value creation model Cash and cash equivalents includes the following
31 Our strategy Cash and Balances with Reserve Bank of India 59,436,550 107,977,369
36 Risk management Balances with Banks and Money at Call and Short Notice 24,393,459 160,917,748
Cash and cash equivalents as at March 31st 83,830,009 268,895,117
Our ESG focus
43 Environment
69 People
80 Governance For B S R & Co. LLP For and on behalf of the Board of Directors
(DIN: 08273324)
Mumbai
May 6, 2020
212
Schedules
Annual Repor t 2019 -20 forming a part of Balance Sheet
(` in thousands) (` in thousands)
Contents As at As at As at As at
Corporate Overview March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
Schedule 1 - Capital Schedule 2 - Reserves and Surplus
A redefined YES
Authorised Capital Closing balance 12,190,084 5,534,577
30,000,000,000 equity shares of `2/- each 60,000,000 6,000,000 IV. Investment Reserve
05 Products and services 20,000,000 preference shares of `100/- each 2,000,000 2,000,000 Opening balance 232,904 226,197
06 Geographical presence Issued, subscribed and paid-up capital (Refer Sch 18.6.1) Additions during the year (Refer Sch 18.6.4) 147,226 6,707
07 Message from the Chairman 12,550,472,231 equity shares of `2/- each 25,100,944 4,630,066 Deductions during the year - -
10 Message from the Managing Director (March 31, 2019 : 2,315,033,039 equity shares of `2/- each) Closing balance 380,130 232,904
and CEO TOTAL 25,100,944 4,630,066 V Foreign Currency Translation Reserve
12 Key performance indicators Opening balance 613,295 25,486
15 COVID-19 response Additions during the year (635,925) 587,809
17 Customer focus (` in thousands) Deductions during the year - -
21 Technology and digital innovation As at As at Closing balance (22,630) 613,295
25 Retail March 31, 2020 March 31, 2019 VI. Cash Flow Hedge Reserve
Our approach to value creation Schedule 2 - Reserves and Surplus Opening balance (25,323) (244,057)
29 Value creation model I. Statutory Reserves Additions during the year (Refer Sch 18.6.5) (15,533) 218,734
31 Our strategy Opening balance 48,934,100 44,633,403 Deductions during the year - -
36 Risk management Additions during the year - 4,300,697 Closing balance (40,856) (25,323)
Deductions during the year - - VII. Investment Fluctuation Reserve
Our ESG focus Closing balance 48,934,100 48,934,100 Opening balance 539,066 -
43 Environment
II. Share Premium Additions during the year - 539,066
54 Social
Opening balance 100,987,679 100,058,339 Deductions during the year - -
69 People
Additions during the year (Refer Sch 18.6.1) 99,118,298 929,340 Closing balance 539,066 539,066
80 Governance
Deductions during the year 950,000 - VIII. Balance in Profit and Loss Account (68,973,880) 107,595,597
Statutory Reports Closing balance 199,155,977 100,987,679 TOTAL 192,161,992 264,411,895
84 Management discussion and analysis III. Capital Reserve
106 Directors’ report Opening balance 5,534,577 4,524,481
146 Report on corporate governance Additions during the year (Refer Sch 18.6.3) 6,655,507 1,010,096
187 Annual business responsibility report Deductions during the year - -
213
Schedules
Schedule 3 - Deposits II. Other Borrowings
A redefined YES
A. I. Demand Deposits A. Borrowings in India
03 YES BANK at a glance i) From Banks 7,932,044 17,301,403 i) Reserve Bank of India 520,380,000 -
05 Products and services ii) From Others 87,061,069 268,119,467 ii) Other banks 18,350,000 57,147,925
06 Geographical presence II. Savings Bank Deposit 185,635,246 467,112,348 iii) Other institutions and agencies 278,921,592 345,669,057
07 Message from the Chairman III. Term Deposits TOTAL (A) 817,651,592 402,816,982
10 Message from the Managing Director i) From banks 86,786,217 184,849,906 B. Borrowings outside India TOTAL (B) 130,949,559 404,429,321
and CEO ii) From others (incl. CD’s issued) 686,224,858 1,338,718,694 TOTAL (A+B) 948,601,151 807,246,303
12 Key performance indicators TOTAL 1,053,639,434 2,276,101,818 TOTAL (I+II) 1,137,905,026 1,084,241,089
15 COVID-19 response B. I. Deposits of branches in India 1,053,300,945 2,274,954,791
17 Customer focus II. Deposits of branches outside India 338,489 1,147,027 (1) Secured borrowings are `524,379,868 thousands (March 31, 2019 : `4,996,813
21 Technology and digital innovation TOTAL 1,053,639,434 2,276,101,818 thousands).
25 Retail
(2) Including `237,121,724 thousands of refinance borrowing (March 31, 2019:
Our approach to value creation (` in thousands) `302,872,244 thousands) `16,450,000 thousands (March 31 2019: `16,450,000
29 Value creation model As at As at thousands) of Green Infrastructure Bonds raised to fund ‘Green Projects’ and
31 Our strategy March 31, 2020 March 31, 2019 `21,350,000 thousands (March 31, 2019: `21,350,000 thousands) of Long Term
36 Risk management
Schedule 4 - Borrowings Infrastructure Bonds raised to finance affordable housing and infrastructure
Our ESG focus I. Innovative Perpetual Debt Instruments (IPDI) and projects.
43 Environment Tier II Debt
(3) Includes bonds of `36,032,742 thousands (March 31, 2019: `32,909,865 thousands)
54 Social A. Borrowing in India
of Medium Term Notes issued from International Business Unit (IBU) in GIFT city
69 People i) IPDI 5,870,000 90,020,000
Gujarat to fund its growth.
80 Governance ii) Tier II Borrowings 177,759,000 180,759,000
TOTAL (A) 183,629,000 270,779,000
Statutory Reports
B. Borrowings outside India
i) IPDI - -
ii) Tier II Borrowings 5,674,875 6,215,786
187 Annual business responsibility report TOTAL (B) 5,674,875 6,215,786
TOTAL (A+B) 189,303,875 276,994,786
214
Schedules
Schedule 5 - Other Liabilities & Provisions Schedule 7 - Balances with Banks and Money at Call
A redefined YES
I. Bills payable 2,867,243 3,913,805 and Short Notice
03 YES BANK at a glance II. Inter-office adjustments (net) - - I. In India
05 Products and services III. Interest accrued 22,639,407 37,455,379 Balances with banks-
06 Geographical presence IV. Others (including provisions) i) In current accounts 6,091,720 1,988,954
07 Message from the Chairman - Provision for standard advances 12,597,187 32,007,968 ii) In other deposit accounts 255,095 5,089
10 Message from the Managing Director - Country risk provision 69,000 532,784 Money at call and short notice
and CEO - Others 128,339,480 104,966,850 i) With Banks - -
12 Key performance indicators - Income Tax Provision 2,949,512 - ii) With other institutions - -
15 COVID-19 response TOTAL 169,461,829 178,876,786 iii) Lending under reverse repo (RBI & Banks) 13,200,000 88,310,161
17 Customer focus TOTAL (I) 19,546,815 90,304,204
21 Technology and digital innovation (` in thousands) II. Outside India
25 Retail As at As at i) In current account 4,532,635 39,148,020
March 31, 2020 March 31, 2019
Our approach to value creation ii) In other deposit account - -
29 Value creation model Schedule 6 - Cash and Balances with Reserve Bank iii) Money at call and short notice 314,010 31,465,525
of India TOTAL (II) 4,846,645 70,613,545
31 Our strategy
36 Risk management I. Cash in hand 16,307,411 6,333,912 TOTAL (I+II) 24,393,460 160,917,748
II. Balances with Reserve Bank of India
Our ESG focus - In current account 43,129,139 101,643,457 (` in thousands)
43 Environment - In other account - - As at As at
54 Social 59,436,550 March 31, 2020 March 31, 2019
TOTAL 107,977,369
69 People
Schedule 8 - Investments (Net of provisions)
80 Governance
A. Investments in India
Statutory Reports i) Government Securities 329,069,163 553,611,120
84 Management discussion and analysis ii) Other approved securities - -
106 Directors’ report iii) Shares 243,865 429,168
146 Report on corporate governance iv) Debentures and bonds 74,399,345 154,985,441
187 Annual business responsibility report v) Subsidiaries and/or joint ventures 1,986,700 2,240,000
vi) Others (CPs, CDs, Security Receipts, Pass through 31,937,625 60,825,681
certificates etc)
267 Consolidated Financials TOTAL (I) 437,636,698 772,091,410
215
Schedules
Schedule 8 - Investments (Net of provisions) Schedule 9 - Advances
A redefined YES
B. Investments outside India C. I Advances in India
i) Government Securities - 120,595,843 i) Priority sectors 470,973,962 539,338,050
05 Products and services ii) Share - 9,421 ii) Public sector 488,829 56,671
06 Geographical presence iii) Debentures and bonds - 2,523,653 iii) Banks 1,119,061 674,817
07 Message from the Chairman iv) Others (CPs, CDs, Security Receipts, Pass through 1,511,561 - iv) Others 1,100,969,962 1,686,228,220
10 Message from the Managing Director certificates etc) TOTAL (I) 1,573,551,813 2,226,297,758
and CEO TOTAL (II) 1,511,561 123,128,917 II Advances outside India
12 Key performance indicators TOTAL (I+II) 439,148,259 895,220,327 i) Due from Banks 5,853 431,707
15 COVID-19 response ii) Due from Others 140,875,277 188,266,559
17 Customer focus (` in thousands) (a) Bills purchased and discounted - -
21 Technology and digital innovation As at As at (b) Syndicated and Term loans 35,862,373 30,796,065
25 Retail March 31, 2020 March 31, 2019
(c) others 105,012,904 157,470,494
Schedule 9 - Advances TOTAL (II) 140,881,130 188,698,266
A. i) Bills purchased and discounted 22,086,320 42,078,951 TOTAL (I+II) 1,714,432,943 2,414,996,024
31 Our strategy ii) Cash credit, overdrafts and loans payable on 342,942,031 412,651,470
demand (` in thousands)
36 Risk management
iii) Term loans* 1,349,404,592 1,960,265,603 As at As at
Our ESG focus TOTAL 1,714,432,943 2,414,996,024 March 31, 2020 March 31, 2019
43 Environment Schedule 10 - Fixed Assets
* Provision on Non Performing Advances (NPAs) has been
54 Social netted off from Term Loans I. Premises
69 People
B. i) Secured by tangible assets (includes advances 1,301,095,908 1,961,505,002 At cost as on March 31st of preceding year 378,031 378,031
80 Governance secured by fixed deposits and book debt) Additions during the year - -
Statutory Reports ii) Covered by Bank/Government guarantees 2,720,758 10,366,160 Deductions during the year - -
84 Management discussion and analysis iii) Unsecured1 410,616,277 443,124,862 Accumulated depreciation to date (21,006) (14,704)
106 Directors’ report TOTAL 1,714,432,943 2,414,996,024 TOTAL (I) 357,025 363,327
146 Report on corporate governance 1 Includes advances of `37,671,709.07 thousands (March 31, 2019: `128,510,880 thousands) for
187 Annual business responsibility report which security documentation is either being obtained or being registered. As at March 31, 2020
advances amounting to `12,738,207.03 thousand (March 31, 2019 : `2,403,000 thousands) has been
Financial Statements secured by intangible securities such as charge over the rights, licenses, authority, etc.
216
Schedules
Schedule 10 - Fixed Assets Schedule 12 - Contingent Liabilities
A redefined YES
II. Other Fixed Assets (including furniture and fixtures I. Claims against the bank not acknowledged as debts 612,500 549,157
and software) II. Liability for partly paid investments - -
05 Products and services At cost as on March 31st of preceding year 18,108,761 15,232,744 III. Liability on account of outstanding forward 1,519,467,414 2,834,098,764
06 Geographical presence Additions during the year 2,905,665 3,133,713 exchange contracts
07 Message from the Chairman Deductions during the year (310,177) (257,697) IV. Liability on account of outstanding derivative
10 Message from the Managing Director Accumulated depreciation to date (13,904,030) (10,801,920) contracts
and CEO TOTAL (II) 6,800,219 7,306,840 - Single currency Interest Rate Swap 1,866,270,431 1,702,671,190
12 Key performance indicators TOTAL (I+II) 7,157,244 7,670,167 - Others 548,274,930 868,291,165
15 COVID-19 response Capital work-in-progress 2,933,638 499,788 V. Guarantees given on behalf on constituents
17 Customer focus TOTAL 10,090,882 8,169,955 - In India 420,131,381 437,258,909
21 Technology and digital innovation - Outside India - -
25 Retail (` in thousands) VI. Acceptances, endorsement and other obligations 198,799,106 390,140,737
As at As at VII. Other items for which the bank is contingently liable
March 31, 2020 March 31, 2019
29 Value creation model - Purchase of securities pending settlement 836,632 3,622,750
31 Our strategy Schedule 11 - Other Assets - Capital commitment 3,199,380 2,937,672
36 Risk management I. Interest Accrued 22,506,873 39,033,483 -A mount deposited with RBI under Depositor 53,681 32,834
II. Advance tax and tax deducted at source (net of - 4,801,326 Education and Awareness Fund (DEAF)
Our ESG focus provision) - Foreign exchange contracts (Tom & Spot) 25,887,555 300,477,020
43 Environment III. Deferred tax asset (Refer Sch 18.6.51) 82,809,960 25,329,143 - Custody 1,727,883 -
54 Social IV. Non-Banking assets acquired in satisfaction of claims 353,000 353,000 - Bills Rediscounting - 1,500,000
69 People
V. Others 225,097,298 151,463,279 TOTAL 4,585,260,892 6,541,580,198
80 Governance 330,767,131
TOTAL 220,980,231
Contingent Liability on account of outstanding forward exchange contracts and
Statutory Reports
single currency interest rate swap as on March 31, 2020 includes notional amount of
106 Directors’ report `1,067,721,532 thousands and `543,032,121 thousands (Mar 31, 2019: `2,035,934,447
146 Report on corporate governance thousands and `407,303,929 thousands) guaranteed by CCIL representing 70.27%
187 Annual business responsibility report and 29.10% (Mar 31, 2019: 71.84% and 23.92%) of total outstanding forward exchange
contracts and single currency interest rate swaps respectively.
217
Schedules
Annual Repor t 2019 -20 forming a part of Profit and Loss Account
Contents For the year ended For the year ended For the year ended For the year ended
Schedule 13 - Interest Earned Schedule 16 - Operating Expenses
A redefined YES
I. Interest/discount on advances/bills 212,611,879 229,226,405 I. Payments to and provisions for employees 25,998,717 24,697,653
03 YES BANK at a glance II. Income on investments 42,609,208 60,484,215 II. Rent, taxes and lighting 4,462,409 4,173,931
05 Products and services III.Interest on balances with Reserve Bank of India 2,103,677 3,975,738 III. Printing and stationery 393,774 423,256
and other inter-bank funds IV. Advertisement and publicity 274,273 648,283
IV. Others 3,341,275 2,561,115 V. Depreciation on Bank's property 3,356,319 3,015,420
10 Message from the Managing Director TOTAL 260,666,039 296,247,473 VI. Directors' fees, allowances and expenses 54,242 43,413
and CEO VII. Auditors' fees and expenses 42,500 23,203
(` in thousands)
12 Key performance indicators VIII. Law charges 151,949 90,931
15 COVID-19 response For the year ended For the year ended
IX. Postage, telegrams, telephones, etc. 643,740 647,585
March 31, 2020 March 31, 2019
17 Customer focus X. Repairs and maintenance 351,547 420,294
21 Technology and digital innovation Schedule 14 - Other Income
XI. Insurance 2,161,614 2,078,487
25 Retail I. Commission, exchange and brokerage 15,261,935 36,361,452
XII. Other expenditure 29,401,030 26,380,312
II. Profit on the sale of investments (net) 11,134,575 3,174,838
Our approach to value creation TOTAL 67,292,114 62,642,768
III. Profit/(Loss) on the revaluation of investments (net) - -
IV. Profit/(Loss) on sale of land, building and other assets 3,282 3,947 (` in thousands)
31 Our strategy
V. Profit on exchange transactions (net) 3,731,959 1,570,297 For the year ended For the year ended
36 Risk management
VI. Income earned by way of dividends etc. from subsidiaries, - - March 31, 2020 March 31, 2019
Our ESG focus companies and/or joint ventures abroad/in India
Schedule 17 - Provisions & Contingencies
43 Environment VII. Miscellaneous income 88,433,187 4,790,992 I. Provision for taxation (Refer Sch 18.6.33) (44,078,887) 6,370,684
54 Social TOTAL 118,564,938 45,901,526 II. Provision for investments 64,819,073 6,824,889
69 People
Miscellaneous income for the period ended March 31, 2020 includes extraordinary income III. Provision for standard advances (19,410,781) 22,514,059
80 Governance
on account of write down of Additional Tier I Bonds amounting to `84,150,000 thousands IV. Provision/write off for non performing advances 278,060,357 25,669,535
Statutory Reports (` in thousands) V. Other Provisions 4,115,686 2,767,116
84 Management discussion and analysis For the year ended For the year ended TOTAL 283,505,448 64,146,283
106 Directors’ report March 31, 2020 March 31, 2019
146 Report on corporate governance Schedule 15 - Interest Expended
187 Annual business responsibility report I. Interest on deposits 120,052,790 136,871,140
Financial Statements II. Interest on Reserve Bank of India/inter-bank 66,661,229 60,764,723
borrowings/Tier I and Tier II debt instruments
III. Others 5,899,706 521,297
TOTAL 192,613,725 198,157,160
218
Schedules
Annual Repor t 2019 -20 forming part of Financial Statements
18. Significant accounting policies and notes forming part of 18.3 Assessment of Going Concern:
Contents the accounts for the year ended March 31, 2020 In the aftermath of the IL&FS crisis in September 2018, the financial sector had been
Corporate Overview
18.1 Background heavily constrained from a liquidity stand-point. Also, rising defaults in Power and
A redefined YES YES BANK is a publicly held bank engaged in providing a wide range of banking and Infra sector in second half of 2019 have taken a toll on the stressed book of various
02 Key highlights FY 2019-20 financial services. YES BANK is a banking company governed by the Banking Regulation Banks and NBFCs. In this macro environment, given its low capital covers, the Bank
03 YES BANK at a glance Act, 1949. The Bank was incorporated as a limited company under the Companies Act, has been adversely impacted on account of elevated slippages in its corporate book
05 Products and services 1956 on November 21, 2003. The Bank received the licence to commence banking especially in power and infra sector. The Bank reported a marginal profit for the
06 Geographical presence operations from the Reserve Bank of India (‘RBI’) on May 24, 2004. Further, YES BANK quarters ended 30 June 2019 and reported loss in the quarter ended September 30,
07 Message from the Chairman was included to the Second Schedule of the Reserve Bank of India Act, 1934 with effect 2019. For the quarter ended December 31, 2019, as a consequence of increase in NPAs,
10 Message from the Managing Director additional recording slippages post period end and increase in PCR, the reported
from August 21, 2004. Also the Bank has a branch at International Financial Services
and CEO loss was `185,604 million. The Bank had also breached the RBI mandated Common
Centre (‘IFSC’) at GIFT City, Gujarat (‘IBU’). The Bank classifies transactions undertaken
12 Key performance indicators Equity (CET1) ratio which stood at 0.62% at 31 December 2019 as compared to the
by IBU as overseas operation.
requirement of 7.375%. The delay in capital raising triggered the downgrade of the
17 Customer focus On March 13, 2020, the Government of India notified the “Yes Bank Ltd. Reconstruction Bank’s rating by Rating Agencies.
21 Technology and digital innovation Scheme, 2020” (Scheme). As per the Scheme, authorized capital has been increased
25 Retail from `11,000 million to `62,000 million. The State Bank of India (SBI) and other In addition the deposit outflow in early October on account of a combination of events
investors invested in the Bank at a price of `10 per equity share of the Bank (`2 face such as invocation of Promoter’s pledged shares\IT glitches for Yes Bank (and others)\
value with a `8 premium). As per the scheme, SBI is required to hold upto 49% with a problems arising from financial distress in Punjab and Maharashtra Cooperative Bank
minimum holding of 26% by SBI in the Bank (which is subject to a 3 year lock in). Other led to a continuing breach in Liquidity Coverage Ratio (LCR) starting October 2019 and
31 Our strategy
investors are subject to a 3 year lock in for 75% of the investments they make in the continues till date. The Bank’s deposit base has seen a reduction from `2,094,973
36 Risk management
Bank under this Scheme. Existing investors (other than investors holding less than million as at September 30, 2019 to `1,657,554 million as at December 31, 2019. The
Our ESG focus deposit position as at 31 March 2020 is `1,053,639 million and has reduced further
100 shares) in Yes Bank are also subject to a lock in for 75% of their holding as per this
43 Environment to `1,027,179 million as at May 02, 2020. The Bank had also prepaid ~USD 1.18 billion
Scheme.
54 Social (`85,000 million) by February 29, 2020. On March 5, 2020, the Central Government,
69 People 18.2 Basis of preparation based on the RBI’s application imposed a moratorium under section 45 of the Banking
80 Governance The financial statements have been prepared in accordance with requirements Regulation Act, 1949 for a period of 30 days effective March 5, 2020 which was lifted
Statutory Reports prescribed under the Third Schedule (Form A and Form B) of the Banking Regulation on March 18, 2020. Further, the RBI, in consultation with the Central Government
84 Management discussion and analysis Act, 1949. The accounting and reporting policies of the Bank used in the preparation and in exercise of the powers under section 36ACA of the Banking Regulation Act
106 Directors’ report of these financial statements conform to Generally Accepted Accounting Principles 1949, superseded the Board of Directors of the Bank on March 5, 2020. As per the
146 Report on corporate governance in India (Indian GAAP), the guidelines issued by the Reserve Bank of India (RBI) from moratorium a restriction was imposed on the withdrawal by depositors of amounts up
187 Annual business responsibility report time to time, the accounting standards notified under section 133 of the Companies to `50,000 and the Bank also could not grant or renew loans or make any investments.
Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 and
Financial Statements On March 13, 2020, the Government of India notified the “Yes Bank Ltd. Reconstruction
Companies (Accounting Standards) Amendment Rules, 2016 to the extent applicable
198 Standalone Financials Scheme, 2020” (Scheme). As per the Scheme, authorized capital has been increased
and practices generally prevalent in the banking industry in India. The Bank follows
267 Consolidated Financials from `11,000 million to `62,000 million. The State Bank of India (SBI) and other
the accrual method of accounting and the historical cost convention, unless otherwise
investors invested in 10,000 million shares at a price of `10 per equity share of the
stated by RBI guidelines.
219
Schedules
Bank (`2 face value with a `8 premium). The Bank has received capital amounting 34.8%(regulatory limit 80%). The Bank also has a deferred tax asset of `82,810 million
Contents to `100,000 million as of March 14, 2020 from a consortium of Banks and Financial as at March 31, 2020. Though the Bank has made a loss of `164,180 million for the
Corporate Overview Institution led by State Bank of India. SBI is required to hold upto 49% with a minimum year ended March 31, 2020, the Bank has a taxable profit for the year ended March
holding of 26% by SBI in the Bank (which is subject to a 3 year lock in). Other investors 31, 2020.
A redefined YES
are subject to a 3 year lock in for 75% of the investments they make in the Bank under
02 Key highlights FY 2019-20 In the month of March 2020, SARS-CoV-2 virus responsible for COVID-19 continued to
03 YES BANK at a glance this Scheme. Existing investors (other than investors holding less than 100 shares) in
spread across the globe and India, which has contributed to a significant decline and
05 Products and services Yes Bank are also subject to a lock in for 75% of their holding as per this Scheme.
volatility in global and Indian financial markets and a significant decrease in global and
06 Geographical presence A new Board of Directors, MD & CEO and Non Executive Chairman have also been local economic outlook and activities. On March 11, 2020, the COVID-19 outbreak was
07 Message from the Chairman appointed under the Scheme. The Bank has since obtained a Board approval to raise declared a global pandemic by the World Health Organization. On March 24, 2020, the
additional equity of upto `150,000 million. As a consequence of the reconstitution Indian government announced a strict 21-day lockdown which was further extended
and CEO
the Bank was deemed to be un-viable. Consequently, write-back of certain Basel across the country to contain the spread of the virus. The extent to which the COVID-19
III additional tier 1 Bonds(“ AT 1 Bonds”) issued by the Bank had been triggered. pandemic will impact the Bank’s future results will depend on related developments,
17 Customer focus Hence, such AT 1 Bonds amounting to `84,150 million have been fully written down which remain highly uncertain.
21 Technology and digital innovation permanently. The Trustees, on behalf of the holders of AT 1 Bonds have filed a writ
While further reduction in deposits lost post moratorium may cast material
25 Retail petition seeking to challenge the decision of the Bank to write down AT 1 bonds. The
uncertainty, particularly in the current COVID scenario, the Bank under the leadership
Bank, based on the legal opinion of its external independent legal counsel is of the view
Our approach to value creation of new management and Reconstituted Board is confident that it can tide over the
that the merits of the Bank’s decision to write back the AT 1 bonds is in accordance
29 Value creation model current issues successfully.
with the contractual terms for issuance of AT 1 Bonds. The Bank had also been granted
31 Our strategy
a short term special liquidity facility for 90 days (ending on June 16, 2020) from the This belief is reinforced by the pedigree of new investors of the Bank (led by State
36 Risk management
RBI. The Bank has written to RBI for an extension of the same for a year. The Bank also Bank of India and other Financial Institutions). Further, The Bank’s management
Our ESG focus raised CDs of `72,000 million as at March 31, 2020. As a consequence of the above and board of directors have made an assessment of its ability to continue as a going
43 Environment factors the Bank’s loss post tax and AT 1 write back (exceptional income) is `164,180 concern based on the projected financial statements for the next 3 years and are
54 Social million. The Bank’s CET1 ratio is 6.3% (regulatory requirement with CCB of 7.375%) and satisfied that the proposed capital infusion and the Bank’s strong customer base
69 People tier 1 capital ratio is 6.5% (regulatory requirement of 8.875%) as at March 31, 2020. The and branch network will enable the Bank to continue its business for the foreseeable
80 Governance Bank has substantially enhanced its PCR and strengthened its Balance Sheet. However, future, so as to be able to realize its assets and discharge its liabilities in its normal
RBI’s current framework on ‘Prompt Corrective Action’ (PCA) considers regulatory course of business. As such, the financial statements continue to be prepared on a
Statutory Reports
breaches in CET as a potential trigger. The Bank remains in constant communication going concern basis.
with RBI on the various parameters and ratios and RBI has not imposed any fine on the
18.4 Use of estimates
146 Report on corporate governance Bank for the regulatory breaches.
The preparation of financial statements requires the management to make estimates
187 Annual business responsibility report The Bank’s deposit base has seen a reduction from `2,276,102 million as at March and assumptions that are considered while reporting amounts of assets and liabilities
Financial Statements 31, 2019 to `1,053,639 million as at March 31, 2020 (Position as at May 02, 2020 (including contingent liabilities) as of the date of the financial statements and income
198 Standalone Financials `1,027,179 million). Consequently, the Bank’s quarterly average ‘Liquidity Coverage and expenses during the reporting period. Management believes that the estimates
267 Consolidated Financials Ratio’ (LCR) has fallen from 74% for the quarter ended December 31, 2019 to 40% for used in the preparation of the financial statements are prudent and reasonable.
the quarter ended March 31, 2020 (regulatory limit 100%), position as at May 02, 2020 Future results could differ from these estimates. Any revision to accounting estimates
is recognized prospectively in current and future periods.
220
Schedules
Estimation of uncertainties relating to the global health pandemic from • Dividend income is recognized when the right to receive payment is established.
Contents COVID-19:
Corporate Overview • Commission on guarantees issued by the Bank is recognized as income over the
From the quarter ended December 31, 2019, the Bank considers slippages in period of the guarantee.
A redefined YES Corporate NPAs post the period end till the date of results / financial statement, while
determining NPAs and related provisioning requirements. Further, the Bank had • Commission on Letters of Credit (‘LC’) issued by the Bank is recognized as income
03 YES BANK at a glance decided, on a prudent basis, to enhance its Provision Coverage Ratio on its NPA loans at the time of issue of the LC.
05 Products and services over and above the RBI loan level provisioning requirements. As a result, the Bank • Income on non-coupon bearing discounted instruments is recognized over
06 Geographical presence recognized additional provisions of `154,220 million for the period ended December the tenure of the instrument on a straight line basis. In case of coupon bearing
07 Message from the Chairman 31, 2019. discounted instruments, discount income is recognized over the tenor of the
Subsequently, RBI issued guidelines on COVID-19 Regulatory Package, under which, instrument on yield basis.
and CEO
12 Key performance indicators the Bank granted a moratorium of three months on the payment of all installments • In case of Bonds and Pass Through Certificates (PTC), premium on redemption, if
15 COVID-19 response and / or interest, as applicable, falling due between March 1, 2020 and May 31, 2020. For any, is amortised over the tenure of the instrument on a yield basis.
17 Customer focus all such accounts where the moratorium is granted (except advances at IFSC Banking
21 Technology and digital innovation Unit (IBU)), the asset classification shall remain stand still during the moratorium • Revenue from financial advisory services is recognized in line with milestones
25 Retail period (i.e. the number of days past-due shall exclude the moratorium period for the achieved as per terms of agreement with clients which is reflective of services
purposes of asset classification under the Income Recognition, Asset Classification rendered.
and Provisioning norms) and as the asset classification as of March 31, 2020 has been • Facility fees and loan processing fees are recognised when due and realizable.
retained based on the overdue status as at February 29, 2020. Hence on account of
31 Our strategy
above mentioned RBI circular dated April 17, 2020, Bank has not considered slippages • Other fees and commission are accounted for as and when they became due.
36 Risk management
post March 31, 2020 till the date of results / financial statement. 18.5.2 Investments
Our ESG focus
43 Environment In line with RBI requirements, the Bank holds necessary provisions as at March 31, Classification and valuation of the Bank’s investments are carried out in accordance
54 Social 2020 against the assets where the asset classification benefit has been extended on with RBI Circular DBR.No.BP.BC.6/21.04.141/2015-16 dated 1 July 2015.
69 People account of standstill requirements.
Accounting and Classification
80 Governance Refer disclosure 18.6.24 - Disclosure under COVID19 Regulatory Package The Bank follows settlement date accounting for Investments. In compliance with RBI
Statutory Reports guidelines, all investments, are categorized as “Held for trading” (‘HFT’), “Available for
18.5 Significant accounting policies
84 Management discussion and analysis sale” (‘AFS’) or “Held to maturity” (‘HTM’) at the time of its purchase. For the purpose of
106 Directors’ report 18.5.1 Revenue recognition disclosure in the balance sheet, investments are classified as disclosed in Schedule 8
146 Report on corporate governance Revenue is recognized to the extent it is probable that the economic benefits will flow (‘Investments’) under six groups (a) government securities (b) other approved securities
187 Annual business responsibility report to the Bank and the revenue can be reliably measured. (c) shares (d) bonds and debentures (e) subsidiaries and joint ventures and (f) others.
Financial Statements • Interest income is recognized in the profit and loss account on accrual basis, a) Cost of acquisition
198 Standalone Financials except in the case of non-performing assets. Interest on non-performing assets Costs such as brokerage pertaining to investments, paid at the time of acquisition
267 Consolidated Financials is recognized as per the prudential norms of the RBI. Penal Interest is recognized and broken period interest are charged to the profit and loss account as per the RBI
upon certainty of its realization. guidelines.
221
Schedules
b) Basis of classification of management, a diminution, other than temporary in the value of investments
Contents Securities that are held principally for resale within 90 days from the date of purchase classified under HTM has taken place, suitable provisions are made. Profit/loss on sale
Corporate Overview are classified under the HFT category. Investments that the Bank intends to hold till of investments in the ‘Held to Maturity’ category is recognised in the profit and loss
maturity are classified under the HTM category, or as per RBI guidelines. Securities account and profit is thereafter appropriated (net of applicable taxes and statutory
A redefined YES
which are not classified in the above categories are classified under the AFS category. reserve requirements) to Capital Reserve.
03 YES BANK at a glance c) Transfer between categories Equity investments in subsidiaries/joint ventures are classified under ‘Held to
05 Products and services Reclassification of investments from one category to the other, if done, is in accordance Maturity’. The Bank assesses these investments for any permanent diminution in
06 Geographical presence with RBI guidelines. Transfer of scrips from AFS / HFT category to HTM category is value and appropriate provisions are made.
07 Message from the Chairman made at the lower of book value or market value. In the case of transfer of securities
10 Message from the Managing Director Treasury Bills, Commercial Paper and Certificates of deposit being discounted
from HTM to AFS / HFT category, the investments held under HTM at a discount are
and CEO instruments, are valued at carrying cost.
transferred to AFS / HFT category at the acquisition price and investments placed in
the HTM category at a premium are transferred to AFS/ HFT at the amortized cost. Pass Through Certificates purchased for priority sector lending requirements are
17 Customer focus valued at Book Value in accordance with RBI guidelines.
Transfer of investments from AFS to HFT or vice- a- versa is done at the book value.
21 Technology and digital innovation Depreciation carried, if any, on such investments is also transferred from one category The market/ fair value applied for the purpose of periodical valuation of quoted
25 Retail to another. investments included in the AFS and HFT categories is the market price of the scrip as
Our approach to value creation available from the trades/ quotes on the stock exchanges and for Subsidiary General
d) Valuation
29 Value creation model Ledger (‘SGL’) account transactions, the prices as periodically declared by Financial
Investments categorized under AFS and HFT categories are marked to market (MTM)
31 Our strategy Benchmarks India Pvt. Ltd.(FBIL).
on a periodical basis as per relevant RBI guidelines. Net depreciation, if any, in the
36 Risk management
category under the classification mentioned in Schedule 8 (‘Investments’) is recognized The market/ fair value of unquoted government securities included in the AFS and
Our ESG focus in the profit and loss account. The net appreciation, if any, in the category under each HFT category is determined as per the prices published by FBIL. Further, in the case
43 Environment classification is ignored, except to the extent of depreciation previously provided. The of unquoted bonds, debentures, pass through certificates (other than priority sector)
54 Social book value of individual securities is not changed consequent to periodic valuation of and preference shares, valuation is carried out by applying an appropriate mark-up
69 People investments. (reflecting associated credit risk) over the Yield to Maturity (‘YTM’) rates of government
80 Governance securities. Such mark up and YTM rates applied are as per the relevant rates published
Investments received in lieu of restructured advances scheme are valued in accordance
by FIMMDA/FBIL.
Statutory Reports with RBI guidelines. Any diminution in value on these investments is provided for and
84 Management discussion and analysis is not used to set off against appreciation in respect of other performing securities The Bank undertakes short sale transactions in Central Government dated securities in
106 Directors’ report in that category. Depreciation on equity shares acquired and held by the Bank under accordance with RBI guidelines. The short position is reflected as the amount received
146 Report on corporate governance restructuring scheme is provided as per RBI guidelines. on sale and is netted in the Investment schedule. The short position is marked to
187 Annual business responsibility report market and loss, if any, is charged to the Profit and Loss account while gain, if any, is
Investments classified under the HTM category are carried at their acquisition cost
Financial Statements ignored. Profit / Loss on settlement of the short position is recognised in the Profit and
and any premium over the face value, paid on acquisition, is amortised on a straight
198 Standalone Financials Loss account.
line basis over the remaining period to maturity. Amortization expense of premia on
investments in the HTM category is deducted from interest income in accordance with Units of Venture Capital Funds (VCF) held under AFS category are valued using the Net
RBI Circular DBR.No.BP.BC.6/21.04.141/2015-16 dated 1 July 2015. Where in the opinion Asset Value (NAV) shown by VCF as per the financial statement. The VCFs are valued
222
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based on the audited results once in a year. In case the audited financials are not Non- Sovereign foreign currency Bonds are valued using either Composite Bloomberg
Contents available for a period beyond 18 months, the investments are valued at `1 per VCF. Bond Trader (CBBT) price, Bloomberg Valuation Service (BVAL) price , Bloomberg
Corporate Overview Generic price (BGN) , Last available CBBT pricing for the instrument or Proxy Bond
01 Commitment. Promise. Transparency. Quoted equity shares are valued at their closing price on a recognized stock exchange.
Pricing from Bloomberg in the chronological order based on availability.
A redefined YES Unquoted equity shares are valued at the break-up value if the latest balance sheet is
02 Key highlights FY 2019-20 available, else, at `1 per company, as per relevant RBI guidelines. Masala bonds are valued using either Composite Bloomberg Bond Trader (CBBT)
03 YES BANK at a glance price, Bloomberg Valuation Service (BVAL) price or as per FIMMDA guided valuation
05 Products and services At the end of each reporting period, security receipts issued by the asset reconstruction
methodology for unquoted bonds in the chronological order based on availability.
06 Geographical presence company are valued in accordance with the guidelines applicable to such instruments,
07 Message from the Chairman prescribed by RBI from time to time. Accordingly, in cases where the cash flows from Special bonds such as oil bonds, fertilizer bonds, UDAY bonds etc. which are directly
10 Message from the Managing Director security receipts issued by the asset reconstruction company are limited to the issued by Government of India (‘GOI’) is valued based on FBIL valuation.
and CEO actual realization of the financial assets assigned to the instruments in the concerned
Equity shares in the Banks demat account, acquired through exercise of pledge, is not
12 Key performance indicators scheme, the Bank reckons the net asset value obtained from the asset reconstruction
accounted as investments. Upon sale of the pledged shares, the proceeds are utilized
15 COVID-19 response company from time to time, for valuation of such investments at each reporting date.
17 Customer focus to offset the borrower’s liability.
In case of investment in Security Receipts on or after April 01, 2017 which are backed
21 Technology and digital innovation by more than 50% of the stressed assets sold by the bank or 10% of the stressed Non-performing investments are identified and depreciation / provision are
25 Retail asset sold by the bank post April 01, 2018, provision for depreciation in value is made made thereon based on the RBI guidelines. Based on management assessment
Our approach to value creation at higher of - provisioning rate required in terms of net assets value declared by of impairment, the Bank additionally creates provision over and above the RBI
29 Value creation model Reconstruction Company(RC)/Securitization Company(SC) or the provisioning rate guidelines. The depreciation / provision on such non-performing investments are not
31 Our strategy as per the extant asset classification and provisioning norms as applicable to the set off against the appreciation in respect of other performing securities. Interest on
36 Risk management underlying loans, assuming that the loan notionally continue in the books of the Bank. non-performing investments is not recognised in the Profit and Loss account until
All other investments in the Security Receipts are valued as per the NAV obtained from received.
Our ESG focus
issuing RC/SC.
43 Environment e) Profit/Loss on sale of Investments
54 Social Investments in quoted Mutual Fund (MF) Units are valued at the latest repurchase Profit/Loss on sale of Investments in the HTM category is recognized in the profit
69 People price/net asset value declared by the mutual fund. Investments in un-quoted MF Units and loss account and profit thereafter is appropriated (net of applicable taxes and
80 Governance are valued on the basis of the latest re-purchase price declared by the MF in respect statutory reserve requirements) to Capital Reserve. Profit/Loss on sale of investments
of each particular Scheme. in HFT and AFS categories is recognized in the Profit and Loss account.
Statutory Reports
84 Management discussion and analysis Investment in listed instruments of Real Estate Investment Trust (REIT)/Infrastructure f) Accounting for repos / reverse repos
106 Directors’ report Investment Trust (INVIT) is valued at closing price on a recognized stock exchange with Securities sold under agreements to repurchase (Repos) and securities purchased
146 Report on corporate governance the higher volumes. In case the instruments were not traded on any stock exchange under agreements to resell (Reverse Repos) including liquidity adjustment facility (LAF)
187 Annual business responsibility report within 15 days prior to date of valuation, valuation is done based on the latest NAV (not with RBI are treated as collateralized borrowing and lending transactions respectively
Financial Statements older than 1 year) submitted by the valuer. in accordance with RBI master circular No. DBR.No.BP.BC.6/21.04.141/2015-16 dated
198 Standalone Financials 1 July 2015. The first leg of the repo transaction is contracted at the prevailing market
Sovereign foreign currency bonds are valued using Composite Bloomberg Bond
267 Consolidated Financials rates. The difference between consideration amounts of first and second (reversal
Trader (CBBT) price or Bloomberg Valuation Service (BVAL) price or on Treasury curve
of first) leg reflects interest and is recognized as interest income/expense over the
in the chronological order based on availability.
period of transaction.
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Schedules
Bank also undertakes Repo and Reverse repo transactions from IFSC Banking Unit March 31, 2020 has been retained based on the overdue status as at February 29, 2020.
Contents in GIFT City in Foreign currency Sovereign Securities and accounting is similar to the As a consequence the Bank has not recognized any slippage in asset classification
Corporate Overview domestic repo transactions. from standard to NPA post February 29, 2020 on account of moratorium.
A redefined YES g) Investment fluctuation reserve As per the RBI guidelines a general provision is made on all standard advances,
02 Key highlights FY 2019-20 With a view to building up of adequate reserves to protect against increase in yields, including provision for borrowers having unhedged foreign currency exposure and for
03 YES BANK at a glance RBI through circular number RBI/2017-18/147 DBR.No.BP.BC.102/21.04.048/2017-18 credit exposures computed as per the current marked to market values of interest rate
05 Products and services dated April 2, 2018, advised all banks to create an IFR with effect from the FY 2018-19. and foreign exchange derivative contracts. These also include provision for stressed
06 Geographical presence sector exposures and provision for incremental exposure of the banking system to
07 Message from the Chairman Transferred to IFR will be lower of the following (i) net profit on sale of investments
a specified borrower beyond Normally Permitted Lending Limit (NPLL) in proportion
10 Message from the Managing Director during the year or (ii) net profit for the year less mandatory appropriations; until the
to bank’s funded exposure to specified borrower. Such provisions are included in
and CEO amount of IFR is at least 2 percent of the HFT and AFS portfolio, on a continuing basis.
Schedule 5 - ‘Other liabilities & provisions - Others’.
18.5.3 Advances
In respect of restructured standard and non performing advances, provision is made
17 Customer focus Accounting and classification for the present value of principal and interest component sacrificed at the time of
21 Technology and digital innovation Advances are classified as performing and non-performing based on the relevant RBI restructuring the assets, based on the RBI guidelines.
25 Retail guidelines. Advances are stated net of specific provisions, interest in suspense, inter-
bank participation certificates issued, direct assignment and bills rediscounted. Accounts are written-off in accordance with the Bank’s policies. Recoveries from bad
Our approach to value creation debts written-off are recognised in the Profit and Loss account and included under
29 Value creation model Asset classification other income.
31 Our strategy Provisioning
36 Risk management Provisions in respect of non-performing advances are made based on management’s In case of loans sold to asset reconstruction company, if consideration is more than
assessment of the degree of impairment of the advances, subject to the minimum net book value, the Bank records the security receipts as investment at Net Book
Our ESG focus
provisioning level prescribed in relevant RBI guidelines. The specific provision levels for Value as per RBI guidelines.
43 Environment
54 Social retail non-performing assets are also based on the nature of product and delinquency The Bank has in place a Country Risk management policy as part of its Board approved
69 People levels. Specific provisions in respect of non-performing advances are charged to the Credit policy, which is based on extant regulatory guidelines and addresses the
80 Governance Profit and Loss account and included under Provisions and Contingencies. From the identification, measurement, monitoring and reporting of country risk. Countries
quarter ended December 31, 2019, the Bank consider slippages in Corporate NPAs are categorized into seven risk categories, viz. Insignificant, Low Risk, Moderately
Statutory Reports post the period end till the date of results / financial statement, while determining Low Risk, Moderate Risk, Moderately Risk, High Risk and Very High Risk. The Bank
NPAs and related provisioning requirements. calculates direct and indirect country risk in line with the policy requirements. Indirect
146 Report on corporate governance In accordance with the RBI guidelines relating to COVID-19 Regulatory Package dated exposure is reckoned at 50% of the exposure in case of countries where the net funded
187 Annual business responsibility report March 27, 2020 and April 17, 2020, the Bank has granted a moratorium of three months exposure exceeds 1% of the Bank’s total assets. Further, if the net funded exposure of
on the payment of all installments and / or interest, as applicable, falling due between the Bank in respect of each country exceeds 1% of the Bank’s total assets, provisioning
Financial Statements is required to be made on exposure to such countries. Depending on the risk category
March 1, 2020 and May 31, 2020 to all eligible borrowers classified as Standard, even
198 Standalone Financials of the country, provisioning is done on a graded scale ranging from 0.25% to 100% for
if overdue, as on February 29, 2020. For all such accounts where the moratorium is
granted (except advances at IFSC Banking Unit (IBU)), the asset classification as of exposures with contractual maturity greater than or equal to 180 days. In respect of
224
Schedules
short-term exposures with contractual maturity less than 180 days, 25% of the normal Currency future contracts are marked to market daily using settlement price on a
Contents provision requirement is held. trading day, which is the closing price of the respective future contracts on that day.
Corporate Overview While the daily settlement prices is computed on the basis of weighted average price
01 Commitment. Promise. Transparency. 18.5.4 Transactions involving foreign exchange
of such contract, the final settlement price is taken as the RBI reference rate on the
A redefined YES Foreign currency income and expenditure items of domestic operations are translated last trading day of the future contract or as may be specified by the relevant authority
at the exchange rates prevailing on the date of the transaction. Income and expenditure from time to time. All open positions are marked to market based on the settlement
items of integral foreign operations (representative offices) are translated at the daily price and the resultant marked to market profit / loss is daily set.
average closing rates and of non-integral foreign operations (foreign branches) at the
06 Geographical presence 18.5.5 Earnings per share
monthly average closing rates.
The Bank reports basic and diluted earnings per equity share in accordance with
10 Message from the Managing Director Premia/discounts on foreign exchange swaps, that are used to hedge risks arising
and CEO Accounting Standard (AS) 20, “Earnings per Share” notified under section 133 of the
from foreign currency assets and liabilities, are amortized over the life of the swap.
12 Key performance indicators Companies Act 2013. Basic earnings per equity share have been computed by dividing
15 COVID-19 response Monetary foreign currency assets and liabilities are translated at the balance sheet net profit after tax for the year by the weighted average number of equity shares
17 Customer focus date at rates notified by the Foreign Exchange Dealers’ Association of India (‘FEDAI’). outstanding for the period.
21 Technology and digital innovation Foreign exchange contracts are stated at net present value using LIBOR/SWAP curves of
Diluted earnings per equity share have been computed using the weighted average
25 Retail the respective currencies with the resulting unrealised gain or loss being recognised in
number of equity shares and dilutive potential equity shares options outstanding
the Profit and Loss Account and correspondingly in other assets (representing positive
Our approach to value creation during the period except where the results are anti-dilutive.
Mark-to-Market) and in other liabilities (representing negative Mark-to-Market (MTM))
on a gross basis. 18.5.6 Accounting for derivative transactions
31 Our strategy
36 Risk management In accordance with AS 11 ‘The Effects of changes in Foreign Exchange Rates’, contingent Derivative transactions comprises forward rate agreements, swaps and option
liabilities in respect of outstanding foreign exchange forward contracts, derivatives, contracts. The Bank undertakes derivative transactions for market making/trading
Our ESG focus
guarantees, endorsements and other obligations are stated at the exchange rates and hedging on-balance sheet assets and liabilities. All market making/trading
43 Environment
notified by FEDAI corresponding to the balance sheet date. transactions are marked to market on a monthly basis and the resultant unrealized
54 Social
gains/losses are recognized in the profit and loss account.
69 People Both monetary and non-monetary foreign currency assets and liabilities of non-
80 Governance integral foreign operations are translated at closing exchange rates notified by Derivative transactions that are undertaken for hedging are accounted for on accrual
FEDAI at the Balance Sheet date and the resulting profit / loss arising from exchange basis except for the transaction designated with an asset or liability that is carried at
Statutory Reports
differences are accumulated in the Foreign Currency Translation Account until the market value or lower of cost or market value in the financial statements, which are
106 Directors’ report disposal of the net investment in the non-integral foreign operations. accounted similar to the underlying asset or liability.
146 Report on corporate governance Cross currency interest rate swaps which are used by the Bank to hedge its foreign
In accordance with the RBI clarification, the Bank does not recognise in the profit and
187 Annual business responsibility report currency borrowings have been designated as cash flow hedges and are measured at
loss account the proportionate exchange gains or losses held in the foreign currency
Financial Statements translation reserve on repatriation of profits from overseas operations. fair value. The corresponding gain or loss is recognised as cash flow hedge reserve.
198 Standalone Financials Further to match profit/ loss on account of revaluation of foreign currency borrowing,
267 Consolidated Financials the corresponding amount is recycled from cash flow hedge reserve to Profit and Loss
account.
225
Schedules
The Bank follows the option premium accounting framework prescribed by FEDAI SPL- Useful life of Assets Useful life of Assets
Contents circular dated Dec 14, 2007. Premium on option transaction is recognized as income/ Class of asset as per Companies as per Bank’s
Corporate Overview expense on expiry or early termination of the transaction. Mark to market (MTM) Act, 2013 Accounting Policy
gain/loss (adjusted for premium received/paid on option contracts) is recorded under Owned Premises 60 years 60 years
A redefined YES
‘Other Income’. Office equipment 5 years 5 years
03 YES BANK at a glance Computer hardware1 6 years 3 years
The amounts received/paid on cancellation of option contracts are recognized
05 Products and services Computer software * 6 years 4 years
as realized gains/losses on options. Charges receivable/payable on cancellation/
06 Geographical presence Vehicles1 8 years 5 years
termination of foreign exchange forward contracts and swaps are recognized as
07 Message from the Chairman Furniture and Fixtures 10 years 10 years
income/ expense on the date of cancellation/ termination under ‘Other Income’.
10 Message from the Managing Director Automated Teller Machines (‘ATMs’) 1 15 years 10 years
and CEO Valuation of Interest Rate Futures (IRF) is carried out on the basis of the daily settlement Leasehold improvements to premises - Over the lease
12 Key performance indicators price of each contract provided by the exchange. period or 9 years
15 COVID-19 response whichever is less.
17 Customer focus The requirement for collateral and credit risk mitigation on derivative contracts is
assessed based on internal credit policy. Overdue if any, on account of derivative *As per RBI Guidelines.
25 Retail transactions are accounted in accordance with extant RBI guidelines. 1
Based on technical evaluation, the management believes that the useful lives as given above best
represent the period over which management expects to use these assets. Hence, the useful lives
Our approach to value creation As per the RBI guidelines on ‘Prudential Norms for Off-balance Sheet Exposures of for these assets is different from the useful lives as prescribed under Part C of Schedule II of the
29 Value creation model Banks’ a general provision is made on the current gross MTM gain of the contract for Companies Act 2013.
31 Our strategy all outstanding interest rate and foreign exchange derivative transactions.
36 Risk management • Assets costing up to `5,000 are fully depreciated in the year of purchase.
18.5.7 Fixed assets
Our ESG focus Fixed assets are stated at cost less accumulated depreciation, amortization and • For assets purchased/ sold during the year, depreciation is being provided on pro
43 Environment accumulated impairment losses. Cost comprises the purchase price and any cost rata basis by the Bank.
54 Social attributable for bringing the asset to its working condition for its intended use. • Improvements to leasehold assets are depreciated over the remaining period of
69 People Subsequent expenditure incurred on assets put to use is capitalised only when it lease
80 Governance increases the future benefit /functioning capability from / of such assets.
• Reimbursement, if any, is recognised on receipt and is adjusted to the book value of
Statutory Reports 18.5.8 Depreciation asset and depreciated over the balance life of the asset
106 Directors’ report Depreciation on fixed assets is provided on straight-line method, over estimated
• Whenever there is a revision in the estimated useful life of the asset, the unamortised
146 Report on corporate governance useful lives, as determined by the management, at the rates mentioned below-
depreciable amount is charged over the revised remaining useful life of the said
187 Annual business responsibility report asset
Financial Statements • The useful life of assets is based on historical experience of the Bank, which is
198 Standalone Financials different from the useful life as prescribed in Schedule II to the Companies Act,
2013.
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18.5.9 Impairment of assets Gratuity

Contents The Bank provides for gratuity, a defined benefit retirement plan, covering eligible
Assets are reviewed for impairment whenever events or changes in circumstances
Corporate Overview employees. The plan provides for lump sum payments to vested employees at
indicate that the carrying amount of an asset may not be recoverable. An asset’s
recoverable amount is the higher of an asset’s net selling price and its value in use. If retirement or upon death while in employment or on termination of employment for
A redefined YES
such assets are considered to be impaired, the impairment is recognised by debiting an amount equivalent to 15 days’ eligible salary payable for each completed year of
03 YES BANK at a glance the profit and loss account and is measured as the amount by which the carrying service if the service is more than 5 years. The Bank accounts for the liability for future
05 Products and services amount of the assets exceeds the recoverable amount of the assets. gratuity benefits using the projected unit cost method based on annual actuarial
06 Geographical presence valuation.
18.5.10 Employee benefits
07 Message from the Chairman The defined gratuity benefit plans are valued by an independent actuary as at the
10 Message from the Managing Director Employee Stock Option Scheme (‘ESOS’)
Balance Sheet date using the projected unit credit method as per the requirement
and CEO The Employee Stock Option Scheme (‘the Scheme’) provides for the grant of options to
of AS-15, Employee Benefits, to determine the present value of the defined benefit
12 Key performance indicators acquire equity shares of the Bank to its employees. The options granted to employees
obligation and the related service costs. Under this method, the determination is
15 COVID-19 response vest in a graded manner and these may be exercised by the employees within specified
17 Customer focus based on actuarial calculations, which include assumptions about demographics, early
periods.
21 Technology and digital innovation retirement, salary increases and interest rates. Actuarial gain or loss is recognised in
25 Retail Measurement of the employee share-based payment plans is done in accordance the Profit and Loss account.
with the Guidance Note on Accounting for Employee Share-based Payments issued
Our approach to value creation Provident fund
by Institute of Chartered Accountants of India (ICAI) and SEBI (Share Based Employee
29 Value creation model In accordance with law, all employees of the Bank are entitled to receive benefits
Benefits) Regulations, 2014. The Bank measures compensation cost relating to
31 Our strategy under the provident fund, a defined contribution plan in which both the employee
employee stock options using the intrinsic value method. Compensation cost is
36 Risk management and the Bank contribute monthly at a pre determined rate. Contribution to provident
measured by the excess, if any, of the fair market price of the underlying stock (i.e.
fund are recognized as expense as and when the services are rendered. The Bank has
Our ESG focus the last closing price on the stock exchange on the day preceding the date of grant of
no liability for future provident fund benefits other than its annual contribution.
43 Environment stock options) over the exercise price. The exercise price of the Bank’s stock option is
54 Social the last closing price on the stock exchange on the day preceding the date of grant of In February 2019, the honorable Supreme Court of India in its judgment clarified
69 People stock options and accordingly there is no compensation cost under the intrinsic value that certain special allowances should be considered to measure obligations under
80 Governance method. Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (the PF Act).
The Bank has been legally advised that there are interpretative challenges on the
Statutory Reports Compensated absence
application of judgment retrospectively and as such does not consider there is any
84 Management discussion and analysis The employees of the Bank are entitled to carry forward a part of their unavailed/
probable obligations for past periods. The Bank has given effect of this judgment from
unutilized leave subject to a maximum limit. The employees cannot encash unavailed/
146 Report on corporate governance April 01, 2019 prospectively.
unutilized leave. The Bank provides for leave encashment / compensated absences
187 Annual business responsibility report based on an independent actuarial valuation at the Balance Sheet date, which includes National Pension System (NPS)
Financial Statements assumptions about demographics, early retirement, salary increases, interest rates The NPS is a defined contribution retirement plan. The primary objective is enabling
198 Standalone Financials and leave utilisation. systematic savings and to provide retirees with an option to achieve financial stability.
267 Consolidated Financials Pension contributions are invested in the pension fund schemes. The Bank has no
liability for future fund benefits other than the voluntary contribution made by
employees who agree to contribute to the scheme.
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18.5.11 Leases Provisions are reviewed at each balance sheet date and adjusted to reflect the current
Contents best estimate. If it is no longer probable that an outflow of resources would be required
Leases where the lessor effectively retains substantially all risks and benefits of
Corporate Overview to settle the obligation, the provision is reversed.
ownership are classified as operating leases. Operating lease payments are recognized
A redefined YES as an expense in the profit and loss account on a straight line basis over the lease term Contingent assets are not recognized in the financial statements. However, contingent
02 Key highlights FY 2019-20 in accordance with Accounting Standard -19, Leases. assets are assessed continually and if it is virtually certain that an inflow of economic
03 YES BANK at a glance benefits will arise, the asset and related income are recognized in the period in which
18.5.12 Income taxes
05 Products and services the change occurs.
06 Geographical presence Tax expense comprises current and deferred tax. Current tax comprises of the amount
07 Message from the Chairman of tax for the period determined in accordance with the Income Tax Act, 1961 and 18.5.14 Cash and Cash equivalents
10 Message from the Managing Director the rules framed there under. Deferred income taxes reflects the impact of current Cash and cash equivalents include cash in hand, balances with RBI, balances with
and CEO year timing differences between taxable income and accounting income for the year other banks and money at call and short notice.
12 Key performance indicators and reversal of timing differences of earlier years. Deferred tax assets and liabilities
15 COVID-19 response are recognised for the future tax consequences of timing differences between the 18.5.15 Corporate social responsibility
17 Customer focus carrying values of assets and liabilities and their respective tax bases, and operating Expenditure towards corporate social responsibility, in accordance with Companies
21 Technology and digital innovation loss carry forwards. Deferred tax assets and liabilities are measured using the enacted Act, 2013, are recognised in the Profit and Loss account.
25 Retail or substantively enacted tax rates at the balance sheet date.
18.5.16 Debit and credit cards reward points
Our approach to value creation Deferred tax assets are recognized only to the extent there is reasonable certainty The Bank estimates the probable redemption of debit and credit card reward points
29 Value creation model that the assets can be realized in future. In case of unabsorbed depreciation or carried and cost per point using actuarial valuation method by employing an independent
31 Our strategy
forward loss under taxation laws, all deferred tax assets are recognized only if there actuary, which includes assumptions such as mortality, redemption and spends.
36 Risk management
is virtual certainty of realization of such assets supported by convincing evidence.
Our ESG focus Deferred tax assets are reviewed at each balance sheet date and appropriately Provisions for liabilities on said reward points are made based on the actuarial
43 Environment adjusted to reflect the amount that is reasonably/virtually certain to be realized. valuation report as furnished by the said independent actuary and included in other
54 Social liabilities.
18.5.13 Provisions and contingent assets/liabilities
69 People 18.5.17 Bullion
80 Governance A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more The Bank imports bullion including precious metal bars on a consignment basis for
Statutory Reports uncertain future events not wholly within the control of the Bank or a present obligation selling to its customers. The imports are typically on a back-to-back basis and are
84 Management discussion and analysis priced to the customer based on a price quoted by the supplier. The Bank earns a fee
that arises from past events that is not recognized because it is not probable that an
106 Directors’ report on such bullion transactions. The fee is classified in other income. The Bank also deals
outflow of resources will be required to settle the obligation or a reliable estimate
146 Report on corporate governance in bullion on a borrowing and lending basis and the interest paid / received thereon is
of the amount of the obligation cannot be made. The Bank does not recognize a
187 Annual business responsibility report classified as interest expense / income respectively.
contingent liability but discloses its existence in the financial statements
Financial Statements 18.5.18 Share issue expenses
In accordance with AS 29, Provisions, Contingent Liabilities and Contingent Assets, the
Bank creates a provision when there is a present obligation as a result of a past event Share issue expenses are adjusted from Share Premium Account in terms of Section
that probably requires an outflow of resources and a reliable estimate can be made of 52 of the Companies Act, 2013.
the amount of the obligation.
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18.5.19 Segment information The share allotment under reconstruction scheme is given below:
Contents
The disclosure relating to segment information is in accordance with AS-17, Segment
Corporate Overview Subscription Number of Equity
Reporting and as per guidelines issued by RBI. Sr
Name of Investor Amount Shares Allotted
No.
A redefined YES 18.5.20 Priority Sector Lending Certificates (PSLC) (` in million) (in Million)
03 YES BANK at a glance The Bank, in accordance with RBI circular FIDD.CO.Plan.BC.23/ 04.09.01/2015-16 dated
April 7, 2016, trades in priority sector portfolio by selling or buying PSLC. There is no 1 State Bank of India 60,500 6,050
05 Products and services 2 Housing Development Finance Corporation Limited 10,000 1,000
06 Geographical presence transfer of risks or loan assets in these transactions. The fee paid for purchase of the
3 ICICI Bank Limited 10,000 1,000
07 Message from the Chairman PSLC is treated as an ‘Expense’ and the fee received from the sale of PSLCs is treated
4 Axis Bank Limited 6,000 600
10 Message from the Managing Director as ‘Other Income’. 5 Kotak Mahindra Bank Limited 5,000 500
and CEO 6 The Federal Bank Ltd 3,000 300
18.6 Capital
12 Key performance indicators 7 Bandhan Bank Limited 3,000 300
15 COVID-19 response 18.6.1 Equity Issue 8 IDFC First Bank Limited 2,500 250
17 Customer focus During the financial year ended March 31, 2020, the Bank has issued 231,055,018 TOTAL 100,000 10,000
21 Technology and digital innovation equity shares of `2 each for cash pursuant to a Qualified Institutions Placement (QIP)
25 Retail The Bank accreted `79,550.00 million (net of estimated share issue expenses of `450.00
at `83.55 aggregating to `19,304.64 million.
million) as premium. The Bank also issued 4,384,174 shares pursuant to the exercise of
Our approach to value creation On March 13, 2020, the Government of India notified the “Yes Bank Ltd. Reconstruction stock option aggregating to `284.53 million. During the financial year ended March 31,
29 Value creation model Scheme, 2020” (Scheme). As per the Scheme, authorized capital has been increased 2019, the Bank has issued 12,065,794 shares pursuant to the exercise of stock option
31 Our strategy
from `11,000 million to `62,000 million (`8,000 million as at March 31, 2019). The aggregating to `953.47 million.
36 Risk management
State Bank of India (SBI) and other investors invested in the Bank at a price of `10 per
Movement in Share Capital
Our ESG focus equity share of the Bank (`2 face value with a `8 premium). As per the scheme, SBI is
(` in million)
43 Environment required to hold upto 49% with a minimum holding of 26% by SBI in the Bank (which
54 Social is subject to a 3 year lock in). Other investors are subject to a 3 year lock in for 75% of As at As at
Share Capital
March 31, 2020 March 31, 2019
69 People the investments they make in the Bank under this Scheme. Existing investors (other
80 Governance than investors holding less than 100 shares) in YES Bank are also subject to a lock in for Opening Share Capital 4,630.07 4,605.93
75% of their holding as per this Scheme. Further, as per final reconstruction scheme Addition due to exercise of Stock Option 8.76 24.13
Statutory Reports Addition due to shares issued for QIP 462.11 -
of the Bank, Bank has issued 10,000 million equity shares at `10 each aggregating to
`100,000.00 million. Addition due to shares issued under Reconstruction 20,000.00 -
106 Directors’ report scheme
Closing Share Capital 25,100.94 4,630.07
18.6.2 Proposed Dividend:
198 Standalone Financials The Bank has made loss during the year and as consequence to that the Bank has not
267 Consolidated Financials declared any dividend. Further, the Reserve Bank of India, vide its circular dated April
17, 2020, has declared that banks shall not make any further dividend payouts from
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Schedules
profit pertaining to financial year ended March 31, 2020, until further instructions with (` in million)
Contents the view to conserve capital in the environment of heightened uncertainty caused by As at As at
Corporate Overview Basel – III
COVID- 19. March 31, 2020 March 31, 2019
Credit Risk – Risk Weighted Assets (RWA) 2,036,091.58 2,678,862.12
A redefined YES 18.6.3 Capital Reserve
Market Risk – RWA 137,164.65 191,932.33
Profit on sale of investments in the Held to Maturity category is credited to the Profit Operational Risk – RWA 228,985.68 184,986.56
and Loss Account and thereafter appropriated to capital reserve (net of applicable Total risk weighted assets 2,402,241.90 3,055,781.01
taxes and transfer to statutory reserve requirements). During the year `6,655.51 Common Equity capital adequacy ratio (%) 6.3% 8.4%
million (net of applicable taxes only) (previous year: `1,010.10 million) was transferred Tier-1 capital adequacy ratio (%) 6.5% 11.3%
to Capital Reserve. Tier-2 capital adequacy ratio (%)(*) 2.0% 5.2%
and CEO Total capital adequacy ratio (%) 8.5% 16.5%
18.6.4 Investment Reserve
12 Key performance indicators Amount raised during the year by issue of IPDI - -
The Bank has transferred `147.23 million to Investment Reserve (Previous year: `6.71 Amount raised during the year by issue of Tier II Capital - 30,420.00
17 Customer focus million) (net of applicable taxes and transfer to statutory reserve requirements) on
* Tier I ratio of the Bank was below the regulatory minimum requirements and hence as per RBI
21 Technology and digital innovation provisions for depreciation on investments credited to Profit and Loss Account. guidelines Tier II ratio is restricted to 2%
25 Retail 18.6.5 Cash Flow Hedge Reserve 18.6.8 Tier I and Tier II Capital
Our approach to value creation The Bank has debited `15.53 million to Cash Flow Hedge Reserve (Previous year: During the financial year ended March 31 2020, the Bank has not issued Tier I or Tier
29 Value creation model credited `218.73 million) on cross currency interest rate swaps which are used by the II instruments.
31 Our strategy Bank to hedge its foreign currency borrowings and have been designated as cash flow During the financial year ended March 31 2019, the Bank has issued Tier II instruments
36 Risk management hedges and are measured at fair value. amounting to `30,420 million:
Our ESG focus 18.6.6 Investment Fluctuation Reserve (IFR) (` in million)
43 Environment Nature of Date of Coupon
The Bank had made losses during the year ended March 31, 2020, and hence the Bank Particulars Tenure Amount
54 Social Security Issue Rate (%)
has transferred Nil in IFR (Previous year: `539.07 million).
69 People Rated Listed Non-convertible, Debentures September 9.12 10 Years 30,420
80 Governance 18.6.7 Capital Adequacy Ratio Redeemable, Unsecured, Basel 17, 2018
III compliant Tier 2 Bonds in the
Statutory Reports Capital Adequacy Ratio as per RBI guidelines as at March 31, 2020 is given below:
nature of debentures
84 Management discussion and analysis (` in million)
TOTAL 30,420
106 Directors’ report As at As at
Basel – III
146 Report on corporate governance March 31, 2020 March 31, 2019 Write Down of AT1 Bonds
187 Annual business responsibility report Common Equity Tier I 151,738.68 256,989.71 On March 13, 2020, pursuant to the provisions of Section 45 of the Banking Regulation
Additional Tier I Capital 3,414.00 87,871.00 Act, 1949, the Reserve Bank of India (RBI) reconstituted YES Bank Limited (“the Bank”).
Tier-1 capital 155,152.68 344,860.71 As a consequence of the reconstitution, the Bank was deemed to be non-viable.
Tier-2 capital 152,940.48 159,730.59 Further, the Bank incurred losses and breached RBI mandated Common Equity Ratio
Total capital 308,093.16 504,591.30 (CET 1) and other statutory ratios. This activated the triggers for write-down of Basel
230
Schedules
III additional tier 1 Bonds amounting to `84,150 million (“AT 1 Bonds”) issued by the II) Movement of provisions held towards depreciation on investments
Contents Bank. Accordingly, the Bank was constrained to write down AT Bonds on March 14,
Corporate Overview 2020. The Trustees, on behalf of the holders of AT 1 Bonds have filed a writ petition (` in million)
01 Commitment. Promise. Transparency. As at As at
seeking to challenge the decision of the Bank to write down AT 1 bonds. The Bank, Particulars
A redefined YES March 31, 2020 March 31, 2019
based on the legal opinion of its external independent legal counsel is of the view that
the merits of the Bank’s decision to write down the AT 1 bonds in accordance with the Opening Balance 10,498.18 3,673.29
contractual terms for issuance of AT 1 Bonds. Add: Provision made during the year 64,819.07 7,166.05
Less: Write off / write back of provision during the year - 341.16
06 Geographical presence Interest on Additional Tier I Capital (Unsecured, Non-Convertible, Tier I Subordinated Closing Balance 75,317.25 10,498.18
07 Message from the Chairman Perpetual Bonds in the nature of Promissory Notes issued under Basel II guidelines)
amounting to `84.0 million was not paid by the Bank as the regulatory ratio of the Sales and transfers of securities to/from Held to Maturity (HTM) category
and CEO
Bank were lower than the minimum required. During the year ended March 31, 2020, the Bank has sold and transferred securities
15 COVID-19 response 18.6.9 Investments from HTM category exceeding 5% of the book value of investment held in HTM category
17 Customer focus at the beginning of the year. The 5% threshold referred to above does not include
I) Value of Investments
21 Technology and digital innovation onetime transfer of securities to/from HTM category with the approval of Board of
25 Retail (` in million) Directors permitted to be undertaken by banks as per extant RBI guidelines, sale of
As at
securities under pre-announced Open Market Operation (OMO) auction to the RBI
Our approach to value creation Particulars
As at
March 31, 2020 March 31, 2019 and sale of securities or transfer to AFS / HFT consequent to the reduction of ceiling
Gross value of Investments 514,465.51 905,718.50 on SLR securities under HTM. The book value of HTM investment sold during the
31 Our strategy
– In India 509,999.97 782,311.14 year ended March 31, 2020 was `241,592.9 million. The market value of investments
36 Risk management
– Outside India 4,465.54 123,407.36 (excluding investments in subsidiaries) under HTM category was `316,942.3 million
Our ESG focus and was higher than the book value thereof as at March 31, 2020.
Provision for depreciation* 75,317.25 10,498.17
43 Environment
– In India 72,363.27 10,219.73
54 Social
– Outside India 2,953.98 278.45
69 People
Net Value of Investments 439,148.26 895,220.33
80 Governance
– In India 437,636.70 772,091.41
Statutory Reports – Outside India 1,511.56 123,128.92
* Includes a provision of `68,254.23 million (previous year `987.81 million) held for non
106 Directors’ report performing investments
231
Schedules
18.6.10 Repo Transactions The above table represents the book value of securities sold and purchased under
Contents repos, triparty repos (TREPS) and reverse repos with interbank counterparties. It does
The details of securities sold and purchased under repos and reverse repos during the
Corporate Overview not include securities sold and purchased under Liquidity Adjusted Facility (LAF) with
year ended March 31, 2020:
RBI.
A redefined YES (` in million)
02 Key highlights FY 2019-20 Non-SLR Investment Portfolio
Minimum Maximum Daily average
03 YES BANK at a glance As at i. Issuer composition of Non SLR investments
Particulars outstanding outstanding outstanding
05 Products and services March 31, 2020
during the year during the year during the year Issuer composition of Non SLR investments as at March 31, 2020 is given below:
Securities sold under repos
(` in million)
10 Message from the Managing Director i) Government Securities - 250,626.15 75,718.15 4,000.00 Extent
and CEO ii) Corporate debt - - - - Extent of of ‘below Extent of Extent of
securities private investment ‘unrated’ ‘unlisted’
No Issuer Amount placement grade’ securities # securities*
15 COVID-19 response Security purchased under (a) securities (c) (d)
17 Customer focus reverse repo (b)
21 Technology and digital innovation i) Government Securities - 104,176.27 12,596.33 -
25 Retail ii) Corporate debt - - - - i) PSUs - - - - -
securities ii) Financial Institutions 115,898.28 79,892.87 79,318.77 3,065.10 9,236.96
Our approach to value creation iii) Banks - - - - -
iv) Private Corporates 31,286.71 30,894.21 19,950.00 525.62 5,907.34
31 Our strategy The details of securities sold and purchased under repos and reverse repos during the
v) Subsidiaries/ Joint ventures 2,390.00 2,390.00 - 2,390.00
36 Risk management year ended March 31, 2019:
vi) Others 35,678.82 35,442.14 - - 35,442.14
Our ESG focus (` in million) vii) Provision held towards (75,174.72)
43 Environment depreciation**
Minimum Maximum Daily average
54 Social As at Total 110,079.10 148,619.22 99,268.77 3,590.71 52,976.44
Particulars outstanding outstanding outstanding
March 31, 2019
69 People during the year during the year during the year
*Investments amounting to `49,426.43million are exempted from applicability of RBI prudential limit
80 Governance Securities sold under repos for Unlisted Non-SLR securities
Statutory Reports i) Government Securities - 69,230.88 11,884.73 4,996.81
# excludes investment in equity shares and units, non –Indian government securities of IBU and non
84 Management discussion and analysis ii) Corporate debt - - - - SLR government of India securities
106 Directors’ report securities
146 Report on corporate governance Security purchased under ** Includes a provision of `68,254.23 million held for non performing investments
187 Annual business responsibility report reverse repo

i) Government Securities - 96,027.29 20,868.98 20,310.16
ii) Corporate debt - - - -
securities
232
Schedules
Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive. 18.6.11 Derivatives
Contents
Issuer composition of Non SLR investments as at March 31, 2019 is given below: Forward Rate Agreement/ Interest Rate Swap
Corporate Overview
The details of Forward Rate Agreements / Interest Rate Swaps outstanding as at March
A redefined YES (` in million) 31, 2020 is given below:
02 Key highlights FY 2019-20 Extent
Extent of Extent of Extent of
of ‘below (` in million)
03 YES BANK at a glance private ‘unrated’ ‘unlisted’
investment As at As at
05 Products and services No Issuer Amount placement
grade’
securities # securities* Sr. No Items
(a) (c) (d) March 31, 2020 March 31, 2019
06 Geographical presence securities
07 Message from the Chairman (b) i) The notional principal of swap agreements 1,866,270.43 1,702,671.19
10 Message from the Managing Director i) PSUs 1,112.80 1,112.80 - - 62.80 ii) Losses which would be incurred if counterparties 4,408.91 2,740.33
and CEO failed to fulfill their obligations under the
ii) Financial Institutions 129,659.42 86,742.28 - 3,065.10 15,756.38
12 Key performance indicators agreements1
iii) Banks 696.05 0.00 - 0.00 696.05
15 COVID-19 response iii) Collateral required by the bank upon entering into - -
iv) Private Corporates 51,852.94 51,132.73 5,500.00 525.62 7,799.85
17 Customer focus swaps
v) Subsidiaries/ Joint ventures 2,240.00 2,240.00 - 2,240.00
21 Technology and digital innovation iv) Concentration of credit risk arising from the swaps 11.02% 12.75%
vi) Others 166,501.23 45,644.20 - - 166,241.23
25 Retail [Percentage Exposure to Banks] 1
vii) Provision held towards (10,453.24) -
Our approach to value creation depreciation** [Percentage Exposure to PSUs] 1 27.25% 22.14%
29 Value creation model Total 341,609.21 186,872.01 5,500.00 3,590.71 192,796.31 v) The fair value of the swap book 2 (741.28) (1,661.03)
31 Our strategy - INBMK (696.49) (179.66)
Investments amounting to `189,246.31 million are exempted from applicability of RBI prudential limit - MIBOR (380.88) (1,280.48)
36 Risk management
for Unlisted Non-SLR securities
- MIFOR (993.94) (542.91)
Our ESG focus # excludes investment in equity shares and units, non –Indian government securities of IBU and non - FCY IRS 1,330.02 342.03
43 Environment SLR government of India securities
54 Social ** Includes a provision of `987.81 million held for non performing investments
1
Losses and Credit risk concentration are measured as net receivable under swap contracts
69 People 2
Fair values represent mark-to-market including accrued interest.
Amounts reported under columns (a), (b), (c) and (d) above are not mutually exclusive.
80 Governance
The nature and terms of the Rupee IRS as on March 31, 2020 are set out below:
ii. Non-Performing Investments
Statutory Reports
84 Management discussion and analysis (` in million)
(` in million)
106 Directors’ report Nature Nos. Notional Principal Benchmark Terms
Particulars March 31, 2020 March 31, 2019
146 Report on corporate governance Trading 10 12,000.00 INBMK Fixed Payable V/S Floating Receivable
Opening Balance 1,154.08 674.94
187 Annual business responsibility report Trading 1 1,000.00 INBMK Fixed Receivable V/S Floating Payable
Additions during the year 91,069.68 479.14
Trading 743 290,287.95 MIBOR Fixed Payable V/S Floating Receivable
Financial Statements Reductions during the year - -
Trading 741 278,097.10 MIBOR Fixed Receivable V/S Floating Payable
198 Standalone Financials Closing Balance 92,223.76 1,154.08
Trading 249 93,574.20 MIFOR Fixed Payable V/S Floating Receivable
267 Consolidated Financials Total Provision Held 68,254.23 987.81
Trading 178 69,019.80 MIFOR Fixed Receivable V/S Floating Payable
233
Schedules
The nature and terms of the FCY IRS as on March 31, 2020 are set out below: (` in million)
Contents Nature Nos. Notional Principal Benchmark Terms
Corporate Overview (` in million)
Trading 14 11,152.68 GBP LIBOR Fixed Payable V/S Floating Receivable
01 Commitment. Promise. Transparency. Nature Nos. Notional Principal Benchmark Terms
Trading 3 10,863.00 GBP LIBOR Fixed Receivable V/S Floating Payable
A redefined YES
Hedging 2 36,103.25 USD LIBOR Fixed Receivable V/S Floating Payable
02 Key highlights FY 2019-20 18.6.12 Un-hedged / uncovered foreign currency exposure of the Bank
Trading 744 404,022.83 USD LIBOR Fixed Payable V/S Floating Receivable
Trading 718 407,992.62 USD LIBOR Fixed Receivable V/S Floating Payable The Bank’s foreign currency exposures as at March 31, 2020 that are not hedged/
Trading 191 245,277.18 USD LIBOR Floating Payable V/S Floating Receivable covered by either derivative instruments or otherwise are within the Net Overnight
Trading 35 4,562.73 EURIBOR Fixed Payable V/S Floating Receivable Open Position limit (NOOP) and the Aggregate Gap limit, as approved by the RBI.
Trading 53 5,265.57 EURIBOR Fixed Receivable V/S Floating Payable NOOP is `5,561.32 million as at March 31, 2020 (March 31, 2019 `2,205.59 million).
and CEO Trading 1 139.26 JPY LIBOR Fixed Payable V/S Floating Receivable
18.6.13 Exchange Traded Interest Rate Derivatives
12 Key performance indicators Trading 13 9,181.95 GBP LIBOR Fixed Payable V/S Floating Receivable
15 COVID-19 response Trading 13 9,659.74 GBP LIBOR Fixed Receivable V/S Floating Payable The following table sets forth, for the period indicated, the details of exchange traded
17 Customer focus Trading 1 86.25 AUD LIBOR Fixed Receivable V/S Floating Payable interest rate derivatives:
21 Technology and digital innovation (` in million)
The nature and terms of the Rupee IRS as on March 31, 2019 are set out below:
25 Retail
As at As at
Sr.No. Particulars
(` in million) March 31, 2020 March 31, 2019
29 Value creation model Nature Nos. Notional Principal Benchmark Terms 1 Notional Principal amount of exchange traded
31 Our strategy Trading 13 15,760.00 INBMK Fixed Payable V/S Floating Receivable interest rate derivatives undertaken during the
36 Risk management Trading 1 1,000.00 INBMK Fixed Receivable V/S Floating Payable year :
Trading 630 278,870.61 MIBOR Fixed Payable V/S Floating Receivable - 6.79% Government Securities 2027 - 22,884.80
Our ESG focus
Trading 645 261,024.55 MIBOR Fixed Receivable V/S Floating Payable -7.17% Government Securities 2028 66,193.40 173,803.40
43 Environment
Trading 266 103,934.30 MIFOR Fixed Payable V/S Floating Receivable -6.68% Government Securities 2031 750.00 750.00
54 Social
Trading 173 64,632.70 MIFOR Fixed Receivable V/S Floating Payable -7.26% Government Securities 2029 207,328.40 -
69 People
-7.27% Government Securities 2026 4,000.00 -
80 Governance The nature and terms of the FCY IRS as on March 31, 2019 are set out below:
-7.57% Government Securities 2033 5,050.00 -
Statutory Reports (` in million) -6.45% Government Securities 2029 51,647.20 -
84 Management discussion and analysis Nature Nos. Notional Principal Benchmark Terms 2 Notional Principal amount of exchange traded
106 Directors’ report interest rate derivatives outstanding-
Hedging 2 32,997.03 USD LIBOR Fixed Receivable V/S Floating Payable
146 Report on corporate governance -7.17% Government Securities 2028 - 4,945.00
Trading 611 347,201.72 USD LIBOR Fixed Payable V/S Floating Receivable
187 Annual business responsibility report -6.68% Government Securities 2031 - 750.00
Trading 548 339,546.98 USD LIBOR Fixed Receivable V/S Floating Payable -6.45% Government Securities 2029 50.00 -
Financial Statements Trading 228 225,530.36 USD LIBOR Floating Payable V/S Floating Receivable 3 Notional Principal amount of exchange traded
198 Standalone Financials Trading 36 4,728.11 EURIBOR Fixed Payable V/S Floating Receivable interest rate derivatives outstanding and not
267 Consolidated Financials Trading 42 5,304.32 EURIBOR Fixed Receivable V/S Floating Payable “highly effective”
Trading 1 124.84 JPY LIBOR Fixed Payable V/S Floating Receivable
234
Schedules
(` in million) d) The Bank has an independent Middle Office and Market Risk functions, which
Contents As at As at are responsible for monitoring, measurement, and analysis of derivative related
Corporate Overview Sr.No. Particulars
March 31, 2020 March 31, 2019 risks, among others. The Bank has a Credit Risk Management unit which is
responsible for setting up counterparty limits and also a treasury operation unit
A redefined YES
4 Mark-to-Market value of exchange traded interest which is responsible for managing operational aspects of derivatives including
rate derivatives outstanding and not “highly settlement of transactions. The Bank is subject to a concurrent audit for all
effective” treasury transactions, including derivatives transactions, a monthly report of
06 Geographical presence 18.6.14 Currency Futures which is periodically submitted to the Audit & Compliance Committee of the
07 Message from the Chairman Bank.
The Bank had dealt in exchange traded currency forwards (Futures) during the
financial year ended March 31, 2020 and March 31, 2019. As at March 31, 2020 the e) In addition to the above, the Bank independently evaluates the potential credit
and CEO
open contracts on the exchange were Nil and for March 31, 2019 were to the tune of exposure on account of all derivative transactions, wherein risk limits are
USD 4.10 million (`285.29 million) for April 2019 expiry. specified separately for each product, in terms of both credit exposure and
17 Customer focus tenor. As mandated by the Credit Policy of the Bank, the Bank has instituted an
18.6.15 Disclosures on risk exposure in derivatives
21 Technology and digital innovation approval structure for all treasury/derivative related credit exposures. Wherever
As per RBI Master circular DBR.BP.BC.No.23/21.04.018/2015-16 dated July 1, 2015, the necessary, appropriate credit covenants are stipulated as trigger events to call for
25 Retail
following disclosures are being made with respect to risk exposure in derivatives of collaterals or terminate transaction and contain the risks.
Our approach to value creation the Bank:
29 Value creation model f) The Bank reports all trading positions to the management on a daily basis.
a) Purpose: The Bank uses Derivatives including Forwards & swaps for various The Bank revalues its trading position on a daily basis for Management and
31 Our strategy
purposes including hedging its currency and interest rate risk in its balance sheet, Information System (‘MIS’) and control purposes and records the same in the
36 Risk management
customer offerings and proprietary trading. The management of these products books of accounts on a monthly basis.
Our ESG focus and businesses is governed by Market Risk Policy, Investment Policy, Derivatives
43 Environment Policy, Derivatives Appropriateness Policy, Hedging Policy and ALM policy. g) For derivative contracts in the banking book designated as hedge, the Bank
54 Social documents at the inception of the relationship between the hedging instrument
69 People b) Structure: The Board of Directors of the Bank have constituted a Board level and the underlying exposure, the risk management objective for undertaking
80 Governance sub-committee, the Risk Monitoring Committee (‘RMC’) and delegated to it all the hedge and the ALCO monitors all outstanding hedges on a periodical basis.
functions and responsibilities relating to the risk management policy of the Bank Further the Bank’s ‘Hedging Policy’ has stipulated conditions to ensure that the
Statutory Reports and its supervision thereof. Hedges entered into are effective.
106 Directors’ report c) As part of prudent business and risk management practice, the Bank has also h) Refer Note 18.5.6 for accounting policy on derivatives.
146 Report on corporate governance instituted a comprehensive limit and control structure encompassing Value-at-
187 Annual business responsibility report Risk (VAR), Sensitivity, Greeks, Stop loss & credit limits for derivative transactions
including suitability and appropriateness framework. The Bank has an internal
reporting mechanism providing regular reports to the RMC as well as to the
management of the Bank. Such a structure helps the Bank to monitor and
mitigate market risk across FX and interest rates.
235
Schedules
The details of derivative transactions as at March 31, 2020 and March 31, 2019 are
3
Mark to Market for credit exposure includes accrued interest.
Contents given below: 4
Interest rate derivatives include Interest Rate Swaps, forward rate agreements and exchange traded
Corporate Overview interest rate derivatives.
01 Commitment. Promise. Transparency. (` in million)
A redefined YES Note:
Currency derivatives1 Interest rate derivatives 4
So. As at As at As at As at 1) Denotes absolute value of loss which the Bank could suffer on account of a change
03 YES BANK at a glance Particulars
Nos. March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 in interest rates by 1% which however doesn’t capture the off-setting exposures
i) Derivatives (Notional between interest rate and currency derivatives.
Principal Amount)
07 Message from the Chairman 2) PV01 exposures reported above may not necessarily indicate the interest rate
a) For hedging 5,642.15 24,894.18 36,103.25 32,997.03
risk the Bank is exposed to, given that PV01 exposures in Investments (which may
and CEO b) For trading 542,581.81 837,853.50 1,830,218.15 1,675,217.65
offset the PV01 reflected above) do not form part of the above table.
12 Key performance indicators ii) Marked to market
15 COVID-19 response positions2 3) The notional principal amount of foreign exchange contracts classified as
17 Customer focus a) Asset (+) 19,535.19 11,870.11 30,747.24 11,227.54 trading at March 31, 2020 amounted to `1,496,207.26 million (previous year:
21 Technology and digital innovation b) Liability (-) 23,096.02 12,210.08 33,599.65 13,228.06 ` 2,816,549.88 million). For these trading contracts, as on March 31, 2020, marked
25 Retail iii) Credit exposure3 58,076.46 64,931.17 47,601.51 26,289.71 to market position was asset of `34,541.65 million (Previous year: `40,879.82
iv) Likely impact of one million) and liability of `33,551.58 million (Previous Year: `42,674.09 million). The
percentage change in notional principal amount of foreign exchange contracts classified as hedging
interest rate (100*PV01) at March 31, 2020 amounted to `23,260.15 million (previous year: `17,548.88
31 Our strategy (Refer Note 1&2 below) million). Credit exposure on forward exchange contracts at March 31, 2020 was
36 Risk management a) on hedging 71.75 320.47 941.23 941.23 ` 57,079.44 million (Previous Year: `101,707.60 million) of which exposure on CCIL
Our ESG focus derivatives
is `28,336.86 million (Previous Year: `55,019.15 million).
43 Environment b) on trading derivatives 725.32 1,283.29 1,425.50 2,205.81
54 Social v) Maximum and minimum Asset quality
of 100*PV01 observed
69 People 18.6.16 Non-Performing Advances
during the year (Refer
80 Governance The details of movement of gross NPAs, net NPAs and provisions during the year
Note 1&2 below)
Statutory Reports a) on hedging ended March 31, 2020 and the year ended March 31, 2019 are given below :
84 Management discussion and analysis Maximum 339.25 564.00 1,209.84 1,779.17
(` in million)
106 Directors’ report Minimum 71.40 308.14 848.67 1,082.50
Sr.No. Particulars March 31, 2020 March 31, 2019
146 Report on corporate governance b) on trading
187 Annual business responsibility report Maximum 1,455.90 1,368.24 2,362.83 2,932.88 (i) Net NPA to Net Advances 5.03% 1.86%
Minimum 670.30 348.04 1,200.15 1,654.17 (ii) Movement of NPAs (Gross)
Financial Statements (a) Opening balance 78,825.60 26,268.02
198 Standalone Financials 1
Currency derivatives includes options purchased and sold, cross currency interest rate swaps and (b) Additions (Fresh NPAs during the year) 372,724.86 79,703.31
267 Consolidated Financials currency futures.
Subtotal (A) 451,550.46 105,971.33
2
Trading portfolio including accrued interest.
236
Schedules
(` in million) During the financial year ended March 31, 2020, the Bank had written off certain NPA
Contents Sr.No. Particulars as a technical write off.
March 31, 2020 March 31, 2019
Corporate Overview Less:
(i) Up-gradations 25,593.93 11,149.95
A redefined YES Particulars
(ii) Recoveries 28,760.66 11,306.45 March 31, 2020 March 31, 2019
(iii) Write-offs (including Technical Write Off) 68,419.98 4,689.33 Opening balance of Technical Write off as at April 01 - -
Sub-total (B) 122,774.57 27,145.73 Add: Technical Write off during the financial year 63,580.60 -
Gross NPAs (closing balance) (A-B) 328,775.89 78,825.60 Less: Recoveries made from previously Technical Written off - -
(iii) Movement of Net NPAs Accounts in previous financial year.
10 Message from the Managing Director (a) Opening Balance 44,848.50 13,127.46 Closing balance of Technical Write off as at March 31 63,580.60 -
and CEO (b) Additions during the year 85,296.67 50,002.04 18.6.17 Provision coverage Ratio
12 Key performance indicators (c) Reductions during the year 43,907.37 18,281.00
The provision coverage ratio of the Bank as at March 31, 2020 computed as per the RBI
(d) Closing balance 86,237.80 44,848.50
17 Customer focus guidelines is 73.77% (previous year 43.10%)
(iv) Movement of provisions for NPAs
21 Technology and digital innovation (excluding provision on standard assets) 18.6.18 Divergence in Asset Classification and Provisioning for NPAs
25 Retail (a) Opening balance 33,977.10 13,140.56 In terms of the RBI circular no. DBR.BP.BC.No.32/21.04.018/2018-19 dated April 1, 2019.
Our approach to value creation (b) Additions during the year 287,428.19 29,701.27 banks are required to disclose the divergences in asset classification and provisioning
29 Value creation model (c) write off / write back of excess provision 78,867.20 8,864.73 consequent to RBI's annual supervisory process in their notes to accounts to the
31 Our strategy (d) Closing balance 242,538.09 33,977.10 financial statements, wherever either or both of the following conditions are satisfied:
36 Risk management (a) the additional provisioning for NPAs assessed by RBI exceeds 10 per cent of the
From the quarter ended December 31, 2019, the Bank considers slippages in Corporate
Our ESG focus NPAs post the period end till the date of results / financial statement, while determining reported profit before provisions and contingencies for the reference period and
43 Environment NPAs and related provisioning requirements. As a consequence NPA till March 13, (b) the additional Gross NPAs identified by RBI exceed 15 per cent of the published
54 Social 2020 was considered in the quarter ended December 2019 results. Subsequently, RBI incremental Gross NPAs for the reference period. As part of the Risk Based Supervision
69 People gave guidelines vide circular dated March 27, 2020 and April 17, 2020 on COVID-19 (RBS) exercise for FY 2018-19 concluded in November 2019, the RBI has pointed out
80 Governance Regulatory Package. Under which, the Bank granted a moratorium of three months certain retrospective divergence in the Bank's asset classification and provisioning as
on the payment of all installments and / or interest, as applicable, falling due between on March 31, 2019. In conformity with the above mentioned RBI circular, the below
Statutory Reports table outlines divergences in asset classification and provisioning.
March 1, 2020 and May 31, 2020. The Bank in line with RBI circular has upgraded NPA’s
106 Directors’ report of `312.15 million (slipped between March 1, 2020 to March 13, 2020) which it had
146 Report on corporate governance declared as NPA as at December 31, 2020.
237
Schedules
(` in million) 18.6.21 Sector-wise Advances and NPA

Contents Sr. Particulars
The details of Sector-wise Gross Advances and Gross NPAs as at March 31, 2020 and
Corporate Overview
1 Gross NPAs as on March 31, 2019 as reported by the Bank 78,825.59 March 31, 2019 are given below:
2 Gross NPAs as on March 31, 2019 as assessed by RBI 111,595.59 (` in million)
A redefined YES
3 Divergence in Gross NPAs (2-1) 32,770.00 As at March 31, 2020 As at March 31, 2019
4 Net NPAs as on March 31, 2019 as reported by the Bank 44,848.49 % of Gross % of Gross
03 YES BANK at a glance NPAs to NPAs to
5 Net NPAs as on March 31, 2019 as assessed by RBI 67,838.49 Gross Gross Gross Gross
05 Products and services Sector Gross Gross
Advances NPAs Advances NPAs Advances in
6 Divergence in Net NPAs (5-4) 22,990.00 Advances in
06 Geographical presence that sector that sector
07 Message from the Chairman 7 Provision for NPAs as on March 31, 2019 as reported by the Bank 33,977.10
Priority Sector
10 Message from the Managing Director 8 Provision for NPAs as on March 31, 2019 as assessed by RBI 43,757.10
Agriculture and Allied 79,647.00 4,673.54 5.87% 111,749.39 1,898.74 1.70%
and CEO 9 Divergence in provisioning (8-7) 9,780.00 activities
12 Key performance indicators 10 Reported Net Profit after Tax (PAT) for the year ended 17,202.79 Advances to industries 105,102.24 1,773.45 1.69% 129,938.12 524.80 0.40%
15 COVID-19 response March 31, 2019 sector eligible as
priority sector lending
17 Customer focus 11 Adjusted (notional) Net Profit after Tax (PAT) for the year ended 10,840.31
Gems and Jewellery 20,304.04 24.28 0.12% 30,993.87 5.10 0.02%
21 Technology and digital innovation March 31, 2019 after taking into account the divergence in
Textile 13,420.26 100.57 0.75% 16,092.38 144.72 0.90%
25 Retail provisioning
Services 263,133.75 4,407.02 1.67% 276,349.81 2,416.79 0.87%
Our approach to value creation 18.6.19 Disclosure as per requirement of Prudential Framework for Resolution Personal Loans - - - 179.12 11.57 6.46%
29 Value creation model of Stressed Assets Others 30,672.76 567.39 1.85% 23,134.42 142.80 0.62%
31 Our strategy
As per requirement of RBI circular on Prudential Framework for Resolution of Stressed Sub-Total (A) 478,555.75 11,421.40 2.39% 541,350.86 4,994.69 0.92%
36 Risk management
Assets dated June 7, 2019, below mentioned are details as of March 31, 2020. Non Priority Sector
Our ESG focus Agriculture and Allied 10,433.92 - - 40,838.96 1,436.64 3.52%
(` in million) activities
43 Environment
Aggregate Loan Industry 791,414.54 197,295.10 24.93% 1,015,658.40 49,271.25 4.85%
54 Social Sr. No. Description of Resolution Plan (RP) No of cases
Outstanding Construction 100,392.51 68,998.41 68.73% 123,099.91 6,533.30 5.31%
69 People
1 Payment of Overdues by the borrower 49 76,287.76 Electricity (generation- 91,443.87 25,943.61 28.37% 128,619.87 6,674.29 5.19%
80 Governance transmission and
2 Restructuring / change in ownership outside IBC - -
distribution)
Statutory Reports Services 496,107.12 117,654.36 23.77% 687,709.95 21,678.71 3.15%
84 Management discussion and analysis 3 Resolution pursued under IBC - - Commercial Real 232,582.40 73,512.82 31.76% 238,146.48 11,369.22 4.77%
106 Directors’ report 4 Assignment of debt / recovery proceedings - - Estate
146 Report on corporate governance NBFCs 23,648.99 8,270.81 34.97% 69,941.58 73.55 0.11%
187 Annual business responsibility report 18.6.20 Concentration of NPAs Tourism, Hotel and 74,510.02 0.01 0.00% 120,061.67 99.24 0.08%
Exposure (Funded + Non Funded) of the Bank to top four NPA is `85,314.08 million as Restaurants
Financial Statements Personal Loans 50,645.71 678.96 1.34% 43,403.39 514.21 1.18%
at March 31, 2020 (previous year `32,843.86 million).
198 Standalone Financials Others 129,813.98 1,726.06 1.33% 120,011.56 930.10 0.78%
267 Consolidated Financials Sub-Total (B) 1,478,415.28 317,354.48 21.47% 1,907,622.26 73,830.90 3.87%
Total (A+B) 1,956,971.03 328,775.88 16.80% 2,448,973.12 78,825.60 3.22%
238
Schedules
18.6.22 Restructured Accounts

Contents
The details of accounts Restructured during the year ended March 31, 2020 are given below:
Corporate Overview
A redefined YES Type of Restructured Accounts as on April 1 of Downgradations of restructured Upgradations to restructured Write-offs/Sale/Recovery of Restructured Accounts as on
No Fresh restructuring during the year
02 Key highlights FY 2019-20 Restructuring the FY (opening figures) accounts during the FY standard category during the FY restructured accounts during the FY March 31 of the FY
03 YES BANK at a glance Amount Provision Amount Provision
05 Products and services Asset No. of outstanding thereon as No. of Amount Provision No. of Amount Provision No. of Amount Provision No. of Amount Provision No. of outstanding thereon as
Classification borrowers as at March at March borrowers outstanding thereon borrowers outstanding thereon borrowers outstanding thereon borrowers outstanding thereon borrowers as at March at March
31,2019 31,2019 31,2020 31,2020
07 Message from the Chairman 1 CDR
10 Message from the Managing Director Standard - - - - - - - - - - - - - - - - - -
and CEO
Substandard - (0.00) (0.00) - - - - - - - - - - - - - - -
Doubtful 2.00 242.97 242.97 - - - (2.00) (242.97) (242.97) - - - - - - - - -
Loss - - - - - - 2.00 242.97 242.97 - - - - - - 2.00 242.97 242.97
17 Customer focus
Total 2.00 242.97 242.97 - - - - - - - - - - - - 2.00 242.97 242.97
2 Others
25 Retail
Standard - 0.00 0.00 - - - - - - - - - - - - - - -
Our approach to value creation Substandard 1.00 22.74 3.41 - - - (1.00) (22.74) (3.41) - - - - - - - - -
29 Value creation model Doubtful 4.00 950.06 852.47 - - - (1.00) (243.97) (146.38) - - - (1.00) (289.29) (289.29) 2.00 416.79 416.79
31 Our strategy Loss - - - - - - 2.00 266.71 149.79 - - - - (1.61) 115.31 2.00 265.10 265.10
36 Risk management Total 5.00 972.80 855.88 - - - - - - - - - (1.00) (290.90) (173.99) 4.00 681.90 681.90
Our ESG focus 3 Grand Total
43 Environment Standard - 0.00 0.00 - - - - - - - - - - - - - - -
54 Social Substandard 1.00 22.74 3.41 - - - (1.00) (22.74) (3.41) - - - - - - - - -

69 People Doubtful 6.00 1,193.03 1,095.44 - - - (3.00) (486.94) (389.35) - - - (1.00) (289.29) (289.29) 2.00 416.79 416.79
80 Governance Loss - - - - - - 4.00 509.68 392.76 - - - - (1.61) 115.31 4.00 508.07 508.07
Total 7.00 1,215.77 1,098.85 - - - - - - - - - (1.00) (290.90) (173.99) 6.00 924.87 924.87
Statutory Reports
84 Management discussion and analysis Notes:-
1. There are no SME cases which have been restructured during the year ended March 31, 2020 except those disclosed in point no 18.6.23 .
187 Annual business responsibility report 2. Divergence identified for the financial year ended March 31, 2019 on account of non compliance with RBI guidelines on restructuring are disclosed in Divergence Note (Note
no. 18.6.18).
3. There have been no accounts upgraded from restructured advances during the year ended March 31, 2020
267 Consolidated Financials 4. The outstanding amount and number of borrowers as at March 31, 2020 is after considering recoveries and sale of assets during the year.
5. The above table pertains to advances and does not include investment in shares which are fully provided for.
239
Schedules
6. The provision in the above table includes Non Performing Advances Provision held on the restructured advances.
Contents
7. Additional facilities availed by borrowers in existing restructured accounts are disclosed under “Fresh restructuring during the year” and partial repayments in existing
Corporate Overview
restructured accounts are disclosed under “Write-offs/sale/recovery of restructured accounts”, however, for the purpose of arithmetical accuracy, the number of existing
A redefined YES borrowers availing additional facility or partial repayments have been ignored for presentation purpose.
02 Key highlights FY 2019-20 8. For the purpose of arithmetical accuracy as required by Para 3.4.2. (xii) of RBI circular no DBR.BP.BC.No.23/21.04.018/2015-16 movement in provisions in the existing
03 YES BANK at a glance restructured account as compared to opening balance, is disclosed under column fresh restructuring(for increase in provision) and write-off/sale/recovery(for decrease in
05 Products and services provision) during the year and are not comparable with the additional facilities availed and partial recovery disclosed under the respective columns.
The details of accounts Restructured during the year ended March 31, 2019 are given below:
10 Message from the Managing Director (` in million)
and CEO
12 Key performance indicators Write-offs/Sale/Recovery of
Type of Restructured Accounts as on April 1 of Downgradations of restructured Upgradations to restructured Restructured Accounts as on
No Fresh restructuring during the year restructured accounts during
15 COVID-19 response Restructuring the FY (opening figures) accounts during the FY standard category during the FY March 31 of the FY
the FY
17 Customer focus
Amount Provision Amount Provision
21 Technology and digital innovation Asset No. of outstanding thereon as No. of Amount Provision No. of Amount Provision No. of Amount Provision No. of Amount Provision No. of outstanding thereon as
25 Retail Classification borrowers as at March at March borrowers outstanding thereon borrowers outstanding thereon borrowers outstanding thereon borrowers outstanding thereon borrowers as at March at March
31,2018 31,2018 31,2019 31,2019
Our approach to value creation 1 CDR
29 Value creation model Standard - - - - - - - - - - - - - - - - - -
31 Our strategy Substandard - - - - - - - - - - - - - - - - - -
36 Risk management Doubtful 2 248.48 248.48 - - - - - - - - - - (5.51) (5.51) 2 242.97 242.97
Our ESG focus Loss - - - - - - - - - - - - - - - - - -
43 Environment Total 2 248.48 248.48 - - - - - - - - - - (5.51) (5.51) 2 242.97 242.97
54 Social 2 Others
69 People Standard 3 913.27 51.72 (1) (38.79) (1.94) - - - (2) (874.47) (49.78) - - -
80 Governance Substandard 1 243.97 146.38 1.47 - (205.18) (144.44) - - - (16.06) 1 22.74 3.41
Doubtful 4 1,161.13 617.10 0.20 289.78 1 243.97 146.38 - - - (1) (455.24) (200.79) 4 950.06 852.47
Statutory Reports
Loss - - - - - - - - -
Total 8 2,318.37 815.21 - 0.20 291.25 - - - - - - (3) (1,345.77) (250.57) 5 972.80 855.88
3 Grand Total
Standard 3 913.27 51.72 - - - (1.00) (38.79) (1.94) - - - (2) (874.47) (49.78) - - -
Substandard 1 243.97 146.38 - - 1.47 - (205.18) (144.44) - - - - (16.06) - 1 22.74 3.41
Financial Statements Doubtful 6 1,409.61 865.58 - 0.20 289.78 1.00 243.97 146.38 - - - (1) (460.75) (206.30) 6 1,193.03 1,095.44
198 Standalone Financials Loss - - - - - - - - - - - - - - - - - -
267 Consolidated Financials Total 10 2,566.85 1,063.68 - 0.20 291.25 - - - - - - (3) (1,351.28) (256.08) 7 1,215.77 1,098.85
240
Schedules
Notes:- 18.6.24 Disclosure under COVID19 Regulatory Package

Contents
1. There are no SME cases which have been restructured during the year ended As per requirement of RBI circular RBI/2019-20/220 DOR.No.BP.BC.63/21.04.048/2019-
Corporate Overview
01 Commitment. Promise. Transparency. March 31, 2019. 20 dated April 17, 2020 on COVID19 Regulatory Package - Asset Classification and
A redefined YES Provisioning, below mentioned are details of where moratorium / deferment was
2. There have been no accounts upgraded from restructured advances during the extended as of March 31, 2020 as per above circular.
03 YES BANK at a glance year ended March 31, 2019
(` in million)
05 Products and services 3. The outstanding amount and number of borrowers as at March 31, 2019 is after
06 Geographical presence Particulars
considering recoveries and sale of assets during the year.
07 Message from the Chairman Respective amounts in SMA/overdue categories, where the moratorium/ 150,105.54
10 Message from the Managing Director 4. The above table pertains to advances and does not include investment in shares deferment was extended, in terms of paragraph 2 and 3 of above
and CEO which are fully provided for. mentioned circular*;
12 Key performance indicators Respective amount where asset classification benefits is extended. 27,129.45
5. The provision in the above table includes general loan loss provision and other
17 Customer focus provisions held on the restructured advances.
Provisions made during the Q4FY2020 terms of paragraph 5 of above 2,378.42
21 Technology and digital innovation 6. Additional facilities availed by borrowers in existing restructured accounts are mentioned circular;
25 Retail disclosed under “Fresh restructuring during the year” and partial repayments in Provisions adjusted during the respective accounting periods against Not Applicable
Our approach to value creation existing restructured accounts are disclosed under “Write-offs/sale/recovery of slippages and the residual provisions in terms of paragraph 6 of above
restructured accounts”, however, for the purpose of arithmetical accuracy, the mentioned circular
31 Our strategy number of existing borrowers availing additional facility or partial repayments
* Borrowers with overdue status as of February 29, 2020 and continue to be in overdue as of March 31,
36 Risk management have been ignored for presentation purpose.
2020. Reported amount is position as of March 31, 2020.
Our ESG focus 7. For the purpose of arithmetical accuracy as required by Para 3.4.2. (xii) of RBI
From the quarter ended December 31, 2019, the Bank consider slippages in Corporate
43 Environment circular no DBR.BP.BC.No.23/21.04.018/2015-16 movement in provisions in the
NPAs post the period end till the date of results / financial statement, while determining
54 Social existing restructured account as compared to opening balance, is disclosed
NPAs and related provisioning requirements. Hence NPAs till March 13, 2020 was
69 People under column fresh restructuring(for increase in provision) and write-off/sale/
considered in the quarter and nine months ended December 2019 results reported
80 Governance recovery(for decrease in provision) during the year and are not comparable
on March 14, 2020. Further the Bank had decided, on a prudent basis, to enhance its
with the additional facilities availed and partial recovery disclosed under the
Statutory Reports Provision Coverage Ratio on its NPA loans over and above the RBI loan level provisioning
respective columns.
84 Management discussion and analysis requirements. As a result, the Bank recognized additional provisions of `154,220.39
106 Directors’ report 18.6.23 Restructuring of Advances - Micro Small and Medium Enterprises. million in the quarter ended December 31,2019. Subsequently, RBI issued guidelines
146 Report on corporate governance on COVID-19 Regulatory Package, under which, the Bank granted a moratorium of
During the year ended March 31, 2020, the Bank has restructured advances amounting
187 Annual business responsibility report three months on the payment of all installments and / or interest, as applicable,
to `369.24 million (previous year – Nil) to Micro Small and Medium Enterprises.
Financial Statements falling due between March 1, 2020 and May 31, 2020. For all such accounts where the
198 Standalone Financials moratorium is granted ((except advances at IFSC Banking Unit (IBU) and advances to
267 Consolidated Financials NBFC sector), the asset classification shall remain stand still during the moratorium
period (i.e. the number of days past-due shall exclude the moratorium period for the
241
Schedules
purposes of asset classification under the Income Recognition, Asset Classification (` in million)
Contents and Provisioning norms) and as the asset classification as of March 31, 2020 has been Backed by NPAs* sold by
Corporate Overview retained based on the overdue status as at February 29, 2020. Hence on account of other banks/ financial
Backed by NPAs* sold by
01 Commitment. Promise. Transparency. institutions/ non-banking Total
above mentioned RBI circular dated April 17, 2020, Bank has not considered slippages the Bank as underlying
financial companies as
A redefined YES
post March 31, 2020 till the date of results / financial statement. underlying
03 YES BANK at a glance As at As at As at As at As at As at
In line with RBI requirements, the Bank holds necessary provisions as at March 31,
Particulars March 31, March 31, March 31, March 31, March 31, March 31,
05 Products and services 2020 against the assets where the asset classification benefit has been extended on 2020 2019 2020 2019 2020 2019
06 Geographical presence account of standstill requirements.
07 Message from the Chairman Net Book 15,532.65 17,266.83 - - 15,532.65 17,266.83
10 Message from the Managing Director 18.6.25 Financial assets sold to Securitization Company /Reconstruction value of
and CEO Company for Asset Reconstruction investments
12 Key performance indicators in security
a) Details of Financial assets sold to Securitization/Reconstruction Company during receipts
the year ended March 31, 2020 are as follows-
17 Customer focus * Includes all Security Receipts received by Bank on sale of assets as permitted under RBI circular
21 Technology and digital innovation (` in million) DBOD.BP.BC.No. 98/21.04.132/2013-14 dated February 26, 2014.
25 Retail Year Ended Year Ended
Particulars c) Details of ageing of Investments held as Security Receipts as at March 31, 2020 are
March 31, 2020 March 31, 2019
Our approach to value creation as follows-
(i) No. of accounts 1 2
29 Value creation model (` in million)
31 Our strategy (ii) Aggregate principal value (net of specific provisions) 1,233.55 5,450.56
of accounts sold to SC / RC SRs issued SRs issued more
36 Risk management SRs more than 8
within Past 5 than 5 years ago but
(iii) Aggregate consideration received in Cash (previous 1,114.00 4,558.70 years ago
Years within past 8 years
Our ESG focus year includes Net Book Value of Security Receipts of
(i) Book Value of SRs backed by NPAs* 20,734.54 871.68
43 Environment `2,878.10 million )
sold by the Bank as underlying
54 Social (iv) Additional consideration realized in respect of - -
69 People Provision held against (i) 5,633.31 440.27
accounts transferred in earlier years
80 Governance (ii) Book value of SRs backed by NPAs* - - 141.99
(v) Aggregate gain / (loss) over net book value* (119.55) (891.86)
sold by other banks / financial
Statutory Reports *As per the extant RBI guidelines, the Bank has not recognized the gains in the financial statements institutions / non-banking financial
84 Management discussion and analysis and has recorded the Security Receipts at Net Book Value (NBV). If the sale value is lower than the net companies as underlying
106 Directors’ report book value, the entire loss has been written off in the year of sale. Provision held against (ii) - - 141.99
146 Report on corporate governance Total (i) + (ii) 20,734.54 871.68 141.99
187 Annual business responsibility report b) Details of Investments held as Security Receipts received by sale of NPA to
Securitization/Reconstruction Company as at March 31, 2020 and March 31, 2019 are *Includes all Security Receipts received by Bank on sale of assets as permitted under RBI circular
Financial Statements DBOD.BP.BC.No. 98/21.04.132/2013-14 dated February 26, 2014.
as follows-
242
Schedules
Details of ageing of Investments held as Security Receipts as at March 31, 2019 are as 18.6.28 Business ratios
Contents follows-
Corporate Overview As at As at
Business Ratios
01 Commitment. Promise. Transparency. (` in million) March 31, 2020 March 31, 2019
A redefined YES SRs issued SRs issued more i) Interest income as a percentage to working funds1 8.56% 9.00%
02 Key highlights FY 2019-20 SRs more than 8
within Past 5 than 5 years ago but ii) Non interest income as a percentage to working funds1 3.89% 1.40%
years ago
03 YES BANK at a glance Years within past 8 years
iii) Operating profit as a percentage to working funds1 3.92% 2.47%
05 Products and services (i) Book Value of SRs backed by NPAs* 21,288.01 489.18
iv) Return on assets1 (5.39%) 0.52%
06 Geographical presence sold by the Bank as underlying
v) Business (deposits + net advances) per employee2 119.51 232.74
07 Message from the Chairman Provision held against (i) 4,143.48 366.87 (` in million)
10 Message from the Managing Director (ii) Book value of SRs backed by NPAs* - - 158.63
and CEO vi) Profit per employee2 (` in million) (7.34) 0.89
sold by other banks / financial
12 Key performance indicators institutions / non-banking financial 1
Working funds represents the average of total assets as reported in Return Form X to RBI under
15 COVID-19 response companies as underlying Section 27 of the Banking Regulation Act, 1949.
17 Customer focus Provision held against (ii) - - 158.63
2
For the purpose of computation of business per employee (deposits plus advances), interbank
Total (i) + (ii) 21,288.01 489.18 158.63 deposits have been excluded and average employees have been considered.
25 Retail
*Includes all Security Receipts received by Bank on sale of assets as permitted under RBI circular
Our approach to value creation DBOD.BP.BC.No. 98/21.04.132/2013-14 dated February 26, 2014. 18.6.29 Asset Liability Management
29 Value creation model The following table sets forth the maturity pattern of assets and liabilities of the Bank
31 Our strategy 18.6.26 Non-performing financial assets purchased/ sold from/ to other bank as on March 31, 2020
36 Risk management The Bank has not purchased/sold any non performing financial assets from/to another
(` in million)
Our ESG focus bank during the year ended March 31, 2020 and March 31, 2019.
Maturity Loans & Investment FCY
43 Environment Deposits Borrowings FCY Assets
18.6.27 Provisions for Standard Assets Buckets Advances Securities Liabilities
54 Social 1 Day 8,025.33 71,789.61 8,441.02 - 8,979.71 68.99
Provision on standard advances for the year FY 2019-20 was `12,597.18 million. As
69 People 2-7 days 9,708.54 6,371.23 30,023.25 30,674.28 1,079.07 1,843.81
per requirement of RBI circular RBI/2019-20/220 DOR.No.BP.BC.63/21.04.048/2019-
80 Governance 8-14 Days 4,915.97 12,327.99 25,286.98 10,000.00 1,727.93 1,512.93
20 dated April 17, 2020 on COVID19 Regulatory Package - Asset Classification and
Statutory Reports Provisioning, the Bank has created provision amounting to `2,378.42 million. 15-30 Days 13,982.47 22,911.60 58,617.11 10,514.33 7,007.66 14,250.90
84 Management discussion and analysis 1-2 Months 18,841.10 6,655.15 60,540.55 5,526.27 15,982.49 23,244.12
106 Directors’ report Provision on standard advances for the year FY 2018-19 was `32,007.97 million. During 2-3 Months 27,924.66 68,869.55 53,676.95 5,22,566.50 7,942.29 9,385.51
146 Report on corporate governance the year FY 2018-19 based on review of Credit portfolio of the Bank, the Bank had 3-6 Months 88,869.66 29,080.88 2,18,193.16 30,823.89 23,900.57 27,626.33
187 Annual business responsibility report identified certain performing accounts which faced stress due to market and liquidity 6-12 Months 2,10,239.94 39,658.60 2,01,121.17 69,532.14 29,603.21 40,786.90
condition. The Bank had created Contingency Provision of `21,000 million in FY 2018-19 1-3 Years 6,15,287.44 45,538.60 1,10,073.90 1,03,259.49 52,635.38 74,307.17
Financial Statements towards such identified accounts. The Bank has utilized the same during the financial 3-5 Years 3,69,496.19 86,511.33 2,80,739.70 1,62,949.70 36,761.05 13,316.29
198 Standalone Financials year ended March 31, 2020. 5+ Years 3,47,141.65 49,433.72 6,925.64 1,92,058.43 32,499.00 38,763.72
Total 1,714,432.94 439,148.26 1,053,639.43 1,137,905.03 218,118.37 245,106.68
243
Schedules
The following table sets forth the maturity pattern of assets and liabilities of the Bank Maturity profile of foreign currency assets and liabilities is excluding Off Balance Sheet
Contents as on March 31, 2019 item.
Corporate Overview
01 Commitment. Promise. Transparency. (` in million) 18.6.30 Exposures
A redefined YES The Bank has lending to sectors, which are sensitive to asset price fluctuations. Such
Maturity Loans & Investment FCY
02 Key highlights FY 2019-20 Deposits Borrowings FCY Assets
Buckets Advances Securities Liabilities sectors include capital market and real estate.
1 day 18,741.23 115,057.51 14,114.50 2,766.20 45,844.33 3,009.61
05 Products and services Exposure to Real Estate Sector
2 days to 7 25,450.36 82,235.40 72,695.90 11,443.21 143,295.26 44,405.33
06 Geographical presence The exposure, representing the higher of funded and non-funded limits sanctioned or
days
07 Message from the Chairman outstanding to real estate sector, is given in the table below:
8 days to 14 18,905.83 76,910.98 56,700.46 8,127.59 51,584.38 7,211.95
and CEO
days (` in million)
12 Key performance indicators 15 days to 30 87,805.53 49,944.03 93,871.31 25,199.10 8,897.66 24,760.44 Sr. As at As at
Particulars
15 COVID-19 response days No. March 31, 2020 March 31, 2019
17 Customer focus 31 days to 2 53,956.34 21,081.44 102,819.85 42,943.52 9,979.06 17,926.29 i) Direct exposure
21 Technology and digital innovation months Residential Mortgages 68,518.37 61,423.70
25 Retail Over 2 to 3 59,965.66 20,424.66 93,756.82 51,850.79 10,069.68 30,538.71 Commercial Real Estate* 274,390.37 343,537.29
months Of total Commercial real estate - exposure to 179,976.26 226,018.49
Over 3 to 6 134,256.62 54,993.97 291,401.98 94,698.15 12,414.32 75,875.66 residential real estate projects
months Of total Commercial Real Estate - outstanding as 234,579.57 248,340.53
31 Our strategy
Over 6 to 12 267,698.90 81,453.84 532,865.04 80,783.27 15,576.34 87,206.34 advances
36 Risk management
months Investments in Mortgage Backed Securities (MBS)
Our ESG focus Over 1 year 815,539.91 106,228.31 259,174.09 225,747.43 68,904.81 137,663.10 and other securitized exposures
43 Environment to 3 years - Residential 2,782.25 3,767.22
54 Social Over 3 years 458,421.60 173,169.29 744,942.50 239,219.02 61,780.53 75,666.30 - Commercial Real Estate - -
69 People to 5 years ii) Indirect exposure
80 Governance Over 5 years 474,254.06 113,720.89 13,759.37 301,462.81 53,294.83 38,451.86 Fund based and non fund based exposures on 87,231.42 128,267.61
Statutory Reports Total 2,414,996.02 895,220.33 2,276,101.82 1,084,241.09 481,641.20 542,715.58 National Housing Board and Housing Finance
84 Management discussion and analysis Companies
Classification of assets and liabilities under the different maturity buckets is based on the same
106 Directors’ report estimates and assumptions as used by the Bank for compiling the return submitted to the RBI. Total 432,922.41 536,995.81
*Commercial real estate exposure classification is based on RBI circular DBOD.BP.BC.No.
187 Annual business responsibility report 42/08.12.015/2009-10 dated September 9, 2009.
244
Schedules
Exposure to Capital Market (` in million)

Contents The exposure representing the higher of funded and non-funded limits sanctioned or Sr. As at As at
Corporate Overview Particulars
outstanding to capital market sector is given in the table below: No. March 31, 2020 March 31, 2019
vii) financing for acquisition of equity in overseas 19,215.80 44,218.55
companies /financing for acquisition of equity in
02 Key highlights FY 2019-20 Sr. As at As at
Particulars Indian companies
03 YES BANK at a glance No. March 31, 2020 March 31, 2019
05 Products and services viii) bridge loans to companies against expected equity - -
i) direct investment in equity shares, convertible 285.73 442.60 flows / issues;
06 Geographical presence bonds, convertible debentures and units of
07 Message from the Chairman equity-oriented mutual funds the corpus of which ix) underwriting commitments taken up by the banks - -
10 Message from the Managing Director is not exclusively invested in corporate debt; in respect of primary issue of shares or convertible
and CEO bonds or convertible debentures or units of equity
ii) advances against shares / bonds / debentures or 4,633.02 6,154.06 oriented mutual funds;
other securities or on clean basis to individuals
15 COVID-19 response x) financing to stockbrokers for margin trading - -
for investment in shares (including IPOs / ESOPs),
17 Customer focus xi) all exposures to Venture Capital Funds (both 200.41 202.53
convertible bonds, convertible debentures, and
21 Technology and digital innovation units of equity-oriented mutual funds; registered and unregistered)
25 Retail Total Exposure to Capital Market 51,686.80 91,748.86
iii) advances for any other purposes where shares or - -
Our approach to value creation convertible bonds or convertible debentures or Capital market exposure is reported in line with Para 2.3 of RBI’s Master Circular on Exposure Norms
29 Value creation model units of equity oriented mutual funds are taken dated July 1, 2015 (DBR.No.Dir.BC.12/13.03.00/2015-16).
31 Our strategy as primary security;
*Out of the above `282.59 million is exposure to YES Securities (India) Limited, which is a
36 Risk management
iv) advances for any other purposes to the extent 6,333.69 5,295.06 subsidiary of the Bank
Our ESG focus secured by the collateral security of shares or
43 Environment convertible bonds or convertible debentures 18.6.31 Risk Category wise Country Exposure
54 Social or units of equity oriented mutual funds i.e. As per the extant RBI guidelines, the country exposure (direct and indirect) of the Bank
where the primary security other than shares /
69 People is categorised into various risk categories listed in the following table. As at March 31,
convertible bonds / convertible debentures / units
80 Governance
of equity oriented mutual funds 'does not fully 2020, the funded country exposure (net) of the Bank as a percentage of total funded
cover the advances; assets for Mauritius was 1.07% (March 31, 2019: 0.80%) (March 31, 2019 : United States
Statutory Reports
of America was 4.37% and for United Kingdom was 1.11%). As the net funded exposure
106 Directors’ report v) secured and unsecured advances to stockbrokers 10,462.61 13,646.54 to Mauritius exceeded 1.0% of total funded assets, the Bank held a provision of `68.97
146 Report on corporate governance and guarantees issued on behalf of stockbrokers million on country exposure at March 31, 2020 (March 31, 2019: `532.78 million) based
and market makers;* on RBI guidelines.
vi) loans sanctioned to corporate against the 10,555.53 21,789.52
Financial Statements security of shares / bonds / debentures or other
198 Standalone Financials securities or on clean basis for meeting promoter's
267 Consolidated Financials contribution to the equity of new companies in
anticipation of raising resources;
245
Schedules
(` in million) (` in million)
Contents Exposure (net) as Provision held as Exposure (net) as Provision held as For the year ended
Corporate Overview Risk Category Particulars
at March 31, 2020 at March 31, 2020 at March 31, 2019 at March 31, 2019 March 31, 2019
Insignificant 149,504.65 - 374,555.20 532.78 Non-compliance with RBI directions on Time-bound implementation 10.00
A redefined YES
Low 60,475.34 68.97 65,596.60 - and strengthening of Swift related operational controls.
03 YES BANK at a glance Moderately Low - - 2,391.78 - Penalty on account of non- compliance with RBI guidelines on issuance 1.13
Moderate 4,148.74 - 1,549.65 - of co-branded open loop prepaid cards*
06 Geographical presence Moderate High - - - - Penalties on account of counterfeit notes deposited by branches and 0.02
07 Message from the Chairman High - - - - currency chest
10 Message from the Managing Director Very High - - - - TOTAL 11.15
and CEO TOTAL 214,128.73 68.97 444,093.23 532.78
* Based on communication received from the RBI vide letter dated April 22, 2019.
15 COVID-19 response 18.6.32 Details of factoring exposure 18.6.35 Fees/ Remuneration received from bancassurance
17 Customer focus The factoring exposure of the Bank outstanding as on March 31, 2020 is `2,251.50 Bank has earned `836.40 million from bancassurance business during year ended
21 Technology and digital innovation million (previous year: `6,059.85 million) March 31, 2020 (previous year: `868.16 million).
25 Retail
Miscellaneous 18.6.36 Concentration of Deposits
Our approach to value creation 18.6.33 Income Taxes
29 Value creation model As at March 31, 2020, the deposits of top 20 depositors aggregated to `130,699.58
Provisions made for Income Tax during the year million (previous year: `246,727.21 million) (excluding certificate of deposits, which
31 Our strategy
36 Risk management (` in million) are tradable instruments), representing 12.40% (previous year: 10.84%) of the total
deposit base.
Our ESG focus For the year ended For the year ended
Particulars
March 31, 2020 March 31, 2019
43 Environment 18.6.37 Concentration of Advances
54 Social Current income tax expense 13,401.93 22,982.24
As at March 31, 2020 the top 20 advances aggregated to `439,799.02 million (previous
69 People Deferred income tax credit (57,480.82) (16,611.55)
year `617,993.23 million), representing 11.62% (previous year 13.28%) of the total
80 Governance TOTAL (44,078.89) 6,370.69
advances. For this purpose, advance is computed as per definition of Credit Exposure
Statutory Reports 18.6.34 Disclosure of penalties imposed by RBI in RBI Master Circular on Exposure Norms DBR.No.Dir.BC.12/13.03.00/2015-16 dated
84 Management discussion and analysis July 1, 2015.
(` in million)
18.6.38 Concentration of Exposures
146 Report on corporate governance For the year ended
Particulars
March 31, 2020 As at March 31, 2020 the top 20 exposures aggregated to `497,206.14million (previous
Deficiency (Note Sorting Machines were not installed) observed during 0.01 year `677,765.38 million), representing 12.56% (previous year 13.54%)of the total
Financial Statements incognito visit of a YES Bank Branch exposures. Exposure is computed as per definition of Credit and Investment Exposure
198 Standalone Financials in RBI Master Circular on Exposure Norms DBR.No.Dir.BC.12/13.03.00/2015-16 dated
Penalties on account of Soiled/ Mutilate/ Counterfeit Notes deposited by 0.00
267 Consolidated Financials currency chest July 1, 2015.
TOTAL 0.01
246
Schedules
18.6.39 Earnings Per Share (‘EPS’) 18.6.40 Overseas Assets, NPAs and Revenue
Contents
The Bank reports basic and diluted earnings per equity share in accordance with The below table shows total assets, NPAs and revenue for the overseas branches of
Corporate Overview
Accounting Standard (AS) 20, “Earnings Per Share”. The dilutive impact is mainly due the Bank
A redefined YES to stock options granted to employees by the Bank.
(` in million)
The computation of earnings per share is given below: Year Ended Year Ended
March 31, 2020 March 31, 2019
05 Products and services (` in million)
06 Geographical presence Year Ended Year Ended
Total assets 176,562.78 331,594.88
Particulars Total NPAs 7,995.64 -
07 Message from the Chairman March 31, 2020 March 31, 2019
10 Message from the Managing Director Basic (annualised) Total revenue 10,935.62 15,602.98
and CEO
Weighted average no. of equity shares outstanding 2,928,382,648 2,309,296,728 18.6.41 Repatriation of profits
Net profit / (loss) (`) (164,180.31) 17,202.79
15 COVID-19 response During the FY 2019-20, there is no repatriation of profits.
Basic earnings per share (`) (56.07) 7.45
17 Customer focus
Diluted (annualised) During FY 2018-19, given adequate availability of liquidity at IBU and on account of
Weighted average no. of equity shares outstanding 2,928,411,435 2,331,418,688 high volatility in USD-INR movement which could expose Bank to translation risk to the
25 Retail
Net profit / (loss) (`) (164,180.31) 17,202.79 extent of accumulated reserves at IBU, IBU repatriated an amount of USD 90 million
Our approach to value creation Diluted earnings per share (`) (56.06) 7.38 (`6,459.43 million) to HO from its accumulated reserves. The Bank has not recognized
29 Value creation model Nominal value per share (`) 2 2 any gain in Profit and Loss Statement, as per RBI notification dated April 18, 2017, from
31 Our strategy Foreign Currency Translation Reserve (FCTR) on repatriation of accumulated profits /
The difference between weighted average number of equity shares outstanding
36 Risk management retained earnings.
between basic and diluted in the above mentioned disclosure is on account of
Our ESG focus outstanding ESOPs. 18.6.42 Sponsored SPVs
43 Environment
Basic earnings per equity share has been computed by dividing net profit / (loss) for The Bank has not sponsored any SPV and hence there is no consolidation due to SPVs
54 Social
the year attributable to the equity shareholders by the weighted average number of in Bank’s books.
69 People
80 Governance equity shares outstanding for the year. Diluted earnings per equity share has been 18.6.43 Credit default swaps
computed by dividing the net profit / (loss) for the year attributable to the equity
Statutory Reports The Bank has not transacted in credit default swaps during the year ended March 31,
shareholders by the weighted average number of equity shares and dilutive potential
84 Management discussion and analysis 2020 (previous year: Nil).
equity shares options outstanding during the year, except where the results are anti-
dilutive. The dilutive impact is on account of stock options granted to employees by 18.6.44 Credit / Debit card reward points
the Bank. There is no impact of dilution on the profits in the current year and previous Provision for credit card and debit card reward points for the year ended March 31,
year. 2020
247
Schedules
(` in million) a) Changes in present value of Obligations

Corporate Overview Particulars (` in million)
March 31, 2020 March 31, 2019
01 Commitment. Promise. Transparency. As at As at
Opening provision 233.67 112.12
Provision made during the year 166.98 180.73
Utilised/Write-back of provision (57.79) (59.18) Present Value of Obligation at the beginning of the year 1,440.46 1,129.14
Closing provision 342.86 233.67 Interest Cost 101.77 85.75
Current Service Cost 366.86 271.85
06 Geographical presence The valuation of credit card and debit card reward points is based on actuarial Past Service Cost - -
07 Message from the Chairman valuation method obtained from an independent actuary. Benefits Paid (153.87) (80.28)
and CEO 18.6.45 Corporate Social Responsibility (CSR) Actuarial (gain)/loss on Obligation (201.45) 33.98
12 Key performance indicators Present Value of Obligation at the end of the year 1,553.76 1,440.46
a) Amount required to be spent by the Bank on CSR during the year `831.9 million
(previous year `955.8 million).
17 Customer focus Changes in the fair value of plan assets:
21 Technology and digital innovation b) Amount spent towards CSR during the year and recognised as expense in the Profit
(` in million)
25 Retail and Loss account on CSR related activities is `405.42 million (previous year `537.86
million), which comprise of following – For the year ended For the year ended
Particulars
Our approach to value creation March 31, 2020 March 31, 2019
29 Value creation model (` in million) Fair value of plan assets at the beginning of the year 1,117.87 1,144.35
31 Our strategy As at March 31, 2020 As at March 31, 2019
Adjustment to Opening Balance - -
36 Risk management Amt
Amt Expected return on plan assets 78.42 80.05
Sector In cash unpaid / Total In cash unpaid / Total
Our ESG focus Contributions 200.00 -
provision provision
43 Environment Benefits paid (153.87) (80.28)
54 Social i. Construction/ - - - - - - Actuarial gain/( loss) on plan assets (26.95) (26.25)
acquisition of any
69 People Fair value of plan assets at the end of the period 1,215.46 1,117.87
asset
80 Governance
ii. On purposes 211.12 194.30 405.42 470.78 67.08 537.86 The Bank has entire contribution of Gratuity Fund as Investments with Insurance
Statutory Reports other than (i)
above Companies which are invested primarily in debt instruments as approved by IRDA.
106 Directors’ report 18.6.46 Staff retirement benefits
The following table sets out the funded status of the Gratuity Plan and the amounts
recognized in the Bank’s financial statements as of March 31, 2020 and March 31, 2019:
248
Schedules
Estimated rate of return on plan assets is based on the expected average long-term The assumptions used in accounting for the gratuity plan are set out below:
Contents rate of return on investments of the Fund during the estimated term of the obligations
Corporate Overview For the year ended For the year ended
01 Commitment. Promise. Transparency. Net gratuity cost for the year ended March 31, 2020 and March 31, 2019 comprises the March 31, 2020 March 31, 2019
A redefined YES following components: Discount Rate 6.00% 7.05%
(` in million) Expected Return on Plan Assets 6.00% 7.00%
For the year ended For the year ended
Mortality IALM (2012-14) Ult IALM (2006-08) Ult
05 Products and services Particulars
March 31, 2020 March 31, 2019 Future Salary Increases 9.00% 12.00%
Current Service Cost 366.86 271.85 Disability
10 Message from the Managing Director Interest Cost 101.77 85.75 Attrition 13%-25% 13%-25%
and CEO Expected Return on plan assets (78.42) (80.05) Retirement 60 yrs 60 yrs
12 Key performance indicators Net Actuarial gain recognized in the year (174.50) 60.24 Actuarial assumption on salary increase also takes into consideration the inflation,
15 COVID-19 response Past Service Cost - - seniority, promotion and other relevant factors.
17 Customer focus Expenses recognized 215.71 337.79
21 Technology and digital innovation Position of plan asset / liability
25 Retail Experience History:
(` in million)
Our approach to value creation (` in million)
For the For the For the For the For the For the year ended For the year ended
year ended year ended year ended year ended year ended March 31, 2020 March 31, 2019
31 Our strategy
March 31, March 31, March 31, March 31, March 31, Fair value of plan assets at the end of the period 1,215.46 1,117.87
36 Risk management 2020 2019 2018 2017 2016
Present Value of Obligation at the end of the year 1,553.76 1,440.46
Our ESG focus (Gain)/Loss on obligation (249.13) 63.57 (70.88) 46.39 14.11
Plan asset / (liability) (338.3) (322.59)
due to change in
43 Environment
assumption The Bank is yet to determine future contribution to Gratuity fund for Financial Year
54 Social
69 People
Experience (Gain)/Loss on 47.68 (29.59) 113.80 30.12 (9.26) 2020-21
obligation
80 Governance National Pension Scheme
Actuarial Gain/(Loss) on (26.95) (26.25) (5.21) 6.96 (14.25)
Statutory Reports plan assets The Bank has contributed `24.36 million for the year ended March 31, 2020 (March
84 Management discussion and analysis 31, 2019: `19.33 million) to NPS for employees who had opted for the scheme. The
106 Directors’ report Bank has no liability for future fund benefits other than its annual contribution for the
146 Report on corporate governance employees who agree to contribute to the scheme.
Provident Fund (PF)
Financial Statements The Bank has recognised in the profit and loss account `1,039.82 million for the year
198 Standalone Financials ended March 31, 2020 (March 31, 2019: `804.29 million) towards contribution to the
267 Consolidated Financials provident fund.
249
Schedules
Compensated absence Segmental results for the year ended March 31, 2020 are set out below:
Contents The Bank has recognised `169.54 million in the profit and loss account for the year
Corporate Overview ended March 31, 2020 (March 31, 2019: `169.60 million) towards compensated (` in million)
absences. Corporate /
Retail
Other
A redefined YES Business Segments Treasury Wholesale Banking Total
02 Key highlights FY 2019-20 Banking
18.6.47 Segment Results Banking Operations
Pursuant to the guidelines issued by RBI on AS-17 (Segment Reporting) - Enhancement Segment Revenue 118,905.25 170,550.01 59,161.77 1,982.65 350,599.67
of Disclosures dated April 18, 2007, effective from period ending March 31, 2008, the Less: Inter-segment (55,518.69)
following business segments have been reported. Revenue net of inter- 295,080.98
segment
10 Message from the Managing Director • Treasury: Includes investments, all financial markets activities undertaken on
and CEO Result (15,056.16) (244,768.03) (10,469.90) (36.45) (270,330.55)
behalf of the Bank's customers, proprietary trading, maintenance of reserve
12 Key performance indicators Unallocated Expenses (22,078.65)
requirements and resource mobilisation from other banks and financial
15 COVID-19 response Operating Profit (292,409.19)
institutions.
17 Customer focus Income Taxes (65,259.44)
21 Technology and digital innovation • Corporate / Wholesale Banking: Includes lending, deposit taking and other Extra-ordinary Profit/ 62,969.45
25 Retail services offered to corporate customers. (Loss)
Net Profit (164,180.31)
Our approach to value creation • Retail Banking: Includes lending, deposit taking and other services offered to
Other Information:
29 Value creation model retail customers.
Segment assets 718,647.95 1,258,879.95 503,345.05 232.44 2,481,105.39
31 Our strategy
• Other Banking Operations: Includes para banking activities like third party Unallocated assets 97,163.85
36 Risk management
product distribution, merchant banking etc. Total assets 2,578,269.23
Our ESG focus Segment liabilities 1,317,079.06 479,468.85 547,960.41 970.67 2,345,478.98
43 Environment Unallocated liabilities 232,790.24
54 Social Total liabilities 2,578,269.22
69 People
80 Governance Other banking operations includes income from bancassurance business `836.40
million during year ended March 31, 2020.
Statutory Reports
250
Schedules
Segmental results for the year ended March 31, 2019 are set out below: 3. Income, expense, assets and liabilities have been either specifically identified with
Contents individual segment or allocated to segments on a systematic basis or classified as
Corporate Overview (` in million)
unallocated.
01 Commitment. Promise. Transparency. Corporate / Other
A redefined YES Retail 4. The unallocated assets Includes tax paid in advance/tax deducted at source and
Business Segments Treasury Wholesale Banking Total
02 Key highlights FY 2019-20 Banking
Banking Operations deferred tax asset.
Segment Revenue 104,539.78 222,653.47 45,658.71 2,051.90 374,903.85 5. The unallocated liabilities include Share Capital, Reserves & Surplus and Tier 1
Less: Inter-segment (32,759.28) bond borrowings.
Revenue net of inter- 342,144.57
07 Message from the Chairman 6. Inter-segment transactions have been generally based on transfer pricing
segment
Result 35,460.35 14,180.12 (4,524.82) 916.64 46,032.30 measures as determined by the Management.
and CEO
12 Key performance indicators Unallocated Expenses (22,458.83) 18.6.48 Related Party Disclosures
15 COVID-19 response Operating Profit 23,573.47
The Bank has transactions with its related parties comprising of subsidiary, key
17 Customer focus Income Taxes 6,370.68
management personnel and the relative of key management personnel
21 Technology and digital innovation Extra-ordinary Profit/ -
25 Retail (Loss) As per AS 18 “Related Party Disclosures”, notified under section 133 of the Companies
Net Profit 17,202.79 Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014, the
Other Information: Bank’s related parties for the year ended March 31, 2020 are disclosed below:
Segment assets 1,302,259.99 1,979,884.76 486,554.09 885.39 3,769,584.22
31 Our strategy Subsidiary
Unallocated assets 38,677.42
36 Risk management • YES Securities (India) Limited
Total assets 3,808,261.64
Our ESG focus Segment liabilities 1,081,751.87 1,411,797.46 947,394.05 1,082.29 3,442,025.66 • YES Asset Management (India) Limited
43 Environment Unallocated liabilities 366,235.98
54 Social • YES Trustee Limited
Total liabilities 3,808,261.64
69 People Individuals having significant influence:
80 Governance Other banking operations includes income from bancassurance business `868.16
• Mr. Ravneet Gill, Managing Director & CEO (till March 05, 2020)
Statutory Reports • Mr. Prashant Kumar, Administrator - Appointed by the Reserve Bank of India, (from
84 Management discussion and analysis Notes for segment reporting:
March 06, 2020 till March 25, 2020)
106 Directors’ report 1. The business of the Bank is concentrated largely in India. Accordingly, geographical
146 Report on corporate governance segment results have not been reported in accordance with AS-17 (Segment • Mr. Prashant Kumar, Managing Director & CEO (from March 26, 2020)
187 Annual business responsibility report Reporting). Investing Company
Financial Statements 2. In computing the above information, certain estimates and assumptions have Investing party - State Bank of India Limited (SBI)
198 Standalone Financials been made by the Management and have been relied upon by the auditors.
251
Schedules
Key Management Personnel (‘KMP’) (Whole time Director)

Contents
Corporate Overview • Mr. Ravneet Gill, Managing Director & CEO (till March 05, 2020)
• Mr. Prashant Kumar, Administrator - Appointed by the Reserve Bank of India, (from March 06, 2020 till March 25, 2020)
A redefined YES
02 Key highlights FY 2019-20 • Mr. Prashant Kumar, Managing Director & CEO (from March 26, 2020)
05 Products and services The following represents the significant transactions between the Bank and such related parties including relatives of above mentioned KMP during the year ended March 31, 2020:
06 Geographical presence (` in million)
07 Message from the Chairman Whole time Relatives of whole Enterprise where
10 Message from the Managing Director directors / time directors relative of whole
Items / Related Party Maximum Balance Maximum Balance Maximum Balance Maximum Balance
and CEO Investing Party Subsidiaries 2,3 individual having / individual time director
Category during the year during the year during the year during the year
12 Key performance indicators significant having significant having significant
15 COVID-19 response influence influence influence
17 Customer focus Deposits # # 600.98* 1,437.63 - 12.65 - - -

21 Technology and digital innovation Advances 102.05* 2039.12
25 Retail (Overdraft)
Investment # # 2,390.00* 2,390.00
Our approach to value creation Interest received # 145.87
Interest paid # 33.38 0.31
31 Our strategy
Reimbursement of 54.06
36 Risk management
Cost incurred
Our ESG focus Receiving of 0.93
43 Environment services
54 Social Payable # 1.33
69 People Receivable # 34.29
80 Governance Sale of Assets
Statutory Reports Funded/Non # 1,375.00
Funded Exposure
taken
146 Report on corporate governance Dividend paid
187 Annual business responsibility report #
As per RBI Circular, where there is only one entity in any category of related party, disclosure pertaining to that related party other than the relationship with that related party
Financial Statements *Represents outstanding as of March 31, 2020
198 Standalone Financials As per Accounting Standard 18 - Related Party Disclosure, State Bank of India Limited (SBI) is an investing company for YES Bank Limited and YES BANK is associate of SBI
1

2
During the year, Bank has made investment in YES Asset Management (India) Limited for `150 million.
3
As per the RBI master circular on Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks, the Bank has provided `403.0 million for impairment of investment in subsidiaries.
252
Schedules
During the year ended March 31, 2020, the Bank has contributed `405.42 million (previous year `537.86 million) to YES Foundation. YES Foundation is an independent public
Contents charitable trust which undertakes social charitable activities. YES Foundation does not qualify as Related Party, as defined under the Accounting Standard 18 - Related Party
Corporate Overview Disclosure and RBI guidelines.
A redefined YES The following represents the significant transactions between the Bank and such related parties including relatives of above mentioned KMP during the year ended March 31, 2019:
(` in million)
05 Products and services Relatives of whole Enterprise where
Whole time directors
06 Geographical presence Items / Related Party Maximum Balance Maximum Balance time directors / Maximum Balance relative of whole
Subsidiaries / individual having
Category during the year during the year individual having during the year time director having
07 Message from the Chairman significant influence
significant influence significant influence
and CEO Deposits 527.71* 33,003.57 3.06* 15.62
12 Key performance indicators Advances (Overdraft) 1,024.17* 1,035.91
15 COVID-19 response Investment 2,240.00* 2,240.00
17 Customer focus Interest received 41.02
21 Technology and digital innovation Interest paid 44.29 0.52
25 Retail Reimbursement of Cost incurred 17.57
Our approach to value creation Receiving of services 8.22 5.46
29 Value creation model Dividend paid 270
31 Our strategy Payable 2.70
36 Risk management Receivable 3.11
Sale of Assets 0.64
Our ESG focus
43 Environment *Represents outstanding as of March 31, 2019
54 Social
During the year, Bank has made additional investment in two subsidiaries; YES Securities (India) Limited and YES Asset Management (India) Limited for `990 million and `195
#
69 People
million respectively.
80 Governance
Statutory Reports
charitable trust which undertakes social charitable activities. YES Foundation does not qualify as Related Party, as defined under the Accounting Standard 18 - Related Party
106 Directors’ report Disclosure and RBI guidelines.
146 Report on corporate governance 18.6.49 Operating Leases
Lease payments recognized in the profit and loss account for the year ended March 31, 2020 was `3,900.61 million (Previous year: `3,613.24 million). During the year ended
Financial Statements March 31, 2020, the Bank paid minimum lease payment `3,782.51 million (Previous year: `3,623.94 million).
253
Schedules
The following table sets forth, for the period indicated, the details of future rentals Source of shares are primary in nature, since the Bank has been issuing new equity
Contents payment on operating leases: shares upon exercise of options
Corporate Overview
01 Commitment. Promise. Transparency. (` in million) JESOP II and JESOP III were in force for employees joining the Bank up to March 31,
A redefined YES
As at As at
2006 and March 31, 2007 respectively. Grants under PESOP II had been discontinued
02 Key highlights FY 2019-20 Lease obligations
March 31, 2020 March 31, 2019 w.e.f. January 20, 2010. Grants under JESOP IV/PESOP I and JESOP V/ PESOP II -2010
03 YES BANK at a glance had been discontinued w.e.f. June 12, 2018 pursuant to coming into effect of YBL ESOS
Not later than one year 3,337.42 3,461.65
05 Products and services 2018. However, any options already granted under the abovementioned plans would
Later than one year and not later than five years 10,090.09 9,751.31
06 Geographical presence be valid in accordance with the terms & conditions mentioned in the plans
Later than five years 13,749.82 12,418.84
TOTAL 27,177.33 25,631.80 In accordance with the various Employee Stock Option Plans/ Schemes of the Bank as
and CEO The Bank does not have any provisions relating to contingent rent. mentioned above, the Employees can exercise the options granted to them from time
12 Key performance indicators to time:
15 COVID-19 response The terms of renewal/purchase options and escalation clauses are those normally
17 Customer focus prevalent in similar agreements. There are no undue restrictions or onerous clauses JESOP/PESOP ESOP Scheme Exercise period
21 Technology and digital innovation in the agreements. JESOP JESOP II 50% after 3 years and balance after 5 years from the Grant date
25 Retail JESOP III 50% after 3 years and balance after 5 years from the Grant date
18.6.50 ESOP disclosures
JESOP IV 50% after 3 years and balance after 5 years from the Grant date
Our approach to value creation Statutory Disclosures Regarding Joining Stock Option Scheme: JESOP V 50% after 3 years and balance after 5 years from the Grant date
The Bank has Five Employee Stock Option Schemes viz. MD&CEO 20%, 30% & 50% each year, from end of 1st year from the
31 Our strategy
Plan 2019 Grant date
36 Risk management
• Joining Employee Stock Option Plan II (JESOP II), PESOP I 25% after each year from the Grant date
Our ESG focus PESOP II 30%, 30% & 40% after each year from the Grant date
• Joining Employee Stock Option Plan III (JESOP III),
43 Environment PESOP II - 30%, 30% & 40% each year, from end of 3rd year from the
54 Social • YBL ESOP (consisting of two sub schemes JESOP IV/PESOP I) 2010 Grant date
69 People PESOP JESOP 2018 50% after 3 years and balance after 5 years from the Grant date
• YBL JESOP V/PESOP II (Consisting of three sub schemes JESOP V/ PESOP II/PESOP II
80 Governance PESOP 2018 30%, 30% & 40% each year, from end of 3rd year from the
-2010)
Statutory Reports Grant date
• YBL Employee Stock Option Scheme, 2018 (YBL ESOS 2018) [Consisting of YBL Joining PESOP 2019 30%, 30% & 40% each year, from end of 3rd year from the
106 Directors’ report Employee Stock Option Plan, 2018 (JESOP 2018); YBL Performance Employee Stock Grant date
146 Report on corporate governance Option Plan, 2018 (PESOP 2018), PESOP 2019; and YBL MD&CEO (New) Stock Option
187 Annual business responsibility report Plan, 2019 (MD&CEO Plan 2019)] Options under all the aforesaid plans are granted for a term of 10 years (inclusive of
the vesting period) and are settled with equity shares being allotted to the beneficiary
Financial Statements Effective from June 13, 2018, all new options have been granted under the YBL ESOS
upon exercise.
198 Standalone Financials 2018 (which inter-alia consists of JESOP 2018, PESOP 2018 and MD & CEO Plan 2019).
267 Consolidated Financials The YBL ESOS 2018 and plans formulated thereunder are in compliance with the SEBI
(Share Based Employees Benefits) Regulations, 2014 as amended from time to time.
254
Schedules
A summary of the status of the Bank’s stock option plans as on March 31, 2020 and 18.6.51 Deferred Taxation
Contents March 31, 2019 is set out below: The deferred tax asset of `82,809.96 million as at March 31, 2020 and `25,329.14
Corporate Overview
million as at March 31, 2019, is included under other assets and the corresponding
As at March 31, 2020 As at March 31, 2019
A redefined YES credits have been taken to the profit and loss account.
PESOP JESOP PESOP JESOP
Options outstanding at the beginning of 35,019,115 18,254,826 46,257,335 15,963,100 The components that give rise to the deferred tax asset included in the balance sheet
03 YES BANK at a glance the year are as follows:
Granted during the year 18,032,000 2,025,000 365,000 5,940,000
06 Geographical presence (` in million)
Exercised during the year 4,037,675 346,499 9,265,020 2,800,774
07 Message from the Chairman As at As at
Forfeited / lapsed during the year 12,316,650 5,419,275 2,338,200 847,500 Particulars
March 31, 2020 March 31, 2019
and CEO Options outstanding at the end of the year 36,696,790 14,514,052 35,019,115 18,254,826
Deferred tax asset
12 Key performance indicators Options exercisable 16,388,915 6,650,302 18,701,265 3,901,451
Depreciation 585.78 598.64
15 COVID-19 response Weighted average exercise price (`) 63.56 80.52 70.84 106.08
Provision for gratuity and unutilized leave 322.73 391.24
17 Customer focus Weighted average remaining contractual 2.39 1.77 1.50 1.86
life of outstanding option (yrs) Provision for Non Performing Assets 60,164.53 9,779.42
Amortization of premium on HTM securities 132.39 1,035.72
25 Retail
The Bank has charged Nil amount, being the intrinsic value of the stock options Provision for standard advances 3,123.15 11,119.17
Our approach to value creation granted for the year ended March 31, 2020 and March 31, 2019. Had the Bank adopted Other Provisions 18,481.38 2,404.94
29 Value creation model the Fair Value method (based on Black- Scholes pricing model), for pricing and Deferred tax asset 82,809.96 25,329.13
31 Our strategy accounting of options, net profit /loss after tax would have been lower by `505.40
36 Risk management million (Previous year: `375.18 millions), the basic earnings per share would have been The Bank has a total deferred tax asset of `82,809.96 million as at March 31, 2020.
`(56.24) (Previous year: `7.29) per share instead of `(56.07) (Previous year: `7.45) per During the year ended March 31, 2020, the Bank has made loss of `164,180.31 million,
Our ESG focus
share; and diluted earnings per share would have been `(56.24) (Previous year: `7.22) however it had taxable profit in the year ended March 31, 2020. The Bank continues
43 Environment
per share instead of `(56.06) ( Previous year: `7.38) per share. to carry such deferred tax asset in its Balance Sheet, as basis financial projections
54 Social
approved by the Board of Directors, there is reasonable certainty of having sufficient
69 People
The following assumptions have been made for computation of the fair value of ESOP taxable income to enable realization of the said deferred tax asset as specified in
80 Governance
granted for the year ended March 31, 2020 and March 31, 2019. Accounting Standard 22 (Accounting for Taxes on Income).
Statutory Reports
During the quarter ended September 30, 2019, the Bank had elected to exercise the
84 Management discussion and analysis For the year ended For the year ended
option permitted under section 115BAA of the Income Tax Act, 1961 as introduced
146 Report on corporate governance by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Bank had
Risk free interest rate 6.29%-9.23% 6.29%-9.23%
187 Annual business responsibility report recognised Provision for Income Tax and re-measured its deferred tax assets basis
Expected life 1.5 yrs - 7.5 yrs 1.5 yrs - 7.5 yrs
the rate prescribed in the aforesaid section and recognized the effect of this change
Financial Statements Expected volatility 25.01%-48.72% 25.01%-48.72%
by revising the annual effective income tax rate. The rate of income tax is changed
198 Standalone Financials Expected dividends 1.10% 1.20%
from 34.944% to 25.168%. The re-measurement of accumulated deferred tax asset
In computing the above information, certain estimates and assumptions have been had resulted in a one-time additional charge of `7,086.10 million.
made by the Management.
255
Schedules
18.6.52 Provisions and Contingencies to meet the business requirements of the Bank and accordingly recommend
Contents to the Board for formation of a special committee.
The breakup of provisions of the Bank for the year ended March 31, 2020 and March
Corporate Overview
31, 2019 are given below: B. Review the Terms of Reference of the Board Level Committees and
A redefined YES (` in million) recommend the changes therein, if any, to the Board;
For the year ended For the year ended 4. To scrutinise nominations for Independent/Non-Executive Directors with
March 31, 2020 March 31, 2019
05 Products and services reference to their qualifications and experience and making recommendations to
Provision for taxation (44,078.89) 6,370.68 the Board for appointment/filling of vacancies;
Provision for investments 64,819.07 6,824.89
Provision for standard advances (19,410.78) 22,514.06 5. To identify persons who are qualified to become directors and who may be
Provision made/write off for non performing advances 278,060.36 25,669.54 appointed in senior management in accordance with the criteria laid down,
and CEO
Others Provisions* 4,115.69 2,767.12 recommend to the Board their appointment and removal;
15 COVID-19 response TOTAL 283,505.45 64,146.28 6. To Formulate criteria for evaluation of performance of independent directors and
17 Customer focus the board of directors;
* Other Provisions includes provision made against other assets.
25 Retail Other Disclosures 7. To carry out evaluation of every director’s performance;
Our approach to value creation 18.6.53 Disclosure on Remuneration 8. Whether to extend or continue the term of appointment of the independent
29 Value creation model a. Composition of the N&RC of the Bank as on March 31, 2020 is as follows: director, on the basis of the report of performance evaluation of independent
31 Our strategy directors;
36 Risk management Mr. Mahesh Krishnamurti Non-Executive Director
9. To validate ‘fit and proper’ status of all Directors on the Board of the Bank in
Mr. Sunil Mehta Non-Executive Director (Chairman)
Our ESG focus terms of the Guidelines issued by the RBI or other regulatory authorities;
Mr. Atul Bheda Non-Executive Director
43 Environment
Mr. Swaminathan Janakiraman Director nominated by State Bank of India 10. To develop and recommend to the Board Corporate Governance guidelines
54 Social
applicable to the Bank for incorporating best practices;
69 People The roles and responsibilities of the N&RC are as under-
80 Governance 11. To implement policies and processes relating to Corporate Governance principles;
1. To review the current Board composition, its governance framework and
Statutory Reports determine future requirements and making recommendations to the Board for 12. To formulate the criteria for determining qualifications, positive attributes and
84 Management discussion and analysis independence of a director;
approval;
146 Report on corporate governance 2. To examine the qualification, knowledge, skill sets and experience of each 13. To devise a Policy on Board diversity;
187 Annual business responsibility report director vis-a-vis the Bank’s requirements and their effectiveness to the Board on 14. To recommend to the Board a policy relating to, the remuneration for the
a yearly basis and accordingly recommend to the Board for the induction of new directors, key managerial personnel and other employees including performance/
Directors; achievement bonus, perquisites, retirals, sitting fee, etc.;
267 Consolidated Financials 3. To review:
A. the composition of the existing Committees of the Board and to examine
annually whether there is any need to have a special committee of directors
256
Schedules
15. To review the Bank’s overall compensation structure and related polices with a a. Information relating to the design and structure of remuneration
Contents view to attract, motivate and retain employees and review compensation levels processes and the key features and objectives of remuneration policy-
Corporate Overview vis-à-vis other Banks and the industry in general; The Bank has framed Compensation and Benefits Policy based on the
guidelines contained in the RBI circular DBOD No. BC.72/29.67.001/2011-
A redefined YES 16. To ensure the following while formulating the policy on the aforesaid matters:
12 dated January 13, 2012 which was approved by the Nomination and
03 YES BANK at a glance (a) the level and composition of remuneration is reasonable and sufficient to Remuneration Committee on January 7, 2013. The remuneration of MD&CEO/
05 Products and services attract, retain and motivate directors, key managerial personnel and senior Wholetime Directors is in accordance with the above mentioned circular and
06 Geographical presence management of the quality required to run the company successfully; shall be reviewed basis RBI guidelines issued from time to time and approved
07 Message from the Chairman by N&RC before obtaining Regulatory approvals.
(b) relationship of remuneration to performance is clear and meets appropriate
performance benchmarks; and The compensation philosophy of the Bank is aligned to the organizational
and CEO
values aimed at encouraging Professional Entrepreneurship and reinforcing
12 Key performance indicators (c) remuneration to Whole time directors, key managerial personnel and senior
a strong culture promoting meritocracy, performance, potential and prudent
management involves a balance between fixed and incentive pay reflecting
17 Customer focus risk taking.
short and long- term performance objectives appropriate to the working of
21 Technology and digital innovation the company and its goals. The Bank’s Remuneration policy is to position its pay structure competitively
25 Retail in relation to the market to be able to attract and retain critical talent. The
(d) Recommend to the board all remuneration, in whatever form, payable to
Our approach to value creation compensation strategy clearly endeavors to differentiate performance
senior management
29 Value creation model significantly and link the same with quality and quantum of rewards. The
31 Our strategy 17. To consider grant of Stock Options to employees including employees of Bank also strives to create long term wealth creation opportunities through
36 Risk management subsidiaries and administer and supervise the Employee Stock Option Plans; stock option schemes.
Our ESG focus 18. To function as the Compensation Committee as prescribed under the SEBI (Share Human Capital Management shall review the policy annually or as required,
43 Environment Based Employee Benefits) Regulations, 2014 and is authorized to allot shares based on changes in statutory, regulatory requirements and industry
54 Social pursuant to exercise of Stock Options by employees; practices pertaining to Compensation and Benefits.
69 People
19. To review the Human Capital Capacity Planning on annual basis; b. Description of the ways in which current and future risks are taken into
80 Governance
account in the remuneration processes. It should include the nature and
20. To review the list of risk takers on annual basis;
Statutory Reports type of the key measures used to take account of these risks
84 Management discussion and analysis 21. To review the HCM Policies and provide suitable guidance for additions/ The broad factors taken into account for the Annual Review /revision of Fixed
106 Directors’ report modification/ deletions, if any; Compensation (TCC) & Performance Bonus are:
187 Annual business responsibility report 22. To review the Succession Planning; and 1. Individual performance based on the Annual Performance Review (APR)
process of the Bank.
Financial Statements 23. To perform any other functions or duties as stipulated by the Companies Act,
198 Standalone Financials Reserve Bank of India, Securities and Exchange Board of India, Stock Exchanges 2. Business Unit performance in terms of financial outcomes, productivity,
267 Consolidated Financials and any other regulatory authority or under any applicable laws as may be etc.
prescribed from time to time.
257
Schedules
3. Consideration of all types of risk factors and shall be symmetrical with with suitable weightage. The inputs for assessment on these parameters will be
Contents risk outcomes as well as sensitive to the time horizon of risk. independently provided by the Risk Management function of the Bank.
Corporate Overview
01 Commitment. Promise. Transparency. 4. Profitability of the Bank. For the services pertaining to a given financial year, where variable pay is 50%
A redefined YES or more, 40-60% of the variable pay shall be deferred over minimum period of
5. Industry Benchmarking and consideration towards cost of living
3 years. In the event of a negative contribution, deferred compensation shall
03 YES BANK at a glance adjustment/inflation
be subject to appropriate malus/claw back arrangements as decided by the
05 Products and services The Bank subscribes to a ‘Sum-of-Parts’ compensation methodology, which Board Remuneration Committee. Guaranteed bonus shall not be a part of the
06 Geographical presence is reflective of the Bank’s commitment and philosophy of creating and compensation plan.
07 Message from the Chairman sharing value with its employee partners.
10 Message from the Managing Director The compensation for executives in Risk Control and Compliance functions shall
and CEO The sum-of-parts compensation comprises: be independent of the business areas they oversee.
Fixed Compensation The Bank shall not provide any facility or funds or permit employees to insure
17 Customer focus or hedge their compensation structure to offset the risk alignment effects
Variable Compensation in the form of Performance Bonus
21 Technology and digital innovation embedded in their compensation arrangement.
25 Retail Employee Stock Option Plans (ESOP)
d. Description of the different forms of variable remuneration (i.e. cash, shares,
Our approach to value creation The Board of Directors of the Bank through its Nomination and Remuneration ESOPs and other forms) that the Bank utilizes and the rationale for using
29 Value creation model Committee (N&RC) shall exercise oversight & effective governance over these different forms.
31 Our strategy the framing and implementing of the Compensation policy. Human Capital The Bank subscribes to a ‘Sum-of-Parts’ compensation methodology, which
36 Risk management Management under the guidance of MD & CEO shall administer the Compensation is reflective of the commitment and philosophy of creating and sharing value
and Benefits structure in line with Industry practices and statutory requirements with the employee partners. The sum-of-parts compensation for executives
Our ESG focus
as applicable from time to time. comprises:
43 Environment
54 Social c. Description of the ways in which the Bank seeks to link performance Fixed Compensation (Total Cost to Company-TCC) - Includes value of perquisites.

69 People during a performance measurement period with levels of remuneration
Variable compensation in the form of Performance /Deferred Bonus –

80 Governance and a discussion of the bank’s policy and criteria for adjusting deferred
Variable pay shall be in the form of Performance Bonus which will be calculated
remuneration before vesting and after vesting.
Statutory Reports as a percentage of Fixed Pay. The evaluation on risk management parameters is
The Bank ensures that the compensation remains adjusted for all types of risk,
84 Management discussion and analysis an integral part of the Annual Performance Review process, forming part of Key
106 Directors’ report symmetrical with risk outcomes as well as sensitive to the time horizon of risk.
Result Areas of the executives with suitable weightage. The inputs for assessment
146 Report on corporate governance Further, the compensation in all forms will be consistent with the risk alignment.
on these parameters will be independently provided by the Risk Management
187 Annual business responsibility report One of the key factors to be considered for the Annual Review /revision of Fixed function of the Bank.
Financial Statements Compensation (TCC) & Performance Bonus includes individual performance
Employee Stock Options Plans – These are formulated on a mid to long term
198 Standalone Financials based on the Annual Performance Review (APR) process of the Bank. The
basis by the Bank in accordance with SEBI and other Regulatory guidelines. The
267 Consolidated Financials evaluation on risk management parameters is an integral part of the Annual
grant of ESOP shall be under approval from MD & CEO, which shall be subsequently
Performance Review process, forming part of Key Result Areas of the executives
ratified by the Board Remuneration Committee.
258
Schedules
e. Quantitative Disclosures on Remuneration for MD & CEO and other risk For the For the
Contents takers Particulars
No of
year ended
No of
year ended
employee employee
Corporate Overview There were 14 meetings of the N&RC held during the year ended March 31, 2020. March 31, 2020 March 31, 2019
The Bank had paid a remuneration of `3.35 million to the members of the N&RC d. (i) Total amount of outstanding 1 2.45 1 4.90
A redefined YES
for attending the meetings of the N&RC., deferred remuneration and
retained remuneration exposed
03 YES BANK at a glance to ex post explicit and / or
For the For the
05 Products and services No of No of implicit adjustments.
Particulars year ended year ended
06 Geographical presence employee employee
March 31, 2020 March 31, 2019 (refer Note below)
07 Message from the Chairman (ii) Total amount of reductions - - 1 15.00
a. (i) Number of employees having 10 40.29 5 35.35
received a variable remuneration during the financial year due
and CEO to ex-post explicit adjustments.
award during the financial year.
12 Key performance indicators (refer Note below)
(refer Note below)
15 COVID-19 response (iii) Total amount of reductions - - - -
(ii) Number and total amount of 1 5.00 - -
17 Customer focus (change in variable payout due
sign-on awards made during the
21 Technology and digital innovation to change in Market Conditions)
financial year.
25 Retail (refer Note below) during the
(iii) Details of guaranteed bonus, - - - -
financial year due to ex- post
Our approach to value creation if any, paid as joining / sign on
implicit adjustments.
29 Value creation model bonus
31 Our strategy (iv) Details of severance pay, in - - - - Note:
36 Risk management addition to accrued benefits, if any. 1. Amounts disclosed represent variable pay paid during the year ended March 31, 2020 and March
31, 2019 for services rendered by the risk takers during the year March 31, 2019 and March 31,2018
b. (i) Total amount of outstanding 1 2.45 1 4.90
Our ESG focus respectively. As the bonus pool for the year ended March 31, 2020 has not yet been allocated and
deferred remuneration, split into accordingly, the deferred component for the risk takers is yet to be determined.
43 Environment
cash, shares and share-linked
54 Social instruments and other forms. 2. Compensation for MD & CEO is as approved by the RBI and paid by the Bank to the MD & CEO.
69 People (refer Note below ) Compensation for other risk takers is as approved by the Bank.
80 Governance c. Breakdown of amount of 3. For the Financial Year ended March 31, 2020, 2,995,000 ESOP were issued to 11 risk takers (previous
Statutory Reports remuneration awards for the year 5,150,000 ESOPs to 4 risktaker)
financial year to show fixed and
variable, deferred and non-deferred 18.6.54 Movement in Floating Provisions
146 Report on corporate governance Total remuneration award 12 397.45 7 245.2 The Bank has not created or utilized any floating provisions during the financial year
187 Annual business responsibility report Of which Fixed Component 12 341.28 7 204.01 ended March 31, 2020 and financial year ended March 31, 2019. The floating provision
Of which Variable Component 10 56.17 4 41.19 as at March 31, 2020 was ` Nil (Previous year: ` Nil).
Financial Statements Deferred 10 19.67 1 4.90
198 Standalone Financials Paid 10 36.50 4 36.29 18.6.55 Drawdown from Reserves
During the financial year ended March 31, 2020, the Bank has not drawn down any
reserve. (Previous year: ` Nil).
259
Schedules
18.6.56 Liquidity Coverage Ratio (LCR)

Contents The following table sets forth, the daily average of unweighted and weighted values for all the quarters in FY2019-20.
Corporate Overview
(` in million)
Quarter ended March 31, 2020 Quarter ended December 31, 2019 Quarter ended September 30, 2019 Quarter ended June 30, 2019
A redefined YES
02 Key highlights FY 2019-20 Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted
Value Value Value Value Value Value Value Value
05 Products and services High Quality Liquid Assets
06 Geographical presence 1 Total High Quality Liquid Assets (HQLA) 197,052.73 310,855.05 536,598.92 589,102.55
07 Message from the Chairman Cash Outflows
10 Message from the Managing Director 2 Retail deposits and deposits from small 612,338.09 58,687.66 673,981.30 64,779.68 808,350.86 78,114.89 811,455.15 78,594.99
and CEO business customers, of which:
12 Key performance indicators (i) Stable deposits 50,922.98 2,546.15 52,368.91 2,618.45 54,404.02 2,720.20 51,010.43 2,550.52
15 COVID-19 response (ii) Less stable deposits 561,415.11 56,141.51 621,612.39 62,161.24 753,946.84 75,394.68 760,444.72 76,044.47
17 Customer focus 3 Unsecured wholesale funding, of which: 537,278.73 255,617.70 638,242.08 288,380.46 855,505.17 391,361.04 935,232.42 425,537.90
21 Technology and digital innovation (i) Operational deposits (all counterparties) 54,954.39 13,738.60 62,633.98 15,658.50 81,535.53 20,383.88 87,194.53 21,798.63
25 Retail (ii) Non-operational deposits 482,324.34 241,879.10 575,608.10 272,721.96 773,969.64 370,977.16 848,037.89 403,739.27
(all counterparties)
(iii) Unsecured debt - - - - - - - -
4 Secured wholesale funding 147,470.36 - 150,267.90 - 17,871.00 - 19,029.67 -
31 Our strategy
36 Risk management
5 Additional requirements, of which 30,728.06 20,356.46 24,316.89 20,672.59 24,058.11 22,360.83 23,728.58 21,894.41
(i) Outflows related to derivative exposures 18,791.97 18,791.97 20,267.67 20,267.67 22,032.49 22,032.49 21,098.30 21,098.30
Our ESG focus and other collateral requirements
43 Environment (ii) Outflows related to loss of funding on - - - - - - - -
54 Social debt products
69 People (iii) Credit and liquidity facilities 11,936.09 1,564.49 4,049.22 404.92 2,025.62 328.33 2,630.28 796.11
80 Governance 6 Other contractual funding obligations 189,338.31 189,338.31 131,648.28 131,648.28 65,249.28 65,249.28 60,707.53 60,707.53
7 Other contingent funding obligations 1,321,202.23 50,913.41 1,473,027.24 56,771.11 1,563,980.18 59,941.46 1,593,489.65 60,991.41
Statutory Reports
8 Total Cash Outflows 2,838,355.78 574,913.54 3,091,483.68 562,252.12 3,335,014.60 617,027.49 3,443,643.01 647,726.25
Cash Inflows
146 Report on corporate governance 9 Secured lending (e.g. reverse repos) 11,285.53 - 10,547.72 - 39,742.11 - 49,205.38 -
187 Annual business responsibility report 10 Inflows from fully performing exposures 52,957.89 16,145.54 87,552.10 45,041.06 134,279.13 78,506.19 159,323.36 97,121.11
11 Other cash inflows 66,080.49 66,080.49 100,555.64 100,555.64 67,129.37 67,129.37 48,348.73 48,348.73
Financial Statements 12 Total Cash Inflows 130,323.90 82,226.02 198,655.46 145,596.69 241,150.61 145,635.56 256,877.47 145,469.84
198 Standalone Financials 21 TOTAL HQLA 197,052.73 310,855.05 536,598.92 589,102.55
267 Consolidated Financials 22 Total Net Cash Outflows 492,687.51 416,655.43 471,391.93 502,256.41
23 Liquidity Coverage Ratio (%) 40.0% 74.6% 113.8% 117.3%
260
Schedules
The following table sets forth, the daily average of unweighted and weighted values for all the quarters in FY2018-19.
Contents (` in million)
Corporate Overview
Quarter ended March 31, 2019 Quarter ended December 31, 2018 Quarter ended September 30, 2018 Quarter ended June 30, 2018
A redefined YES Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted
Value Value Value Value Value Value Value Value
03 YES BANK at a glance High Quality Liquid Assets
05 Products and services 1 Total High Quality Liquid Assets (HQLA) 587,604.68 524,390.54 522,841.33 505,991.52
06 Geographical presence Cash Outflows
07 Message from the Chairman 2 Retail deposits and deposits from small 754,532.46 73,206.52 714,628.47 69,379.68 695,299.10 67,552.46 644,728.31 62,635.32
10 Message from the Managing Director business customers, of which:
and CEO (i) Stable deposits 44,934.58 2,246.73 41,663.30 2,083.16 39,549.03 1,977.45 36,750.33 1,837.52
12 Key performance indicators (ii) Less stable deposits 709,597.88 70,959.79 672,965.17 67,296.52 655,750.06 65,575.01 607,977.99 60,797.80
15 COVID-19 response 3 Unsecured wholesale funding, of which: 945,332.24 426,691.60 908,437.95 405,633.84 896,161.86 398,871.02 875,248.44 405,079.68
17 Customer focus (i) Operational deposits (all counterparties) 108,142.54 27,035.63 110,509.61 27,627.40 85,144.66 21,286.16 82,678.05 20,669.51
21 Technology and digital innovation (ii) Non-operational deposits 837,189.70 399,655.96 797,928.34 378,006.44 811,017.20 377,584.85 792,570.39 384,410.16
25 Retail (all counterparties)
(iii) Unsecured debt - - - - - -
4 Secured wholesale funding 11,087.13 - 16,735.07 - 25,956.45 - 8,307.06 -
5 Additional requirements, of which 29,347.92 27,021.26 34,042.99 32,157.68 19,060.87 18,295.87 13,854.69 12,413.18
31 Our strategy
36 Risk management
(i) Outflows related to derivative exposures 26,439.73 26,439.73 31,354.21 31,354.21 17,871.51 17,871.51 12,238.09 12,238.09
and other collateral requirements
Our ESG focus (ii) Outflows related to loss of funding on - - - - - - -
43 Environment debt products
54 Social (iii) Credit and liquidity facilities 2,908.19 581.53 2,688.78 803.47 1,189.36 424.36 1,616.60 175.08
69 People 6 Other contractual funding obligations 67,776.73 67,776.73 67,506.03 67,506.03 73,958.43 73,958.43 60,043.54 60,043.54
80 Governance 7 Other contingent funding obligations 1,608,657.39 61,347.59 1,631,159.58 61,822.54 1,544,650.89 59,016.48 1,426,813.72 54,544.20
8 Total Cash Outflows 3,416,733.87 656,043.70 3,372,510.08 636,499.77 3,255,087.59 617,694.26 3,028,995.77 594,715.91
Statutory Reports
Cash Inflows
9 Secured lending (e.g. reverse repos) 71,144.40 - 18,093.98 - 28,251.28 - 98,890.44 -
146 Report on corporate governance 10 Inflows from fully performing exposures 109,662.81 63,142.29 104,065.59 59,376.40 87,411.97 36,023.66 94,366.98 51,626.20
187 Annual business responsibility report 11 Other cash inflows 63,126.23 63,126.23 64,319.15 64,319.15 55,814.10 55,814.10 42,290.02 42,290.02
12 Total Cash Inflows 243,933.45 126,268.52 186,478.72 123,695.54 171,477.36 91,837.77 235,547.44 93,916.22
Financial Statements 21 TOTAL HQLA 587,604.68 524,390.54 522,841.33 505,991.52
198 Standalone Financials 22 Total Net Cash Outflows 529,775.18 512,804.23 525,856.49 500,799.69
267 Consolidated Financials 23 Liquidity Coverage Ratio (%) 110.9% 102.3% 99.4% 101.0%
For all the quarters in the current and previous year, the average weighted and unweighted amounts are calculated taking simple average of daily positions.
261
Schedules
Qualitative Disclosure: • The Bank’s HQLA comprises of Excess CRR, Excess SLR, eligible foreign sovereign
Contents The Bank measures and monitors the LCR in line with the Reserve Bank of India’s investments, Marginal Standing Facility (MSF) and Facility to Avail Liquidity for
Corporate Overview circular dated June 09, 2014 and November 28, 2014 on “Basel III Framework on Liquidity Coverage Ratio (FALLCR) as permitted under prudential guidance and
Liquidity Standards - Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools eligible Level 2 investments. The Bank has a very limited exposure to liquidity risk
A redefined YES
and LCR Disclosure Standards” as amended for “Prudential Guidelines on Capital on account of its Derivatives portfolio. Further, the Bank believes that all inflows
03 YES BANK at a glance Adequacy and Liquidity Standards” dated March 31, 2015. The LCR guidelines aims to and outflows which might have a material impact under the liquidity stress scenario
05 Products and services ensure that a bank maintains an adequate level of unencumbered High Quality Liquid have been considered for the purpose of LCR. Further, SLR investments as well as
06 Geographical presence Assets (HQLAs) that can be converted into cash to meet its liquidity needs for a 30 Corporate Bond portfolio of the Bank considered for HQLA is also well diversified
07 Message from the Chairman calendar day time horizon under a significantly severe liquidity stress scenario. At a across various instruments and Liquid Asset Type Mix and should provide the Bank
10 Message from the Managing Director minimum, the stock of liquid assets should enable the bank to survive until day 30 of with adequate and timely liquidity.
and CEO the stress scenario, by which time it is assumed that appropriate corrective actions
• The daily average LCR for quarter ending March 31, 2020 is 40.0% which is below
12 Key performance indicators can be taken. Banks are required to maintain High Quality Liquid Assets of a minimum
the prudential requirement. The LCR for the Bank had fallen below the regulatory
15 COVID-19 response of 100% of its Net Cash Outflows.
17 Customer focus limits on account of payment /prepayment of deposits and borrowings on account
21 Technology and digital innovation • The Bank endeavors to meet the LCR requirement on an ongoing basis. The of various internal and external events including moratorium, multi notch rating
25 Retail adequacy in the LCR maintenance remains a conscious strategy of the Bank towards downgrades, aftermath of cooperative bank failure etc.
complying with LCR mandate.
Our approach to value creation • Accordingly, the Bank utilized the stock of HQLA to meet the commitments on
29 Value creation model • The Board of Directors of the Bank have empowered ALCO (Top Management account of these liabilities resulting in LCR dropping below the prudential limit.
31 Our strategy Executive Committee) to monitor and strategize the Balance Sheet profile of the
• The bank endeavors to restore the LCR on an urgent basis and is working towards
36 Risk management Bank. In line with the business strategy, ALCO forms an Interest Rate/Liquidity
the same by garnering deposits and long term borrowings along with through asset
view for the bank with the help of the economic analysis provided by the in-house
Our ESG focus advances at the earliest.
economic research team of the bank. ALCO of the Bank channelizes various business
43 Environment
segments of the Bank to target good quality asset and liability profile to meet the 18.6.57 Intra-Group Exposures to Subsidiaries
54 Social
Bank’s profitability as well as Liquidity requirements with the help of robust MIS The Bank has three subsidiary viz. “YES Securities (India) Limited, Yes Asset
69 People
and Risk Limit architecture of the Bank. Management (India) Limited and Yes Trustee Limited “. Below mentioned are details of
80 Governance
• Funding strategies are formulated by the ALCO of the Bank. The objective of Intra-Group Exposure as of March 31, 2020 and March 31, 2019.
Statutory Reports (` in million)
the funding strategy is to achieve an optimal funding mix which is consistent
106 Directors’ report with prudent liquidity, diversity of sources and servicing costs. Accordingly, Particulars
As of As of
March 31, 2020 March 31, 2019
146 Report on corporate governance BSMG (Balance Sheet Management Group) of the Bank estimates daily liquidity
requirement of the various business segments and manages the same on Total amount of intra-group exposures 1,375.00 7,500.00
consolidated basis under ALCO guidance. With the help of Liquidity Statement Total amount of top-20 intra-group exposures 1,375.00 7,500.00
Financial Statements prepared by the Bank, BSMG evaluates liquidity requirement and takes necessary Percentage of intra-group exposures to total exposure of 0.03% 0.15%
198 Standalone Financials action. Periodical reports are also placed before the ALCO for perusal and review. the bank on borrowers / customers (%)
262
Schedules
During the year ended March 31, 2020 and March 31, 2019, the intra-group exposures The Bank has maintained provision of `777.93 million (previous year of `537.52
Contents were within the limits specified by RBI. million) and additional capital of `2,304.16 million (previous year of `1,297.78 million)
Corporate Overview on account of Unhedged Foreign Currency Exposure of its borrowers as at March 31,
01 Commitment. Promise. Transparency. 18.6.58 Transfers to Depositor Education and Awareness Fund (DEAF)
2020.
02 Key highlights FY 2019-20 18.6.61 Provisioning pertaining to Fraud Accounts
March 31, 2020 March 31, 2019 The Bank has reported 75 cases of fraud in the financial year ended March 31, 2020
05 Products and services amounting to `65,931.87 million (Previous Year: 107 cases amounting to `1,939.69
Opening balance of the amount transferred to DEAF 32.83 13.53
06 Geographical presence million). The Bank has expensed off/ provided for the expected loss arising from these
Add: Amounts transferred to DEAF during the year 24.46 20.06
07 Message from the Chairman frauds and does not have any unamortized provision.
Less: Amounts reimbursed by DEAF towards claims 3.61 0.75
and CEO Closing balance of amounts transferred to DEAF 53.68 32.83 18.6.62 Disclosure of complaints
18.6.59 Investor Education and Protection Fund A. Customer Complaints
17 Customer focus The unclaimed dividend amount due to be transferred to the Investor Education and Year ended Year ended
Particulars
21 Technology and digital innovation Protection Fund (IEPF) during the year ended March 31, 2020 has been transferred March 31, 2020 March 31, 2019
25 Retail without any delay. i) No. of Complaints pending at the beginning of the 3,271 2,681
year
Our approach to value creation 18.6.60 Unhedged Foreign Currency Exposure of Bank’s Customer
ii) No. of Complaints received during the year 111,764 110,301
29 Value creation model The Bank has in place a policy on managing credit risk arising out of unhedged foreign iii) No. of Complaints redressed during the year 112,442 109,711
31 Our strategy currency exposures of its borrowers. The objective of this policy is to maximize the iv) No. of Complaints pending at the end of the year 2,593 3,271
36 Risk management hedging on foreign currency exposures of borrowers by reviewing their foreign
currency product portfolio and encouraging them to hedge the unhedged portion. In Auditors have relied upon the information presented by management as above.
Our ESG focus
43 Environment line with the policy, assessment of unhedged foreign currency exposure is a part of B. Awards passed by the Banking Ombudsman
54 Social assessment of borrowers and is undertaken while proposing limits or at the review
Year ended Year ended
69 People stage. Additionally, at the time of sanctioning limits for all clients, the Bank stipulates Particulars
March 31, 2020 March 31, 2019
80 Governance a limit on the unhedged foreign currency exposure of the client (as a % of total
i) No. of unimplemented Awards at the beginning of Nil Nil
foreign currency exposure sanctioned by the Bank) after considering factors such
Statutory Reports the year
as internal rating of the borrower, size, possibility of natural hedging, sophistication
84 Management discussion and analysis ii) No. of Awards passed by the Banking Ombudsman Nil Nil
of borrower and maturity of borrower’s financial systems, relative size of unhedged
106 Directors’ report during the year
foreign currency exposure with respect to total borrowings of the client, etc. Further,
146 Report on corporate governance iii) No. of Awards implemented during the year Nil Nil
the Bank reviews the unhedged foreign currency exposure across its portfolio on a
187 Annual business responsibility report iv) No. of unimplemented Awards at the end of the Nil Nil
periodic basis. The Bank also maintains incremental provision and capital towards
year
Financial Statements the unhedged foreign currency exposures of its borrowers in line with the extant RBI
198 Standalone Financials guidelines. The above is based on the information available with the Bank which has been relied
267 Consolidated Financials upon by the auditors.
263
Schedules
18.6.63 Dues to Micro and Small Enterprises 18.6.67 Provision for Long Term contracts
Contents
Under the Micro, Small and Medium Enterprises Development Act, 2006 which came The Bank has a process whereby periodically all long term contracts (including
Corporate Overview
01 Commitment. Promise. Transparency. into force from October 2, 2006, certain disclosures are required to be made relating derivative contracts) are assessed for material foreseeable losses. At the year end,
A redefined YES to Micro, Small and Medium enterprises. There have been `655.70 million (previous the Bank has reviewed and recorded adequate provision as required under any law
02 Key highlights FY 2019-20 year `437.40 million) worth bills which were paid with delays to micro and small / accounting standards for material foreseeable losses on such long term contracts
03 YES BANK at a glance enterprises. There have been `19.72 million worth bills remained unpaid as at March (including derivative contracts) in the books of account and disclosed the same under
05 Products and services 31, 2020. There have been no demand of interest on these payments. The above is the relevant notes in the financial statements.
06 Geographical presence based on the information available with the Bank which has been relied upon by the 18.6.68 PSLCs sold and purchased during the ended March 31, 2020
07 Message from the Chairman auditors.
10 Message from the Managing Director (` in million)
and CEO 18.6.64 Securitization Transactions 2019-20 2018-19
Particulars
12 Key performance indicators The Bank has not done any securitization transactions during the year ended March 31, Purchased Sold Purchased Sold
15 COVID-19 response PSLC - Agriculture - - - -
2020 and March 31, 2019. The Bank has assigned retail loans amounting to `27,511.49
17 Customer focus PSLC - SF/MF 105,000.00 - 96,000.00 -
million (90% of portfolio) during the financial year ended March 31, 2020.
PSLC - Micro Enterprises - - - -
25 Retail 18.6.65 Letter of comfort PSLC – General - - 68,000.00 -
Our approach to value creation The Bank has not issued any letter of comfort which is not recorded as contingent
liability during the year ended March 31, 2020 and March 31, 2019. 18.6.69 Disclosure on Complaints-
31 Our strategy The Bank became aware in September 2018 through communications from stock
18.6.66 Software Capitalized under Fixed Assets
36 Risk management exchanges of anonymous whistleblower complaints alleging irregularities in the Bank’s
The Bank has capitalized software under Fixed Asset amounting to `951.56 million operations, potential conflict of interest of the founder and former MD & CEO and
Our ESG focus and `1,578.12 million during the financial year ended March 31, 2020 and March 31, allegations of incorrect NPA classification. The Bank conducted an internal enquiry
43 Environment 2019 respectively. of these allegations, which was carried out by management and supervised by the
54 Social
(` in million) Board of Directors. The enquiry resulted in a report that was reviewed by the Board
69 People
As at As at
in November 2018. Based on further inputs and deliberations in December 2018, the
80 Governance Particulars
March 31, 2020 March 31, 2019 Audit Committee of the Bank engaged an external firm to independently examine the
Statutory Reports matter. In April 2019, the Bank had received the phase 1 report from the external firm
At cost at March 31st of preceding year 5,296.77 3,722.63
84 Management discussion and analysis and based on further review/ deliberations had directed a phase 2 investigation from
Additions during the year 951.56 1,578.12
106 Directors’ report the said firm. Further, during the quarter ended December 31, 2019, the Bank received
Deductions during the year - (3.99)
146 Report on corporate governance forensic reports on certain borrower groups commissioned by other consortium
Depreciation to date (4,148.74) (2,974.02)
187 Annual business responsibility report bankers, which gave more information regarding the above mentioned allegations.
Net block 2,099.59 2,322.74
Financial Statements The Bank at the direction of its Nomination and Remuneration Committee (NRC)
198 Standalone Financials obtained an independent legal opinion with respect to these matters. In February
267 Consolidated Financials 2020, the Bank has received the final phase 2 report from the said external firm.
Meanwhile, in March 2020, the Enforcement Directorate has launched an investigation
264
Schedules
into some aspects of transactions of the founder and former MD & CEO and alleged 18.6.70 Description of contingent liabilities
Contents links with certain borrower groups. The ED is investigating allegations of money
Corporate Overview laundering, fraud and nexus between the founder and former MD & CEO and certain Sr.
Contingent Liabilities Brief
01 Commitment. Promise. Transparency. No.
loan transactions. The Bank is in the process of evaluating all of the above reports
A redefined YES
and concluding if any of the findings have a material impact on financial statements/ 1. Claims against the Bank The Bank is a party to various legal and tax proceedings in
02 Key highlights FY 2019-20 not acknowledged as the normal course of business. The Bank does not expect
03 YES BANK at a glance processes and require further investigation. The Bank has taken this report to the
debts the outcome of these proceedings to have a material
05 Products and services newly constituted Audit Committee and Board and will progress further action basis
adverse effect on the Bank’s financial conditions, results of
06 Geographical presence the guidance and recommendations. operations or cash flows.
07 Message from the Chairman During the year ended March 31, 2020, the Bank had received various whistleblower 2. Liability on account of The Bank enters into foreign exchange contracts, currency
10 Message from the Managing Director forward exchange and options, forward rate agreements, currency swaps and
complaints against the Banks management, former MD & CEO and certain members of
and CEO derivative contracts. interest rate swaps with interbank participants and
the Board of Directors prior to being superseded by RBI. The NRC, basis investigations
12 Key performance indicators customers. Forward exchange contracts are commitments
conducted by the management has, post its review, concluded that they have no
to buy or sell foreign currency at a future date at the
17 Customer focus material impact on financial statements. contracted rate. Currency swaps are commitments to
21 Technology and digital innovation In January 2020, the then Chairman of the Audit Committee of the Bank highlighted exchange cash flows by way of interest/principal in one
25 Retail currency against another, based on predetermined
certain concerns around corporate governance and other operational matters
rates. Interest rate swaps are commitments to exchange
Our approach to value creation at the Bank. The then Board decided to get this investigated by an independent fixed and floating interest rate cash flows. The notional
29 Value creation model external firm. A preliminary report has been received by the Board. While most of amounts of financial instruments of such foreign exchange
31 Our strategy the allegations are unsubstantiated, the Board has requested the external firm for contracts and derivatives provide a basis for comparison
36 Risk management detailed recommendations highlighting areas where corporate governance can be with instruments recognized on the balance sheet but
further strengthened. do not necessarily indicate the amounts of future cash
Our ESG focus flows involved or the current fair value of the instruments
43 Environment and, therefore, do not indicate the Bank’s exposure to
54 Social credit or price risks. The derivative instruments become
69 People favorable (assets) or unfavorable (liabilities) as a result
80 Governance of fluctuations in market rates or prices relative to their
terms. The aggregate contractual or notional amount of
Statutory Reports derivative financial instruments on hand, the extent to
84 Management discussion and analysis which instruments are favorable or unfavorable and, thus
106 Directors’ report the aggregate fair values of derivative financial assets and
146 Report on corporate governance liabilities can fluctuate significantly.
265
Schedules
Sr. Sr.
Contents No.
No.
Corporate Overview
3. Guarantees given on behalf As a part of its commercial banking activities the Bank 5 PF Liability In February 2019, the honorable Supreme Court of India
01 Commitment. Promise. Transparency. of constituents, acceptances, issues documentary credit and guarantees on behalf of its in its judgement clarified that certain special allowances
A redefined YES
endorsements and other customers. Documentary credits such as letters of credit should be considered to measure obligations under
02 Key highlights FY 2019-20 obligations enhance the credit standing of the customers of the Bank. Employees’ Provident Funds and Miscellaneous Provisions
03 YES BANK at a glance Guarantees generally represent irrevocable assurances that Act, 1952 (the PF Act). The Bank has been legally advised
05 Products and services the Bank will make payments in the event of the customer that there are interpretative challenges on the application
06 Geographical presence failing to fulfill its financial or performance obligations. of judgement retrospectively and as such does not consider
07 Message from the Chairman there is any probable obligations for past periods. Due
4. Other items for which the Purchase of securities pending settlement, capital to imperative challenges, the Bank has not disclosed
and CEO
Bank is contingently liable commitments, amount deposited with RBI under Depositor contingent liability amount for past liability.
Education Awareness Fund (DEAF), bill re-discounting,
Foreign Exchange Contracts (Tom & Spot) Refer Schedule 12 for amounts relating to contingent liability
17 Customer focus Prior period comparatives
Previous year’s figures have been regrouped where necessary to conform to current
25 Retail
year classification
31 Our strategy
36 Risk management For B S R & Co. LLP For and on behalf of the Board of Directors
Our ESG focus Firm’s Registration No: 101248W/W-100022
43 Environment
54 Social Venkataramanan Vishwanath Prashant Kumar Sunil Mehta Atul Bheda
69 People Partner Managing Director & CEO Chairman Director
80 Governance Membership No: 113156 (DIN: 07562475) (DIN: 00065343) (DIN: 03502424)
Statutory Reports Partha Pratim Sengupta Anurag Adlakha Shivanand R. Shettigar

Director Group Chief Financial Officer Group Company Secretary
106 Directors’ report (DIN: 08273324)
Mumbai
May 6, 2020
266
To, Further, the write back of the Additional Tier (‘AT’) 1 bonds on 14 March 2020 also
Contents resulted in the breach of Tier 1 capital ratio as at 31 March 2020. The CET1 ratio and
Corporate Overview The Members of YES Bank Limited
the Tier 1 capital ratios for the Bank as at 31 March 2020 stood at 6.3% and 6.5 %
Report on the Audit of the Consolidated Financial Statements as compared to the minimum requirements of 7.375% and 8.875% respectively. This
A redefined YES
Qualified Opinion implies that the Bank will have to take effective steps to augment its capital base in the
03 YES BANK at a glance year 2020-21. Further, in view of the RBI norms relating to the breach of the aforesaid
We have audited the consolidated financial statements of YES Bank Limited (hereinafter
05 Products and services ratios, there is uncertainty around RBI’s potential action for such a breach. We are
referred to as the ‘Bank’ or ‘Holding Company’) and its subsidiaries (the Holding
06 Geographical presence unable to comment on the consequential impact of the above regulatory breach on
Company and its subsidiaries together referred to as the ‘Group’), which comprise
07 Message from the Chairman these Consolidated Financial Statements.
the consolidated balance sheet as at 31 March 2020, and the consolidated profit and
loss account, and the consolidated cash flow statement for the year then ended, and We draw attention to Note 18.19 of the Consolidated Financial Statements, which
and CEO
notes to the consolidated financial statements, including a summary of significant discloses that the Bank became aware in September 2018 through communications
accounting policies and other explanatory information (hereinafter referred to as the from stock exchanges of an anonymous whistle-blower complaint alleging irregularities
17 Customer focus ‘Consolidated Financial Statements’). in the Bank’s operations, potential conflicts of interests in relation to the former
21 Technology and digital innovation MD and CEO and allegations of incorrect NPA classification. The Bank conducted an
In our opinion and to the best of our information and according to the explanations
25 Retail internal enquiry of these allegations, which resulted in a report that was reviewed by
given to us, and based on the consideration of report of the other auditor on separate
the Board of Directors in November 2018. Based on further inputs and deliberations
Our approach to value creation financial statements of one subsidiary as were audited by the other auditor, except
in December 2018, the Audit Committee of the Bank engaged an external firm to
29 Value creation model for the effect of the matters described in the ‘Basis of Qualified opinion’ section of our
independently examine the matter. During the year ended 31 March 2020, the Bank
31 Our strategy report, the aforesaid Consolidated Financial Statements give the information required
identified certain further matters which arose from other independent investigations
36 Risk management by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair
initiated by the lead banker of a lenders’ consortium on the companies allegedly
view in conformity with the accounting principles generally accepted in India, of the
Our ESG focus favoured by the former MD and CEO. In March 2020, the Enforcement Directorate
consolidated state of affairs of the Group, of its consolidated loss and consolidated
43 Environment has launched an investigation into some aspects of dealings and transactions by
cash flows for the year ended on that date.
54 Social the former MD and CEO basis draft forensic reports from external agencies which
69 People Basis for Qualified opinion further pointed out to conflict of interest between the former MD and CEO and certain
80 Governance We draw attention to Note 18.2 of the Consolidated Financial Statements, which companies and arrested him. In view of the fact that these enquiries and investigations
indicates that during the year ended 31 March 2020, the Bank has breached the are still ongoing, we are unable to comment on the consequential impact of the above
Statutory Reports
regulatory requirements of the Reserve Bank of India (‘RBI’) regarding maintaining matter on these Consolidated Financial Statements.
106 Directors’ report the minimum Common Equity Tier (‘CET’) 1 and Tier 1 capital ratios which indicates We conducted our audit in accordance with the Standards on Auditing (SAs) specified
146 Report on corporate governance the position of capital adequacy of a bank. The breach is primarily on account of the under section 143(10) of the Act. Our responsibilities under those SAs are further
187 Annual business responsibility report increase in the provision for advances during the year ended 31 March 2020 as the Bank described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
has decided, on a prudent basis, to enhance its Provision Coverage Ratio on its Non- Statements section of our report. We are independent of the Group, in accordance
Performing Asset (NPA) loans over and above minimum RBI loan level provisioning. with the ethical requirements that are relevant to our audit of the Consolidated
267
Financial Statements in terms of the Code of Ethics issued by Institute of Chartered stress and actions taken by the RBI resulted in a significant withdrawal of deposits. On
Contents Accountants of India and the relevant provisions of the Act, and we have fulfilled our 13 March 2020, the Government of India notified the Yes Bank Limited Reconstruction
Corporate Overview other ethical responsibilities in accordance with these requirements. We believe that Scheme 2020 (‘the Scheme’) [notified by the Central Government, in exercise of the
the audit evidence obtained by us along with the consideration of the audit report of powers conferred by sub section (4) and subsection 7 of section 45 of the Banking
A redefined YES
the other auditor referred to in sub paragraph (a) of the “Other Matters” paragraph Regulation Act, 1949]. Under this Scheme the authorized share capital of the Bank was
below, is sufficient and appropriate to provide a basis for our qualified opinion on the increased to `6,200 crores. The Bank has received capital from investors amounting
05 Products and services Consolidated Financial Statements. to `10,000 crores on 14 March 2020. The State Bank of India (SBI) and other banks
06 Geographical presence and financial institutions invested in the Bank at a price of `10 per equity share of
Material uncertainty related to going concern
07 Message from the Chairman the Bank (`2 face value with a `8 premium). SBI is required to hold upto 49% with a
We draw attention to Note 18.2 of the Consolidated Financial Statements, which minimum holding of 26% by SBI in the Bank (which is subject to a 3 year lock in). Other
and CEO indicates that the Bank has incurred a loss of `16,418 crores for the year ended 31 investors are subject to a 3 year lock in for 75% of the investments they make in the
12 Key performance indicators March 2020. Particularly during the last six months, there has also been a significant Bank under this Scheme. Existing investors (other than investors holding less than
15 COVID-19 response decline in the Bank’s deposit base, an increase in their NPA ratios resulting in breach 100 shares) in the Bank are also subject to a lock in for 75% of their holding as per this
17 Customer focus of loan covenants on its foreign currency debt and credit rating downgrades resulting Scheme. A new Board of Directors, CEO and MD and Non Executive Chairman have
21 Technology and digital innovation in partial prepayment of foreign currency debt linked to external credit rating. also been appointed pursuant to the Scheme. In addition, the moratorium imposed
25 Retail The Bank has also breached minimum Statutory Liquidity Ratio (SLR) and Liquidity on the Bank on 5 March 2020 was vacated on 18 March 2020 as per the Scheme.
Coverage Ratio requirements of RBI during the year and has provided an amount of RBI has also granted short-term funding to the Bank for the period of 90 days. The
`334 crores for the expected penalty on the SLR breach. The Bank has also breached Bank has submitted a proposal seeking extension for a period of one year. The draft
the RBI mandated CET1 ratio and Tier 1 capital ratio which stood at 6.3%.and 6.5% reconstruction scheme proposed on 6 March 2020 had also envisaged that the Bank
31 Our strategy
as compared to the minimum requirements of 7.375% and 8.875% respectively. This would be able to write back Additional Tier 1 (AT1) securities amounting to `8,695
36 Risk management
requires the Bank to take effective steps to augment its capital base in the year 2020- crores to equity. However, the final Scheme issued by the Government of India on 13
Our ESG focus 21. The breach of the CET1 and Tier 1 requirements was also impacted by the decision March 2020 does not contain any reference to the write back of the AT1 securities.
43 Environment of the Bank to enhance its Provision Coverage Ratio, on a prudent basis, on its NPA Based on the legal advice on the contractual terms of the AT 1 bonds, the Bank has
54 Social loans over and above RBI’s minimum loan provisioning norms. Further, on 5 March fully written back AT 1 bonds aggregating to `8,415 crores on 14 March 2020. This
69 People 2020, the Central Government, based on the RBI’s application imposed a moratorium action by the Bank has been legally challenged through a writ petition in the Hon’ble
80 Governance under section 45 of the Banking Regulation Act, 1949 for a period of 30 days effective Bombay High court.
Statutory Reports 5 March 2020. The RBI, in consultation with the Central Government and in exercise
of the powers under section 36ACA of the Banking Regulation Act 1949, superseded In line with the RBI’s COVID-19 Regulatory Package dated 27 March 2020 and 17
106 Directors’ report the Board of Directors of the Bank on 5 March 2020. The above indicators of financial April 2020, the Bank has granted a moratorium of three months on the payment of
146 Report on corporate governance all instalments and/or interest, as applicable, falling due between 1 March 2020 and
268
31 May 2020 to all eligible borrowers classified as Standard, even if overdue, as on has assessed that there is reasonable certainty that sufficient future taxable income
Contents 29 February 2020. will be available against which such deferred tax assets can be realized. The Bank
Corporate Overview expects to have a taxable profit for the future years. Our conclusion is not modified in
01 Commitment. Promise. Transparency. In the opinion of the Bank, based on the financial projections prepared by the Bank
respect of this matter.
A redefined YES and approved by the Board for the next 3 years, the capital infusion, lines of liquidity
02 Key highlights FY 2019-20 provided by RBI and the reconstruction Scheme, the Bank will be able to realize We draw attention to Note 18.5 of the Consolidated Financial Statements which states
03 YES BANK at a glance its assets (including its deferred tax asset) and discharge its liabilities in its normal that the Bank had made an additional provision of `15,422 crores for the period ended
05 Products and services course of business and hence the financial statements have been prepared on a going 31 December 2019 on a prudent evaluation of the status of NPAs based on discussion
06 Geographical presence concern basis. The said assumption of going concern is inter-alia dependent on the with regulator over and above the RBI norms relating to the minimum provision to be
07 Message from the Chairman Bank’s ability to achieve improvements in liquidity, asset quality and solvency ratios made by banks on their loans and advances. The additional provision is judgmental
and mitigate the impact of Covid-19 and thus a material uncertainty exists that may based on the quality and status of specific loans identified by the Bank as at 31
and CEO
cast a significant doubt on the Bank’s ability to continue as a going concern. However, March 2020. We believe that this judgment exercised by the Bank is appropriate. Our
as stated above, as per management and the Board there are mitigating factors to conclusion is not modified in respect of this matter.
such uncertainties including the amount of capital funds that have been raised in
17 Customer focus Key audit matters
21 Technology and digital innovation March 2020, the nature and financial resources of new investors who have infused
funds in the Bank, the new Board of Directors, CEO and MD and part time Chairman Key audit matters are those matters that, in our professional judgment, were of most
25 Retail
appointed as per the Scheme and the extent of regulatory support provided to the significance in our audit of the Consolidated Financial Statements of the current
Our approach to value creation Bank by the RBI. period. These matters were addressed in the context of our audit of the Consolidated
29 Value creation model Financial Statements as a whole, and in forming our opinion thereon, and we do not
31 Our strategy Our conclusion on the Consolidated Financial Statements is not modified in respect provide a separate opinion on these matters. In addition to the matter described in
36 Risk management of this matter. the Material Uncertainty Related to Going Concern section, we have determined the
Our ESG focus Emphasis of matter matters described below to be the key audit matters to be communicated in our report.
43 Environment We draw attention to Note 18.15 of the Consolidated Financial Statements, which
54 Social states that the Bank has a total deferred tax asset of `8,281 crores as at 31 March
69 People 2020. As per the requirements of AS 22 – Income Taxes, based on the financial
80 Governance projections prepared by the Bank and approved by the Board of Directors, the Bank
Statutory Reports
269
Key audit matter How the matter was addressed in our audit
Contents Identification of Non-Performing Assets (‘NPAs’) and Provisions on Advances
Corporate Overview
Charge: `27,806 crores for year ended 31 March 2020
Provision: `24,253 crores at 31 March 2020
A redefined YES
Refer to the accounting policies in the Consolidated Financial Statements: “Significant Accounting Policies- use of estimates” and “Note 18.6.3 to the Consolidated Financial
Statements: Advances
Significant estimates and judgment involved Our key audit procedures included:
Identification of NPAs and provisions in respect of NPAs and restructured advances are Test of design / controls
made based on management’s assessment of the degree of impairment of the advances • Assessed the design, implementation and operating effectiveness of key internal controls
subject to and guided by the minimum provisioning levels prescribed under the RBI over approval, recording and monitoring of loans, monitoring process of overdue loans,
10 Message from the Managing Director guidelines with regard to the Prudential Norms on Income Recognition, Asset Classification
and CEO measurement of provisions, identification of NPA accounts and assessing the reliability of
& Provisioning, prescribed from time to time. The provision on NPA are also based on the management information (including overdue reports). In addition, for corporate loans we
12 Key performance indicators valuation of the security available. In case of restructured accounts, provision is made for tested controls over the internal ratings process, monitoring of stressed accounts including
15 COVID-19 response erosion/diminution in fair value of restructured loans, in accordance with the RBI guidelines. credit file review processes and review controls over the approval of significant individual
17 Customer focus
We identified identification of NPAs and provision on advances as a key audit matter impairment provisions.
21 Technology and digital innovation because of the level of management judgement involved in determining the provision • Evaluated the design, implementation and operating effectiveness of key internal controls
25 Retail (including the provisions on assets which are not classified as NPAs) and the valuation of over the valuation of security for NPAs.
the security of the NPA loans and on account of the significance to these estimates to the
Our approach to value creation • Tested management review controls over measurement of provisions including documentation
financial statements of the Bank.
29 Value creation model of the relevant approvals along with basis and rationale of the provision and disclosures in
31 Our strategy On 11 March 2020, the World Health Organisation declared the Novel Coronavirus financial statements.
(COVID-19) outbreak to be a pandemic.
36 Risk management • Obtained and reviewed the Bank’s policy and application of moratorium provided to
We have identified the impact of, and uncertainty related to the COVID-19 pandemic as customers in response to COVID 19.
Our ESG focus a key event and consideration for recognition and measurement of NPAs on account of
• Involved information system specialists in the audit of this area to gain comfort over data
43 Environment application of regulatory package and relaxations announced by the Reserve Bank of India
integrity and calculations, including system reconciliations.
54 Social on asset classification, regulatory reporting and provisioning.
69 People Management has conducted an assessment of the loan portfolio which may be impacted Substantive tests
80 Governance on account of COVID-19 with respect to moratorium benefit, and provision computation to • Test of details for a selection of exposures over calculation of NPA provisions including
borrowers prescribed by the regulatory package. valuation of collaterals for NPAs as at 31 March 2020; the borrower-wise NPA identification
Statutory Reports and provisioning determined by the Bank and also tested related disclosures by assessing the
84 Management discussion and analysis completeness, accuracy and relevance of data and to ensure that the same is in compliance
106 Directors’ report with the RBI guidelines with regard to the Prudential Norms on Income Recognition, Asset
146 Report on corporate governance Classification & Provisioning.
187 Annual business responsibility report • We tested computations of provisions established by the Bank in response to the RBI’s
guidance on customers for which COVID related moratoriums have been provided.
198 Standalone Financials • We also selected a sample of high risk borrowers to test potential cases of loans repaid during
267 Consolidated Financials the period, from fresh disbursement(s) made to these borrowers.
270
Contents • We selected a sample (based on quantitative and qualitative thresholds) of large corporate
Corporate Overview clients and performed the following procedures:
−− Reviewed the statement of accounts, approval process, board minutes, credit review of
A redefined YES
customer, review of Special Mention Accounts reports and other related documents to
assess recoverability and the classification of the facility in accordance with the Prudential
03 YES BANK at a glance Norms on Income Recognition, Asset Classification and Provisioning issued by the RBI; and
−− For a risk based sample of corporate loans not identified as displaying indicators of
impairment by management, challenged this assessment by reviewing the historical
performance of the customer and assessing whether any impairment indicators were
10 Message from the Managing Director present.
and CEO
12 Key performance indicators Information technology
15 COVID-19 response IT systems and controls Our key IT audit procedures included:
17 Customer focus The Bank’s key financial accounting and reporting processes are highly dependent on • We focused on user access management, change management, segregation of duties, system
21 Technology and digital innovation information systems including automated controls in systems, such that there exists a reconciliation controls and system application controls over key financial accounting and
25 Retail risk that gaps in the IT control environment could result in the financial accounting and reporting systems.
reporting records being misstated. Amongst, its multiple IT systems, seven systems are key • We tested a sample of key controls operating over the information technology in relation
Our approach to value creation for its overall financial reporting. to financial accounting and reporting systems, including system access and system change
29 Value creation model In addition, large transaction volumes and the increasing challenges to protect the integrity management, program development and computer operations.
31 Our strategy of the Bank’s systems and data, cyber security has become a more significant risk in recent • We tested the design and operating effectiveness of key controls over user access management
36 Risk management periods. which includes granting access right, new user creation, removal of user rights and preventive
Further, the prevailing COVID-19 situation, has caused the required IT applications to be controls designed to enforce segregation of duties.
Our ESG focus
made accessible on a remote basis. • For a selected group of key controls over financial and reporting systems, we independently
43 Environment
54 Social We have identified ‘IT systems and controls’ as key audit matter because of the high performed procedures to determine that these controls remained unchanged during the
69 People
level automation, significant number of systems being used by the management and the year or were changed following the standard change management process.
complexity of the IT architecture. • Other areas that were assessed included password policies, security configurations, system
80 Governance
interface controls, controls over changes to applications and databases and that business
Statutory Reports users and controls to ensure that developers and production support did not have access to
84 Management discussion and analysis change applications, the operating system or databases in the production environment.
106 Directors’ report • Security configuration review and related tests on certain critical aspects of cyber security
146 Report on corporate governance on network security management mechanism, operational security of key information
187 Annual business responsibility report infrastructure, data and client information management, monitoring and emergency
management.
• Assessment of data security controls in the context of a large population of staff working from
remote location at the year end.
271
Contents Valuation of Investments
Corporate Overview Refer to the accounting policies in the Consolidated Financial Statements: “Significant Accounting Policies- use of estimates”, “Note 18.6.2 to the Consolidated Financial Statements:
01 Commitment. Promise. Transparency. Investments”
A redefined YES
Subjective estimates and judgment involved Our key audit procedures included:
03 YES BANK at a glance Investments Test of design / controls
05 Products and services Investments are classified into ‘Held for Trading’ (‘HFT’), ‘Available for Sale’ (‘AFS’) and ‘Held • Assessed the design, implementation and operating effectiveness of management’s key
06 Geographical presence to Maturity’ (‘HTM’) categories at the time of purchase. Investments, which the Bank intends internal controls over classification and valuation.
07 Message from the Chairman to hold till maturity are classified as HTM investments. • Read investment agreements / term sheets entered into during the current year, on a sample
10 Message from the Managing Director Investments classified as HTM are carried at amortised cost. Where, in the opinion of basis, to understand the relevant investment terms and identify any conditions that were
and CEO management, a diminution other than temporary, in the value of investments has taken relevant to the valuation of financial instruments.
12 Key performance indicators place, appropriate provisions are required to be made. Substantive tests
15 COVID-19 response Investments classified as AFS and HFT are marked- to-market on a periodic basis as per the • For sample of instruments we re-performed valuations. For cases where no direct observable
17 Customer focus relevant RBI guidelines. inputs were used, we examined and challenged the assumptions used by the Bank in
21 Technology and digital innovation We identified valuation of investments as a key audit matter because of the management determination of Net assets and cashflows while using a discounted cashflow method.
25 Retail judgement involved in determining the value of certain investments (Bonds and Debentures, • Assessed whether the financial statement disclosures appropriately reflect the Bank’s
Commercial papers and Certificate of deposits, security receipts) based on the policy and exposure to investments with reference to the requirements of the prevailing RBI guidelines.
methodology developed by the Bank, impairment assessment for HTM book and the overall
29 Value creation model significant investments to the financial statements of the Bank.
31 Our strategy
36 Risk management
Our ESG focus Information other than the Consolidated Financial in the audit or otherwise appears to be materially misstated. If, based on the work
43 Environment Statements and Auditor’s Report thereon we have performed, we conclude that there is a material misstatement of this other
54 Social The Bank’s management and Board of Directors are responsible for the other information, we are required to report that fact.
69 People information. The other information comprises the information included in the Bank’s When we read the Bank’s Annual Report, if we conclude that there is a material
80 Governance Annual report, but does not include the Consolidated Financial Statements and our misstatement therein, we are required to communicate the matter to those charged
auditor’s report thereon. The Annual report is expected to be made available to us with governance.
Statutory Reports
after the date of this auditor’s report.
Management’s and Board of Directors’ Responsibilities for the
106 Directors’ report Our opinion on the Consolidated Financial Statements does not cover the other Consolidated Financial Statements
146 Report on corporate governance information and we will not express any form of assurance conclusion thereon.
187 Annual business responsibility report The Holding Company’s management and Board of Directors are responsible for the
In connection with our audit of the Consolidated Financial Statements, our preparation and presentation of these Consolidated Financial Statements in term of
Financial Statements responsibility is to read the other information identified above when it becomes the requirements of the Act that give a true and fair view of the consolidated state
198 Standalone Financials available and, in doing so, consider whether the other information is materially of affairs, the consolidated loss and the consolidated cash flows of the Group in
inconsistent with the Consolidated Financial Statements or our knowledge obtained accordance with the accounting principles generally accepted in India, including the
272
Accounting Standards specified under section 133 of the Act, provisions of Section As part of an audit in accordance with SAs, we exercise professional judgment and
Contents 29 of the Banking Regulation Act, 1949 and the circulars, and guidelines issued by maintain professional skepticism throughout the audit. We also:
Corporate Overview Reserve Bank of India (‘RBI’) from time to time. The respective Management and
01 Commitment. Promise. Transparency. • identify and assess the risks of material misstatement of the Consolidated Financial
Board of Directors of the companies included in the Group are responsible for
A redefined YES Statements, whether due to fraud or error, design and perform audit procedures
maintenance of adequate accounting records in accordance with the provisions of the
02 Key highlights FY 2019-20 responsive to those risks, and obtain audit evidence that is sufficient and
03 YES BANK at a glance Act for safeguarding of the assets of each Company and for preventing and detecting
appropriate to provide a basis for our opinion. The risk of not detecting a material
05 Products and services frauds and other irregularities; selection and application of appropriate accounting
misstatement resulting from fraud is higher than for one resulting from error, as
06 Geographical presence policies; making judgments and estimates that are reasonable and prudent; and the
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
07 Message from the Chairman design, implementation and maintenance of adequate internal financial controls, that
the override of internal control.
10 Message from the Managing Director were operating effectively for ensuring accuracy and completeness of the accounting
and CEO records, relevant to the preparation and presentation of the Consolidated Financial • obtain an understanding of internal control relevant to the audit in order to design
12 Key performance indicators Statements that give a true and fair view and are free from material misstatement, audit procedures that are appropriate in the circumstances. Under section 143(3)
15 COVID-19 response whether due to fraud or error, which have been used for the purpose of preparation (i) of the Act, we are also responsible for expressing our opinion on the internal
17 Customer focus of the Consolidated Financial Statements by the Management and Directors of the financial controls with reference to Consolidated Financial Statements and the
21 Technology and digital innovation Holding Company, as aforesaid. operating effectiveness of such controls based on our audit.
25 Retail
In preparing the Consolidated Financial Statements, the respective Management and • evaluate the appropriateness of accounting policies used and the reasonableness
Our approach to value creation Board of Directors of the companies included in the Group are responsible for assessing of accounting estimates and related disclosures made by the Management and
29 Value creation model the ability of each Company to continue as a going concern, disclosing, as applicable, Board of Directors.
31 Our strategy
matters related to going concern and using the going concern basis of accounting
36 Risk management • conclude on the appropriateness of Management and Board of Directors use
unless the respective management and Board of Directors either intends to liquidate
of the going concern basis of accounting in preparing Consolidated Financial
Our ESG focus the Company or to cease operations, or has no realistic alternative but to do so.
Statements and, based on the audit evidence obtained, whether a material
43 Environment
The respective Board of Directors of the companies included in the Group are uncertainty exists related to events or conditions that may cast significant
54 Social
responsible for overseeing the financial reporting process of each Company. doubt on the appropriateness of this assumption. If we conclude that a material
69 People
uncertainty exists, we are required to draw attention in our auditor’s report to the
80 Governance Auditor’s responsibilities for the Audit of the Consolidated
related disclosures in the Consolidated Financial Statements or, if such disclosures
Statutory Reports are inadequate, to modify our opinion. Our conclusions are based on the audit
84 Management discussion and analysis Our objectives are to obtain reasonable assurance about whether the Consolidated evidence obtained up to the date of our auditor’s report. However, future events or
106 Directors’ report Financial Statements as a whole are free from material misstatement, whether due to conditions may cause the Bank to cease to continue as a going concern.
146 Report on corporate governance fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
187 Annual business responsibility report assurance is a high level of assurance, but is not a guarantee that an audit conducted • evaluate the overall presentation, structure and content of the Consolidated
in accordance with SAs will always detect a material misstatement when it exists. Financial Statements, including the disclosures, and whether the Consolidated
Financial Statements Financial Statements represent the underlying transactions and events in a manner
Misstatements can arise from fraud or error and are considered material if, individually
198 Standalone Financials that achieves fair presentation.
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these Consolidated Financial Statements.
273
• obtain sufficient appropriate audit evidence regarding the financial information Other matters
Contents of the entities or business activities within the Group to express an opinion on We did not audit the financial statements of one subsidiary, whose financial statements
Corporate Overview the Consolidated Financial Statements. We are responsible for the direction,
reflect total assets of `53.7 crores as at 31 March 2020, total revenues of `1.9 crores
supervision and performance of the audit of the financial statements of such and net cash outflows amounting to `19.1 crores for the year ended on that date,
A redefined YES
entities included in the Consolidated Financial Statements of which we are the as considered in the consolidated financial statements. These financial statements
03 YES BANK at a glance independent auditors. For the other entities included in the Consolidated Financial have been audited by another auditor whose report has been furnished to us by the
05 Products and services Statements, which have been audited by other auditors, such other auditors remain Management and our opinion on the Consolidated Financial Statements, insofar as it
06 Geographical presence responsible for the direction, supervision and performance of the audits carried out relates to the amounts and disclosures included in respect of this subsidiary and our
07 Message from the Chairman by them. We remain solely responsible for our audit opinion. Our responsibilities report in terms of sub-section (3) of Section 143 of the Act, insofar as it relates to the
10 Message from the Managing Director in this regard are further described in para (a) of the section titled ‘Other Matters’ aforesaid subsidiary is based solely on the report of the other auditor.
and CEO in this audit report.
12 Key performance indicators Our opinion on the Consolidated Financial Statements, and our report on Other Legal
We believe that the audit evidence obtained by us along with the consideration of audit and Regulatory Requirements below, is not modified in respect of the above matters
17 Customer focus reports of the other auditors referred to in sub-paragraph (a) of the Other Matters with respect to our reliance on the work done and the reports of the other auditors.
21 Technology and digital innovation paragraph below, is sufficient and appropriate to provide a basis for our audit opinion
on the Consolidated Financial Statements. Report on Other Legal and Regulatory Requirements
25 Retail
A. As required by Section 143(3) of the Act, based on our audit and on the
Our approach to value creation We communicate with those charged with governance of the Holding Company and
consideration of report of the other auditors on separate financial statements
29 Value creation model such other entities included in the Consolidated Financial Statements of which we are
and the other financial information of such subsidiaries as were audited by other
31 Our strategy the independent auditors regarding, among other matters, the planned scope and
auditors, as noted in the ‘Other Matters’ paragraph, we report, to the extent
36 Risk management timing of the audit and significant audit findings, including any significant deficiencies
applicable, that:
in internal control that we identify during our audit.
Our ESG focus
a) we have sought and obtained all the information and explanations which to
43 Environment We also provide those charged with governance with a statement that we have
the best of our knowledge and belief were necessary for the purposes of our
54 Social complied with relevant ethical requirements regarding independence, and to
audit of the aforesaid Consolidated Financial Statements;
69 People communicate with them all relationships and other matters that may reasonably be
80 Governance thought to bear on our independence, and where applicable, related safeguards. b) in our opinion, proper books of account as required by law relating to
preparation of the aforesaid Consolidated Financial Statements have been
Statutory Reports From the matters communicated with those charged with governance, we determine
kept so far as it appears from our examination of those books and the
84 Management discussion and analysis those matters that were of most significance in the audit of the Consolidated
106 Directors’ report reports of the other auditors;
Financial Statements of the current period and are therefore the key audit matters.
146 Report on corporate governance We describe these matters in our auditor’s report unless law or regulation precludes c) the consolidated balance sheet, the consolidated profit and loss account,
187 Annual business responsibility report public disclosure about the matter or when, in extremely rare circumstances, we and the consolidated cash flow statement dealt with by this Report are in
Financial Statements determine that a matter should not be communicated in our report because the agreement with the relevant books of account maintained for the purpose
198 Standalone Financials adverse consequences of doing so would reasonably be expected to outweigh the of preparation of the Consolidated Financial Statements;
267 Consolidated Financials public interest benefits of such communication.
274
d) in our opinion, the aforesaid Consolidated Financial Statements comply with iv. The disclosures in the Consolidated Financial Statements regarding
Contents the Accounting Standards specified under Section 133 of the Act to the extent holdings as well as dealings in specified bank notes during the period
Corporate Overview they are not inconsistent with the accounting policies prescribed by RBI; from 8 November 2016 to 30 December 2016 have not been made in the
Consolidated Financial Statements since they do not pertain to the financial
A redefined YES e) on the basis of the written representations received from the directors of
year ended 31 March 2020.
02 Key highlights FY 2019-20 the Holding Company as on 31 March 2020 taken on record by the Board of
03 YES BANK at a glance Directors of the Holding Company and the reports of the statutory auditors C. With respect to the matter to be included in the Auditor’s report under section
05 Products and services of its subsidiary companies, none of the directors of the Group companies is 197(16) of the Act:
06 Geographical presence disqualified as on 31 March 2020 from being appointed as a director in terms
07 Message from the Chairman In our opinion and according to the information and explanations given to us,
of Section 164(2) of the Act; and
10 Message from the Managing Director requirements with respect to the matter to be included in the Auditor’s Report
and CEO f) with respect to the adequacy of the internal financial controls with reference under section 197(16) of the Act are not applicable to banking companies and
12 Key performance indicators to financial statements of the Holding Company and its subsidiary companies based on the reports of the statutory auditors of the subsidiary company which
15 COVID-19 response and the operating effectiveness of such controls, refer to our separate Report was not audited by us, the remuneration paid during the current year by the
17 Customer focus in “Annexure A”. subsidiary companies to its directors is in accordance with the provisions of
21 Technology and digital innovation Section 197 of the Act. The remuneration paid to any director by the subsidiary
25 Retail B. with respect to the other matters to be included in the Auditor’s Report in
companies is not in excess of the limit laid down under Section 197 of the Act.
accordance with Rule 11 of the Companies (Audit and Auditor’s) Rules, 2014, in
Our approach to value creation The Ministry of Corporate Affairs has not prescribed other details under Section
our opinion and to the best of our information and according to the explanations
29 Value creation model 197(16) which are required to be commented upon by us.
given to us and based on the consideration of the report of the other auditor
31 Our strategy
on separate financial statements of the subsidiary as noted in the ‘Other
36 Risk management
Matters’ paragraph: For B S R & Co. LLP
Our ESG focus
i. the Consolidated Financial Statements disclose the impact of pending Firm’s Registration No: 101248W/W-100022
43 Environment
litigations on the consolidated financial position of the Group - Refer Note
54 Social
18.21 to the Consolidated Financial Statements; Venkataramanan Vishwanath
69 People
Partner
80 Governance ii. provision has been made in the Consolidated Financial Statements, as Mumbai Membership No: 113156
required under the applicable law or accounting standards, for material May 6, 2020 UDIN: 20113156AAAABJ5206
Statutory Reports
foreseeable losses, if any, on long-term contracts including derivative
106 Directors’ report contracts - Refer Note 18.18 to the Consolidated Financial Statements in
146 Report on corporate governance respect of such items as it relates to the Group;
187 Annual business responsibility report iii. there has been no delay in transferring amounts, required to be transferred,
Financial Statements to the Investor Education and Protection Fund by the Holding Company and
198 Standalone Financials its subsidiary companies during the year ended 31 March 2020 - Refer Note
267 Consolidated Financials 18.20.4 to the Consolidated Financial Statements; and
275
Annexure A
Annual Repor t 2019 -20 to the Independent Auditor’s Report of even date on the consolidated financial statements of YES Bank Limited for the year ended 31 March 2020
Report on the Internal Financial Controls with reference to the aforesaid Auditor’s Responsibility
Contents Consolidated Financial Statements under Clause (i) of Sub-section 3 of Section Our responsibility is to express an opinion on the internal financial controls with
Corporate Overview 143 of the Companies Act, 2013 (“the Act”)
reference to Consolidated Financial Statements based on our audit. We conducted
A redefined YES (Referred to in paragraph (A)(f) under ‘Report on Other Legal and Regulatory our audit in accordance with the Guidance Note and the Standards on Auditing,
02 Key highlights FY 2019-20 Requirements’ section of our report of even date) prescribed under section 143(10) of the Act, to the extent applicable to an audit of
03 YES BANK at a glance internal financial controls with reference to Consolidated Financial Statements. Those
05 Products and services Opinion Standards and the Guidance Note require that we comply with ethical requirements
06 Geographical presence In conjunction with our audit of the consolidated financial statements of YES Bank and plan and perform the audit to obtain reasonable assurance about whether
07 Message from the Chairman Limited and its subsidiaries (collectively referred to as the ‘Group’) as of and for the year adequate internal financial controls with reference to Consolidated Financial
10 Message from the Managing Director ended 31 March 2020, we have audited the internal financial controls with reference Statements were established and maintained and if such controls operated effectively
and CEO to Consolidated Financial Statements of YES Bank Limited (hereinafter referred to as in all material respects.
“the Holding Company”) and its subsidiaries, as of that date.
15 COVID-19 response Our audit involves performing procedures to obtain audit evidence about the adequacy
17 Customer focus In our opinion, the Holding Company and its subsidiary companies, have, in all material of the internal financial controls with reference to Consolidated Financial Statements
21 Technology and digital innovation respects, adequate internal financial controls with reference to Consolidated Financial and their operating effectiveness. Our audit of internal financial controls with reference
25 Retail Statements and such internal financial controls were operating effectively as at 31 to Consolidated Financial Statements included obtaining an understanding of internal
March 2020, based on the internal financial controls with reference to Consolidated financial controls with reference to Consolidated Financial Statements, assessing
Financial Statements criteria established by such companies considering the essential the risk that a material weakness exists, and testing and evaluating the design and
components of such internal controls stated in the Guidance Note on Audit of Internal operating effectiveness of the internal controls based on the assessed risk. The
31 Our strategy
Financial Controls Over Financial Reporting issued by the Institute of Chartered procedures selected depend on the auditor’s judgement, including the assessment of
36 Risk management
Accountants of India (the “Guidance Note”). the risks of material misstatement of the Consolidated Financial Statements, whether
Our ESG focus due to fraud or error.
43 Environment Management’s Responsibility for Internal Financial Controls
54 Social The respective company’s management and Board of Directors are responsible for We believe that the audit evidence we have obtained and the audit evidence obtained
69 People establishing and maintaining internal financial controls based on the internal financial by the other auditor of the relevant subsidiary company, in terms of their report
80 Governance control with reference to Consolidated Financial Statement criteria established by the referred to in the Other Matters paragraph below, is sufficient and appropriate to
respective Company considering the essential components of internal control stated provide a basis for our audit opinion on the internal financial controls with reference
Statutory Reports to Consolidated Financial Statements.
in the Guidance Note. These responsibilities include the design, implementation and
106 Directors’ report maintenance of adequate internal financial controls that were operating effectively Meaning of Internal Financial Controls with Reference to
146 Report on corporate governance for ensuring the orderly and efficient conduct of its business, including adherence Financial Statements
187 Annual business responsibility report to the respective company’s policies, the safeguarding of its assets, the prevention
A company’s internal financial controls with reference to Consolidated Financial
and detection of frauds and errors, the accuracy and completeness of the accounting
Financial Statements Statements is a process designed to provide reasonable assurance regarding the
records, and the timely preparation of reliable financial information, as required
198 Standalone Financials reliability of financial reporting and the preparation of Consolidated Financial
under the Companies Act, 2013 (“the Act”).
267 Consolidated Financials Statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal financial controls with reference to consolidated
276
Annexure A
financial statements includes those policies and procedures that (1) pertain to the subject to the risk that the internal financial controls with reference to Consolidated
Contents maintenance of records that, in reasonable detail, accurately and fairly reflect the Financial Statements may become inadequate because of changes in conditions, or
Corporate Overview transactions and dispositions of the assets of the company; (2) provide reasonable that the degree of compliance with the policies or procedures may deteriorate.
assurance that transactions are recorded as necessary to permit preparation of
A redefined YES Other Matters
Consolidated Financial Statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating
in accordance with authorisations of management and directors of the company; effectiveness of the internal financial controls with reference to consolidated
and (3) provide reasonable assurance regarding prevention or timely detection of financial statements insofar as it relates to one subsidiary company, is based on the
unauthorised acquisition, use, or disposition of the company’s assets that could have corresponding report of the auditor of this company.
10 Message from the Managing Director a material effect on the Consolidated Financial Statements. For B S R & Co. LLP
and CEO Chartered Accountants
Inherent Limitations of Internal Financial Controls with
Firm’s Registration No: 101248W/W-100022
Reference to Financial Statements
17 Customer focus Because of the inherent limitations of internal financial controls with reference to Venkataramanan Vishwanath
21 Technology and digital innovation Consolidated Financial Statements, including the possibility of collusion or improper Partner
25 Retail management override of controls, material misstatements due to error or fraud may Mumbai Membership No: 113156
occur and not be detected. Also, projections of any evaluation of the internal financial May 6, 2020 UDIN: 20113156AAAABJ5206
controls with reference to Consolidated Financial Statements to future periods are
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
277
Consolidated Balance Sheet
Annual Repor t 2019 -20 as at March 31, 2020
(` in thousands)
Contents As at As at
March 31, 2020 March 31, 2019
A redefined YES
CAPITAL AND LIABILITIES
Capital 1 25,100,944 4,630,066
03 YES BANK at a glance Reserves and surplus 2 191,848,655 264,244,035
05 Products and services Deposits 3 1,053,111,680 2,275,579,027
06 Geographical presence Borrowings 4 1,137,905,026 1,084,241,089
07 Message from the Chairman Other liabilities and provisions 5 170,355,332 179,901,880
10 Message from the Managing Director TOTAL 2,578,321,637 3,808,596,097
and CEO ASSETS
12 Key performance indicators Cash and balances with Reserve Bank of India 6 59,436,550 107,977,369
15 COVID-19 response Balances with banks and money at call and short notice 7 24,867,028 161,871,938
17 Customer focus Investments 8 437,478,034 893,285,327
21 Technology and digital innovation Advances 9 1,714,330,897 2,413,971,851
25 Retail Fixed assets 10 10,233,842 8,298,874
Our approach to value creation Other assets 11 331,975,286 223,190,738
29 Value creation model TOTAL 2,578,321,637 3,808,596,097
31 Our strategy Contingent liabilities 12 4,585,275,340 6,541,617,385
36 Risk management Bills for collection 51,201,926 50,592,373
Significant Accounting Policies and Notes to Accounts forming part of financial statements 18
Our ESG focus
43 Environment
69 People
80 Governance
May 6, 2020
278
Consolidated Profit and Loss
(` in thousands)
March 31, 2020 March 31, 2019
A redefined YES
I. INCOME
Interest earned 13 260,520,173 296,237,987
03 YES BANK at a glance Other income 14 119,560,986 46,754,814
05 Products and services TOTAL 380,081,159 342,992,801
06 Geographical presence II. EXPENDITURE
07 Message from the Chairman Interest expended 15 192,580,598 198,112,872
10 Message from the Managing Director Operating expenses 16 68,701,459 63,614,279
and CEO Provisions and contingencies 17 283,124,906 64,172,992
12 Key performance indicators TOTAL 544,406,963 325,900,143
15 COVID-19 response III. PROFIT
17 Customer focus Net profit for the year (164,325,804) 17,092,658
21 Technology and digital innovation Profit brought forward 107,427,743 103,695,292
25 Retail TOTAL (56,898,061) 120,787,950
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
279
Consolidated Profit and Loss
(` in thousands)
March 31, 2020 March 31, 2019
IV. APPROPRIATIONS
A redefined YES
Transfer to Statutory Reserve - 4,300,697
03 YES BANK at a glance Transfer to Capital Reserve 6,655,507 1,010,096
05 Products and services Transfer to Investment Reserve 147,226 6,707
06 Geographical presence Transfer to Investment Fluctuation Reserve - 539,066
07 Message from the Chairman Dividend paid for previous year 4,633,917 6,223,989
10 Message from the Managing Director Tax on Dividend paid for previous year 952,516 1,279,652
and CEO Balance carried over to balance sheet (69,287,227) 107,427,743
12 Key performance indicators TOTAL (56,898,061) 120,787,950
15 COVID-19 response Significant Accounting Policies and Notes to Accounts forming part of financial statements 18
17 Customer focus Earning per share
21 Technology and digital innovation Basic (`) (56.11) 7.40
25 Retail Diluted (`) (56.11) 7.33
Our approach to value creation (Face Value of Equity Share is `2/-)
31 Our strategy
36 Risk management
Our ESG focus For B S R & Co. LLP For and on behalf of the Board of Directors
43 Environment Chartered Accountants YES BANK Limited
54 Social Firm’s Registration No: 101248W/W-100022
69 People
80 Governance Partner Managing Director & CEO Chairman Director
Statutory Reports Membership No: 113156 (DIN: 07562475) (DIN: 00065343) (DIN: 03502424)
84 Management discussion and analysis Partha Pratim Sengupta Anurag Adlakha Shivanand R. Shettigar
106 Directors’ report Director Group Chief Financial Officer Group Company Secretary
146 Report on corporate governance (DIN: 08273324)
187 Annual business responsibility report Mumbai
May 6, 2020
280
Consolidated Cash Flow Statement
(` in thousands)
A redefined YES
Cash flow from Operating Activities
Net profit before taxes (208,381,933) 23,490,051
03 YES BANK at a glance Adjustment for
05 Products and services Depreciation for the year 3,419,327 3,054,514
06 Geographical presence Amortization of premium on investments 2,459,276 2,102,585
07 Message from the Chairman Provision for investments 64,415,773 6,824,889
10 Message from the Managing Director Provision for standard advances (19,410,781) 22,514,059
and CEO Provision/write off of non performing advances 278,060,357 25,669,535
12 Key performance indicators Other provisions 4,115,686 2,767,116
15 COVID-19 response AT1 Write-down (84,150,000) -
17 Customer focus (Profit)/Loss on sale of land, building and other assets (3,282) (3,947)
21 Technology and digital innovation (i) 40,524,423 86,418,802
25 Retail Adjustments for :
Our approach to value creation Increase/(Decrease) in Deposits (1,222,467,347) 268,692,991
29 Value creation model Increase/(Decrease) in Other Liabilities 54,388,418 38,421,426
31 Our strategy (Increase)/Decrease in Investments 241,661,936 (159,318,010)
36 Risk management (Increase)/Decrease in Advances 421,580,597 (404,453,136)
(Increase)/Decrease in Other assets (107,244,746) (49,363,644)
Our ESG focus
(ii) (612,081,142) (306,020,373)
43 Environment
Payment of direct taxes (iii) (5,655,486) (26,131,440)
54 Social
Net cash generated from / (used in) operating activities (A) (i+ii+iii) (577,212,205) (245,733,011)
69 People
Cash flow from investing activities
80 Governance
Purchase of fixed assets (5,416,951) (3,031,859)
Statutory Reports Proceeds from sale of fixed assets 65,960 55,375
84 Management discussion and analysis (Increase) / Decrease in Held To Maturity (HTM) securities 147,270,308 (59,960,403)
106 Directors’ report Net cash generated / (used in) from investing activities (B) 141,919,317 (62,936,887)
281
Consolidated Cash Flow Statement
(` in thousands)
Cash flow from financing activities
A redefined YES
Increase in Borrowings 141,354,848 313,708,194
03 YES BANK at a glance Tier II Debt raised - 30,420,000
05 Products and services Innovative Perpetual Debt raised - (1,754,400)
06 Geographical presence Tier II Debt repaid during the year (4,024,500) (5,430,400)
07 Message from the Chairman Proceeds from issuance of Equity Shares (net of share issue expense) 118,639,176 953,472
10 Message from the Managing Director Dividend paid during the year (4,633,917) (6,223,989)
and CEO Tax on dividend paid (952,516) (1,279,652)
12 Key performance indicators Net cash generated from / (used in) financing activities (C) 250,383,091 330,393,225
15 COVID-19 response Effect of exchange fluctuation on translation reserve (D) (635,925) 587,809
17 Customer focus Net increase in cash and cash equivalents (A+B+C+D) (185,545,721) 22,311,137
21 Technology and digital innovation Cash and cash equivalents as at April 1st 269,849,307 247,538,171
25 Retail Cash and cash equivalents as at Mar 31st 84,303,578 269,849,307
Our approach to value creation Notes to the Cash flow statement:
29 Value creation model Cash and cash equivalents includes the following
31 Our strategy Cash and Balances with Reserve Bank of India 59,436,550 107,977,369
36 Risk management Balances with Banks and Money at Call and Short Notice 24,867,028 161,871,938
Cash and cash equivalents as at March 31st 84,303,578 269,849,307
Our ESG focus
43 Environment
54 Social
69 People
80 Governance
146 Report on corporate governance Membership No: 113156 (DIN: 07562475) (DIN: 00065343) (DIN: 03502424)
May 6, 2020
282
Schedules
Annual Repor t 2019 -20 Schedules forming a part of Consolidated Balance Sheet
Schedule 1 - Capital Schedule 2 - Reserves and Surplus
A redefined YES
Authorised Capital IV Investment Reserve
Authorised Capital Opening balance 232,904 226,197
05 Products and services 30,000,000,000 equity shares of `2/- each 60,000,000 6,000,000 Additions during the year 147,226 6,707
06 Geographical presence 20,000,000 preference shares of `100/- each 2,000,000 2,000,000 Deductions during the year - -
07 Message from the Chairman Issued, subscribed and paid-up capital (Refer Sch 18.7.1) Closing balance 380,130 232,904
10 Message from the Managing Director 12,550,472,231equity shares of `2/- each 25,100,944 4,630,066 V Foreign Currency Translation Reserve
and CEO (March 31, 2019 : 2,315,033,039 equity shares of `2/- each) Opening balance 613,295 25,486
12 Key performance indicators TOTAL 25,100,944 4,630,066 Additions during the year (635,925) 587,809
15 COVID-19 response Deductions during the year - -
17 Customer focus Closing balance (22,630) 613,295
21 Technology and digital innovation (` in thousands) VI. Cash Flow Hedge Reserve
25 Retail As at As at Opening balance (25,323) (244,057)
March 31, 2020 March 31, 2019 Additions during the year (15,533) 218,734
29 Value creation model Schedule 2 - Reserves and Surplus Deductions during the year - -
31 Our strategy I Statutory Reserves Closing balance (40,856) (25,323)
36 Risk management Opening balance 48,934,100 44,633,403 VII. Investment Fluctuation Reserve
Additions during the year - 4,300,697 Opening balance 539,066 -
Our ESG focus Deductions during the year - - Additions during the year - 539,066
43 Environment Closing balance 48,934,100 48,934,100 Deductions during the year - -
54 Social
II Share Premium Closing balance 539,066 539,066
69 People
Opening balance 100,987,679 100,058,339 VIII. Balance in Profit and Loss Account (69,287,215) 107,427,739
80 Governance
Additions during the year (Refer Sch 18.7.1) 99,118,298 929,340 TOTAL 191,848,655 264,244,037
Statutory Reports Deductions during the year 950,000 -
84 Management discussion and analysis Closing balance 199,155,977 100,987,679
106 Directors’ report III Capital Reserve
146 Report on corporate governance Opening balance 5,534,577 4,524,481
187 Annual business responsibility report Additions during the year 6,655,507 1,010,096
Deductions during the year - -
198 Standalone Financials Closing balance 12,190,084 5,534,577
283
Schedules
Schedule 3 - Deposits Schedule 4 - Borrowings
A redefined YES
A. I. Demand Deposits II. Other Borrowings
i) From Banks 7,932,044 17,301,403 A. Borrowings in India
05 Products and services ii) From Others 86,893,712 268,020,176 i) Reserve Bank of India 520,380,000 -
06 Geographical presence II. Savings Bank Deposit 185,635,246 467,112,348 ii) Other banks 18,350,000 57,147,925
07 Message from the Chairman III. Term Deposits iii) Other institutions and agencies 278,921,592 345,669,057
10 Message from the Managing Director i) From banks 86,786,217 184,849,906 TOTAL (A) 817,651,592 402,816,982
and CEO ii) From others (incl. CD’s issued) 685,864,461 1,338,295,194 B. Borrowings outside India TOTAL (B) 130,949,559 404,429,321
12 Key performance indicators TOTAL 1,053,111,680 2,275,579,027 TOTAL (A+B) 948,601,151 807,246,303
15 COVID-19 response B. I. Deposits of branches in India 1,052,773,191 2,274,432,000 TOTAL (I+II) 1,137,905,026 1,084,241,089
17 Customer focus II. Deposits of branches outside India 338,489 1,147,027
21 Technology and digital innovation (1) Secured borrowings are `524,379,868 thousands (March 31, 2019 :
TOTAL 1,053,111,680 2,275,579,027
25 Retail `4,996,813 thousands).
Our approach to value creation (2) Including `237,121,724 thousands of refinance borrowing (March 31, 2019:
(` in thousands) `302,872,244 thousands) `16,450,000 thousands (March 31 2019: `16,450,000
31 Our strategy As at As at thousands) of Green Infrastructure Bonds raised to fund ‘Green Projects’ and
March 31, 2020 March 31, 2019 `21,350,000 thousands (March 31, 2019: `21,350,000 thousands) of Long Term
36 Risk management
Schedule 4 - Borrowings Infrastructure Bonds raised to finance affordable housing and infrastructure projects.
Our ESG focus I. Innovative Perpetual Debt Instruments (IPDI) and
43 Environment Tier II Debt (3) Includes bonds of `36,032,742 thousands (March 31, 2019: `32,909,865
54 Social thousands) of Medium Term Notes issued from International Business Unit (IBU) in
A. Borrowing in India
69 People GIFT city Gujarat to fund its growth.
i) IPDI 5,870,000 90,020,000
80 Governance
ii) Tier II Borrowings 177,759,000 180,759,000
Statutory Reports TOTAL (A) 183,629,000 270,779,000
84 Management discussion and analysis B. Borrowings outside India
106 Directors’ report i) IPDI - -
146 Report on corporate governance ii) Tier II Borrowings 5,674,875 6,215,786
187 Annual business responsibility report TOTAL (B) 5,674,875 6,215,786
Financial Statements TOTAL (A+B) 189,303,875 276,994,786
284
Schedules
A redefined YES
Schedule 5 - Other Liabilities and Provisions Schedule 7 - Balances with Banks, Money at Call
Bills payable 2,867,243 3,913,805 and Short Notice
03 YES BANK at a glance Inter-office adjustments (net) - - I. In India
05 Products and services Interest accrued 22,632,492 37,446,048 Balances with banks-
06 Geographical presence Others (including provisions) i) in current accounts 6,143,114 2,157,843
07 Message from the Chairman - Provision for standard advances 12,597,187 32,007,968 ii) in other deposit accounts 677,270 790,390
10 Message from the Managing Director - Country risk exposures 69,000 532,784 Money at call and short notice
and CEO - Others 129,355,765 106,001,275 i) with Banks - -
12 Key performance indicators - Income Tax Provision 2,833,648 - ii) with other institutions - -
15 COVID-19 response TOTAL 170,355,332 179,901,880 iii) lending under reverse repo (RBI & Banks) 13,200,000 88,310,161
17 Customer focus TOTAL (I) 20,020,384 91,258,393
21 Technology and digital innovation II. Outside India
25 Retail (` in thousands) i) in current account 4,532,635 39,148,020
Our approach to value creation As at As at ii) in other deposit account - -
March 31, 2020 March 31, 2019 iii) money at call and short notice 314,010 31,465,525
31 Our strategy Schedule 6 - Cash and Balances with Reserve TOTAL (II) 4,846,644 70,613,545
36 Risk management Bank of India TOTAL (I+II) 24,867,028 161,871,938
I. Cash in hand 16,307,411 6,333,912
Our ESG focus II. Balances with Reserve Bank of India
43 Environment
- In current account 43,129,139 101,643,457 (` in thousands)
54 Social
- In other account - - As at As at
69 People March 31, 2020 March 31, 2019
TOTAL 59,436,550 107,977,369
80 Governance
Schedule 8 - Investments (Net of Provisions)
Statutory Reports A. Investments in India
84 Management discussion and analysis i) Government Securities 329,069,163 553,611,120
106 Directors’ report ii) Other approved securities - -
146 Report on corporate governance iii) Shares 243,865 429,168
187 Annual business responsibility report iv) Debentures and bonds 74,399,345 154,985,441
Financial Statements v) Subsidiaries and/or joint ventures - -
198 Standalone Financials vi) Others (CPs, CDs, Security Receipts, Pass through 32,254,100 61,130,681
certificates etc)
TOTAL (I) 435,966,473 770,156,410
285
Schedules
Schedule 8 - Investments (Net of Provisions) Schedule 9 - Advances
A redefined YES
B. Investments outside India C. I. Advances in India
i) Government Securities - 120,595,843 i) Priority sectors 470,973,962 539,338,050
05 Products and services ii) Shares - 9,421 ii) Public sector 488,829 56,671
06 Geographical presence iii) Debentures and bonds - 2,523,653 iii) Banks 1,119,061 674,817
07 Message from the Chairman iv) Others (CPs, CDs, Security Receipts, Pass through 1,511,561 - iv) Others 1,100,867,916 1,685,204,048
10 Message from the Managing Director certificates etc) TOTAL (I) 1,573,449,767 2,225,273,585
and CEO TOTAL (II) 1,511,561 123,128,917 II. Advances outside India
12 Key performance indicators TOTAL (I+II) 437,478,034 893,285,327 i) Due from Banks 5,853 431,707
15 COVID-19 response ii) (a) Bills purchased and discounted - -
17 Customer focus (b) Syndicated loans 35,862,373 30,796,065
21 Technology and digital innovation (` in thousands) (c) others 105,012,904 157,470,494
25 Retail As at As at TOTAL (II) 140,881,130 188,698,266
March 31, 2020 March 31, 2019 1,714,330,897
Our approach to value creation TOTAL (I+II) 2,413,971,851
29 Value creation model Schedule 9 - Advances
31 Our strategy A. i) Bills purchased and discounted 22,086,320 42,078,951
36 Risk management ii) Cash credit, overdrafts and loans payable on 342,839,985 411,627,297 (` in thousands)
demand As at As at
Our ESG focus iii) Term loans* 1,349,404,592 1,960,265,603 March 31, 2020 March 31, 2019
43 Environment TOTAL 1,714,330,897 2,413,971,851 Schedule 10 - Fixed Assets
54 Social
* Provision on Non Performing Advances (NPAs) has been I. Premises
69 People netted off from Term Loans At cost as on March 31st of preceding year 378,031 378,031
80 Governance
B. i) Secured by tangible assets (includes advances 1,300,993,862 1,960,480,829 Additions during the year - -
Statutory Reports secured by fixed deposits and book debt) Deductions during the year - -
84 Management discussion and analysis ii) Covered by Bank/Government guarantees 2,720,758 10,366,160 Accumulated depreciation to date (21,006) (14,704)
106 Directors’ report iii) Unsecured 1 410,616,277 443,124,862 TOTAL (I) 357,025 363,327
146 Report on corporate governance TOTAL 1,714,330,897 2,413,971,851
187 Annual business responsibility report 1 Includes advances of `37,671,709.07 thousands (March 31, 2019: `128,510,880 thousands) for which
security documentation is either being obtained or being registered. As at March 31, 2020 advances
Financial Statements amounting to `12,738,207.03 thousands (March 31, 2019 : `2,403,000 thousands) has been secured
198 Standalone Financials by intangible securities such as charge over the rights, licenses, authority, etc.
286
Schedules
Schedule 10 - Fixed Assets Schedule 12 - Contingent Liabilities
A redefined YES
II. Other Fixed Assets (including furniture and I. Claims against the bank not acknowledged as debts 612,500 549,157
fixtures and software) II. Liability for partly paid investments - -
05 Products and services At cost as on March 31st of preceding year 18,305,440 15,319,476 III. Liability on account of outstanding forward exchange 1,519,467,414 2,834,098,764
06 Geographical presence Additions during the year 2,992,739 3,245,135 contracts
07 Message from the Chairman Deductions during the year (310,977) (259,173) IV. Liability on account of outstanding derivative
10 Message from the Managing Director Accumulated depreciation to date (14,049,021) (10,884,314) contracts
and CEO TOTAL (II) 6,938,181 7,421,123 - Single currency Interest Rate Swap 1,866,270,431 1,702,671,190
12 Key performance indicators TOTAL (I+II) 7,295,206 7,784,450 - Others 548,274,930 868,291,165
15 COVID-19 response Capital work-in-progress 2,938,634 514,423 V. Guarantees given on behalf on constituents
17 Customer focus TOTAL 10,233,842 8,298,874 - in India 420,131,381 437,248,909
21 Technology and digital innovation - Outside India - -
25 Retail VI. Acceptances, endorsement and other obligations 198,799,106 390,140,737
(` in thousands) VII. Other items for which the bank is contingently liable
29 Value creation model As at As at - Purchase of securities pending settlement 836,632 3,622,750
March 31, 2020 March 31, 2019
31 Our strategy - Capital commitment 3,213,827 2,984,859
36 Risk management Schedule 11 - Other Assets - Amount deposited with RBI under Depositor 53,681 32,834
I. Interest Accrued 22,516,878 39,050,909 Education and Awareness Fund (DEAF)
Our ESG focus II. Advance tax and tax deducted at source (net of - 4,894,170 - Foreign exchange contracts (Tom & Spot) 25,887,555 300,477,020
43 Environment provision) - Custody 1,727,883 -
54 Social
III. Deferred tax asset (Refer Sch 18.15) 82,809,960 25,374,714 - Bills Rediscounting - 1,500,000
69 People
IV. Non-Banking assets acquired in satisfaction of claims 353,000 353,000 TOTAL 4,585,275,340 6,541,617,385
80 Governance
V. Others 226,295,448 153,517,945
Statutory Reports TOTAL 331,975,286 223,190,738
Contingent Liability on account of outstanding forward exchange contracts and
106 Directors’ report single currency interest rate swap as on March 31, 2020 includes notional amount of
146 Report on corporate governance `1,067,721,532 thousands and `543,032,121 thousands (March 31, 2019: `2,035,934,447
187 Annual business responsibility report thousands and `407,303,929 thousands) guaranteed by CCIL representing 70.27% and
29.10% (March 31, 2019: 71.84% and 23.92%) of total outstanding forward exchange
Financial Statements contracts and single currency interest rate swaps respectively.
287
Schedules
Annual Repor t 2019 -20 Schedules forming a part of Consolidated Profit and Loss Account
Contents For the year ended For the year ended For the year ended For the year ended
Schedule 13 - Interest Earned Schedule 15 - Interest Expended
A redefined YES
I. Interest/discount on advances/bills 212,466,013 229,185,385 I. Interest on deposits 120,019,406 136,826,853
II. Income on investments 42,609,208 60,484,215 II. Interest on Reserve Bank of India/inter-bank 66,661,229 60,764,723
III. Interest on balances with Reserve Bank of India 2,103,677 3,975,738 borrowings/ Tier I and Tier II debt instruments
and other inter-bank funds III. Others 5,899,963 521,297
TOTAL 192,580,598 198,112,872
07 Message from the Chairman IV. Others 3,341,275 2,592,649
10 Message from the Managing Director TOTAL 260,520,173 296,237,987
(` in thousands)
and CEO
March 31, 2020 March 31, 2019
15 COVID-19 response (` in thousands)
17 Customer focus Schedule 16 - Operating Expenses
I. Payments to and provisions for employees 26,913,246 25,381,132
21 Technology and digital innovation March 31, 2020 March 31, 2019
II. Rent, taxes and lighting 4,540,763 4,237,407
25 Retail Schedule 14 - Other Income III. Printing and stationery 407,322 425,902
I. Commission, exchange and brokerage 15,259,280 36,352,664 IV. Advertisement and publicity 296,655 662,134
II. Profit on the sale of investments (net) 11,134,575 3,174,838 V. Depreciation on Group’s property 3,419,327 3,054,514
III. Profit/(Loss) on the revaluation of investments - - VI. Directors’ fees, allowances and expenses 57,867 46,613
31 Our strategy
(net) VII. Auditors’ fees and expenses 44,898 25,229
36 Risk management VIII. Law charges 151,949 90,931
IV. Profit/(Loss) on sale of land, building and other 3,282 3,947
Our ESG focus IX. Postage, telegrams, telephones, etc. 643,777 648,219
assets
43 Environment
X. Repairs and maintenance 357,857 423,286
V. Profit on exchange transactions (net) 3,731,959 1,570,297 XI. Insurance 2,162,391 2,079,092
54 Social
VI. Income earned by way of dividends etc. from - - XII. Other expenditure 29,705,408 26,539,820
69 People subsidiaries, companies and/or joint ventures TOTAL 68,701,459 63,614,279
80 Governance abroad/in India
Statutory Reports VII. Miscellaneous income 89,431,890 5,653,068 (` in thousands)
84 Management discussion and analysis TOTAL 119,560,986 46,754,814 For the year ended For the year ended
146 Report on corporate governance Schedule 17 - Provisions & Contingencies

187 Annual business responsibility report Miscellaneous income for the period ended March 31, 2020 includes extraordinary I. Provision for taxation (Refer Sch 18.8) (44,056,129) 6,397,393
income on account of write down of Additional Tier I Bonds amounting to II. Provision for investments 64,415,773 6,824,889
Financial Statements `84,150,000 thousands III. Provision for standard advances (19,410,781) 22,514,059
198 Standalone Financials IV. Provision/write off for non performing advances 278,060,357 25,669,535
267 Consolidated Financials V. Other Provisions 4,115,686 2,767,116
TOTAL 283,124,906 64,172,992
288
Schedules
Annual Repor t 2019 -20 forming a part of Consolidated Financial Statements
18. Significant accounting policies and notes forming part of YES Asset Management (India) Limited (‘the Company’) was incorporated on April 21,
Contents the accounts for the year ended March 31, 2020 2017 as a wholly owned subsidiary of YES BANK Limited (‘YBL’ / ‘Holding Company’).
Corporate Overview The Company has entered into an investment management agreement with Yes
18.1 Background
Trustee Limited to act as the investment manager for any funds to be launched by
A redefined YES YES BANK is a publicly held bank engaged in providing a wide range of banking and
YES Mutual fund. The company obtained registration from Securities and Exchange
02 Key highlights FY 2019-20 financial services. YES BANK is a banking company governed by the Banking Regulation
Board of India (‘SEBI’) to launch Mutual fund operations on July 3, 2018. Yes Mutual
Act, 1949. The Bank was incorporated as a limited company under the Companies Act,
05 Products and services Fund launched its first Scheme YES Liquid Fund in January 2019. Subsequently in
1956 on November 21, 2003. The Bank received the licence to commence banking
06 Geographical presence FY 2019-20 Yes Mutual Fund launched two schemes namely YES Ultra Short Term Fund
operations from the Reserve Bank of India (‘RBI’) on May 24, 2004. Further, YES BANK
07 Message from the Chairman and YES Overnight Fund.
was included to the Second Schedule of the Reserve Bank of India Act, 1934 with effect
from August 21, 2004. Also the Bank has a branch at International Financial Services YES Trustee Limited (the ‘Company’) was incorporated under the provisions of the
and CEO
Centre (‘IFSC’) at GIFT City, Gujarat (‘IBU’). The Bank classifies transactions undertaken Companies Act, 2013 on 3 May 2017 having its registered office in Mumbai. The
by IBU as overseas operation. Company is a wholly owned subsidiary of YES Bank Limited. The Company is engaged
17 Customer focus in providing trusteeship services to YES Mutual Fund. YES Mutual Fund has launched
On March 13, 2020, the Government of India notified the “Yes Bank Ltd. Reconstruction
21 Technology and digital innovation its first Scheme YES Liquid Fund in January 2019. Subsequently in FY 2019-20, YES
Scheme, 2020” (‘Scheme’). As per the Scheme, authorized capital has been increased
25 Retail Mutual Fund has launched two schemes namely YES Ultra Short Term Fund and YES
from `11,000 million to `62,000 million. The State Bank of India (‘SBI’) and other
Overnight Fund.
Our approach to value creation investors invested in the Bank at a price of `10 per equity share of the Bank (`2 face
29 Value creation model value with a `8 premium). As per the scheme, SBI is required to hold upto 49% with 18.2 Assessment of Going Concern:
31 Our strategy a minimum holding of 26% by SBI in the Bank (which is subject to a 3 year lock in). In the aftermath of the IL&FS crisis in September 2018, the financial sector had been
36 Risk management Other investors are subject to a 3 year lock in for 75% of the investments they make heavily constrained from a liquidity stand-point. Also, rising defaults in Power and
in the Bank under this Scheme. Existing investors (other than investors holding less Infra sector in second half of 2019 have taken a toll on the stressed book of various
Our ESG focus
than 100 shares) in Yes Bank are also subject to a lock in for 75% of their holding as Banks and NBFCs. In this macro environment, given its low capital covers, the Bank
43 Environment
per this Scheme. has been adversely impacted on account of elevated slippages in its corporate book
54 Social
69 People YES Securities (India) Limited (‘the Company’) was incorporated on March 14, 2013, especially in power and infra sector. The Bank reported a marginal profit for the
80 Governance as a wholly owned subsidiary of YES Bank Limited (‘YBL’ / ‘Holding Company’). The quarters ended 30 June 2019 and reported loss in the quarter ended September 30,
Company is a securities broker registered with the Securities and Exchange Board of 2019. For the quarter ended December 31, 2019, as a consequence of increase in NPAs,
Statutory Reports additional recording slippages post period end and increase in PCR, the reported
India since July 8, 2013. The Company also got SEBI registration as Category I Merchant
Banker w.e.f. September 3, 2015 and as a Research Analyst w.e.f. November 30, 2015. loss was `185,604 million. The Bank had also breached the RBI mandated Common
The Company also got SEBI registration as Investment Adviser w.e.f. March 20, 2017. Equity (CET1) ratio which stood at 0.62% at 31 December 2019 as compared to the
The Company offers, inter alia, trading / investment in equity, merchant banking and requirement of 7.375%. The delay in capital raising triggered the downgrade of the
other financial products along with various value added services. The Company is Bank’s rating by Rating Agencies.
Financial Statements member of the National Stock Exchange (‘NSE’) since May 2, 2013 and the Bombay In addition the deposit outflow in early October on account of a combination of events
198 Standalone Financials Stock Exchange (‘BSE’) since June 11, 2013 and MCX since February 5, 2019, NCDEX such as invocation of Promoter’s pledged shares\IT glitches for Yes Bank (and others)\
since February 6, 2020. problems arising from financial distress in Punjab and Maharashtra Cooperative Bank
289
Schedules
led to a continuing breach in Liquidity Coverage Ratio (LCR) starting October 2019 and Bank, based on the legal opinion of its external independent legal counsel is of the view
Contents continues till date. The Bank’s deposit base has seen a reduction from `2,094,973 that the merits of the Bank’s decision to write back the AT 1 bonds is in accordance
Corporate Overview million as at September 30, 2019 to `1,657,554 million as at December 31, 2019. The with the contractual terms for issuance of AT 1 Bonds. The Bank had also been granted
deposit position as at March 31, 2020 is `1,053,639 million and has reduced further a short term special liquidity facility for 90 days (ending on June 16, 2020) from the
A redefined YES
to `1,027,179 million as at May 02, 2020. The Bank had also prepaid ~USD 1.18 billion RBI. The Bank has written to RBI for an extension of the same for a year. The Bank also
(`85,000 million) by February 29, 2020. On March 5, 2020, the Central Government, raised CDs of `72,000 million as at March 31, 2020. As a consequence of the above
05 Products and services based on the RBI’s application imposed a moratorium under section 45 of the Banking factors the Bank’s loss post tax and AT 1 write back (exceptional income) is `164,180
06 Geographical presence Regulation Act, 1949 for a period of 30 days effective March 5, 2020 which was lifted million. The Bank’s CET1 ratio is 6.3% (regulatory requirement with CCB of 7.375%) and
07 Message from the Chairman on March 18, 2020. Further, the RBI, in consultation with the Central Government tier 1 capital ratio is 6.5% (regulatory requirement of 8.875%) as at March 31, 2020. The
10 Message from the Managing Director and in exercise of the powers under section 36ACA of the Banking Regulation Act Bank has substantially enhanced its PCR and strengthened its Balance Sheet. However,
and CEO 1949, superseded the Board of Directors of the Bank on March 5, 2020. As per the RBI’s current framework on ‘Prompt Corrective Action’ (PCA) considers regulatory
12 Key performance indicators moratorium a restriction was imposed on the withdrawal by depositors of amounts up breaches in CET as a potential trigger. The Bank remains in constant communication
15 COVID-19 response to `50,000 and the Bank also could not grant or renew loans or make any investments. with RBI on the various parameters and ratios and RBI has not imposed any fine on the
17 Customer focus Bank for the regulatory breaches.
21 Technology and digital innovation On March 13, 2020, the Government of India notified the “Yes Bank Ltd. Reconstruction
25 Retail Scheme, 2020” (Scheme). As per the Scheme, authorized capital has been increased The Bank’s deposit base has seen a reduction from `2,276,102 million as at March
from `11,000 million to `62,000 million. The State Bank of India (SBI) and other 31, 2019 to `1,053,639 million as at March 31, 2020 (Position as at May 02, 2020
Our approach to value creation investors invested in 10,000 million shares at a price of `10 per equity share of the `1,027,179 million). Consequently, the Bank’s quarterly average ‘Liquidity Coverage
29 Value creation model Bank (`2 face value with a `8 premium). The Bank has received capital amounting Ratio’ (LCR) has fallen from 74% for the quarter ended December 31, 2019 to 40% for
31 Our strategy
to `100,000 million as of March 14, 2020 from a consortium of Banks and Financial the quarter ended March 31, 2020 (regulatory limit 100%), position as at May 02, 2020
36 Risk management
Institution led by State Bank of India. SBI is required to hold upto 49% with a minimum 34.8%(regulatory limit 80%). The Bank also has a deferred tax asset of `82,810 million
Our ESG focus holding of 26% by SBI in the Bank (which is subject to a 3 year lock in). Other investors as at March 31, 2020. Though the Bank has made a loss of `164,180 million for the year
43 Environment are subject to a 3 year lock in for 75% of the investments they make in the Bank under ended March 31, 2020, the Bank has a taxable profit for the year ended March 31, 2020.
54 Social this Scheme. Existing investors (other than investors holding less than 100 shares) in
In the month of March 2020, SARS-CoV-2 virus responsible for COVID-19 continued to
69 People Yes Bank are also subject to a lock in for 75% of their holding as per this Scheme.
spread across the globe and India, which has contributed to a significant decline and
80 Governance
A new Board of Directors, MD & CEO and Non Executive Chairman have also been volatility in global and Indian financial markets and a significant decrease in global and
Statutory Reports appointed under the Scheme. The Bank has since obtained a Board approval to raise local economic outlook and activities. On March 11, 2020, the COVID-19 outbreak was
84 Management discussion and analysis additional equity of upto `150,000 million. As a consequence of the reconstitution declared a global pandemic by the World Health Organization. On March 24, 2020, the
106 Directors’ report the Bank was deemed to be un-viable. Consequently, write-back of certain Basel Indian government announced a strict 21-day lockdown which was further extended
146 Report on corporate governance III additional tier 1 Bonds (“AT 1 Bonds”) issued by the Bank had been triggered. across the country to contain the spread of the virus. The extent to which the COVID-19
187 Annual business responsibility report Hence, such AT 1 Bonds amounting to `84,150 million have been fully written down pandemic will impact the Bank’s future results will depend on related developments,
Financial Statements permanently. The Trustees, on behalf of the holders of AT 1 Bonds have filed a writ which remain highly uncertain.
198 Standalone Financials petition seeking to challenge the decision of the Bank to write down AT 1 bonds. The
290
Schedules
While further reduction in deposits lost post moratorium may cast material Companies (Accounting Standards) Amendment Rules, 2016 to the extent applicable
Contents uncertainty, particularly in the current COVID scenario, the Bank under the leadership and practices generally prevalent in the banking industry in India.
Corporate Overview of new management and Reconstituted Board is confident that it can tide over the
01 Commitment. Promise. Transparency. The Group follows accrual method of accounting and the historical cost convention,
current issues successfully.
A redefined YES unless otherwise stated by RBI guidelines.
02 Key highlights FY 2019-20 This belief is reinforced by the pedigree of new investors of the Bank (led by State
03 YES BANK at a glance 18.5 Use of estimates
Bank of India and other Financial Institutions). Further, The Bank’s management
05 Products and services and board of directors have made an assessment of its ability to continue as a going The preparation of financial statements requires the management to make estimates
06 Geographical presence concern based on the projected financial statements for the next 3 years and are and assumptions that are considered while reporting amounts of assets and liabilities
07 Message from the Chairman satisfied that the proposed capital infusion and the Bank’s strong customer base (including contingent liabilities) as of the date of the financial statements and income
10 Message from the Managing Director and expenses during the reporting period. Management believes that the estimates
and branch network will enable the Bank to continue its business for the foreseeable
and CEO used in the preparation of the financial statements are prudent and reasonable.
future, so as to be able to realize its assets and discharge its liabilities in its normal
course of business. As such, the financial statements continue to be prepared on a Future results could differ from these estimates. Any revision to accounting estimates
going concern basis. is recognized prospectively in current and future periods.
17 Customer focus
21 Technology and digital innovation 18.3 Principles of Consolidation Estimation of uncertainties relating to the global health pandemic from
25 Retail COVID-19:
The consolidated financial statements comprise the financial statements of YES Bank
Our approach to value creation Limited, and its subsidiaries, YES Securities (India) Limited, YES Asset Management From the quarter ended December 31, 2019, the Bank considers slippages in Corporate
29 Value creation model (India) Limited and YES Trustee Limited which together constitute the ‘Group’. NPAs post the period end till the date of results / financial statement, while determining
31 Our strategy NPAs and related provisioning requirements. Further, the Bank had decided, on
The Bank consolidates its subsidiaries in accordance with Accounting Standard (‘AS’) a prudent basis, to enhance its Provision Coverage Ratio on its NPA loans over and
36 Risk management
21, Consolidated Financial Statements notified under section 133 of the Companies above the RBI loan level provisioning requirements. As a result, the Bank recognized
Our ESG focus Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 additional provisions of `154,220.39 million for the period ended December 31, 2019.
43 Environment issued by the Ministry of Corporate Affairs to the extent applicable on a line-by-line Subsequently, RBI issued guidelines on COVID-19 Regulatory Package, under which,
54 Social basis by adding together the like items of assets, liabilities, income and expenditure. the Bank granted a moratorium of three months on the payment of all installments
69 People
18.4 Basis of preparation and / or interest, as applicable, falling due between March 1, 2020 and May 31, 2020. For
80 Governance
all such accounts where the moratorium is granted (except advances at IFSC Banking
The financial statements have been prepared in accordance with requirements
Statutory Reports Unit (IBU), the asset classification shall remain stand still during the moratorium
prescribed under the Third Schedule (Form A and Form B) of the Banking Regulation
84 Management discussion and analysis period (i.e. the number of days past-due shall exclude the moratorium period for the
106 Directors’ report Act, 1949. The accounting and reporting policies of The Group used in the preparation
purposes of asset classification under the Income Recognition, Asset Classification
146 Report on corporate governance of these financial statements conform to Generally Accepted Accounting Principles
and Provisioning norms) and as the asset classification as of March 31, 2020 has been
187 Annual business responsibility report in India (Indian GAAP), the guidelines issued by the Reserve Bank of India (RBI) from
retained based on the overdue status as at February 29, 2020. Hence on account of
time to time, the accounting standards notified under section 133 of the Companies
Financial Statements above mentioned RBI circular dated April 17,2020, Bank has not considered slippages
Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 and
198 Standalone Financials post March 31, 2020 till the date of results / financial statement.
291
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In line with RBI requirements, the Bank holds necessary provisions as at March 31, • Brokerage income is recognised as per contracted rate on execution of transaction
Contents 2020 against the assets where the asset classification benefit has been extended on on behalf of the customers on the trade date, GST and stock exchange expenses.
Corporate Overview account of standstill requirements.
01 Commitment. Promise. Transparency. • Fee income from Investment banking / Merchant banking services are recognised
A redefined YES 18.6 Significant accounting policies based on completion of milestone as per the engagement letter. Further Fee income
02 Key highlights FY 2019-20 in relation to public issues/ other securities is recognised based on mobilization
18.6.1 Revenue recognition
03 YES BANK at a glance and intimation received from clients / intermediaries.
05 Products and services Revenue is recognized to the extent it is probable that the economic benefits will flow
06 Geographical presence to the Group and the revenue can be reliably measured. • Interest income, account opening income and other income is recognized on
07 Message from the Chairman accrual basis.
• Interest income is recognized in the profit and loss account on accrual basis,
except in the case of non-performing assets. Interest on non-performing assets • Fee for subscription based services are recognised as earned on a pro rata basis
and CEO
is recognized as per the prudential norms of the RBI. Penal Interest is recognized over the term of the plan.
upon certainty of its realization.
• Management fees are accounted for on accrual basis in accordance with the
17 Customer focus • Dividend income is recognized when the right to receive payment is established. investment management agreement and SEBI (Mutual Fund) Regulations, 1996.
25 Retail • Commission on guarantees issued by the Bank is recognized as income over the • Dividend income is recognized when the right to receive dividend is established.
period of the guarantee.
Our approach to value creation 18.6.2 Investments
29 Value creation model • Commission on Letters of Credit (‘LC’) issued by the Bank is recognized as income Classification and valuation of the Bank’s investments are carried out in accordance
31 Our strategy at the time of issue of the LC. with RBI Circular DBR.No.BP.BC.6/21.04.141/2015-16 dated 1 July 2015.
36 Risk management
• Income on non-coupon bearing discounted instruments is recognized over Accounting and Classification
Our ESG focus the tenure of the instrument on a straight line basis. In case of coupon bearing The Bank follows settlement date accounting for Investments. In compliance with RBI
43 Environment discounted instruments, discount income is recognized over the tenor of the guidelines, all investments, are categorized as “Held for trading” (‘HFT’), “Available for
54 Social instrument on yield basis. sale” (‘AFS’) or “Held to maturity” (‘HTM’) at the time of its purchase. For the purpose
69 People of disclosure in the balance sheet, investments are classified as disclosed in Schedule
• In case of Bonds and Pass Through Certificates, premium on redemption, if any, is
80 Governance 8 (‘Investments’) under six groups (a) government securities (b) other approved
amortised over the tenure of the instrument on a yield basis.
Statutory Reports securities (c) shares (d) bonds and debentures (e) subsidiaries and joint ventures
• Revenue from financial advisory services is recognized in line with milestones and (f) others.
106 Directors’ report achieved as per terms of agreement with clients which is reflective of
services rendered. a) Cost of acquisition
Costs such as brokerage pertaining to investments, paid at the time of acquisition
187 Annual business responsibility report • Facility fees and loan processing fees are recognised when due and realizable. and broken period interest are charged to the profit and loss account as per the
Financial Statements • Other fees and commission are accounted for as and when they became due. RBI guidelines.
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b) Basis of classification investments in the HTM category is deducted from interest income in accordance with
Contents Securities that are held principally for resale within 90 days from the date of purchase RBI Circular DBR.No.BP.BC.6/21.04.141/2015-16 dated 1 July 2015. Where in the opinion
Corporate Overview are classified under the HFT category. Investments that The Group intends to hold till of management, a diminution, other than temporary in the value of investments
maturity are classified under the HTM category, or as per RBI guidelines. Securities classified under HTM has taken place, suitable provisions are made. Profit/loss on sale
A redefined YES
which are not classified in the above categories are classified under the AFS category. of investments in the ‘Held to Maturity’ category is recognised in the profit and loss
03 YES BANK at a glance account and profit is thereafter appropriated (net of applicable taxes and statutory
c) Transfer between categories
05 Products and services reserve requirements) to Capital Reserve.
Reclassification of investments from one category to the other, if done, is in accordance
06 Geographical presence with RBI guidelines. Transfer of scrips from AFS / HFT category to HTM category is Treasury Bills, Commercial Paper and Certificates of deposit being discounted
07 Message from the Chairman made at the lower of book value or market value. In the case of transfer of securities instruments, are valued at carrying cost.
from HTM to AFS / HFT category, the investments held under HTM at a discount are
and CEO Pass Through Certificates purchased for priority sector lending requirements are
transferred to AFS / HFT category at the acquisition price and investments placed in
12 Key performance indicators valued at Book Value in accordance with RBI guidelines.
the HTM category at a premium are transferred to AFS/ HFT at the amortized cost.
17 Customer focus The market/ fair value applied for the purpose of periodical valuation of quoted
ransfer of investments from AFS to HFT or vice- a- versa is done at the book value.
T
21 Technology and digital innovation investments included in the AFS and HFT categories is the market price of the scrip as
Depreciation carried, if any, on such investments is also transferred from one
25 Retail available from the trades/ quotes on the stock exchanges and for Subsidiary General
category to another.
Ledger (‘SGL’) account transactions, the prices as periodically declared by Financial
Our approach to value creation d) Valuation Benchmarks India Pvt. Ltd.(FBIL).
29 Value creation model Investments categorized under AFS and HFT categories are marked to market (MTM)
31 Our strategy The market/ fair value of unquoted government securities included in the AFS and
on a periodical basis as per relevant RBI guidelines. Net depreciation, if any, in the
36 Risk management HFT category is determined as per the prices published by FBIL. Further, in the case
category under the classification mentioned in Schedule 8 (‘Investments’) is recognized
of unquoted bonds, debentures, pass through certificates (other than priority sector)
Our ESG focus in the profit and loss account. The net appreciation, if any, in the category under each
and preference shares, valuation is carried out by applying an appropriate mark-up
43 Environment classification is ignored, except to the extent of depreciation previously provided. The
(reflecting associated credit risk) over the Yield to Maturity (‘YTM’) rates of government
54 Social book value of individual securities is not changed consequent to periodic valuation
securities. Such mark up and YTM rates applied are as per the relevant rates published
69 People of investments.
by FIMMDA/FBIL.
80 Governance
Investments received in lieu of restructured advances scheme are valued in accordance
The Bank undertakes short sale transactions in Central Government dated securities in
Statutory Reports with RBI guidelines. Any diminution in value on these investments is provided for and
accordance with RBI guidelines. The short position is reflected as the amount received
84 Management discussion and analysis is not used to set off against appreciation in respect of other performing securities in
on sale and is netted in the Investment schedule. The short position is marked to
that category. Depreciation on equity shares acquired and held by The Group under
146 Report on corporate governance market and loss, if any, is charged to the Profit and Loss account while gain, if any, is
restructuring scheme is provided as per RBI guidelines.
187 Annual business responsibility report ignored. Profit / Loss on settlement of the short position is recognised in the Profit
Investments classified under the HTM category are carried at their acquisition cost and Loss account.
Financial Statements and any premium over the face value, paid on acquisition, is amortised on a straight
198 Standalone Financials line basis over the remaining period to maturity. Amortization expense of premia on
293
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Units of Venture Capital Funds (VCF) held under AFS category are valued using the Net Sovereign foreign currency bonds are valued using Composite Bloomberg Bond
Contents Asset Value (NAV) shown by VCF as per the financial statement. The VCFs are valued Trader (CBBT) price or Bloomberg Valuation Service (BVAL) price or on Treasury curve
Corporate Overview based on the audited results once in a year. In case the audited financials are not in the chronological order based on availability.
available for a period beyond 18 months, the investments are valued at `1 per VCF.
A redefined YES Non- Sovereign foreign currency Bonds are valued using either Composite Bloomberg
02 Key highlights FY 2019-20 Quoted equity shares are valued at their closing price on a recognized stock exchange. Bond Trader (CBBT) price, Bloomberg Valuation Service (BVAL) price, Bloomberg
03 YES BANK at a glance Unquoted equity shares are valued at the break-up value if the latest balance sheet is Generic price (BGN), Last available CBBT pricing for the instrument or Proxy Bond
05 Products and services available, else, at `1 per company, as per relevant RBI guidelines. Pricing from Bloomberg in the chronological order based on availability.
07 Message from the Chairman At the end of each reporting period, security receipts issued by the asset Masala bonds are valued using either Composite Bloomberg Bond Trader (CBBT)
10 Message from the Managing Director reconstruction company are valued in accordance with the guidelines applicable to price, Bloomberg Valuation Service (BVAL) price or as per FIMMDA guided valuation
and CEO such instruments, prescribed by RBI from time to time. Accordingly, in cases where methodology for unquoted bonds in the chronological order based on availability.
12 Key performance indicators the cash flows from security receipts issued by the asset reconstruction company are
Special bonds such as oil bonds, fertilizer bonds, UDAY bonds etc. which are directly
limited to the actual realization of the financial assets assigned to the instruments
17 Customer focus issued by Government of India (‘GOI’) is valued based on FBIL valuation.
in the concerned scheme, The Group reckons the net asset value obtained from the
21 Technology and digital innovation asset reconstruction company from time to time, for valuation of such investments Equity shares in the Banks demat account, acquired through exercise of pledge, is not
25 Retail at each reporting date. In case of investment in Security Receipts on or after April accounted as investments. Upon sale of the pledged shares, the proceeds are utilized
Our approach to value creation 01, 2017 which are backed by more than 50% of the stressed assets sold by the to offset the borrower’s liability.
29 Value creation model bank or 10% of the stressed asset sold by the bank post April 01, 2018, provision for
Non-performing investments are identified and depreciation / provision are
31 Our strategy depreciation in value is made at higher of - provisioning rate required in terms of net
made thereon based on the RBI guidelines. Based on management assessment
36 Risk management assets value declared by Reconstruction Company(RC)/Securitization Company(SC) or
of impairment, The Group additionally creates provision over and above the RBI
the provisioning rate as per the extant asset classification and provisioning norms as
Our ESG focus guidelines. The depreciation / provision on such non-performing investments are
applicable to the underlying loans, assuming that the loan notionally continue in the
43 Environment not set off against the appreciation in respect of other performing securities. Interest
books of the Bank. All other investments in the Security Receipts are valued as per the
54 Social on non-performing investments is not recognised in the Profit and Loss account
NAV obtained from issuing RC/SC.
69 People until received.
80 Governance Investments in quoted Mutual Fund (MF) Units are valued at the latest repurchase
e) Profit/Loss on sale of Investments
price/net asset value declared by the mutual fund. Investments in un-quoted MF Units
Statutory Reports Profit/Loss on sale of Investments in the HTM category is recognized in the profit
are valued on the basis of the latest re-purchase price declared by the MF in respect
84 Management discussion and analysis and loss account and profit thereafter is appropriated (net of applicable taxes and
of each particular Scheme.
statutory reserve requirements) to Capital Reserve. Profit/Loss on sale of investments
146 Report on corporate governance Investment in listed instruments of Real Estate Investment Trust (REIT)/Infrastructure in HFT and AFS categories is recognized in the Profit and Loss account.
187 Annual business responsibility report Investment Trust (INVIT) is valued at closing price on a recognized stock exchange with
f) Accounting for repos / reverse repos
Financial Statements the higher volumes. In case the instruments were not traded on any stock exchange
Securities sold under agreements to repurchase (Repos) and securities purchased
198 Standalone Financials within 15 days prior to date of valuation, valuation is done based on the latest NAV (not
under agreements to resell (Reverse Repos) including liquidity adjustment facility (LAF)
267 Consolidated Financials older than 1 year) submitted by the valuer.
with RBI are treated as collateralized borrowing and lending transactions respectively
294
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in accordance with RBI master circular No. DBR.No.BP.BC.6/21.04.141/2015-16 dated on the payment of all installments and / or interest, as applicable, falling due between
Contents 1 July 2015. The first leg of the repo transaction is contracted at the prevailing market March 1, 2020 and May 31, 2020 to all eligible borrowers classified as Standard, even
Corporate Overview rates. The difference between consideration amounts of first and second (reversal if overdue, as on February 29, 2020. For all such accounts where the moratorium is
of first) leg reflects interest and is recognized as interest income/expense over the granted (except advances at IFSC Banking Unit (IBU), the asset classification as of
A redefined YES
period of transaction. March 31, 2020 has been retained based on the overdue status as at February 29, 2020.
03 YES BANK at a glance As a consequence the Bank has not recognized any slippage in asset classification
Group also undertakes Repo and Reverse repo transactions from IFSC Banking Unit
05 Products and services from standard to NPA post February 29, 2020 on account of moratorium.
in GIFT City in Foreign currency Sovereign Securities and accounting is similar to the
06 Geographical presence domestic repo transactions. As per the RBI guidelines a general provision is made on all standard advances,
07 Message from the Chairman including provision for borrowers having unhedged foreign currency exposure and for
10 Message from the Managing Director g) Investment fluctuation reserve
credit exposures computed as per the current marked to market values of interest rate
and CEO With a view to building up of adequate reserves to protect against increase in yields,
and foreign exchange derivative contracts. These also include provision for stressed
12 Key performance indicators RBI through circular number RBI/2017-18/147 DBR.No.BP.BC.102/21.04.048/2017-18
sector exposures and provision for incremental exposure of the banking system to
15 COVID-19 response dated April 2, 2018, advised all banks to create an IFR with effect from the FY 2018-19.
17 Customer focus a specified borrower beyond Normally Permitted Lending Limit (NPLL) in proportion
21 Technology and digital innovation Transferred to IFR will be lower of the following (i) net profit on sale of investments to bank’s funded exposure to specified borrower. Such provisions are included in
25 Retail during the year or (ii) net profit for the year less mandatory appropriations; until the Schedule 5 - ‘Other liabilities & provisions - Others’.
amount of IFR is at least 2 percent of the HFT and AFS portfolio, on a continuing basis.
Our approach to value creation In respect of restructured standard and non performing advances, provision is made
29 Value creation model 18.6.3 Advances for the present value of principal and interest component sacrificed at the time of
31 Our strategy Accounting and classification restructuring the assets, based on the RBI guidelines.
36 Risk management Advances are classified as performing and non-performing based on the relevant RBI Accounts are written-off in accordance with the Bank’s policies. Recoveries from
Our ESG focus guidelines. Advances are stated net of specific provisions, interest in suspense, inter- bad debts written-off are recognised in the Profit and Loss account and included
43 Environment bank participation certificates issued, direct assignment and bills rediscounted. under other income.
54 Social Provisioning In case of loans sold to asset reconstruction company, if consideration is more than
69 People Provisions in respect of non-performing advances are made based on management’s net book value, the group records the security receipts as investment at Net Book
80 Governance assessment of the degree of impairment of the advances, subject to the minimum Value as per RBI guidelines.
Statutory Reports provisioning level prescribed in relevant RBI guidelines. The specific provision levels for
retail non-performing assets are also based on the nature of product and delinquency The Bank has in place a Country Risk management policy as part of its Board approved
106 Directors’ report levels. Specific provisions in respect of non-performing advances are charged to the Credit policy, which is based on extant regulatory guidelines and addresses the
146 Report on corporate governance Profit and Loss account and included under Provisions and Contingencies. From the identification, measurement, monitoring and reporting of country risk. Countries
187 Annual business responsibility report quarter ended December 31, 2019, the Bank consider slippages in Corporate NPAs are categorized into seven risk categories, viz. Insignificant, Low Risk, Moderately
post the period end till the date of results / financial statement, while determining Low Risk, Moderate Risk, Moderately Risk, High Risk and Very High Risk. The Bank
Financial Statements calculates direct and indirect country risk in line with the policy requirements. Indirect
NPAs and related provisioning requirements.
198 Standalone Financials exposure is reckoned at 50% of the exposure in case of countries where the net
267 Consolidated Financials In accordance with the RBI guidelines relating to COVID-19 Regulatory Package dated funded exposure exceeds 1% of the Bank’s total assets. Further, if the net funded
March 27, 2020 and April 17, 2020, the Bank has granted a moratorium of three months
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exposure of The Bank in respect of each country exceeds 1% of the Bank’s total assets, In accordance with the RBI clarification, the Bank does not recognise in the profit and
Contents provisioning is required to be made on exposure to such countries. Depending on loss account the proportionate exchange gains or losses held in the foreign currency
Corporate Overview the risk category of the country, provisioning is done on a graded scale ranging from translation reserve on repatriation of profits from overseas operations.
0.25% to 100% for exposures with contractual maturity greater than or equal to 180
A redefined YES Currency future contracts are marked to market daily using settlement price on a
days. In respect of short-term exposures with contractual maturity less than 180 days,
02 Key highlights FY 2019-20 trading day, which is the closing price of the respective future contracts on that day.
03 YES BANK at a glance 25% of the normal provision requirement is held.
While the daily settlement prices is computed on the basis of weighted average price
05 Products and services 18.6.4 Transactions involving foreign exchange of such contract, the final settlement price is taken as the RBI reference rate on the
06 Geographical presence last trading day of the future contract or as may be specified by the relevant authority
Foreign currency income and expenditure items of domestic operations are translated
07 Message from the Chairman from time to time. All open positions are marked to market based on the settlement
at the exchange rates prevailing on the date of the transaction. Income and expenditure
items of integral foreign operations (representative offices) are translated at the daily price and the resultant marked to market profit / loss is daily set.
and CEO
12 Key performance indicators average closing rates and of non-integral foreign operations (foreign branches) at the 18.6.5 Earnings per share
15 COVID-19 response monthly average closing rates.
The Group reports basic and diluted earnings per equity share in accordance with
17 Customer focus
Premia/discounts on foreign exchange swaps, that are used to hedge risks arising Accounting Standard (AS) 20, “Earnings per Share” notified under section 133 of the
from foreign currency assets and liabilities, are amortized over the life of the swap. Companies Act 2013. Basic earnings per equity share have been computed by dividing
25 Retail
net profit after tax for the year by the weighted average number of equity shares
Monetary foreign currency assets and liabilities are translated at the balance sheet
Our approach to value creation outstanding for the period.
date at rates notified by the Foreign Exchange Dealers’ Association of India (‘FEDAI’).
Foreign exchange contracts are stated at net present value using LIBOR/SWAP curves of Diluted earnings per equity share have been computed using the weighted average
31 Our strategy
the respective currencies with the resulting unrealised gain or loss being recognised in number of equity shares and dilutive potential equity shares options outstanding
36 Risk management
the Profit and Loss Account and correspondingly in other assets (representing positive during the period except where the results are anti -dilutive.
Our ESG focus Mark-to-Market) and in other liabilities (representing negative Mark-to-Market (MTM))
43 Environment 18.6.6 Accounting for derivative transactions
on a gross basis.
54 Social Derivative transactions comprises forward rate agreements, swaps and option
69 People In accordance with AS 11 ‘The Effects of changes in Foreign Exchange Rates’, contingent contracts. The Group undertakes derivative transactions for market making/trading
80 Governance liabilities in respect of outstanding foreign exchange forward contracts, derivatives, and hedging on-balance sheet assets and liabilities. All market making/trading
guarantees, endorsements and other obligations are stated at the exchange rates transactions are marked to market on a monthly basis and the resultant unrealized
Statutory Reports notified by FEDAI corresponding to the balance sheet date. gains/losses are recognized in the profit and loss account.
106 Directors’ report Both monetary and non-monetary foreign currency assets and liabilities of non- Derivative transactions that are undertaken for hedging are accounted for on accrual
146 Report on corporate governance integral foreign operations are translated at closing exchange rates notified by basis except for the transaction designated with an asset or liability that is carried at
187 Annual business responsibility report FEDAI at the Balance Sheet date and the resulting profit / loss arising from exchange market value or lower of cost or market value in the financial statements, which are
differences are accumulated in the Foreign Currency Translation Account until the accounted similar to the underlying asset or liability.
disposal of the net investment in the non-integral foreign operations.
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Cross currency interest rate swaps which are used by The Group to hedge its foreign 18.6.8 Depreciation
Contents currency borrowings have been designated as cash flow hedges and are measured at Depreciation on fixed assets is provided on straight-line method, over estimated
Corporate Overview fair value. The corresponding gain or loss is recognised as cash flow hedge reserve.
useful lives, as determined by the management, at the rates mentioned below-
Further to match profit/ loss on account of revaluation of foreign currency borrowing,
A redefined YES
the corresponding amount is recycled from cash flow hedge reserve to Profit Class of asset
Useful life of Assets as per Useful life of Assets as per
02 Key highlights FY 2019-20 Companies Act, 2013 Bank’s Accounting Policy
03 YES BANK at a glance and Loss account.
Owned Premises 60 years 60 years
05 Products and services The Group follows the option premium accounting framework prescribed by FEDAI Office equipment 5 years 5 years
06 Geographical presence SPL- circular dated Dec 14, 2007. Premium on option transaction is recognized as Computer hardware1 6 years 3 years
07 Message from the Chairman income/expense on expiry or early termination of the transaction. Mark to market
10 Message from the Managing Director Computer software * 6 years 4 years
(MTM) gain/loss (adjusted for premium received/paid on option contracts) is recorded Vehicles1 8 years 5 years
and CEO
under ‘Other Income’. Furniture and Fixtures 10 years 10 years
15 COVID-19 response The amounts received/paid on cancellation of option contracts are recognized Automated Teller Machines (‘ATMs’) 1 15 years 10 years
17 Customer focus as realized gains/losses on options. Charges receivable/payable on cancellation/ Leasehold improvements to premises - Over the lease period or
21 Technology and digital innovation termination of foreign exchange forward contracts and swaps are recognized as 9 years whichever is less.
25 Retail income/ expense on the date of cancellation/ termination under ‘Other Income’. *As per RBI Guidelines.
Our approach to value creation Valuation of Interest Rate Futures (IRF) is carried out on the basis of the daily settlement 1
Based on technical evaluation, the management believes that the useful lives as given above best
29 Value creation model price of each contract provided by the exchange. represent the period over which management expects to use these assets. Hence, the useful lives
31 Our strategy for these assets is different from the useful lives as prescribed under Part C of Schedule II of the
36 Risk management The requirement for collateral and credit risk mitigation on derivative contracts is Companies Act 2013.
assessed based on internal credit policy. Overdue if any, on account of derivative
Our ESG focus • Assets costing up to `5,000 are fully depreciated in the year of purchase.
transactions are accounted in accordance with extant RBI guidelines.
43 Environment
• For assets purchased/ sold during the year, depreciation is being provided on pro
54 Social As per the RBI guidelines on ‘Prudential Norms for Off-balance Sheet Exposures of
rata basis by the Bank.
69 People Banks’ a general provision is made on the current gross MTM gain of the contract for
80 Governance all outstanding interest rate and foreign exchange derivative transactions. • Improvements to leasehold assets are depreciated over the remaining period
of lease.
Statutory Reports 18.6.7 Fixed assets
84 Management discussion and analysis • Reimbursement, if any, is recognised on receipt and is adjusted to the book value of
Fixed assets are stated at cost less accumulated depreciation, amortization and
106 Directors’ report asset and depreciated over the balance life of the asset.
accumulated impairment losses. Cost comprises the purchase price and any cost
attributable for bringing the asset to its working condition for its intended use. • Whenever there is a revision in the estimated useful life of the asset, the
Subsequent expenditure incurred on assets put to use is capitalised only when it unamortised depreciable amount is charged over the revised remaining useful life
Financial Statements increases the future benefit /functioning capability from / of such assets. of the said asset.
267 Consolidated Financials • The useful life of assets is based on historical experience of the Bank, which is
different from the useful life as prescribed in Schedule II to the Companies Act, 2013.
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18.6.9 Impairment of assets Gratuity

Contents The Group provides for gratuity, a defined benefit retirement plan, covering eligible
Assets are reviewed for impairment whenever events or changes in circumstances
Corporate Overview employees. The plan provides for lump sum payments to vested employees at
indicate that the carrying amount of an asset may not be recoverable. An asset’s
recoverable amount is the higher of an asset’s net selling price and its value in use. If retirement or upon death while in employment or on termination of employment
A redefined YES
such assets are considered to be impaired, the impairment is recognised by debiting for an amount equivalent to 15 days’ eligible salary payable for each completed year
03 YES BANK at a glance the profit and loss account and is measured as the amount by which the carrying of service if the service is more than 5 years. The Group accounts for the liability
05 Products and services amount of the assets exceeds the recoverable amount of the assets. for future gratuity benefits using the projected unit cost method based on annual
06 Geographical presence actuarial valuation.
18.6.10 Employee benefits
07 Message from the Chairman The defined gratuity benefit plans are valued by an independent actuary as at the
10 Message from the Managing Director Employee Stock Option Scheme (‘ESOS’)
Balance Sheet date using the projected unit credit method as per the requirement
and CEO The Employee Stock Option Scheme (‘the Scheme’) provides for the grant of options
of AS-15, Employee Benefits, to determine the present value of the defined benefit
12 Key performance indicators to acquire equity shares of The Group to its employees. The options granted to
obligation and the related service costs. Under this method, the determination is
15 COVID-19 response employees vest in a graded manner and these may be exercised by the employees
17 Customer focus based on actuarial calculations, which include assumptions about demographics, early
within specified periods.
21 Technology and digital innovation retirement, salary increases and interest rates. Actuarial gain or loss is recognised in
25 Retail Measurement of the employee share-based payment plans is done in accordance the Profit and Loss account.
with the Guidance Note on Accounting for Employee Share-based Payments issued
Our approach to value creation Provident fund
by Institute of Chartered Accountants of India (ICAI) and SEBI (Share Based Employee
29 Value creation model In accordance with law, all employees of the Group are entitled to receive benefits
Benefits) Regulations, 2014. The Group measures compensation cost relating to
31 Our strategy under the provident fund, a defined contribution plan in which both the employee and
employee stock options using the intrinsic value method. Compensation cost is
36 Risk management The Group contribute monthly at a pre determined rate. Contribution to provident
measured by the excess, if any, of the fair market price of the underlying stock (i.e.
fund are recognized as expense as and when the services are rendered. The Group
Our ESG focus the last closing price on the stock exchange on the day preceding the date of grant
has no liability for future provident fund benefits other than its annual contribution.
43 Environment of stock options) over the exercise price. The exercise price of the Bank’s stock
54 Social option is the last closing price on the stock exchange on the day preceding the date In February 2019, the honorable Supreme Court of India in its judgement clarified
69 People of grant of stock options and accordingly there is no compensation cost under the that certain special allowances should be considered to measure obligations under
80 Governance intrinsic value method. Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (the PF Act).
The Group has been legally advised that there are interpretative challenges on the
Statutory Reports Compensated Absence
application of judgment retrospectively and as such does not consider there is any
84 Management discussion and analysis The employees of the Group are entitled to carry forward a part of their unavailed/
probable obligations for past periods. The Group has given effect of this judgment
unutilized leave subject to a maximum limit. The employees cannot encash unavailed/
146 Report on corporate governance from April 01, 2019 prospectively.
unutilized leave. The Group provides for leave encashment / compensated absences
187 Annual business responsibility report based on an independent actuarial valuation at the Balance Sheet date, which includes National Pension System (NPS)
Financial Statements assumptions about demographics, early retirement, salary increases, interest rates The NPS is a defined contribution retirement plan. The primary objective is enabling
198 Standalone Financials and leave utilisation. systematic savings and to provide retirees with an option to achieve financial stability.
267 Consolidated Financials Pension contributions are invested in the pension fund schemes. The Group has
298
Schedules
no liability for future fund benefits other than the voluntary contribution made by In accordance with AS 29, Provisions, Contingent Liabilities and Contingent Assets, The
Contents employees who agree to contribute to the scheme. Group creates a provision when there is a present obligation as a result of a past event
Corporate Overview that probably requires an outflow of resources and a reliable estimate can be made of
01 Commitment. Promise. Transparency. 18.6.11 Leases
the amount of the obligation.
A redefined YES Leases where the lessor effectively retains substantially all risks and benefits of
02 Key highlights FY 2019-20 Provisions are reviewed at each balance sheet date and adjusted to reflect the current
ownership are classified as operating leases. Operating lease payments are recognized
03 YES BANK at a glance best estimate. If it is no longer probable that an outflow of resources would be required
as an expense in the profit and loss account on a straight line basis over the lease term
05 Products and services to settle the obligation, the provision is reversed.
in accordance with Accounting Standard -19, Leases.
07 Message from the Chairman 18.6.12 Income taxes Contingent assets are not recognized in the financial statements. However, contingent
10 Message from the Managing Director Tax expense comprises current and deferred tax. Current tax comprises of the amount assets are assessed continually and if it is virtually certain that an inflow of economic
and CEO of tax for the period determined in accordance with the Income Tax Act, 1961 and benefits will arise, the asset and related income are recognized in the period in which
12 Key performance indicators the rules framed there under. Deferred income taxes reflects the impact of current the change occurs.
year timing differences between taxable income and accounting income for the year 18.6.14 Cash and Cash equivalents
17 Customer focus
and reversal of timing differences of earlier years. Deferred tax assets and liabilities
21 Technology and digital innovation Cash and cash equivalents include cash in hand, balances with RBI, balances with
are recognised for the future tax consequences of timing differences between the
25 Retail other banks and money at call and short notice.
carrying values of assets and liabilities and their respective tax bases, and operating
Our approach to value creation loss carry forwards. Deferred tax assets and liabilities are measured using the enacted 18.6.15 Corporate social responsibility
29 Value creation model or substantively enacted tax rates at the balance sheet date. Expenditure towards corporate social responsibility, in accordance with Companies
31 Our strategy
Deferred tax assets are recognized only to the extent there is reasonable certainty Act, 2013, are recognised in the Profit and Loss account.
36 Risk management
that the assets can be realized in future. In case of unabsorbed depreciation or carried 18.6.16 Debit and credit cards reward points
Our ESG focus forward loss under taxation laws, all deferred tax assets are recognized only if there
43 Environment The Bank estimates the probable redemption of debit and credit card reward points
is virtual certainty of realization of such assets supported by convincing evidence.
54 Social and cost per point using actuarial valuation method by employing an independent
Deferred tax assets are reviewed at each balance sheet date and appropriately
69 People actuary, which includes assumptions such as mortality, redemption and spends.
adjusted to reflect the amount that is reasonably/virtually certain to be realized.
80 Governance Provisions for liabilities on said reward points are made based on the actuarial valuation
18.6.13 Provisions and contingent assets/liabilities
Statutory Reports report as furnished by the said independent actuary and included in other liabilities.
A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more 18.6.17 Bullion
uncertain future events not wholly within the control of The Group or a present The Bank imports bullion including precious metal bars on a consignment basis for
obligation that arises from past events that is not recognized because it is not selling to its customers. The imports are typically on a back-to-back basis and are
probable that an outflow of resources will be required to settle the obligation or a priced to the customer based on a price quoted by the supplier. The Group earns a
Financial Statements reliable estimate of the amount of the obligation cannot be made. The Group does not fee on such bullion transactions. The fee is classified in other income. The Group also
198 Standalone Financials recognize a contingent liability but discloses its existence in the financial statements deals in bullion on a borrowing and lending basis and the interest paid / received
thereon is classified as interest expense / income respectively.
299
Schedules
18.6.18 Share issue expenses The share allotment under reconstruction scheme is given below:
Contents
Share issue expenses are adjusted from Share Premium Account in terms of Section
Corporate Overview Sr
Name of Investor
Subscription Amount Number of Equity Shares
52 of the Companies Act, 2013. No. (` in million) Allotted (in Million)
A redefined YES 18.6.19 Segment information 1 State Bank of India 60,500 6,050
02 Key highlights FY 2019-20 2 Housing Development Finance 10,000 1,000
03 YES BANK at a glance The disclosure relating to segment information is in accordance with AS-17, Segment
Corporation Limited
05 Products and services Reporting and as per guidelines issued by RBI.
3 ICICI Bank Limited 10,000 1,000
06 Geographical presence 18.6.20 Priority Sector Lending Certificates (PSLC) 4 Axis Bank Limited 6,000 600
The Bank, in accordance with RBI circular FIDD.CO.Plan.BC.23/ 04.09.01/2015-16 dated 5 Kotak Mahindra Bank Limited 5,000 500
April 7, 2016, trades in priority sector portfolio by selling or buying PSLC. There is no 6 The Federal Bank Ltd 3,000 300
and CEO
transfer of risks or loan assets in these transactions. The fee paid for purchase of the 7 Bandhan Bank Limited 3,000 300
15 COVID-19 response PSLC is treated as an ‘Expense’ and the fee received from the sale of PSLCs is treated 8 IDFC First Bank Limited 2,500 250
17 Customer focus as ‘Other Income’. TOTAL 100,000 10,000
21 Technology and digital innovation The Bank accreted `79,550.00 million (net of estimated share issue expenses of `450.00
18.7 Capital
25 Retail million) as premium. The Bank also issued 4,384,174 shares pursuant to the exercise of
18.7.1 Equity Issue
Our approach to value creation stock option aggregating to `284.53 million. During the financial year ended March 31,
During the financial year ended March 31, 2020, the Bank has issued 231,055,018 2019, the Bank has issued 12,065,794 shares pursuant to the exercise of stock option
equity shares of `2 each for cash pursuant to a Qualified Institutions Placement (QIP) aggregating to `953.47 million.
31 Our strategy
at `83.55 aggregating to `19,304.64 million.
36 Risk management
Movement in Share Capital
Our ESG focus On March 13, 2020, the Government of India notified the “Yes Bank Ltd. Reconstruction (` in million)
43 Environment Scheme, 2020” (Scheme). As per the Scheme, authorized capital has been increased
As at As at
from `11,000 million to `62,000 million (`8,000 million as at March 31, 2019). The Share Capital
54 Social March 31, 2020 March 31, 2019
69 People State Bank of India (SBI) and other investors invested in the Bank at a price of `10 per Opening Share Capital 4,630.07 4,605.93
80 Governance equity share of the Bank (`2 face value with a `8 premium). As per the scheme, SBI is Addition due to exercise of Stock Option 8.76 24.13
required to hold upto 49% with a minimum holding of 26% by SBI in the Bank (which Addition due to shares issued for QIP 462.11 -
Statutory Reports is subject to a 3 year lock in). Other investors are subject to a 3 year lock in for 75% of
84 Management discussion and analysis Addition due to shares issued under Reconstruction 20,000.00 -
the investments they make in the Bank under this Scheme. Existing investors (other scheme
than investors holding less than 100 shares) in YES Bank are also subject to a lock in for Closing Share Capital 25,100.94 4,630.07
75% of their holding as per this Scheme. Further, as per final reconstruction scheme
of the Bank, Bank has issued 10,000 million equity shares at `10 each aggregating to
Financial Statements `100,000.00 million.
300
Schedules
Write Down of AT1 Bonds (b) the additional Gross NPAs identified by RBI exceed 15 per cent of the published
Contents On March 13, 2020, pursuant to the provisions of Section 45 of the Banking Regulation incremental Gross NPAs for the reference period. As part of the Risk Based Supervision
Corporate Overview Act, 1949, the Reserve Bank of India (RBI) reconstituted YES Bank Limited (“the Bank”). (RBS) exercise for FY 2018-19 concluded in November 2019, the RBI has pointed out
As a consequence of the reconstitution, the Bank was deemed to be non-viable. certain retrospective divergence in the Bank’s asset classification and provisioning as
A redefined YES
Further, the Bank incurred losses and breached RBI mandated Common Equity Ratio on 31st March 2019. In conformity with the above mentioned RBI circular, the below
03 YES BANK at a glance (CET 1) and other statutory ratios. This activated the triggers for write-down of Basel table outlines divergences in asset classification and provisioning.
05 Products and services III additional tier 1 Bonds amounting to `84,150 million (“AT 1 Bonds”) issued by the
Sr No. Particulars (` in million)
06 Geographical presence Bank. Accordingly, the Bank was constrained to write down AT 1 bonds on March 14,
1 Gross NPAs as on March 31, 2019 as reported by the Bank 78,825.59
07 Message from the Chairman 2020. The Trustees, on behalf of the holders of AT 1 Bonds have filed a writ petition
2 Gross NPAs as on March 31, 2019 as assessed by RBI 111,595.59
10 Message from the Managing Director seeking to challenge the decision of the Bank to write down AT 1 bonds. The Bank,
3 Divergence in Gross NPAs (2-1) 32,770.00
and CEO based on the legal opinion of its external independent legal counsel is of the view that
4 Net NPAs as on March 31, 2019 as reported by the Bank 44,848.49
12 Key performance indicators the merits of the Bank’s decision to write down the AT 1 bonds in accordance with the
15 COVID-19 response 5 Net NPAs as on March 31, 2019 as assessed by RBI 67,838.49
contractual terms for issuance of AT 1 Bonds.
17 Customer focus 6 Divergence in Net NPAs (5-4) 22,990.00
21 Technology and digital innovation Interest on Additional Tier I Capital (Unsecured, Non-Convertible, Tier I Subordinated 7 Provision for NPAs as on March 31, 2019 as reported by the Bank 33,977.10
25 Retail Perpetual Bonds in the nature of Promissory Notes issued under Basel II guidelines) 8 Provision for NPAs as on March 31, 2019 as assessed by RBI 43,757.10
amounting to `84.0 million was not paid by the Bank as the regulatory ratio of the 9 Divergence in provisioning (8-7) 9,780.00
Our approach to value creation Bank were lower than the minimum required. 10 Reported Net Profit after Tax (PAT) for the year ended March 31, 2019 17,202.79
11 Adjusted (notional) Net Profit after Tax (PAT) for the year ended March 10,840.31
31 Our strategy 18.7.2 Proposed Dividend:
31, 2019 after taking into account the divergence in provisioning
36 Risk management The Bank has made loss during the year and as consequence to that the Bank has not
declared any dividend. Further, the Reserve Bank of India, vide its circular dated April 18.8 Income Taxes
Our ESG focus
43 Environment 17, 2020, has declared that banks shall not make any further dividend payouts from Provisions made for Income Tax during the year
54 Social profit pertaining to financial year ended March 31, 2020, until further instructions
(` in million)
69 People with the view to conserve capital in the environment of heightened uncertainly
80 Governance caused by COVID- 19.
March 31, 2020 March 31, 2019
Statutory Reports 18.7.3 Divergence in Asset Classification and Provisioning for NPAs Current income tax expense 13,379.12 23,009.69
84 Management discussion and analysis In terms of the RBI circular no. DBR.BP.BC.No.32/21.04.018/2018-19 dated 1 April, 2019. Deferred income tax credit (57,435.25) (16,612.30)
106 Directors’ report banks are required to disclose the divergences in asset classification and provisioning TOTAL (44,056.13) 6,397.39
146 Report on corporate governance consequent to RBI’s annual supervisory process in their notes to accounts to the
187 Annual business responsibility report financial statements, wherever either or both of the following conditions are satisfied:
Financial Statements (a) the additional provisioning for NPAs assessed by RBI exceeds 10 per cent of the
198 Standalone Financials reported profit before provisions and contingencies for the reference period and
301
Schedules
18.9 Staff retirement benefits Net gratuity cost for the year ended March 31, 2020 and March 31, 2019 comprises the
Contents following components:
The following table sets out the funded status of the Gratuity Plan and the amounts
Corporate Overview
recognized in the Group’s financial statements as of March 31, 2020 and March 31, 2019: (` in million)
A redefined YES Changes in present value of Obligations March 31, 2020 March 31, 2019
03 YES BANK at a glance (` in million) Current Service Cost 376.36 279.03
05 Products and services As at As at Interest Cost 103.41 87.55
March 31, 2020 March 31, 2019 Expected Return on plan assets (79.17) (80.78)
07 Message from the Chairman Present Value of Obligation at the beginning of the year 1,464.09 1,155.37 Net Actuarial gain recognized in the year (177.78) 52.59
10 Message from the Managing Director Interest Cost 103.41 87.56 Past Service Cost - 0.09
and CEO Current Service Cost 376.36 279.03 Expenses recognized 222.82 338.48
12 Key performance indicators Past Service Cost - -
15 COVID-19 response Benefits Paid (154.86) (83.96)
Experience History:
17 Customer focus Actuarial (gain)/loss on Obligation (204.80) 26.07 (` in million)
21 Technology and digital innovation For the For the For the For the For the
25 Retail year ended year ended year ended year ended year ended
March 31, March 31, March 31, March 31, March 31,
Changes in the fair value of plan assets:
Our approach to value creation 2020 2019 2018 2017 2016
29 Value creation model (` in million) (Gain)/Loss on obligation (252.08) 57.48 (70.88) 48.37 15.18
31 Our strategy For the year ended For the year ended due to change in
36 Risk management March 31, 2020 March 31, 2019 assumption
Fair value of plan assets at the beginning of the year 1,125.60 1,155.29 Experience (Gain)/Loss on 47.97 (31.99) 113.80 32.76 (5.99)
Our ESG focus obligation
Adjustment to Opening Balance - -
43 Environment
Expected return on plan assets 79.17 80.78 Actuarial Gain/(Loss) on (27.02) (26.51) (5.21) 8.46 (18.68)
54 Social plan assets
69 People
Contributions 200.00 -
Benefits paid (154.86) (83.96)
80 Governance The assumptions used in accounting for the gratuity plan are set out below:
Actuarial gain/( loss) on plan assets (27.02) (26.51)
Statutory Reports Fair value of plan assets at the end of the period 1,222.89 1,125.60 March 31, 2020 March 31, 2019
106 Directors’ report The Group has entire contribution of Gratuity Fund as Investments with Insurance Discount Rate 5.47%~6.60% 7.05%~7.55%
146 Report on corporate governance Companies which are invested primarily in debt instruments as approved by IRDA. Expected Return on Plan Assets 8.00% 7.00%
187 Annual business responsibility report Mortality IALM (2012-14) Ult IALM (2006-08) Ult
Estimated rate of return on plan assets is based on the expected average long-term Future Salary Increases 9%~10.00% 10%~12.00%
Financial Statements rate of return on investments of the Fund during the estimated term of the obligations Disability
Attrition 10%-34% 8%-27%
Retirement 60 yrs 60 yrs
302
Schedules
Actuarial assumption on salary increase also takes into consideration the inflation, • Corporate / Wholesale Banking: Includes lending, deposit taking and other services
Contents seniority, promotion and other relevant factors. offered to corporate customers.
Corporate Overview
01 Commitment. Promise. Transparency. Position of plan asset / liability • Retail Banking: Includes lending, deposit taking and other services offered to
A redefined YES (` in million) retail customers.
02 Key highlights FY 2019-20 For the year ended For the year ended
03 YES BANK at a glance • Other Banking Operations: Includes para banking activities like third party product
March 31, 2020 March 31, 2019
05 Products and services distribution, merchant banking etc.
Fair value of plan assets at the end of the period 1,222.89 1,125.60
06 Geographical presence Segmental results for the year ended March 31, 2020 are set out below:
Plan asset / (liability) (361.31) (338.49) (` in million)
and CEO The Group is yet to determine future contribution to Gratuity fund for Corporate / Other
Retail
12 Key performance indicators Business Segments Treasury Wholesale Banking Total
Financial Year 2020-21 Banking
Banking
Operations
17 Customer focus National Pension Scheme Segment Revenue 118,905.25 170,401.49 59,161.77 2,977.86 351,446.36
21 Technology and digital innovation The Group has contributed `26.69 million for the year ended March 31, 2020 (March Less: Inter-segment (55,515.21)
25 Retail 31, 2019: `20.82 million) to NPS for employees who had opted for the scheme. The Revenue net of inter- 295,931.16
Group has no liability for future fund benefits other than its annual contribution for segment
29 Value creation model the employees who agree to contribute to the scheme. Result (15,056.17) (244,883.17) (10,469.90) (450.87) (270,860.56)
31 Our strategy Unallocated Expenses (21,671.86)
Provident Fund (PF) Operating Profit (292,531.93)
36 Risk management
The Group has recognised in the profit and loss account `1,069.79 million for the year Income Taxes (65,236.68)
Our ESG focus ended March 31, 2020 (March 31, 2019: `823.71 million) towards contribution to the Extra-ordinary Profit/ 62,969.45
43 Environment provident fund. (Loss)
54 Social Net Profit (164,325.80)
69 People Compensated absence
Other Information:
80 Governance The Group has recognised `170.40 million in the profit and loss account for the year Segment assets 718,964.42 1,258,777.91 503,345.05 1,773.61 2,482,860.98
ended March 31, 2020 (March 31, 2019: `174.07 million) towards compensated absences. Unallocated assets 95,460.66
Statutory Reports
84 Management discussion and analysis 18.10 Segment Results Total assets 2,578,321.64
106 Directors’ report Segment liabilities 1,317,079.06 478,934.16 547,960.39 1,958.42 2,345,931.98
Pursuant to the guidelines issued by RBI on AS-17 (Segment Reporting) - Enhancement
146 Report on corporate governance Unallocated liabilities 232,389.66
of Disclosures dated April 18, 2007, effective from period ending March 31, 2008, the
187 Annual business responsibility report Total liabilities 2,578,321.64
following business segments have been reported.
• Treasury: Includes investments, all financial markets activities undertaken on behalf
of the Bank’s customers, proprietary trading, maintenance of reserve requirements
and resource mobilisation from other banks and financial institutions.
303
Schedules
Other banking operations includes income from bancassurance business `836.40 3. Income, expense, assets and liabilities have been either specifically identified with
Contents million during year ended March 31, 2020. individual segment or allocated to segments on a systematic basis or classified
Corporate Overview as unallocated.
01 Commitment. Promise. Transparency. Segmental results for the year ended March 31, 2019 are set out below:
A redefined YES (` in million) 4. The unallocated assets Includes tax paid in advance/tax deducted at source and
02 Key highlights FY 2019-20 deferred tax asset.
Corporate / Other
03 YES BANK at a glance Retail
Business Segments Treasury Wholesale Banking Total
05 Products and services Banking
Banking
Operations
5. The unallocated liabilities include Share Capital, Reserves & Surplus and Tier 1
06 Geographical presence bond borrowings.
Segment Revenue 104,539.78 222,612.45 45,658.71 2,936.72 375,747.65
07 Message from the Chairman 6. Inter-segment transactions have been generally based on transfer pricing
Less: Inter-segment (32,759.28)
Revenue net of inter- 342,988.37 measures as determined by the Management.
and CEO
segment
12 Key performance indicators 18.11 Related Party Disclosures
15 COVID-19 response Result 35,460.35 14,183.39 (4,524.82) 884.69 46,003.61
Unallocated Expenses (22,513.56) The Bank has transactions with its related parties comprising of investing party, key
17 Customer focus
Operating Profit 23,490.05 management personnel and the relative of key management personnel
25 Retail Income Taxes 6,397.39 As per AS 18 “Related Party Disclosures”, notified under section 133 of the Companies
Extra-ordinary Profit/ - Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014, the
Our approach to value creation (Loss) Bank’s related parties for the year ended March 31, 2020 are disclosed below:
Net Profit 17,092.66
31 Our strategy Individuals having significant influence:
Other Information:
36 Risk management
Segment assets 1,302,564.99 1,979,830.69 486,554.09 2,939.84 3,771,889.61 • Mr. Ravneet Gill, Managing Director & CEO (till March 05, 2020)
Our ESG focus Unallocated assets 36,706.48
• Mr. Prashant Kumar, Administrator - Appointed by the Reserve Bank of India, (from
43 Environment Total assets 3,808,596.10
54 Social Segment liabilities 1,081,751.87 1,411,265.34 947,394.05 2,112.79 3,442,524.05
69 People Unallocated liabilities 366,072.04 • Mr. Prashant Kumar, Managing Director & CEO (from March 26, 2020)
80 Governance Total liabilities 3,808,596.10
Investing Company
Statutory Reports Other banking operations includes income from bancassurance business `868.16 Investing party - State Bank of India Limited (SBI)
106 Directors’ report Key Management Personnel (‘KMP’) (Whole time Director)
146 Report on corporate governance Notes for segment reporting: • Mr. Ravneet Gill, Managing Director & CEO (till March 05, 2020)
187 Annual business responsibility report 1. The business of the Bank is concentrated largely in India. Accordingly,
• Mr. Prashant Kumar, Administrator - Appointed by the Reserve Bank of India, (from
Financial Statements geographical segment results have not been reported in accordance with AS-17
198 Standalone Financials (Segment Reporting).
267 Consolidated Financials • Mr. Prashant Kumar, Managing Director & CEO (from March 26, 2020)
2. In computing the above information, certain estimates and assumptions have
been made by the Management and have been relied upon by the auditors.
304
Schedules
The following represents the significant transactions between the Group and such related parties including relatives of above mentioned KMP during the year ended
Contents March 31, 2020:
Corporate Overview
(` in million)
Enterprise where
A redefined YES Whole time Relatives of whole
relative of whole
02 Key highlights FY 2019-20 Items / Related Party Maximum Balance directors / Maximum Balance time directors / Maximum Balance
Investing Party time director
Category during the year individual having during the year individual having during the year
03 YES BANK at a glance having significant
05 Products and services influence
06 Geographical presence Deposits # # - 12.65
07 Message from the Chairman Investment # #
10 Message from the Managing Director Interest received #
and CEO Interest paid # 0.31
12 Key performance indicators Receivable #
15 COVID-19 response Payable #
17 Customer focus Funded/Non #
Funded Exposure taken
25 Retail
# As per RBI Circular, where there is only one entity in any category of related party, disclosure pertaining to that related party other than the relationship with that related party
29 Value creation model 1 As per Accounting Standard 18 - Related Party Disclosure, State Bank of India Limited (SBI) is an investing company for YES Bank Limited and YES BANK is associate of SBI
31 Our strategy
36 Risk management
charitable trust which undertakes social charitable activities. YES Foundation does not qualify as Related Party, as defined under the Accounting Standard 18 - Related Party
Our ESG focus Disclosure and RBI guidelines.
43 Environment
The following represents the significant transactions between the Bank and such related parties including relatives of above mentioned KMP during the year ended March 31, 2019:
54 Social
69 People (` in million)
80 Governance
Relatives of whole Enterprise where
Whole time directors
Items / Related Party Maximum Balance time directors / Maximum Balance relative of whole
Statutory Reports / individual having
Category during the year individual having during the year time director having
84 Management discussion and analysis significant influence
146 Report on corporate governance Deposits 3.06* 15.62
187 Annual business responsibility report Interest paid 0.52
Receiving of services 5.46
Financial Statements Dividend paid 270.00
267 Consolidated Financials * Represents outstanding as of March 31, 2019
305
Schedules
During the year ended March 31, 2019, the Bank has contributed `537.86 million The computation of earnings per share is given below:
Contents (previous year `452.13 million) to YES Foundation. YES Foundation is an independent
Corporate Overview public charitable trust which undertakes social charitable activities. YES Foundation
(` in million)
01 Commitment. Promise. Transparency. Year ended Year ended
does not qualify as Related Party, as defined under the Accounting Standard 18 - Particulars
Related Party Disclosure and RBI guidelines.
Basic (annualised)
03 YES BANK at a glance 18.12 Operating Leases Weighted average no. of equity shares outstanding 2,928,382,648 2,309,296,728
05 Products and services Net profit / (loss) (`) (164,325.80) 17,092.66
Lease payments recognized in the profit and loss account for the year ended March
31, 2020 was `3,940.53 million (Previous year: `3,651.58 million). During the year Basic earnings per share (`) (56.11) 7.40
ended March 31, 2020, the Group had paid minimum lease payment `3,819.65 million Diluted (annualised)
(Previous year: `3,661.08 million). Weighted average no. of equity shares outstanding 2,928,411,435 2,331,418,688
and CEO
12 Key performance indicators Net profit / (loss) (`) (164,325.80) 17,092.66
The following table sets forth, for the period indicated, the details of future rentals Diluted earnings per share (`) (56.11) 7.33
payment on operating leases: Nominal value per share (`) 2 2
17 Customer focus
21 Technology and digital innovation (` in million)
The difference between weighted average number of equity shares outstanding
25 Retail As at As at
Lease obligations between basic and diluted in the above mentioned disclosure is on account of
March 31, 2020 March 31, 2019
Our approach to value creation outstanding ESOPs.
Not later than one year 3,370.46 3,501.92
Later than one year and not later than five years 10,123.52 9,817.78 Basic earnings per equity share has been computed by dividing net profit for the year
31 Our strategy
Later than five years 13,749.82 12,418.84 attributable to the equity shareholders by the weighted average number of equity
36 Risk management
TOTAL 27,243.80 25,738.54 shares outstanding for the year. Diluted earnings per equity share has been computed
Our ESG focus by dividing the net profit for the year attributable to the equity shareholders by the
43 Environment The Group does not have any provisions relating to contingent rent. weighted average number of equity shares and dilutive potential equity shares options
54 Social outstanding during the year, except where the results are anti-dilutive. The dilutive
The terms of renewal/purchase options and escalation clauses are those normally
69 People impact is on account of stock options granted to employees by the Bank. There is no
prevalent in similar agreements. There are no undue restrictions or onerous clauses
80 Governance impact of dilution on the profits in the current year and previous year.
in the agreements.
Statutory Reports 18.14 ESOP disclosures
18.13 Earnings Per Share (‘EPS’)
106 Directors’ report The Group reports basic and diluted earnings per equity share in accordance with Statutory Disclosures Regarding Joining Stock Option Scheme:
146 Report on corporate governance Accounting Standard (AS) 20, “Earnings Per Share”. The dilutive impact is mainly due The Group has Five Employee Stock Option Schemes viz.
187 Annual business responsibility report to stock options granted to employees by the Bank.
• Joining Employee Stock Option Plan II (JESOP II),
• Joining Employee Stock Option Plan III (JESOP III),
306
Schedules
• YBL ESOP (consisting of two sub schemes JESOP IV/PESOP I) JESOP/PESOP ESOP Scheme Exercise period
Contents PESOP PESOP I 25% after each year from the Grant date
Corporate Overview • YBL JESOP V/PESOP II (Consisting of three sub schemes JESOP V/ PESOP II/
PESOP II 30%, 30% & 40% after each year from the Grant date
01 Commitment. Promise. Transparency. PESOP II -2010).
PESOP II – 30%, 30% & 40% each year, from end of 3rd year from the
A redefined YES
• YBL Employee Stock Option Scheme, 2018 (YBL ESOS 2018) [Consisting of YBL Joining 2010 Grant date
03 YES BANK at a glance Employee Stock Option Plan, 2018 (JESOP 2018); YBL Performance Employee Stock JESOP 2018 50% after 3 years and balance after 5 years from the Grant date
05 Products and services Option Plan, 2018 (PESOP 2018); and YBL MD&CEO (New) Stock Option Plan, 2019 PESOP 2018 30%, 30% & 40% each year, from end of 3rd year from the
06 Geographical presence (MD&CEO Plan 2019)] Grant date
07 Message from the Chairman PESOP 2019 30%, 30% & 40% each year, from end of 3rd year from the
Effective from June 13, 2018, all new options have been granted under the YBL ESOS
10 Message from the Managing Director Grant date
2018 (which inter-alia consists of JESOP 2018, PESOP 2018 and MD & CEO Plan 2019).
and CEO
The YBL ESOS 2018 and plans formulated thereunder are in compliance with the SEBI Options under all the aforesaid plans are granted for a term of 10 years (inclusive
(Share Based Employees Benefits) Regulations, 2014 as amended from time to time. of the vesting period) and are settled with equity shares being allotted to the
17 Customer focus Source of shares are primary in nature, since the Bank has been issuing new equity beneficiary upon exercise.
21 Technology and digital innovation shares upon exercise of options
A summary of the status of the group’s stock option plans as on March 31, 2020 and
25 Retail JESOP II and JESOP III were in force for employees joining the Bank up to March 31, March 31, 2019 is set out below:
Our approach to value creation 2006 and March 31, 2007 respectively. Grants under PESOP II had been discontinued
As at March 31, 2020 As at March 31, 2019
29 Value creation model w.e.f. January 20, 2010. Grants under JESOP IV/PESOP I and JESOP V/ PESOP II -2010
PESOP JESOP PESOP JESOP
31 Our strategy had been discontinued w.e.f. June 12, 2018 pursuant to coming into effect of YBL ESOS
Options outstanding at the beginning 35,019,115 18,254,826 46,257,335 15,963,100
36 Risk management 2018. However, any options already granted under the abovementioned plans would
of the year
be valid in accordance with the terms & conditions mentioned in the plans
Our ESG focus Granted during the year 18,032,000 2,025,000 365,000 5,940,000
43 Environment In accordance with the various Employee Stock Option Plans/ Schemes of the Bank Exercised during the year 4,037,675 346,499 9,265,020 2,800,774
54 Social as mentioned above, the Employees can exercise the options granted to them Forfeited / lapsed during the year 12,316,650 5,419,275 2,338,200 847,500
69 People from time to time: Options outstanding at the end of the 36,696,790 14,514,052 35,019,115 18,254,826
80 Governance year
JESOP/PESOP ESOP Scheme Exercise period
Statutory Reports Options exercisable 16,388,915 6,650,302 18,701,265 3,901,451
JESOP JESOP II 50% after 3 years and balance after 5 years from the Grant date
84 Management discussion and analysis Weighted average exercise price (`) 63.56 80.52 70.84 106.08
JESOP III 50% after 3 years and balance after 5 years from the Grant date
106 Directors’ report Weighted average remaining contractual 2.39 1.77 1.50 1.86
JESOP IV 50% after 3 years and balance after 5 years from the Grant date
146 Report on corporate governance life of outstanding option (yrs)
JESOP V 50% after 3 years and balance after 5 years from the Grant date
187 Annual business responsibility report MD&CEO 20%, 30% & 50% each year, from end of 1st year from the Grant
Financial Statements Plan 2019 date
307
Schedules
The group has charged Nil amount, being the intrinsic value of the stock options granted The components that give rise to the deferred tax asset included in the balance sheet
Contents for the year ended March 31, 2020 and March 31, 2019. Had the Bank adopted the are as follows:
Corporate Overview Fair Value method (based on Black- Scholes pricing model), for pricing and accounting (` in million)
of options, net profit after tax would have been lower by `505.40 million (Previous As at As at
A redefined YES Particulars
year: `375.18 million), the basic earnings per share would have been `(56.29) (Previous March 31, 2020 March 31, 2019
03 YES BANK at a glance year: `7.24) per share instead of `(56.11) (Previous year: `7.40) per share; and diluted Deferred tax asset
05 Products and services earnings per share would have been `(56.29) (Previous year: `7.17) per share instead Depreciation 585.78 597.38
06 Geographical presence of `(56.11) (Previous year: `7.33) per share. Provision for gratuity and unutilized leave 322.73 395.53
07 Message from the Chairman Provision for Non Performing Assets 60,164.53 9,779.42
The following assumptions have been made for computation of the fair value of ESOP
10 Message from the Managing Director Amortization of premium on HTM securities 132.39 1,035.72
granted for the year ended March 31, 2020 and March 31, 2019.
and CEO Provision for standard advances 3,123.15 11,119.17
12 Key performance indicators For the year ended For the year ended Other Provisions 18,481.38 2,447.48
15 COVID-19 response March 31, 2020 March 31, 2019 Deferred tax asset 82,809.96 25,374.70
17 Customer focus Risk free interest rate 6.29% - 9.23% 6.29% - 9.23%
21 Technology and digital innovation Expected life 1.5 yrs - 7.5 yrs 1.5 yrs - 7.5 yrs The Group has a total deferred tax asset of `82,809.96 million as at March 31, 2020.
25 Retail Expected volatility 25.01% - 48.72% 25.01% - 48.72% During the year ended March 31, 2020, the Bank has made loss of `164,180.31 million,
Expected dividends 1.10% 1.20% however it had taxable profit in the year ended March 31, 2020. Based on financial
projections approved by the Board, the Bank is expected to have sufficient future
In computing the above information, certain estimates and assumptions have been taxable income to utilise the said deferred tax assets. The Bank as a result continues
31 Our strategy
made by the Management. to carry such deferred tax asset in its Balance Sheet, as there is reasonable certainty of
36 Risk management
its realization as specified in Accounting Standard 22 (Accounting for Taxes on Income).
Our ESG focus 18.15 Deferred Taxation
43 Environment The deferred tax asset of `82,809.96 million as at March 31, 2020 and `25,374.71 During the quarter ended September 30, 2019, the Bank had elected to exercise the
54 Social million as at March 31, 2019, is included under other assets and the corresponding option permitted under section 115BAA of the Income Tax Act, 1961 as introduced
69 People credits have been taken to the profit and loss account. by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Bank had
80 Governance recognised Provision for Income Tax and re-measured its deferred tax assets basis
the rate prescribed in the aforesaid section and recognized the effect of this change
Statutory Reports by revising the annual effective income tax rate. The rate of income tax is changed
from 34.944% to 25.168%. The re-measurement of accumulated deferred tax asset
had resulted in a one-time additional charge of `7,086.10 million.
308
Schedules
18.16 Provisions and Contingencies 18.19 Disclosure on Complaints-

Contents
The breakup of provisions of the Group for the year ended March 31, 2020 and March The Bank became aware in September 2018 through communications from stock
Corporate Overview
31, 2019 are given below: exchanges of anonymous whistleblower complaints alleging irregularities in the Bank’s
A redefined YES operations, potential conflict of interest of the founder and former MD & CEO and
(` in million)
02 Key highlights FY 2019-20 allegations of incorrect NPA classification. The Bank conducted an internal enquiry
03 YES BANK at a glance Particulars of these allegations, which was carried out by management and supervised by the
March 31, 2020 March 31, 2019
05 Products and services Board of Directors. The enquiry resulted in a report that was reviewed by the Board
Provision for taxation (44,056.13) 6,397.39
06 Geographical presence in November 2018. Based on further inputs and deliberations in December 2018, the
Provision for investments 64,415.77 6,824.89
07 Message from the Chairman Audit Committee of the Bank engaged an external firm to independently examine the
10 Message from the Managing Director Provision for standard advances (19,410.78) 22,514.06
matter. In April 2019, the Bank had received the phase 1 report from the external firm
and CEO Provision made/write off for non performing advances 278,060.36 25,669.54
and based on further review/ deliberations had directed a phase 2 investigation from
12 Key performance indicators Others Provisions* 4,115.69 2,768.12
the said firm. Further, during the quarter ended December 31, 2019, the Bank received
15 COVID-19 response TOTAL 283,124.91 64,172.99
forensic reports on certain borrower groups commissioned by other consortium
17 Customer focus
* Other Provisions includes provision made against other assets. bankers, which give more information regarding the above mentioned allegations. The
Bank at the direction of its Nomination and Remuneration Committee (NRC) obtained
25 Retail 18.17 Dues to Micro and Small Enterprises
an independent legal opinion with respect to these matters. In February 2020, the Bank
Our approach to value creation Under the Micro, Small and Medium Enterprises Development Act, 2006 which came has received the final phase 2 report from the said external firm. Meanwhile, in March
29 Value creation model into force from October 2, 2006, certain disclosures are required to be made relating to 2020, the Enforcement Directorate has launched an investigation into some aspects
31 Our strategy Micro, Small and Medium enterprises. There have been `655.70 million (previous year of transactions of the founder and former MD & CEO and alleged links with certain
36 Risk management `437.40 million) worth bills which were paid with delays to micro and small enterprises. borrower groups. The ED is investigating allegations of money laundering, fraud and
There have been `19.72 million worth bills remained unpaid as at March 31, 2020. nexus between the founder and former MD & CEO and certain loan transactions. The
Our ESG focus
There have been no demand of interest on these payments. The above is based on Bank is in the process of evaluating all of the above reports and concluding if any of
43 Environment
the information available with the Bank which has been relied upon by the auditors. the findings have a material impact on financial statements/ processes and require
54 Social
69 People 18.18 Provision for Long Term contracts further investigation. The Bank has taken this report with the newly constituted Audit
80 Governance Committee and Board and is awaiting further guidance and recommendation.
The Bank has a process whereby periodically all long term contracts (including
Statutory Reports derivative contracts) are assessed for material foreseeable losses. At the year end, During the year ended March 31, 2020, the Bank had received various whistleblower
84 Management discussion and analysis the Bank has reviewed and recorded adequate provision as required under any law complaints against the Banks management, former MD & CEO and certain members of
106 Directors’ report / accounting standards for material foreseeable losses on such long term contracts the Board of Directors prior to being superseded by RBI. The NRC, basis investigations
146 Report on corporate governance (including derivative contracts) in the books of account and disclosed the same under conducted by the management has, post its review, concluded that they have no
187 Annual business responsibility report the relevant notes in the financial statements. material impact on financial statements.
309
Schedules
In January 2020, the then Chairman of the Audit Committee of the Bank highlighted 18.20.2 Corporate Social Responsibility (CSR)
Contents certain concerns around corporate governance and other operational matters a) Amount required to be spent by the Bank on CSR during the year `831.9 million
Corporate Overview at the Bank. The then Board decided to get this investigated by an independent
(previous year `955.8 million).
external firm. A preliminary report has been received by the Board. While most of
A redefined YES b) Amount spent towards CSR during the year and recognised as expense in the
the allegations are unsubstantiated, the Board has requested the external firm for
detailed recommendations highlighting areas where corporate governance can be Profit and Loss account on CSR related activities is `405.42 million (previous year
further strengthened. `537.86 million), which comprise of following –
06 Geographical presence 18.20 Additional disclosure (` in million)
07 Message from the Chairman March 31, 2020 March 31, 2019
Additional statutory information disclosed in the separate financial statements of the
10 Message from the Managing Director Amt unpaid Amt unpaid
and CEO Bank and subsidiaries having no material bearing on the true and fair view of the In cash Total In cash Total
/ provision / provision
12 Key performance indicators consolidated financial statements and the information pertaining to the items which
i. Construction/ - - - - - -
15 COVID-19 response are not material have not been disclosed in the consolidated financial statement.
acquisition of any
17 Customer focus asset
18.20.1 Credit / Debit card reward points
Provision for credit card and debit card reward points for the year ended March 31, 2020 ii. On purposes other 211.12 194.30 405.42 470.78 67.08 537.86
25 Retail than (i) above
Our approach to value creation (` in million)
For the year ended
18.20.3 Un-hedged / uncovered foreign currency exposure of the Group
29 Value creation model Particulars
For the year ended
31 Our strategy March 31, 2020 March 31, 2019 The Group’s foreign currency exposures as at March 31, 2020 that are not hedged/
36 Risk management Opening provision 233.67 112.12 covered by either derivative instruments or otherwise are within the Net Overnight
Provision made during the year 166.98 180.73 Open Position limit (NOOP) and the Aggregate Gap limit, as approved by the RBI.
Our ESG focus
Utilised/Write-back of provision (57.79) (59.18) NOOP is `5,561.32 million as at March 31, 2020 (March 31, 2019 `2,206.32 million).
43 Environment
Closing provision 342.86 233.67
54 Social 18.20.4 Investor Education and Protection Fund
69 People The valuation of credit card and debit card reward points is based on actuarial The unclaimed dividend amount due to be transferred to the Investor Education and
80 Governance valuation method obtained from an independent actuary. Protection Fund (IEPF) during the year ended March 31, 2020 has been transferred
Statutory Reports without any delay.
310
Schedules
18.21 Description of contingent liabilities

Contents
Sr.
Corporate Overview Sr. Contingent Liabilities Brief
Contingent Liabilities Brief No.
No.
A redefined YES 1. Claims against the Bank The Bank is a party to various legal and tax proceedings in 3. Guarantees given on As a part of its commercial banking activities the Bank
not acknowledged as the normal course of business. The Bank does not expect behalf of constituents, issues documentary credit and guarantees on behalf of its
debts the outcome of these proceedings to have a material acceptances, endorsements customers. Documentary credits such as letters of credit
adverse effect on the Bank’s financial conditions, results of and other obligations enhance the credit standing of the customers of the Bank.
05 Products and services Guarantees generally represent irrevocable assurances that
operations or cash flows.
06 Geographical presence the Bank will make payments in the event of the customer
07 Message from the Chairman 2. Liability on account of The Bank enters into foreign exchange contracts, currency failing to fulfill its financial or performance obligations.
10 Message from the Managing Director forward exchange and options, forward rate agreements, currency swaps and
and CEO derivative contracts. interest rate swaps with interbank participants and 4. Other items for which the Purchase of securities pending settlement, capital
12 Key performance indicators customers. Forward exchange contracts are commitments to Bank is contingently liable commitments, amount deposited with RBI under Depositor
buy or sell foreign currency at a future date at the contracted Education Awareness Fund (DEAF), bill re-discounting,
rate. Currency swaps are commitments to exchange cash Foreign Exchange Contracts (Tom & Spot)
17 Customer focus
flows by way of interest/principal in one currency against
21 Technology and digital innovation 5 PF Liability In February 2019, the honorable Supreme Court of India in
another, based on predetermined rates. Interest rate swaps
25 Retail its judgment clarified that certain special allowances should
are commitments to exchange fixed and floating interest rate
be considered to measure obligations under Employees'
Our approach to value creation cash flows. The notional amounts of financial instruments
Provident Funds and Miscellaneous Provisions Act, 1952
of such foreign exchange contracts and derivatives provide
29 Value creation model (the PF Act). The Bank has been legally advised that there
a basis for comparison with instruments recognized on the
31 Our strategy are interpretative challenges on the application of judgment
balance sheet but do not necessarily indicate the amounts
36 Risk management retrospectively and as such does not consider there is any
of future cash flows involved or the current fair value of
probable obligations for past periods. Due to imperative
Our ESG focus the instruments and, therefore, do not indicate the Bank’s
challenges, the Bank has not disclosed contingent liability
exposure to credit or price risks. The derivative instruments
43 Environment amount for past liability.
become favorable (assets) or unfavorable (liabilities) as a
54 Social
result of fluctuations in market rates or prices relative to Refer Schedule 12 for amounts relating to contingent liability
69 People their terms. The aggregate contractual or notional amount
80 Governance of derivative financial instruments on hand, the extent to
which instruments are favorable or unfavorable and, thus
Statutory Reports
the aggregate fair values of derivative financial assets and
liabilities can fluctuate significantly.
311
Schedules
Prior period comparatives

Contents
Corporate Overview Previous year’s figures have been regrouped where necessary to conform to current year classification.
A redefined YES
02 Key highlights FY 2019-20 For B S R & Co. LLP For and on behalf of the Board of Directors
03 YES BANK at a glance Chartered Accountants YES BANK Limited
05 Products and services Firm’s Registration No: 101248W/W-100022
07 Message from the Chairman Venkataramanan Vishwanath Prashant Kumar Sunil Mehta Atul Bheda
10 Message from the Managing Director Partner Managing Director & CEO Chairman Director
and CEO Membership No: 113156 (DIN: 07562475) (DIN: 00065343) (DIN: 03502424)
12 Key performance indicators Partha Pratim Sengupta Anurag Adlakha Shivanand R. Shettigar
15 COVID-19 response Director Group Chief Financial Officer Group Company Secretary
17 Customer focus (DIN: 08273324)
21 Technology and digital innovation Mumbai
25 Retail May 6, 2020
31 Our strategy
36 Risk management
Our ESG focus

43 Environment
54 Social
69 People
80 Governance
Statutory Reports
312
FORM AOC -1
Annual Repor t 2019 -20 Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014.
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures.
Contents
Corporate Overview Part “A”: Subsidiaries
(Amount in ` ‘000)
A redefined YES
Sl. No.
03 YES BANK at a glance Name of the subsidiary YES Securities YES Asset YES Trustee
(India) Limited Management Limited
(India) Limited
07 Message from the Chairman 1 Reporting period for the subsidiary concerned, if different from the holding company’s reporting period NA NA NA
2 Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries NA NA NA
and CEO 3 Share capital 8,00,000 8,95,000 5,000
4 Reserves & surplus 3,68,113 (3,92,174) (2,574)
5 Total assets 22,85,733 5,36,872 2,717
6 Total Liabilities 11,17,620 34,046 290
17 Customer focus
7 Investments - 4,54,972 -
21 Technology and digital innovation 8 Turnover 10,08,310 3,322 566
25 Retail 9 Profit / (Loss) before taxation (3,39,833) (1,85,385) (819)
10 Provision for taxation 22,758 - -
11 Profit / (Loss) after taxation (3,62,591) (1,85,385) (819)
12 Proposed Dividend - - -
31 Our strategy 13 % of shareholding 100% 100% 100%
36 Risk management
1. Names of subsidiaries which are yet to commence operations- Nil
Our ESG focus 2. Names of subsidiaries which have been liquidated or sold during the year- Nil
43 Environment
54 Social Part “B”: Asscociates and Joint Ventures
69 People Statement pursuant to section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
80 Governance
Not Applicable
Statutory Reports
106
146
Directors’ report
Report on corporate governance
DISCLOSURES UNDER BASEL III CAPITAL REGULATIONS – PILLAR III
187 Annual business responsibility report In accordance with RBI circular DBR.No.BP.BC.1/21.06.201/2015-16 dated July 1, 2015 on ‘Basel III Capital Regulations’ read together with RBI circular DBR.No.BP.
BC.80/21.06.201/2014-15 dated March 31, 2015 on ‘Prudential Guidelines on Capital Adequacy and Liquidity Standards - Amendments’ requires banks to make applicable Pillar
3 disclosures including leverage ratio and liquidity coverage ratio on a consolidated basis under Basel III Framework. The Pillar III disclosures have not been subjected to review
or audit by the statutory auditors. The Bank has made these disclosures which are available on its website at the following link.
https://www.yesbank.in/pdf/basel_iii_disclosure_mar_31_2020.pdf
313
Notes
Notes
Notes
Cyber Security Best Bond Adviser (India) & Best Trade Finance Bank (India)
Bank of the Year in India Best Green Bond (India)
The Banker’s Tech Projects The Asian Banker Transaction
The Banker Awards 2019 Awards 2019 The Asset Triple A Country Awards 2019
Awards 2019
Best Corporate Trade Finance Deal Best Deal South Asia (India) - Transport
Deal of the Year, Utility Deal of the Year Best Bank in India for SMEs Innovators in Trade Finance &
(India) & Best Financial Supply 25 Best Financial Innovation Labs
Chain Management (India) & Renewable Energy Deal of the Year – Asiamoney Country
Solar (Highly Commended) (YES FINTECH)
Awards, 2019
The Asian Banker Bankers The Innovators 2019
Choice Awards 2019 The Asset Triple A Asia
Infrastructure Awards 2019
Domestic Cash Management Bank of

the Year, Domestic Trade Finance Bank Best Project in the Health and Safe Drinking Water
MSME Bank of the Year of the Year & India Domestic Project Sanitation – Platinum Award
ABF Retail Banking Finance Bank of the Year (India)
The CSR Journal Excellence The Apex India Excellence
Awards 2019 ABF Wholesale Banking Award Award 2019
Awards 2019
Best Public Health/ Safety (Silver)

& Environmental Behavior Change Rating upgraded from ‘C’
Constituent of the FTSE4Good Approved as “Accredited Entity (Awareness Band) to ‘A-’
(Bronze) Emerging Index (Leadership Band)
The ACEF Asian Leaders Green Climate Fund (GCF)
FTSE Russell CDP
Awards for Excellence in CSR
YES BANK LIMITED
Regd. & Corporate Office
YES BANK Tower
ONE International Center, W: www.yesbank.in
15th Floor,
T: +91 (22) 3366 9000
Senapati Bapat Marg,
Elphinstone (W), F: +91 (22) 2421 4500
Mumbai 400 013, India CIN: L65190MH2003PLC143249

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co mmi tme n t

YES BANK LIMITED | ANNUAL REPORT 2019-20

Icons used in the report About this report

Our approach to value creation Commitment

Our approach to value creation

Our ESG focus

Redesigned to deliver quality banking

Contents Backed by marquee financial institutions Capital adequacy post reconstruction

Our ESG focus CET 1 AT 1 Tier - II

56% 8% 13% 24%

Tailored to suit evolving customer needs

Our ESG focus

Optimising reach with omnichannel delivery

Our ESG focus

Statutory Reports ~85% 850+

*Includes CRMs and BNA as on March 31, 2020.

Navigating change with conviction

Revisiting purpose, promise and potential

A new baseline for future growth

29 Value creation model

Our ESG focus Deposits (B in crore) CASA Ratio (%)

29 Value creation model

Statutory Reports FY 2020 8.5 FY 2020 6,805 FY 2020 3,441

29 Value creation model

43 Environment Average Assets Share

Statutory Reports FY 2020 (5.1) FY 2020 (81.8) FY 2020 (56.1)

Adapting to the new normal

Contents Key interventions by YES BANK 3. For customers

Reinvigorating the YES experience

Our ESG focus

Statutory Reports Strengthened Business Continuity

Contents yy YES BANK consistently measures customer

Contents Service Excellence Deployment Model

Our ESG focus The Bank has pioneered the

Contents Digital payments

Our approach to value creation

Contents API banking leadership Enabling a ‘Digital India’

Our ESG focus

Driving retailisation to reshape future

Our ESG focus

Contents Enhancing MSME capabilities through

Our ESG focus Liability business through branches and

The value we create

1,423 812,744 3,010

Our ESG focus customised solutions

Repositioning to stay ahead

YES BANK LIMITED 31

Our ESG focus

Contents Key focus areas:

Monitoring and mitigating risks

Contents Types of risks and mitigation

Contents Highlights of Financial Performance

Contents Highlights of ESG performance

Conserving the natural environment

Contents Positive Impact Finance

Our approach to value creation

Contents Reduce, Reuse and Recycle Managing E-Waste Climate Disclosure

267 Consolidated Financials Scope 3 Emissions ###

Our approach to value creation

3. Governance related to BR Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /