Gautam Budh Nagar, UP, 201314

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practical application of various tools and techniques learned in the course in the Indian private banking ... Detailed analysis of the Indian banking industry, firm internal ..... (late) and Mr. Rana Kapoor in 2004 headquartered in LPID of Mumbai. .... Human Capital: To develop YES BANK brand as an 'Employer of Choice'.
Report On YES Bank

By Dipak Kumar Singh (1410120010) Aravind Mahendran (1410120008)

Gautam Budh Nagar, U.P., 201314

Preface This report named “YES bank” is prepared and presented for academic purpose as a part of Blue Ocean strategy course which is a part of curriculum for 2nd year MBA students at SME, SNU. It would help us to understand the concepts learned in the Blue Ocean Strategy course and practical application of various tools and techniques learned in the course in the Indian private banking industry and YES bank.

Executive Summary This report highlights about the blue ocean strategic decisions to be taken by 5th largest private bank YES bank to out beat the intense competition in the banking industry by creating new markets for banking services. Detailed analysis of the Indian banking industry, firm internal analysis and competitive analysis on the 4P’s of marketing, financial performance, Human capital specialization and Digital banking aspects of 4 private players. From the red ocean study, we propose the organization to take a confident move for creating blue market. Blue Ocean strategic analysis helps YES bank to realign its Value, Profit and People propositions. This report covers a detailed analysis of various blue ocean strategic frameworks like 6 paths framework, ERRC grid, Strategy canvas, 3 tiers of non-customers, PMS map, Buyer Utility Map, Tipping point leadership and HR decision. Report highlights the blue ocean product and service recommendations for YES bank. This report helps YES bank to break away from the bloody market to unlock blue ocean potentials.

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1 Contents 2

3

4

Introduction .......................................................................................................................................... 5 2.1

Objective of study ......................................................................................................................... 5

2.2

Assumptions and limitations......................................................................................................... 5

Company profile.................................................................................................................................... 5 3.1

Mission .......................................................................................................................................... 6

3.2

Vision............................................................................................................................................. 6

3.3

Values ............................................................................................................................................ 6

Strategic Analysis .................................................................................................................................. 6 4.1

4.1.1

PESTLEI Analysis .................................................................................................................... 6

4.1.2

Porter Five Forces analysis .................................................................................................... 7

4.1.3

Market Concentration Ratio ................................................................................................. 7

4.2

Internal analysis ............................................................................................................................ 7

4.2.1

TWOS Strategic Alternatives Matrix ..................................................................................... 7

4.2.2

Partnerships .......................................................................................................................... 7

4.3

Competitor analysis ...................................................................................................................... 8

4.3.1

Product Offerings .................................................................................................................. 8

4.3.2

Place of offerings .................................................................................................................. 8

4.3.3

Promotion ............................................................................................................................. 8

4.3.4

Financial Highlights ............................................................................................................... 8

4.3.5

Digital offerings ..................................................................................................................... 8

4.3.6

Human Capital....................................................................................................................... 9

4.4 5

Industry Analysis ........................................................................................................................... 6

“AS IS” Strategy Canvas................................................................................................................. 9

Blue Ocean analysis............................................................................................................................... 9 5.1

Value Propositions ...................................................................................................................... 10

5.1.1

Six Paths Framework ........................................................................................................... 10

5.1.2

ERRC grid ............................................................................................................................. 12

5.1.3

“TO BE” Strategy Canvas ..................................................................................................... 12

5.2

Profit Proposition ........................................................................................................................ 12

5.2.1

Three tiers of non-customers.............................................................................................. 12

5.2.2

Buyer Utility Map ................................................................................................................ 13 3

5.2.3

Future Banking Reports ...................................................................................................... 14

5.2.4

PMS Map ............................................................................................................................. 15

5.3

6

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People Proposition ...................................................................................................................... 16

5.3.1

Reskilling ............................................................................................................................. 16

5.3.2

Talent Induction .................................................................................................................. 16

5.3.3

Performance Plan................................................................................................................ 16

Recommendation................................................................................................................................ 17 6.1

Product strategy.......................................................................................................................... 17

6.2

Service strategy ........................................................................................................................... 17

6.3

Delivery Strategy ......................................................................................................................... 18

References .......................................................................................................................................... 18

8 .................................................................................................................................................................. 18 9

Exhibits ................................................................................................................................................ 19

List of Figures Figure 1: PESTLI analysis ............................................................................................................................... 7 Figure 2 HHI Index, CR4, CR8 and Gini coefficient ........................................................................................ 7 Figure 3: “AS IS” Strategy Canvas.................................................................................................................. 9 Figure 4 Red Ocean vs Blue Ocean Mind .................................................................................................... 10 Figure 5 Six Paths Framework ..................................................................................................................... 11 Figure 6 ERRC Grid ...................................................................................................................................... 12 Figure 7 “TO BE” Strategy canvas ............................................................................................................... 12 Figure 8 3 tiers of non-customer ................................................................................................................ 13 Figure 9 Buyer Utility Map .......................................................................................................................... 14 Figure 10 Customer Pain Point- Survey ...................................................................................................... 14 Figure 11 Usage of Bank Channel and Transaction profile of customer 2020 ............................................ 15 Figure 12 PMS Map ..................................................................................................................................... 15 Figure 13 Reskilling Indian Bank Industry ................................................................................................... 16 Figure 14 Talent Induction Plan .................................................................................................................. 16 Figure 15 Performance Plan ........................................................................................................................ 17

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2 Introduction The Indian Banking industry is governed by “Banking Regulation Act of India, 1949” and tightly regulated by the apex body Reserve bank of India [1]. Indian Banking industry faced many challenges in the past decade, rules and regulations are developed to prevent all possible bank failures. After 2008 world financial crisis, RBI insisted Indian banks to focus on adopting an integrated approach to risk management [2]. Indian Banks had already implemented Basel II supervision accord. RBI has set the deadline for Basel III on or before March 31, 2019 [3]. Most of the banks are working on framework to meet capital requirements, asset-liability match, credit and derivatives risk management. As a result, banking industry is very closely monitored and banks need to follow stringent rules set by RBI.

2.1 Objective of study In the tight banking industry, we had selected YES Bank from private sector for our study on developing blue ocean strategy. This study helps us to implement the blue ocean strategy frameworks and develop recommendations to turnaround the competitive market and unlock the future potentials of industry.

2.2 Assumptions and limitations Report is developed based on data available in the public domain and referenced to articles published in standard newspapers, business journals, government agencies. Unless mentioned separately, Bank related details are taken from annual reports, investor presentations and corporate website and not referenced to have a good look of the report. We assume that data published in those various sources are accurate and used the same for analysis. If sufficient data is not available in secondary sources, we had made best assumptions based on comparable banks.

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Company profile

YES bank, India’s 5th largest private sector bank, founded by entrepreneurs Mr. Ashok Kapoor (late) and Mr. Rana Kapoor in 2004 headquartered in LPID of Mumbai. YES bank is only green field licensed bank in the last two decades in India and operate as a full service commercial bank with corporate, retail and SME banking franchise. YES bank has adopted international best practices, service quality and operational excellence to all its valued customers. YES bank was awarded lot of accolades by eminent professional bodies like Asian Bankers, Economic Times, Bajaj, etc. on various product categories [4]. “The reason behind naming the Bank ‘YES BANK’ was my firm belief that our Bank's differentiation begins with its service and trust mark 'YES’. ‘YES' represents our true spirit of becoming a high quality, customer centric, service driven, Indian Bank.” Rana Kapoor (CEO) [5]

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3.1 Mission YES CULTURE is committed to emerging as a patriotic promoter of Indian culture at both Domestic and International levels, with a focus on driving positive socio-economic change in our nation through the vibrant power of cultural unity, creativity and productivity. YES bank shot term mission of Version 2.0 launched in April 2010 aimed to achieve the following by March 2015 [6]:  Human Capital - 12,750 (Achieved 10,810 only)  Branch Network – 900 (Achieved 630 only)  Balance Sheet - 150,000 crore (Achieved 136,170 crore)

3.2 Vision YES CULTURE envisions creating a sustainable support ecosystem for the institutions and people of our great nation to propagate Cultural Development and preservation of our Rich Cultural Heritage and Traditions. YES bank short term vision is  To be recognized as the ‘Finest Quality Bank of the World in India’ by 2020  To evolve as the Professionals’ Bank of India

3.3 Values YES BANK strongly believes in its Values and strives to uphold them in order to further reinforce the spirit of Professional Entrepreneurship & Execution.        

Integrity: Strive to maintain the highest standards while dealing with all our stakeholders Pride: Take pride in YES BANK’s accomplishments Credibility: Ensure stakeholders’ faith in the Bank ensuring ethical and transparent actions Respect: Respect the stakeholders & create value through sustainable relationships Ownership: Take ownership in keeping its Vision & Values at the forefront of decision making Innovation: Set high standards of excellence by encouraging innovative ideas and solutions Agility & Speed: Agility & Speed of execution sets the pace for achieving its goals Professionalism: Develop and enable its Human Capital by evolving its Institutional Character

4 Strategic Analysis We had done Industry, Internal and competitor analysis.

4.1 Industry Analysis 4.1.1 PESTLEI Analysis We had analyzed the banking industry with a PESTLEI tool as shown in figure 1 and overall impact of PESTLE analysis on banking industry is very high and for the long term. 6

Political factors:  Government Policies & Loan Waiver  IT savings  RBI Control

Economic factors:  Priority sector focus  7th pay commission  GDP - 7.4%  CPI Inflation - 6%  Moody’s Positive rating

Socio cultural factors:  Privatization is accepted  Easier Transactions  Electronic purchase  Personalized  Entrepreneurship

Technological factors:  Credit facility  Anytime anywhere  Self-service counter  Computerized

Legal factors:  FDI restrictions  Companies Act  RBI Intervention  International Operations

Environmental factors: • Monsoon- Agri • Make In India • Service growth

Innovations  Payment Banks  Credit Ratings  IT Services  Mobile Banking

Figure 1: PESTLI analysis

4.1.2 Porter Five Forces analysis Using porter five forces analysis we had analyzed the airline industry and calculated the industry attractiveness index as 2.1, since the index score is low, this industry is not so attractive to remain in or new entrant to enter into this segment. Detailed industry analysis and reference website are presented in Exhibit 1. 4.1.3 Market Concentration Ratio We can broadly classify the banking structure into scheduled and unscheduled banks. As of Sep, 2015 there are 597 scheduled and 1539 unscheduled banks in India (Refer Exhibit 2). We calculated the Lorentz curve (Refer Exhibit 3), HHI index, Gini coefficient and Concentration ratio for private and publicly listed banks. We can infer from figure 2 that industry is moderately concentrated, highly competitive and high inequality exists among the banks. Parameters Market Capitalization Revenues Market Capitalization Revenues

Private Listed Banks in BSE HHI Index CR8 CR4 2005.9 96.9 82.4 1484.6 85.8 68.4 Public and Private Listed Banks in BSE 2005.9 96.9 82.4 1484.6 85.8 68.4

Gini Coefficient 0.726 0.572 0.726 0.572

Figure 2 HHI Index, CR4, CR8 and Gini coefficient

4.2 Internal analysis 4.2.1 TWOS Strategic Alternatives Matrix By understanding the firm strengths and weakness, and equating to external opportunities and threats, we had framed the TWOS matrix for YES bank. Alternative strategies at different conditions are broadly explained in Exhibit 4. 4.2.2 Partnerships In the past 5 years, YES bank had strategically partnered with service providers to gain complimentary skills and sustain the competition in the industry (Refer exhibit 5). They had 30 7

partnerships/alliances with credit card agencies, insurance companies, telecom providers, payment gateways, Point of Sale services, Risk management and security agencies, database providers, government agencies and various digital companies to provide phone, mobile, internet and ATM banking for their customers.

4.3 Competitor analysis Key success factors for banking industry are 4Ps (Product, Place, Promotion, Price/cost), Human capital and Digital services. On basis of 5 critical parameters like Market capitalization, Sales, Assets, Earning per share, Cash balances as in balance sheet of March 2015, we took 4 competitors from Private sector for our study (Refer exhibit 6). They are Axis, HDFC, IndusInd and Kotak Mahindra bank, let

us look into each factor one by one in following parts. 4.3.1 Product Offerings Indian Banking industry is highly competitive in nature and banks currently provide lots of offerings in various categories to reach all possible customer segments. Based on detailed study (Refer exhibit 7), YES bank is on par with other banks in personal and MSME banking. They respond satisfactory in NRI, Corporate, investment and agri banking. They have almost little presence in wholesale, treasury and payment banking. 4.3.2 Place of offerings Place (ways to bank), which bank offers to its customer is very critical for banking industry. Most popular ways to carry out bank transaction are Branch, ATM, Point of Sales (POS) counters, Debit/Credit cards and Mobile Application. All competitors had aggressively offered their presence in all channels. Based on detailed analysis on exhibit 8, we can see that YES bank is seriously lacking in all channels with comparable banks like IndusInd and Kotak Mahindra. We can also see that Digital banking is getting more attention with more than 60% of the total bank transaction. 4.3.3 Promotion Promotion helps the bank to build brand image, goodwill and loyalty customer. We performed detailed analysis on awareness building, Demand generation, product differentiation, brand reinforcement of the bank management (refer exhibit 9) [7]. We conclude that YES bank can be ranked satisfactory in the promoting the product. 4.3.4 Financial Highlights As a bank customer, if we look into the fees and charges section we will surely faint. Pricing structure is highly cumbersome and need expertise to understand the same. We look into the cost factor through various financial ratios and measures as detailed in exhibit 10. YES bank is exceeding the competitors with high EPS, book value, ROE, low CAR and NPA ratio. YES bank need to take measures to improve CASA, cost to income and net interest income. 4.3.5 Digital offerings Digitalization is an industry buzzword and organization around the globe have much scope in it. We analyzed the competitors actions towards going digital based on Market ready solutions, 8

Channel innovation, Analytics and Big data, process redesign and product development (refer exhibit 11). We can see that YES bank is way behind the competitors in all parameters. 4.3.6 Human Capital Next generation business is highly depends on Intellectual assets like human capital. We compared human capital based on number of employees, average age, income per employee, and profit per employee and split up of head count in managerial cadres. We can see that YES bank is able to generate higher profit with the least number of resources. Also resources split up is in line with their knowledge banking services. (Refer exhibit 12)

4.4 “AS IS” Strategy Canvas Based on the internal, external and competitive analysis, we developed the “AS IS” strategy canvas of all players as shown in figure 3. We considered flexibility, reach, accessibility, ways to bank, ease to use, customer friendly, design & layout friendliness, product offerings, technological advancement and customer satisfaction. We can see that YES bank canvas in running below the peers and trying to match up with industry standards.

AS IS STRATEGY CANVAS

CUSTOMER SATISFACTION

TECHNOLOGICAL ADVANCEMENT

Indusland Bank

SERVICES

Axis

PRODUCTS AND OFFERING

HDFC

DESIGN, LAYOUT AND USER FRIENDLINESS

Kotak

CUSTOMER FRIENDLY

WAYS TO BANK

REACH AND ACCESSIBILITY

FLEXIBILITY

Yes Bank

EASE OF USE

9 8 7 6 5 4 3 2 1 0

Figure 3: “AS IS” Strategy Canvas

5 Blue Ocean analysis As a result of red ocean strategic analysis, we may end up in a myth not doing better because of cost, no low ticket items, high margin services, no risky loans, customers are financially illiterate and local community support does not support for banking system. Blue ocean mind will think of possible solutions to overcome every myth mentioned in figure 4.

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Figure 4 Red Ocean vs Blue Ocean Mind

5.1 Value Propositions On relook into YES bank value proposition to its customers as a point of differentiators are: 1. Knowledge Banking: YES Bank’s commitment to support the sustainable growth and development of sunrise sectors like Infrastructure, Food & Agri, Telecom, IT, etc. 2. Human Capital: To develop YES BANK brand as an ‘Employer of Choice’. Currently runs 2 extensive programs: YES School of Banking & YES – Professional Entrepreneurship Program (Y-PEP). 3. Technology: The philosophy of the Bank has been to engage with select partner companies who are acknowledged leaders & differentiators in the marketplace. YES BANK has invested in several state-of-the-art technology initiatives and successfully implemented them. 4. Responsible Banking: Focus on nurturing People, Planet and Profit to create enduring value, and a unique strategic position. Committed to adding long term value to society, to differentiate itself in the marketplace based on a strong ‘sustainability mandate’. 5.1.1 Six Paths Framework To improve the value proposition, let us use six path framework to understand more about the product Path 1: Look across Alternative Industries One of the alternative industries to banking can be wireless telecom industry. Functions like checking balances, paying bills, moving money between accounts, and performing any routine 10

banking transaction is becoming easier and easier with wireless mobile phones and as the technology advances these would become even easier. Path 2: Look across Strategic Groups within Industry Consumers: People who use regular banking services, their own savings or salary accounts. Merchants & Retailers: Use banks for trading service, letter of credit, payment transfers, etc. Companies & Institutions: This group also uses the banking services for many purposes like collecting fees or revenue, payment to employees, filing taxes, etc. Investment Groups: Use banks services and instruments like mutual funds, SIP’s, Demat trading accounts, portfolio management etc. Path 3: Look across the Chain of Buyers Influencers: Experts, Agents, Family and Friends are the influencing group when people have to take financial decisions for example taking a loan or investing or financial planning., Purchasers: The owners of the bank, those who earn and deposit money in the bank accounts are the actual purchasers, Actual Users: The beneficiaries of the financial decisions made are the actual users. Those who get the benefit of the loans, these can be children, wives, parents, grandparents, etc. Path 4: Look across Complementary Product & Service Offering Bill Payments, Online Shopping, Funds Transfer, Trading, etc. Path 5: Look across Functional-Emotional Appeal to Buyers Banks these days focuses on a mix of both emotional and functional appeal like banking at your doorstep, customized credit/debit cards, hassle free loans etc. Their messages are like ‘Khayal Aapka’ (ICICI), ‘Badhti ka Naam Zindagi’ (Axis), etc. Path 6: Look across Time Time will come when there will be the demise of physical banks. Mobile banking, Tele-banking and online banking are more convenient than visiting the branches. Hence paperless money and paperless banking is the future of banking. A study reveals that in 2011 Bank of America announced closure of 10% of its branches. [8]

Figure 5 Six Paths Framework

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5.1.2 ERRC grid We had developed the ERRC grid to eliminate, reduce, raise and create the following factors shown in Table 3.

Figure 6 ERRC Grid

5.1.3 “TO BE” Strategy Canvas From the ERRC grid and “as is” strategy, we propose the following “to be” strategy canvas shown in figure 7.

Figure 7 “TO BE” Strategy canvas

5.2 Profit Proposition 5.2.1 Three tiers of non-customers Tier 1: “Soon-to-be” noncustomers who are in the hedge on your market waiting to jump ship

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The customer who lies in the first tier in the banking sector are: Newly Employed (Salaried), Low Income People, College Students, NRI’s Family, Unscheduled Bank Customer. We have selected them as they use the services and continuously looking for a better opportunity to maximize their return and have better facilities Tier 2: “Refusing” noncustomers who consciously choose against your market The customer who lies in the second tier in the banking sector are: Small Contractor, Road Side Vendors, Kirana Stores, Person of Indian Origin, Foreign Tourist, Chit Fund User. They avoid the services as they feel the complete process is time consuming and too complex to understand. Tier 3: “Unexplored” noncustomers who are in markets distant from yours The customer who lies in the third tier for the banking sector are: Housewife, Rural People, Unskilled Labor, Daily Wagers (Cash Payment), Migrants. These are the segments of the noncustomer which are yet to be catered. The 3-tier of non-consumers are pictorially shown in picture 8.

Figure 8 3 tiers of non-customer

5.2.2 Buyer Utility Map The buyer utility Map helps in understanding the customer side delivery expectation and the user experience with the service and product as shown in figure 9.

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Figure 9 Buyer Utility Map

Based on a study conducted with the low income customer of Africa by Vodafone [9], we proxy the pain points to tier 3 non-customers. For understanding tier 1 and 2 pain points, we initiated a quick survey in WhatsApp group. Results are summarized in figure 10.

Figure 10 Customer Pain Point- Survey

5.2.3 Future Banking Reports Survey study done by BCG about the usage of bank channel and transaction profile in India 2020 are shown in figure 11. It is clearly evident that Mobile banking is going to bring a revolutionary change in banking industry. Also study says that the number of rich people in

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India is expected to increase 10X by 2020 which provides good scope for investment banking opportunity.

Figure 11 Usage of Bank Channel and Transaction profile of customer 2020

5.2.4 PMS Map Pioneer, Migrator, Settler for today and tomorrow banking industry are shown in figure 12   

Pioneer are the businesses that offer unprecedented value Migrator are business offerings better than most in the marketplace Settler are defined as me-too businesses

Figure 12 PMS Map

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5.3 People Proposition For a success of blue ocean strategy, people are more important. 5.3.1 Reskilling Based on BCG report, banking industry is expected to drastically change their role and reskill to enhance productivity as shown in figure 13.

Figure 13 Reskilling Indian Bank Industry

5.3.2 Talent Induction We will target the middle and senior management staff with four E’s (Enrich, Empower, Enable, and Engage) process as explained in figure 14.

Figure 14 Talent Induction Plan

5.3.3 Performance Plan For a success in banking industry both discipline and motivation of employee is equally important to encourage employees to work better. We propose the HR programs and route mentioned in figure 15. 16

Figure 15 Performance Plan

6 Recommendation YES Bank is focused towards knowledge banking, so it should focus more in Product, Service, Pricing and Delivery to attract consumer and to break away from the current fiercely fought Red Ocean in banking.

6.1 Product strategy The consumer of today looks for product that give value for money, are less complex, do not carry any hidden charges, are simple and transparent. The focus for the future should concentrate of the below factors to gain customer loyalty      

Social Banking Mobile App for better engagement Personalized service at branch/Store level Location based service for the customer Remove all the complex services All charges should be clearly mentioned and there should not be any hidden charges Has one single service/product for Personal and Commercial customer for retail and investment banking

6.2 Service strategy The service is what that will drive the future growth not only in banking but all major service industry, so keeping service in focus, YES bank should follow the below strategy.   

The EMI should change as per season like less EMI during Festive season and high EMI during Harvest season Monitor and use Social Media for customer engagement Give power of choice and decision making to consumer

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6.3 Delivery Strategy The delivery will play a major role in giving consumer experience that includes the look and feel of various products and services. YES Bank should focus on below delivery strategy       

Have lounge for customers to create strong brand value & loyalty within branch Open Stores that RBI guidelines to give customer digital experience and support Reduce no of branches and have minimally no of branches to support Stores and act as a customer experience center Go to complete Digitalization Bank on Wheel or Moving Bank for unreachable areas. MLM for banking (Incentive can be enhanced credit rating, loyalty enhancement) Take inspiration from FMCG and make partnership with them to reach rural market

7 References 8 [1] RBI. [Online]. Available: https://www.rbi.org.in/. [2] M. S.Vishnuvarthani, "IndianMBA," [Online]. Available: www.indianmba.com/Faculty_Column/FC1459/fc1459.html. [Accessed 2 12 2015]. [3] RBI. [Online]. Available: https://rbi.org.in/scripts/NotificationUser.aspx?Id=8806&Mode=0. [4] Y. Bank. [Online]. Available: www.yesbank.in. [5] YES. [Online]. Available: https://www.yesbank.in/about-us/brand-vision-strategy/the-nameyes.html. [6] "YES Bank Vision," [Online]. Available: https://www.yesbank.in/about-us/brand-visionstrategy/brand-vision-commitment.html. [7] Article. [Online]. Available: http://www.entrepreneurial-insights.com/promotion-four-psmarketing-mix/. [8] AmericanBanker, "AmericanBanker," [Online]. Available: http://www.americanbanker.com/bankthink/Are-bank-branches-becoming-obsolete-Brett-KingMovenbank-1043219-1.html. [9] Vodafone, "Banking South Africa".

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[10] Strategy-Business, "Strategy-Business," [Online]. Available: http://www.strategybusiness.com/article/17163?gko=4cda6. [11] Y. Bank, "YES Bank," [Online]. Available: https://www.yesbank.in/images/all_pdf/YBL_Exec_summary_27_Jan_2014.pdf. + All Bank website, Annual report, Investor Presentation and Q2F2015 results.

9 Exhibits Exhibit 1: Porter Five Forces Analysis

Detailed analysis with reference are in attached excel file

Microsoft Excel 97-2003 Worksheet

Exhibit 2: Indian Banking Industry Classification

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Private Sector

Public Sector

Category

Number of Banks

Few banks

SBI and its associates Nationalized Bank

6 19

SBI, SBBJ, SBM, SBT, SBP, SBH Bank of Baroda, PNB, Canara

Other Public Sector Banks Listed Unlisted

1 17 7

IDBI HDFC, ICICI, Kotak Mahindra BOR, BOB, CSB (IPO filed), Nainital Bank, RBL, TMB, SBICIB HSBC, Deutsche, DBS

Foreign Banks

43

RRB’s Cooperative Bank Unscheduled Bank Total Banks

56 448 1539 2136

Sponsored by Public Banks Urban-51, State-31, DCCB’s-366 Urban-1525, State-14

Source: 1. https://rbi.org.in/commonman/English/Scripts/BanksInIndia.aspx#SBIA 2. http://www.nafcub.org/ Exhibit 3: Market Concentration Private Sector: Thanks to online calculator, http://www.wessa.net/co.wasp

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Market Cap (27 Nov 2015)

Sales (March 2015)

Private and public sector: Thanks to online calculator, http://www.wessa.net/co.wasp

CapStrategic (27 Nov 2015) ExhibitMarket 4: TOWS Alternative Matrix

Sales (March 2015)

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Exhibit 5: YES Bank Partners

Source: YES bank website

Exhibit 6: Private Competitors for YES Bank Parameter (Rank in sector)

Market Cap

Sales

Assets

EPS

Cash Balance

Yes Bank

31,935.93 (6)

11,572.01(4)

115,379.84 (4)

53.75 (1)

7,557.15 (5)

IndusInd Bank

54,798.11 (5)

9,691.96 (7)

91,086.18 (6)

34.20 (4)

10,779.14 (4)

Axis Bank

111,997.08 (4)

35,478.60 (3)

400,884.50 (3)

33.53 (5)

36,099.03 (3)

Kotak Mahindra

127,623.63 (3)

9,719.87 (6)

92,930.54 (5)

9.56 (9)

6,262.36 (6)

HDFC

271,897.62 (1)

48,469.90 (2)

502,592.26 (2)

44.30 (2)

36,331.45 (2)

Source: MoneyControl.com Exhibit 7: Product offerings

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1. Personal Banking covers savings accounts, deposits, Loans, Cards, Investments, Insurance, MFs and Payments 2. NRI Banking covers Accounts, deposits, transfer money, NRI loans and Investments. 3. Corporate banking covers salar y account, commercial clients, and business services. 4. Privilege Banking covers priority service 5. Wealth management covers portfolio risk mgmt., research and analysis 6. SME covers overdraft services, working capital loans, dealer and trade finance, 7. Wholesale covers funded and non-funded project loans, treasury, investment products 8. Government and Financial Institution services 9. Agri & Rural target 10. Bill collection and processing solutions Source: Bank websites

Exhibit 8: Place of Offerings

Exhibit 9: Promotion

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Exhibit 10: Financial Snapshot

Source: Annual reports 2014-15 and Investor presentation Q22015 Exhibit 11: Digital Banking

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Source: Digital Strategy Report Exhibit 12: Human Capital

Source: Annual report 2014-15

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