Y E S B A N K L I M I T E D

Transcription

1 Y E S B A N K L I M I T E D RETAIL PRESENTATION 7 th SEPTEMBER

2 Agenda Brief Overview of Retail Journey at YES BANK Expanding Distribution Adapting to Evolving Landscape Strong Liability Franchise Complete Suite of Retail Assets Credit Cards Offerings & Strategy Business Banking & MSME Retailisation with Digitalisation YES BANK Brand 2

3 Retail & Business Banking Retail Snapshot Growing Business 30 th Jun 2017 Advances Liabilities Consumer Banking (Urban and Rural) Micro & Small Enterprises Business Banking (Medium) 11.5% 9.9% 10.5% 68.1% Corporate Banking 40.0% 32.0% 30.9% FY10 FY17 FY20 FY20 FY17 FY % 20.3% 61.5% 70.0% 36.8% 40.0% Retail & Business Banking Mix: 32% to 40% 3X increase in Quarterly disbursements of Retail assets in past 1 year to 38.5 Bn in Q1FY18 5 year CAGR: CASA 41% Retail Liabilities 38% Market Share more than doubled in past 5 years Highest Average & Median Balance On track to Overachieve 40% CASA Target by FY20 Branches SME Branches Retail Fee as % of Core Fee Income FY10 FY17 FY ,000 1,800 FY10 FY17 FY FY10 FY17 FY20 8% 27% 35% 3

4 Branch Network Expansion Evolving Landscapes March 2010 June 17 March 2020 Coverage across all 53 Metros, 29 States and 7 Union Territories. 16 Metro/Urban and 3 dedicated RIBB regions and 250 Hubs Hub and Spoke model for faster maturity and greater efficiency of branch network Substantial focus on North & West Regions (DMIC/Make in India/GIB corridor) with evolving network in South & East Physical Vs. Digital Digital Channels to Complement NOT Cannibalize Branches Branch Target reduced from 2,500 to 1,800 Branches by 2020 HUB Spoke Model Automation of Backend Data Backed Mid Office and Digitalization of Front End will bring in efficiencies YES BANK will however Resize and Redefine Branches Smaller Formats, Lesser Manpower A Clearly Articulated 2 Pronged Strategy: Metro + Urban & Semi-Urban +Rural to achieve 1800 Branches by FY20 Metro & Urban Strategy Maximum ratio of branches in Top 30 Deposit Centers Maximize Branches in Top 200 Deposit Centers SME/Digital/Specialized branches designed for evolving catchments Semi- Urban +Rural Strategy Key Agri Mandis/Food Parks Make in India/MSME clusters and Ports/SEZs/EPZs Assets led RURBAN Strategy NCR and MMR to continue as Key Growth Centers SME, B2B2C, Focus Segments, Liabilities driven Fee Income 4

5 Strong Liability Franchise RETAIL LIABILITY Segmented Strategy OPDT & B2B2C GIB SA Strategy HNW & UHNW YES First Mass Affluent YES Prosperity Defense Personnel - YES Vijay Cricketers & Celebrities, Hockey Players, Legal professionals YES community Events OPDT of SME/Large Corporates Cross-sell of SA products to CA customers YCOPs for salaried professionals of corporates Domestic Alliances UN Mission, Embassies, Shipping companies External Alliances Money Exchangers, Brokers Foreign banks CA Strategy 12 Focused Segments Leveraging POS and Trade Fx Leveraging strong Corporate Relationship Branch Channel Technology aided processing Vendors/ Dealers/ Franchise/Distributors Business Banking & Retail Banking Assets API banking YES First Business YES Prosperity YES Transact Startup Proposition Customized program Registration assistance Incubator & accelerator services Investor interface Focus on Quality Acquisition (1) Build Long Term Value (2) Complete suite of Products to aid Cross Sell (3) Higher Revenue/ Customer Ratio (4) Enable to build Life Cycle Banking Digital Account Opening: Full Service Digital Savings Account Self Service Account Opening Q2 FY 18 5

6 1,324 ` Million 2,135 4,421 6,123 9, ` Billion ` Billion Proven CASA Track Record % 36.3% 36.8% CAGR 41% 1,000 CAGR 38% 35.0% 28.1% 22.0% 23.1% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% % 42.0% 35.5% 54.5% 61.5% 61.8% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% - Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun % - Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun % CASA (LHS) CASA Ratio (RHS) Retail Deposit (LHS) Retail Deposit Ratio (RHS) 10,000 8,000 6,000 4,000 2,000 CAGR 62% 13.7% 12.0% 23.2% 25.0% 26.6% 28.0% 24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 1.5% 0.5% 1.2% 0.6% 1.5% 0.7% 2.7% 0.9% 2.3% 1.2% - FY13 FY14 FY15 FY16 FY17 0.0% FY13 FY14 FY15 FY16 FY17 Retail Fee Retail Fee (% of Core Fee Income) CASA Market Share Incremental CASA Share 6

7 Complete Suite of Retail Assets Product Focus Segment Strategy Consumer Retail Auto Loans Two Wheeler Loans Gold Loan Personal Loan Salaried & Self Employed Existing Customers Tapping Liability customers Branch Channel Technology aided processing Focused activities Credit Cards Manufacture Tie-ups Commercial Retail & Mortgage Commercial Vehicle Construction Equipment LAP/LAS Healthcare Finance Home Loans Professionals Infrastructure & Logistics Retail Investors Self Employed Cash flow based Credit underwriting Adequate Collaterals Risk based pricing SME rich lending program PSL benefits Key Differentiators Focus on internal customer PSL driven approach Secured lending with strong risk mitigates Manufacturer tie-ups to give us visibility in market Penetrate the top dealers / manufacturers to create a mind-share of the YES Bank Retail Assets franchise. B2B2C, Y-Cops, Dealers, Distributors 7

8 Diversification in Advances Driving Fee Growth Q-o-Q Disbursement Trend of Retail Assets (In ` Bn) Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 BELG CLG MLG VLG Improving Retail Share (Q1FY18): Retail Advances growth of 166% y-o-y 25% of incremental growth (y-o-y) 3X increase in Quarterly disbursements of Retail assets in past 1 year to 38.5 Bn in Q1FY18 Steadily increasing Retail Fee as % of Total Fee Income highlighting strong retail growth and diversification in Advances As % of Total Advances 30 th Jun 2017 Corporate Banking Business Banking Micro & Small Enterprises Consumer Banking 68.1% 9.9% 11.5% 10.5% Sub Groups 30 Jun, 2017 Mortgage Backed Loan Group (MLG) 30% Business Equipment Loan Group (BELG) 11% Consumer Loan Group (CLG) 13% Vehicle Loan Group (VLG) 37% Direct Microfinance 6% Others 3% MLG: Housing Loan, LAP, Affordable Housing. BELG: Construction Equipment, Healthcare Finance. CLG: Personal Loan, Gold Loan, LAS, Business Loan, Credit Card. VLG: Auto Loan, Two Wheeler, Commercial Vehicles, Inventory Funding 8

9 YES Bank Credit Cards Vision & Offerings Vision To build a scalable & engaged portfolio of quality Credit Card customers Contribute to the expansion of the YBL franchise through cross sell of liability products to new-to-bank Credit Card customers Key Highlights Fastest launch of Consumer Credit Cards program Widest range of 7 variants. Fastest issuance of first 1 Lac Credit Cards in the industry. Best-in-class portfolio & risk management performance YBL Advantage Catching the right cycle Riding the surge in electronic payments, post demonetization Offering industry best Products with focus on building DIGITAL Current Offering Highly differentiated & comprehensive suite of Credit Card products Finest offers to drive Deeper Mindshare & Gain Market Share Products across Affluent & Mass Affluent segments Offerings across Segments Segment Product Segment Product Lifestyle YES First Exclusive YES First Preferred YES First Edge SMEs & Self Employed YES First Business YES Privilege Business Cashback Cashback and Cashback Plus Card Rewards Rewards and Rewards Plus Cards Commercial and Corporate Cards (for Commercial/B2B Payments) to be launched in FY18 9

10 YES BANK Credit Cards Growth Enablers Marketing Trusted, Honest & Transparent Premium & Innovative Digital & Social Media Strategic Partnership & Alliances (ART Model) Long term & sustainable partnerships Built on mutual trust & benefits Consistent Service Delivery 24*7*365 Quick resolution Multiple channel access Scalable Technology World-class Card Management System Multiple surround modules Digital Strategy Digital Acquisition Digital Engagement Digital Self-Service Right Customer Mix Innovative & differentiated Products NFC enabled Cards Best interest rates Best FX rates Rewards that never expire Emerging Payments Efficient Risk & Fraud Management World class platform to support robust Risk Mgmt. Across all touch points: Customer Acquisition Authorization Lifecycle Management YES FIRST YES Prosperity Pre-Qualified Offers Premium external customers 10

11 Business Banking & MSME MSME Programs Focus Segment Strategy Asset Strategy Smart Overdraft Fast track lending Program Scorecard Lending program LGD Program (Linking Collateral with Rating for high ticket customers) 14 Knowledge Sunrise Sectors including Automobile, Pharmaceutical, Textile, Printing & Packaging CBB/ EBB/ SBB Building Granular MSME book CRM Based sourcing Tapping Corporate linked Supply Chain Channel Financing Key Focused Segments Small Business Banking Emerging Business Banking Commercial Business Banking Acquisition Strategy Leads from Branch Banking Referrals from existing customers Supply chains of large corporates Significant sourcing from Supply chains of large corporates Analytics based intelligent sourcing Tie-up with Trade bodies & Industry associations CRM Approach Customers referrals Industry Associations and Seminars. Portfolio mix Good mix of traders and manufacturers Largely secured for sole banking customers Increasing focus on manufacturers, with multiple product x-sell Healthy mix of WC and TL Need based financing Significant focus on x-sell of Trade, CMS, treasury and Investment Banking Largely manufacturers as customers Leveraging Existing Corporate Relationship to boost Vendor Finance and Channel Financing 11

12 Risk Management Process Retail & MSME Process Supply Chain based Origination Geographical Distribution Parameterized/ Score Card Underwriting Impact Reducing Adverse Selection Bias Quality underwriting with direct customer interaction Straight through processing/identify early warning triggers Process Digitization Bureau Integration (CIBIL/HUNTER) Collateralized Structures Impact Lower Customer TAT Effective fraud/risk checks Higher recovery and Lower NPA s Strong Selection Process and cashflow based lending structures has resulted in a healthy asset book Push towards digitization and parameterized underwriting, using analytics, to ensure lower customer TATs and better customer experience Internal customer referencing (between Retail Assets and SBB) for multi-product engagement Relationship Manager ensures account servicing as well as managing account exit. The process, thus, has inbuilt mechanisms for early detection and remedial measures. Robust Risk Management System in place to provide early identification of potential problem accounts 12

13 Digitalisation at YES Bank Customer Acquisition Execution Team HADOOP implementation Merchant funded offers, loyalty Customer On Boarding Customer Engagement Process Digitization Business + Product + Service + Operations + BDTS + Digital Banking Big Data YBL Digital Transformation 2020 Biometrics Payments Excellence Aadhar E-KYC Iris Scanner Last Mobi API based BaaS Solutions 100 APIs including India stack Smart City Solutions Nashik, Udaipur, Pondicherry 10 cities in pipeline Blockchain Dealer Financing Bajaj Finance Intl Remittances Ripple Hyper Ledger Fabric - IBM Yes Tag on FB, Skype, WeChat, Twitter IBM Watson Cognitive Banking /Bots Robotics IOT Salary processing Vyomlabs Setting of Robotics CoE Wearables YES Mobile on Android Gear & Apple Watch Augmented Reality PaaS/SaaS Partnership with Cube Banking solution of partners Prepaid Wallet APIs 13 21

14 DIGITAL initiatives in Retail YES Mobile Banking Yes Technology Corporate Solutions E-com Solutions # YES Mobile 2.0 Solving the mobility need of Banking customers # YES Secure Avoids dependency on telecom network for generating OTP #API Banking Solving the inter connectivity need of corporates with the Bank server # Smart Box Solving Return Goods problem of ecommerce partners with Payment on delivery. Digitally # YES PAY Solving the need of digitally active users to make payments online without having a bank account using sound and NFC technology # SIMsePAY Solving the Feature phone Digital Payment problem of 750 mn users oblivious of Telco, Handset & Banks # Merchant Payment Solving the need of making payments using technology which includes Sound Based QR code based Biometric based Payments # Merchant Funded Offers Providing location based customized offers to customers for enabling loyalty and stickiness for the financial instruments. # YES tag # YES MONEY #UPI # Pre-paid card Solving the on-the-go banking on Solving 24X7 money transfer to any Next generation payments system Solving refund problem of social media platforms using CHAT bank any time by the tech oblivious helping to move towards an era of less- ecommerce, by powering 23.7mn BOTS users cash India wallets for SnapDeal/ FreeCharge. 14

15 Building the YES BANK Brand LARGE FORMAT EVENTS AND ADVERTISING Indian Premier League INDIA BOLE YES National campaign across print, Outdoors & digital mediums CUSTOMER AND COMMUNITY ENGAGEMENT 800+ monthly YES COMMUNITY events Product Marketing Partnership & Alliances Catchment led Engagement DIGITAL AND SOCIAL MEDIA MARKETING Brand Campaigns Online Customer Acquisition SEO /SEM Online reputation management KNOWLEDGE BANKING Knowledge Events CFO Forum B2B Blogs Publications & Newsletters Advisory to Trade Associations Broadening Customer Mindshare Building Market Share 15

16 THANK YOU 16