Responsible Banking @ YES BANK

Business Solutions to Development Challenges

Responsible Banking @ YES BANK

Business does not operate in a vacuum
Integrating social and environmental aspects into core
business strategy important for long-term growth of the
Bank
Responsible Banking means adopting a People-PlanetProfit approach to doing business
Translates into a critical competitive edge for the Bank
Offers inroads to new business segments and client base

Responsible Banking A Differentiated

Approach

Sustainability Zone

Pure Profit

Sustainability Zone
combined economic,
environmental, social
benefit

Evolution of Sustainability
New Generation
of Sustainability:
Integration and
Mainstreaming
Sustainability:
Triple Bottom
Line

Sustainability as
part of business

CSR based initiatives

Values over Value

Pure Philanthropy

Philanthropy focused

Mainstreaming sustainability using multi-stakeholder approach

Operate in Sustainability Zone supporting businesses that meet economic, environmental &
social objectives
Innovative financial solutions to address gamut of development issues sustainable
livelihood, food security, climate change, public health, education, information technology,
biotechnology etc
Using knowledge driven approach and specialised skill sets, human resources to adapt
commercial financial services to sustainability space.
YES BANK has leapfrogged traditional philanthropy-based CSR to Responsible Banking
finding Business Solutions to Social & Environmental Issues

Responsible Banking Framework

Responsible Banking in Thought

RESPONSIBLE BANKING
(CSR & Sustainability)
Thought Leadership, Advisory,
Institutionalization

Responsible
Corporate
Citizenship
(RCC)

Internal
Engagement

Deal Generation

YES
COMMUNITY

Responsible Banking in Action

AGRI & RURAL

BANKING (ARB)
Credit + Services

MICROFINANCE
Credit + Services

SUSTAINABLE
INVESTMENT BANK (SIB)
Business Planning/Structuring,
M&A Advisory, Private
Placement

Alternative
Energy&
Environment

Social
Enterprises

Deal Generation

Clean&
Sustainable
Technologies

INCLUSIVE &
SOCIAL
BANKING
Credit, Savings,
Remittances

Business
Correspondent

Deal Generation

Other Bank
Divisions:
Corporate
Finance
Corporate &
Institutional
Banking
Commercial
Banking
Business Banking
Retail Branches

Responsible Banking: Mainstreaming sustainability principles across YES BANK

SOCIALLY
RESPONSIBLE
INVESTING
Growth Capital

Responsible Banking in Thought

A Think Tank incubating new business opportunities to mainstream
sustainability
Provides thought leadership

Establishes partnerships for development - local and international

Supports the socially responsible investor community by innovating
business approaches to development.
Provides Responsible Corporate Citizenship advisory services to
businesses, governments and non-profits for

Social Auditing
Strategizing CSR practices
Socio-environmental engagement
Waste management
Human capital and employee support analysis
Carbon emissions analysis
Social enterprise planning and scalability
Entrepreneurship development and syndication of funds

RESPONSIBLE CORPORATE CITIZENSHIP

CASE STUDY
Malnutrition Matters Vita Goat

Responsible Corporate Citizenship advisory

Case study

Development challenge
Addressing malnutrition and inducing economic growth at the Bottom of
the Pyramid
Responsible Banking has partnered with Malnutrition Matters (MM), a
Canadian non-profit organization that designs food processing systems
The VitaGoat is a low cost, soy-processing system developed by MM to both
combat malnutrition and provides livelihood opportunities

YES BANK role

Providing inputs for the Indian context
Facilitating MMs expansion in India and access to
suitable partners (technology transfer agent)
Strong network and linkages to assist program
execution (government, suppliers, development
organizations, businesses)
Business inputs for scale and sustainability

Combating poverty and malnutrition

VitaGoat as a tool
The VitaGoat consists of four components: cyclegrinder, boiler, cooker and press.
Operates without electricity or running water,
producing a variety of foods; employs a bicyclepowered grinder and a wide variety of locally
available fuels to prepare protein-rich soy products
One VitaGoat can provide a daily serving of soy
products for 500 to 1000 people; 3-6 people can be
employed per system
Soy foods are an excellent source of protein and
iron and a lower cost alternative to dairy products
(typically 1/3 to of the cost of dairy milk)
The VitaGoat can process a variety of soy-derived

foods, including soymilk, tofu, soy-yogurt; can also

be used to make other foods such as vegetable and
fruit juices and pastes, groundnut butter, ground
School children in Orissa drinking soy milk
processed by a VitaGoat

coffee beans

Project results
YES BANK as Technology Transfer Agent
VitaGoat deployed at Buldana Urban Co-operative Credit Society
run residential school since 2007
700 school children fed with soy milk/paneer
Facilitated a development partnership between Vigyan Ashram (an
NGO near Pune oriented to technical development) and MM to
develop an ultra low-cost soymilk system for small entrepreneurs,
enabling greater outreach

Expansion to Rajasthan with the delivery of first VitaGoat to Seva

Mandir (large NGO based in Udaipur) in Jan 2010
Expected to serve ~300-400 people per day
Targeting income generation using the VitaGoat

Business case

Seva Mandir employee

using the VitaGoat to
grind Soybeans

Responsible Bankings partnership with Seva Mandir has strengthened the banking
relationship
Seva Mandir placed a FD of INR 75 lakh with the Udaipur branch
Facilitating outreach to target clients for YES BANKs other business units
Collaboration with Agro Tech Foods Limited (a target client for ARSB) for their CSR
program Feeding Children Better

Agribusiness, Rural & Social Banking

Innovative financial models
Leveraging outreach of stakeholder in Agri Value Chain to overcome last
mile issues
Customized insurance solutions

Select Partners:

Reaching over 1 million Farmers through these Partnerships

Financing Innovative Agribusiness

Deal Example
Zameen Organic Pvt. Ltd

Fair trade supported company owned by Small Farmers

Organizations
Network of 6,000 small farmers producing organic cotton in the
Vidharbha (Maharashtra) and Adilabad (Andhra Pradesh) regions
Provides vital processing and marketing linkage between organic
farmers and branding companies
Unique concept of Premium: Farmer Premium and

Community Premium

YES BANK is Zameens Sole Banking Partner

Microfinance Institutions Group

Multiplier Effect: The Indirect Impact
Institutes specific transactions to position microfinance as a new asset class,
appealing to a broad base of investors and lenders, expanding access to capital
FIRST Indian bank to undertake innovations in capital market products for
microfinance:

Capital Market Products

Banks have been main source of debt funding for MFIs (term loans)
Term loans are relatively expensive they are illiquid
YES BANK arranged first rated bond issuance of an MFI in the world in
the form of Commercial Paper & Non-Convertible Debentures of INR
2000 mn (USD 40 mn)
Enabled cost reduction for the MFI to the extent of 300 bps

Structured Products
Securitisation of receivables originated by MFI

MFI receivables recognised as an asset class

Generated interest among institutional investors
Potential incremental access to capital for industry of USD 12-14bn annually,
impacting 60-70mn clients

Sustainable Investment Banking (SIB)

M&A
Advisory

Private Equity
Raising

Business
Restructuring

JV
Advisory

Renewable Energy
Deal Example
56% of the 700 million rural Indian residents lack
access to electric power; Government wants to
deliver electricity to all of them by 2012 50% of it
from renewable resources (wind, power, solar &
biogas)*
M&A
Advisory

YBL focused on addressing Indias energy

Private Equity
deficiency & reducing reliance
on fossil
fuels
Business
Raising
Restructuring
through thrust on renewable energy
Raised USD 47 mn for Greenko, a renewable
energy player, through private placement of
equity shares with Global Environment Fund, one
of the worlds largest environment focused funds,
for expansion of their hydro power generation
assets

*Source: Pernick, R. & Wilder, C (2007) The Clean Tech Revolution, Harper Collins

Successfully Positioned
Emerging Markets Sustainable Bank of the Year for Asia
2008 for excellence in creating environmental, social and
financial value across its operations.
Best Corporate Social Responsibility Practice Award, Social
and Corporate Governance Awards, 2007, in recognition of
innovative strategies to implement CSR practices within the
business focus of the Indian Corporate sector.

Trade Finance Deal of The Year, 2007 in recognition of

innovative structured rural financing solutions.
The first bank to be recognized by the CII-ITC Sustainability
Awards in 2009
Environment Leadership Award, in recognition of
outstanding contributions made through working in
partnerships to improve the environment and quality of life
for the people of Asia.

RESPONSIBLE BANKING
&
BRANCH BANKING
Doing Business with Responsibility

YES COMMUNITY A Differentiated

Offering
Responsible Banking & Branch Banking
Collaboration
Current theme Planet Earth

Using fun-filled, interactive & inclusive microevents to engage with community

Began with 15 branches in 2006, scaled up to 96 in
2010

Implemented events around sub-themes

Recycling and Minimizing Waste

Conserving Energy

Pollution Prevention

Conserving Water

Improving Sanitation and Cleanliness

Doing Business while being Socially Responsible

YES COMMUNITY Success Stories

YBL & CEE -

"Earth provides enough to satisfy every

man's need, but not every
man's greed."
--Mahatma Gandhi

THANK YOU