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
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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 MM’s 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 ½ 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 Banking’s 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 BANK’s 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
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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 Zameen‟s 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:
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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 India‟s 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 world’s 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
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Recycling and Minimizing Waste
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Conserving Energy
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Pollution Prevention
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Conserving Water
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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