Csr On Yes Bank 2zi2m

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’ ing 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  s 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 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

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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    

Fair trade ed 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 : Farmer and

Community

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: •

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

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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 •

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