YES BANK

COMPETETIVE STRATEGY OF A LATE ENTRANT

PRESENTED BY:
ANIL GUPTA (82050)
BHARAT SHIVHARE (82055)
SAMIR SIDDIQUI (82084)
SUHAIL KHAN (72079)
Introduction
Established by Rana Kapoor in Nov. 2003 started
operation in Sept. 2004.
Third best bank in India by Business world survey.
Ranked second among the new private sector bank in
Financial Express survey.
Basically they focused on niche segment.
Focused on corporate banking rather to retail
banking(mergers & acquisition, financial
restructuring, currency risk management).
Provide wealth management solution.
Technology driven.
Business Segments
 Corporate & institutional banking
- companies with turnover of over 7.5 billion
 Business Banking
- companies with turnover between .5- 7 billion.
 Retail Banking
- Individual with annual income around .5 million
Parameter to choose focus Sector
Potential to add value in providing banking product.
Recognition and appreciation of knowledge as a
differentiator.
Growth potential of the sector
Opportunities for banking products and competitor’s
activity.
India’s competitive position internationally in the
sector
Focus Sector
Food and agriculture
Infrastructure development
Life Sciences and Biotechnology
Telecommunication
Information Technology
Media & Entertainment
Real Estate
PEST
Political:
Government Policies.
In recent budget they indicated that now they will
issue new licenses.
According to govt. policies every bank has to open
some branches in rural areas.
In certain sectors like agriculture, housing they have
to charge interest according to govt. policies.
Private partnership in infrastructure with Govt.
agency with built & operate basis.
Economical
Deregulation of interest rates.
Disclosure norms for the banks.
Increasing Capital adequacy norms of Indian banks to
10%.
The share of non performing assets were reduced to
3%.
Reducing the government stake of the public sector
banks.
Social
High rate of economic growth
Growth of emerging companies
Growth in Agri related sector
Growth in infrastructure
Growth in IT & service sector
Increasing recognition of the employees as the
strategic assets.
Technological
Technologically advanced Environment.
Use of newer technologies like wifi, faster softwares,
Hardwares etc.
Availability and adoption of new technologies.
Availability of IT related infrastructure at par with the
western countries.
SWOT
Strength
High quality, customer centric, service driven private
indian bank.
Adopted international best practices, the highest
standard of quality & operational excellance.
Access to latest technology.
Proven promoters.
They had the ability to raise funds easily because of
foreign shareholding.
Total deposit 822.0 INR million.
Total advances 629.0 INR million.
Greenfield licence.
Highly motivated & specialized human workforce.
Innovative HR policies.
weakness
Less wide network
Less promotional activities
Not very popular
Opportunity
Very wide market available
Can also go for other activities like insurance, stock
banking mutual fund
Wide scope in rural & urban areas.
Threat
High competition
Bigger & more experienced banks available.
 - High quality, customer centric,service driven
private indian bank.
- Adopted international best practices, the highest
standard of quality & operational excellance. Less wide network
- Proven promoters. Less promotional activities
- Access to latest technology. Not very popular
- They had the ability to raise funds easily. Small bank
- Knowledge banking approach
- Human resource

Very wide market available 1. Experience proffessional and latest technology

Can go for other activities like insurance, stock can be used to expand further in the focussed 1. Can use good promotional activities to be
banking mutual fund area and can enter into new area like retail and known in the market.
insurance Make their network strong by capturing
Wide scope in rural areas. 2.
2. Their exist a big opportunity to expand the retail.
services to new customers.l.

1. Competetion can be tackled by their core

High competetion competencies technology and knowledge 1. Small bank and relatively smaller
Other better saving and investment options. banking approach. network
Capital market slow down. 2. Strengthn their core business and look for new 2. So less chances in adverse situation.
business Vulnerable for take over.
High for retail sector.
Medium for corporate banking for specialized
banking solutions.
Low –
As all multinational service/product providers are
providing competitive services in India.
 Low –
• Due to regulatory restrictions
• Stringent government policies.
• Huge capital investment required.
• Huge investment in new technology and hardware.
High
Their success model may be copied if differentiation
in services is not maintained.
Technology is available for all other players.
It is very high specially in retail sector as there are
many public & private sector banks.

Again very high in corporate sector because there are

many established player like HDFC,ICICI, ABN
AMRO, KOTEK MAHINDRA
Value Chain for a Differentiation Strategy
Questions for discussion
What do you think were the main reasons for the
success of yes bank though it was a late entrant in an
overcrowded market?
Critically analyze whether the bank’s focus on the use
of most advance technology and emphasis on
competent human capital would lead to the success of
the bank?