Blackbook Project

Financial Services of Private Bank

FINANCIAL SERVICES Financial Services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, Credit card Companies, insurance companies, consumer finance Companies, stock brokerages, investment funds and some government sponsored enterprises. As of 2004, the financial services industry represented 20% of the market capitalization of the S&P 500 in the United States. The term “financial services” became more prevalent in the United States partly as a result of the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge. Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an investment bank, keeps the original brands of the acquired firit, and adds the acquisition to its holding company simply to diversify its earnings. Outside the U.S. (e.g., in Japan), non-financial services conpanies are perTInitted within the holding company. In this scenario, each company still looks independent, and has its own Customers, etc. In the other style, a bank Would simply create its OWT brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with One COITpany.

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Financial Services of Private Bank

COMPANY PROFILE OF YES BANK

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Financial Services of Private Bank

YES BANK YES BANK has been recognized amongst the Top and Fastest Growing Banks in various Indian Banking League Tables by prestigious media houses and Global Advisory Firms, and has received several national and international honours for our various Businesses including Corporate Investment Banking, Treasury, Transaction Banking, and Sustainable practices through Responsible Banking. YES BANK is steadily evolving as the Professionals’ Bank of India with the long term mission of “Building the Finest Quality Bank of the World in India” by 2020.

OVERVIEW YES BANK, India’s fifth largest private sector Bank, is an outcome of the professional entrepreneurship of its Founder Rana Kapoor and his highly competent top management team, to establish a high quality, customer centric, service driven, bank catering to the “Sunrise Sector of India”. YES BANK is the only Greenfield Bank license awarded by the RBI in the last two decades, associated with the finest pedigree investors. YES BANK, a "Full Service Commercial Bank”, has steadily built a Corporate, Retail & SME Banking franchise, with a comprehensive product suite of Financial Markets, Investment Banking, Corporate Finance, Branch Banking, Business and Transaction Banking, and Wealth Management business lines across the country. 3

Financial Services of Private Bank

BRAND VISION AND MISSION Brand Ethos YES BANK has pursued a differentiated branding strategy in line with its objective of building the Finest Quality Bank in India. The foundation of this strategy lies in the name “YES”, which underlines the twin ethos of service and trust and the promise to deliver a truly delightful and unprecedented Banking experience to all customers. Vision To be the ‘Finest Quality Bank in India’ by 2020 Mission To establish a high quality, customer centric, service driven, private Indian Bank catering to the ‘Future Businesses of India’.

BRAND PILLARS The YES BANK brand is built around key Brand Pillars, which epitomize the growing strengths of the Bank. All communication and advertising has been created around these key brand pillars. Growth YES BANK's core promise is growth for its internal and external stakeholders symbolized in ‘Say YES to Growth!’ Trust 4

Financial Services of Private Bank

YES BANK's Promoters, Investors, and Top Management team are all of the highest pedigree with a demonstrated track record, thus inspiring and establishing a Trust Mark – ‘Say YES to Trust!’ Human Capital YES BANK has adopted a knowledge-driven, entrepreneurial management approach and offers financial solutions beyond the traditional realm of banking. YES BANK's top quality Human Capital represents the finest talent in Indian banking, chosen from India and abroad. Innovation & Technology YES BANK is establishing the highest standards in customer service by adopting cutting-edge, innovative Technology. The only thing constant about technology used at YES BANK is Evolution. Transparency YES BANK considers Transparency and Accountability to be of utmost importance. YES BANK has established one of the most stringent Corporate Governance norms. Responsible Banking YES BANK has a vision to be the Benchmark Financial Institution for Inclusivity and Sustainability. YES BANK’s mission is to link CSR and Sustainable Development with stakeholder value creation through innovative solutions and services & weave sustainability principles into its core business strategy and processes.

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Financial Services of Private Bank

MILESTONES 2003 November Incorporation of YES BANK Limited

2004 August First branch at Mumbai & inclusion in second schedule of the RBI Act Launch of Corporate & Business Banking May Capital infusion by promoters and key investors March Capital infusion by promoters and key

2005 November Rana Kapoor, Founder, MD & CEO adjudged Start-up Entrepreneur of the Year at the E&Y Entrepreneur Awards 2005 June Maiden public offering of equity shares by the Bank

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Financial Services of Private Bank

February ISO 9001:2000 certification for back office operations

2006 December Launch of YES SAMPANN INDIA, our Financial Inclusion Initiative, in partnership with ACCION International, USA October Raised INR 1.8 billion of long-term subordinated Tier II debt April YES BANK's Investment Banking Group was ranked #1 in M&A 'Outbound Cross Border Transactions' in the Bloomberg League Tables March FY2006-First full year of commercial operations; Profit of INR 553 million, ROA 2%

2007 September Selected as a Founding Member of the Community of Global Growth Companies at the World Economic Forum, Geneva August Launch of YES-International Banking February Raised 1.98 billion of Upper Tier II capital 7

Financial Services of Private Bank

2008 June Raised 3,640 million (USD 85 million) in a combination of Upper Tier II Subordinated Debt and Hybrid Tier I Capital from Rabobank YES BANK won the prestigious Emerging Markets Sustainable Bank of the Year Award at the Financial Times/IFC, Washington Sustainable Banking Awards held in London 2009 December Received the Fastest Growing Bank award (balance sheet < 30,000 cr) at the Business World Best Bank Awards 2009 July Launched the Business Today - YES BANK SME Survey & Awards March Raised Hybrid Tier I Capital of 1,540 million

2010 December Ranked as India's #1 Mid-Sized Bank (balancesheet < 50,000 cr) at the Business Today-KPMG Best Bank Survey & Awards April Announcement of Maiden Dividend at 15% Launch of Version 2.0 - YES BANK’s NextPhase of Growth January 8

Financial Services of Private Bank

Raised USD 65 million of Subordinated Lower Tier II Debt Raised USD 225 million through a QIP

2011 December Hiked Savings Deposit Rate to 7%p.a. and NRE Fixed Deposit Rates to a peak of 9.6%p.a. November Launched the 1st FT-YES BANK International Banking Summit 2011 – taking Indian Banking to the World June Received the prestigious “Sustainable Bank of the Year (Asia/Pacific)” Award at FT/IFC Sustainable Finance Awards 2011, London

2012 December Rated as Best Mid-Sized Bank , 2012 – Business Today KPMG Best Banks Survey and Awards, and the Best Mid-Sized Bank, 2012 by Business World PwC Best Banks Survey August Raised USD 155 million & EUR 50 million by way of Dual Currency Syndicated Loan Facility June Received the prestigious “Sustainable Bank of the Year (Asia/Pacific)” Award FT/IFC Sustainable Finance Awards 2012, London second year in 9

Financial Services of Private Bank

a row

2013 August Recommends Dividend for FY 13 at 60% June Retail Banking footprint expands to 500 branches covering all 28 states and 7 Union Territories across India March Awarded the Best Managed Bank in India (2011-2013)by The Asian Banker

2014 December Raised USD 200 mn Unsecured Loan from Asian Development Bank for financing working capital & investment loans targeted towards small farm households & rural women in SHGs September First Indian Bank to receive the “Global Performance Excellence Award-2014” in the Services Category by APQO, Chicago, USA Received the 'Best Transaction Bank for Payments' by The Banker's Transaction Banking Awards, London May Raised USD 500 million through a global QIP March 10

Financial Services of Private Bank

Raised USD 500 Million in Longer Tenure FCY Loan and FCNR Funds in FY 2013-14 FIRST bank in India to receive the Business Excellence trophy at the prestigious IMC Ramkrishna Bajaj National Quality Awards

2015 April YES BANK launched its first International representative office in Abu Dhabi, UAE March YES BANK was added to NIFTY 50, the benchmark index of the National Stock Exchange February Raised India’s FIRST Green Infrastructure Bonds for an amount of 1000 Crores (USD 160 million)

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Financial Services of Private Bank

COMPANY PROFILE OF HDFC BANK

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Financial Services of Private Bank

BACKGROUND The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBI’s liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

PROMOTER HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the 13

Financial Services of Private Bank

bank’s risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank’s business philosophy is based on five core values: Operational Excellence, Customer Focus, Product Leadership, People and Sustainability.

CAPITAL STRUCTURE As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The paid-up share capital of the Bank as on the said date is Rs501,29,90,634/- ( 2506495317 ) equity shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and about 18.87 % of the equity is held by the ADS / GDR Depositories (in respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4,41,457 shareholders. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s distribution network was at 4,014 branches in 2,464 cities. All branches are linked on an online real-time basis. Customers across India are also serviced through multiple delivery channels such as Phone Banking, Net Banking, Mobile Banking and SMS based banking. The Bank’s expansion plans take into account 14

Financial Services of Private Bank

the need to have a presence in all major industrial and commercial centres, where its corporate customers are located, as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing / settlement bank to various leading stock exchanges, the Bank has branches in centres where the NSE / BSE have a strong and active member base. The Bank also has a network of 11,766 ATMs across India. HDFC Bank’s ATM network can be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.

MANAGEMENT Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs. Gopinath has 39 years of experience in financial sector policy formulation in different capacities at RBI. As Deputy Governor of RBI for seven years and member of the Board. Mrs. Gopinath had been guiding and influencing the national policies in the diverse areas of financial sector regulation and supervision, development and regulation of financial markets, capital account management, management of government borrowings, forex reserves management and payment and settlement systems. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. 15

Financial Services of Private Bank

Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank’s branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of core banking software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled. The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

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Financial Services of Private Bank

HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business segments: Wholesale Banking The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank’s Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury 17

Financial Services of Private Bank

business is responsible for managing the returns and market risk on this investment portfolio. Retail Banking The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by worldclass service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2015, the bank had a total card base (debit and credit cards) of over 25 million. The Bank is also one of the leading players in the “merchant acquiring” business with over 235,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in 18

Financial Services of Private Bank

various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

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