the “new new-normal” - eosd.org · weave sustainability principles into yes bank’s core...

The “new new-normal”

Srinath KomarinaVice President

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Vision to become “THE BEST QUALITY BANK OF THE WORLD IN INDIA”2

900 Branches

12,750 employees“The Professionals’ Bank

of India”

Advances$ 16.93 billion

Deposit base$ 21.16 billion

2,000 ATMs

Balance Sheet$ 25.4 billion

Target RoE : 22 – 24%Target RoA : 1.5 – 1.75%

March 2014- On the road to Version 2.0 - 2015

8,798 employees*

*-Stock take 31st March 2014

1,139 ATMs*

$12.56 billion*$18.46 billion*

$9.42 billion*

560 Branches*

24.3% *1.6 % *

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Version 2.0

Link sustainable development with stakeholder value creation through innovative business solutions and services

&Weave sustainability principles into YES BANK’s core business strategy

and processes

Vision

Mission

Strategy

“YES BANK - Be the benchmark financial institution for sustainability”

Deliver internal and external positive socio-environmental impactEnhance YES BANK’s visibility and influence in sustainability space

Responsible Banking

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First Indian Banking sector

signatory to UN Global Compact

First Indian Signatory in

banking sector to the CDP

First Indian Signatory in

banking sector to UNEP FI

First Indian Signatory to the

NCD

First Indian Commercial Bank to release a GRI A

Level checkedSustainability

Report

Creator of India’s first ever

platform on Natural Capital

First Indian Bank to receive ISO

14001:2004 certification

First Indian Bank to win the KSFA and FT-

IFC Sustainable Finance Award

2008-2011

YES BANK FIRSTS

Mainstreaming Sustainability amongst stakeholders

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Sustainability Facilitating Responsible Investments

Corporate Social Responsibility

SUSTAINABLE DEVELOPMENT

RESPONSIBLE BANKING ETHOS

Approach

• Thoughtleadership

• Triple bottomline accounting

• IntegratingESG considera-tions

• EvangelizingBFSI sectorand regulators

• YESCOMMUNITY

• YESFOUNDATION

Need For Environment, Social and Governance (ESG)

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The Environment and Social Policy (ESP)

PROJECT 1

PROJECT 2

PROJECT 3

PROJECT 4

� Socially &Environmentally sustainable

� Respect Rights of local staff and local communities

� Compliant with applicable regulatory requirements ofthe Exclusion List, HostCountry and IFCPerformance Standards andGood International Practice

For All ProjectsCompliance to Exclusion List (Annexure I of ESP) and Host Country Regulations

For Projects Exceeding USD 5 Million

Compliance to Exclusion List, Host Country Regulations and applicable IFC Performance Standards

PROJECT 3

PROJECT 1

Pre-assessment Outcome for all projects:×Either Decline Credit Finance, advisory or other services�Offer Credit Finance, provided all the E&S covenants are pre-agreed

× Involving Harmful /exploitative formsof forced labor/child labor

× Breaching Host Country’s Laws and Regulations Agreements/conventions to which the Host Country is a Signatory

× Production or Trade of Weapons/Munitions, Tobacco or Alcoholic Beverages

× Gambling, Casinos or Equivalent Enterprises× Production Trade of Radioactive Materials

including Nuclear Reactors and Unbonded Asbestos Fibers

× Trade of Logging Operations and Production and Trade in Wood and Other Forestry Products

× Activities Impinging on Land Owned/Claimed by Indigenous Without Consent

E&S Risk Management throughout

Project Lifecycle

Regular Monitoring of E&S parameters of the

project

• Detailed E&S Assessment – Site Visit,Stakeholder Consultation & Document Review in Credit FinanceDocuments

• E&S Assessment Report • Inclusion of E&S Covenants in Credit

Finance Documents

• Desk Based E&SAssessment

• Inclusion of E&S covenants in Credit Finance Documents

Project Risk Categorisation as

Low or High

Request More

Information

HIGH

Project Document/ Information

Request

Project Risk Categorisation as Low or High

Assessment against

Exclusion List

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Integration of ESP In Project Finance

Project Document/ Information

Request

Pre-investment Assessment

Post-Investment Assessment

LOW

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Post-Investment Assessment

E&S Risk Management throughout

Project Lifecycle

Conducting E&S Audit

Regular Monitoring of E&S

parameters

Assess

Measure

Manage Evaluate

Integration of ESP In Project Finance

Able to anticipate risks in advanceThe mining debacle: Conscious decisions helped YES BANK maintain low NPAs

Better hold and connect with the client

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• Private sector Banks average net NPA: 0.52 %• YES BANK net NPA: 0.01 %

First mover advantage

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First mover disadvantage

No level playing fieldResistance from clients to share E&S data

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Way forward

First of its kind ‘Sustainability Series’ in partnership with GIZ and UNEP FI

Case Study

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The Welspun Neemuch Solar PV Project

• Largest Solar PV Project in Asia

• First bank to sanction facilitiesof $33 million(~24.8 millionEuros) to the project

• 151 MW capacity• Electricity for 624,000

households• Offset 216,372 tons of CO2

emissions annually

Education Healthcare Environment Agriculture

Social & Environmental impact

THANK YOU

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