Yes Bank Ltd Management Discussions

Executive Summary

MACROECONOMIC AND INDUSTRY OVERVIEW

Global economic activity remained largely resilient in 2024. Gaining confidence on reducing inflation trends and signs of slowing growth, led most central banks to resort to rate cuts and ease monetary policy during the last fiscal year. The onward journey for the global economy is likely to be challenging. The global economic order had significantly depended on global cooperation, with free trade and capital mobility enhancing global productivity and growth. This is being reset in a significant way, that may lead to some upheavals before new rules emerge.

Geopolitical tensions and geo-fragmentation have already existed over the last few years. Since late January 2025, President of United States Mr. Donald Trump had announced tariffs on various economies and on specific commodities, culminating into his announcement of "reciprocal" levies on various countries. Subsequently, tariffs for most countries have been put on hold, while various countries work together with the US to arrive at a trade deal. With tariff wars remaining an evolving space, in April 2025, the International Monetary Fund (IMF) has reduced its growth projections for the world to 2.8% for 2025, a sharp drop of 0.5% from its January 2025 forecasts.

On the domestic front, the Indian economy remained one of the fastest growing economies in the world and continued to exhibit strong macroeconomic fundamentals. At 6.5% in FY 2024-25, Indias economic growth remains far higher than the global growth of 3.3% clocked by the world in 2024. On the supply side, real gross value added (GVA) expanded by 6.4% Y-O-Y, driven by the agriculture and services sectors. The Indian economy did see a slow Q2-FY 2024-25 at 5.6% GDP growth on account of slowing capital formation due to weak capital spending by the government. However, in Q3-FY 2024-25, real GDP growth bounced back to 6.4% Y-O-Y and further to 7.4% in FY 2024-25, mainly driven by private consumption and fixed capital formation. While urban demand was relatively sluggish, private consumption expenditure was pulled up by a strengthening rural demand. Private sector investment activity however remained moderate despite good corporate and bank balance sheets. Global uncertainties that have a negative impact on consumption are likely to keep private sector investment activity on the lower side. The Reserve Bank of India (RBI) expects growth to be at 6.5% in FY 2025-26, while the IMF projects real GDP at 6.3%. A fall in inflation is expected to boost real wages and drive domestic consumption, alongside the Income Tax cuts effective in

FY 2025-26. Further, government capital expenditure, projected at Rs. 11.2 trillion for FY 2025-26, is likely to be spread across the year and will boost growth. Support also comes from the RBI easing the repo rate (cumulative repo cuts amounted to 100 bps between February to June 2025) and infusing adequate rupee liquidity. To ensure transmission, the RBI has announced a CRR (Cash Reserve Ratio) cut of 100 bps starting September 2025, that is expected to release Rs. 2.5 trillion of liquidity for the banking sector.

Key Economic Indicators: Pointing towards resiliency

Growth of Index of Industrial Production	4.0%
(IIP) (Average of April 2024-March 2025
Manufacturing PMI (March 2025)	58.1
Services PMI (March 2025)	58.5
Passenger Vehicle Sales (FY 2024-25) (www.siam.in)	Total sales- 4.3 million units (up 2.0% Y-O-Y)
2W Sales (FY 2024-25) (www.siam.in)	Total sales- 19.6 million units (up 9.1% Y-O-Y)
GST Collection (March 2025) (As per GST council)	1.96 lakh crore, up 9.9% Y-O-Y
Volume of UPI transactions (FY 2024-25 ) (NPCI report)	185.9 billion transactions, up by 41.7%

Headline CPI inflation reached a peak of 6.2% in October 2024 and since then been on the downward trajectory, declining to 3.3% by March 2025, and further to 3.2% in April 2025, following significant declines in food prices. On a YoY basis, food inflation peaked at 10.9% in October 2024, but fell significantly to 2.7% by March 2025 and further to 1.8% in April 2025. On the other hand, despite relatively weaker growth conditions, core inflation tended to inch up through FY 2024-25, from 3.25% in April 2025 to 4.2% in March 2025, on the back of adverse base effect and higher gold prices. Headline CPI averaged at 4.6% in FY 2024-25 (5.4% in FY 2023-24), while core inflation averaged at 3.6% in FY 2024-25 (4.4% in FY 2023-24). Consequent to inflation moving within the comfort zone, RBI started its rate cutting cycle in February 2025 with a 25-bps cut in the repo rate (RBI had held rates stable for a period of 24 months) and cut by a further 25 bps during its April monetary policy.

RBI also changed its stance to "accommodative" from "neutral" at the April 2025 monetary policy meeting. At the June 2025 meeting, RBI delivered a large 50 bps cut in the policy rate but changed the stance back to "neutral" and indicated that the RBI would be data driven and room for further monetary easing is limited. RBI had also been infusing liquidity through various tools such as CRR cuts, OMO, Buy/Sell currency swaps and long-term VRR auctions. This corrected for the liquidity deficit that was seen in FY 2024-25, due to dollar sales by the RBI to contain the depreciation pressure on the INR. In the June 2025 monetary policy, the RBI announced a CRR cut of 100 bps – in 4 equal tranches - starting September 2025 that is expected to release Rs. 2.5 trillion to the banking system. This is expected to reduce the cost of funds for the banks.

The Indian banking system continues to be stable on the back of strong profitability and asset quality, with adequate level of liquidity and capital buffers. As per per Reserve Bank of Indias Financial Stability Report (December 2024), the Return on Assets of all Scheduled Commercial Banks (SCB) and Return on Equity were reported at decadal highs by September 2024 at 1.4% and 13.6%, respectively. On the other hand, Gross non-performing asset (GNPA) ratio fell to a multi-year low of 2.3%, Net Non-Performing Assets (NNPA) ratio was at 0.5%, while the Provisioning Coverage Ratio (PCR) improved to 76.3%. Importantly, RBIs macro-stress tests show that Scheduled Commercial Banks (SCBs) are well capitalised and capable of absorbing the most adverse economic shocks even without capital infusion. For FY 2024-25, deposit growth of SCBs was at 10.7% while non-food credit grew by 11.0%. Deposit and Credit Positions by end-March 2025

Item	Actuals	Growth
Aggregate deposits of SCBs	225.8 trillon	Up by 10.7% Y-O-Y
Non-food credit (NFC)	182.4 trillon	Up by 11.0% Y-O-Y

Source: RBI Weekly Statistics Supplement

The external sector remained strong with a very healthy upside to the net services sector inflows, that went up by 16% in FY 2024-25. On the other hand, the trade gap was wider with imports rising more than exports. CAD/GDP was at 0.6% for FY 2024-25. On the other hand, capital flows were at USD 17 billion in FY 2024-25, compared to USD 89 billion in FY 2023-24, with a sharp slowdown in net FDI and net portfolio flows. Foreign portfolio flows have also been significantly impacted due to the global uncertainties. Foreign Portfolio Investment (FPI) in debt and equity which stood at USD 41 billion in FY 2023-24, dropped to USD 2.7 billion by the end of FY 2024-25. As of July 11, 2025, Indias foreign exchange reserves stood at USD 696.7 billion.

After remaining ranged in the initial part of the year, the US Dollar (USD) showed some depreciation pressures as expectations started forming over the start of the monetary policy easing cycle by the US Federal Reserve. Intermittent escalation of geopolitical tensions and US electoral risks led to some bouts of safe-haven demand. However, even after the Fed started easing monetary policy in September, US dollar appreciated by 9.1% between October 2024 and its peak on January 13, 2025, on the back of US "exceptionalism" and anticipated Trump policies. USD witnessed depreciation pressures thereafter as Germany announced a fiscal package to boost growth and fears of "reciprocal" tariff announcements by the US administration took over.

In the first half of FY 2024-25, INR remained broadly steady against the USD, being the least volatile among the major currencies of the Emerging Market Economies (EMEs). INR witnessed depreciation pressures primarily due to USD appreciation, FPI outflows, increased global economic uncertainty and a widening of the domestic trade gap. As the USD depreciated sharply in the last leg of FY 2024-25, INR also recovered in March 2025. USD/INR ended the year at Rs. 85.46, after having depreciated by 2.5% during the course of FY 2024-25.

In the following sections, we present an overview of YES BANKs performance during FY 2024-25

RETAIL BANKING

In FY 2024-25, YES BANK had strong growth performance in retail deposits, SME advances and calibrated growth in Retail Asset advances and continued to provide a full suite of personalised and business banking solutions. The share of YES BANKs Retail and Branch banking deposits stood at 59% of total deposits, while the share of Retail Advances stood at the level of 41% of total advances in FY 2024-25. The Bank remained focused on improving the profitability of its Retail franchise.

In perspective, deposits growth on Y-O-Y basis (FY 2024-25 vs FY 2023-24) for the industry* stood at 10.4% and for private banks* at 12%; the Bank registered growth of 6.8% and YBL Branch Banking 17.9%. Overall YBL Branch Banking led Deposits registered growth of 19.5% CAGR (FY23-FY25) versus 12% CAGR in Industry and 16% CAGR for Private Banks. Average yearly Deposits of the Bank grew 16.0% Y-O-Y, with stronger Y-O-Y growth in Current Account deposits at 20.5% and Savings Account deposits at 32.1%.

SME advances also registered steady and strong growth in funded book of 23.6% on Y-O-Y basis. Further, Retail Asset advances had calibrated growth approach for FY 2024-25 across product and sourcing mix, with the objective of profitability improvement and thus registered marginal decline of 3.4% Y-O-Y.

*Data Source: RBI (BSR)-2 – Deposits with SCBs and CAGR based on Total Bank Deposits

Branch Banking

YES BANK offers a comprehensive suite of liability and asset products to its customers under Branch Banking. The strategic focus of Branch Banking vertical remained on the affluent including emerging affluent and mass affluent customers, as well as on SMEs in the metro cities and urban markets. Overall, growth in liability deposits for the Bank was primarily driven by a robust 17.9% growth registered in Retail and Branch Banking deposits. The focus on acquiring high-quality New-to-Bank (NTB) retail customers led to a 19% Y-O-Y growth in CASA New Acquisition Value (NAV), normalized for comparability.

Growth in the liability book was achieved in the backdrop of: y System-wide significant liquidity tightening y Sharp rise in interest rates, and y Heightened competitive intensity in deposits

Branch Banking Fee income also registered a robust 21% growth during the year. Significant step-up in Retail Assets disbursement through the branch network resulted in internal sourcing touching 46% (Q4 FY 2024-25), up from 43% last year in similar period.

During FY 2024-25, YES BANK added 37 new branches and expanded its geographical footprint to 1,255 branches and 235 Business Correspondent Banking Outlets (BCBOs) spread across ~900 locations, with 1,331 ATMs and Bunch Note Acceptor/Recycler.

Spectrum Banking

Spectrum Banking is the Banks new-age channel that manages the entire customer life cycle across the full suite of retail products through virtual modes of telephony, chat and email. During the year, this channel engaged with over 35 lakh customers virtually.

Spectrum Banking manages:

Customer lifecycle: Acquisition > Onboarding > Relationship Management > Customer Value Management > Activation > Retention > Service

Retail products: Liabilities, Retail assets, Business banking, Credit cards, Merchant, Third-party products

Digital Banking Digital Payment System

YES BANK continues to invest in new-age digital technologies to offer superior customer experience.

The Bank has digital journeys for seamless customer acquisition, servicing, and cross-sell in place for retail customers. Today, 96% of all eligible savings accounts (with 72% accounts instantly activated) and 95% of eligible current accounts (with 62% accounts activated within 4 hours) are onboarded through the digital mode. The Bank has implemented comprehensive digital onboarding journey for Individuals, Sole Proprietors, Companies and LLPs for current accounts with an industry first, data backed product recommender to Auto fetch profile information from GST for KYC validation and right product recommendation in real time for new-to-bank current account.

Further, digital co-origination has been enabled across Current and Savings account onboarding, such as co-sourcing of 3-in-1 (demat and trading) account, along with savings account, co-origination of Savings Account with Current Account for sole proprietors in a single journey.

The Bank has enabled self-onboarding (DIY) with video KYC with end-to-end STP journey for digital Savings and Individual Current Account opening, as well as digital journey for government schemes, like APY and PMJDY.

There are 238 unique service journeys available on various digital applications of the Bank: y "Iris by YES BANK" - The Banks newest digital app (135 services) y YES Online (193 services) y YES Robot (92 services) y WhatsApp Banking (68 services)

To augment its offerings, the Bank continues to partner with various FinTechs and corporates. The Bank continues to be a leading player in new-age digital payments, including UPI (Payer PSP), UPI (Payee PSP), AePS, NEFT, IMPS and NACH at 33.4%, 56.9%, 39.21%, 17.3%, 10.21%, and 16.3% market share in FY 2024-25, respectively. YES BANK processes nearly every 3rd digital payment transaction in the country (around 16 billion on a monthly basis). To grow its digital volumes further and build resilience, the Bank has implemented cloud-native UPI, IMPS processors and alternate AePS processors.

Over the decade-long journey of YES Money, the Bank has onboarded over 7.5 lakh outlets which have been aiding customers with simple banking transactions, including domestic money transfer and Aadhaar and Micro ATM-based cash withdrawals.

During the year, the Bank launched solutions around new Payment Aggregator and Payment Gateway Guidelines (PAPG Guidelines), which limits only the payment aggregator (PA) licensed holder to participate in aggregation services. It solves the collection and payout problems for the network partners who do not participate as PA in the ecosystem. Under this Bank as a PA (i.e. BAPA), there are 27 partner sellers and 31 marketplace clients, and they have processed transactions valued over Rs. 3,800 crore and Rs. 53,000 crore, respectively.

During the Year, the Bank got authorised by Government of India for Direct and Indirect Taxes collection - Goes live with seamless GST payment facility for customers as well as non-customers.

In March 2025, the Bank launched a seamless customer DIY journey for sending money abroad under Liberalised Remittance Scheme (LRS) with a seamless process through our mobile app IRIS by YES BANK and YES Online. Additionally, the Bank also introduced a DIY customer journey for Travel Card issuance, control, and currency loading on IRIS by YES BANK, supporting 14 currencies and offering card delivery to a chosen address. With these innovations, the Bank enters an elite list of Indian banks offering digital services for LRS and MCTC.

Programmes YES Private

YES Private is the Banks flagship by-invite program designed especially for Ultra High Net Worth Individuals (UHNI) who have Liabilities balances of Rs. 3 crore or Total Relationship Value of Rs. 5 crore and above at a family level. The programme is thoughtfully curated, bringing together a blend of bespoke wealth expertise, full stack banking & enterprise solutions and unmatched global lifestyle experiences, backed by a team of relationship and product specialists, along with a robust service architecture.

Curated client engagement at marquee events across diverse lifestyle interests, numerous benefits embedded through the World Elite Debit Card are some of the new initiatives under the programme.

During FY 2024-25, the Bank clocked 50% growth in customer base in YES Private portfolio.

YES First and YES First Business

YES First and YES First Business are the Banks flagship wealth management and business banking programmes, curated for affluent customers for their personal and business banking needs. These specialised programs are imbibed with a comprehensive customer-centric approach and offer curated product offerings and services, coupled with a host of lifestyle benefits, to provide a delightful experience to the customers. The portfolio makes significant contribution to our Retail and Branch Banking Liabilities and fees franchise. The program propositions have been further enriched by adding relevant benefits for eligible customers through the lifecycle across multiple consumption categories.

Key Offerings y Banking solutions for personal and business needs y Wealth management y Exquisite lifestyle benefits

3+ lakh

Number of customers in YES First and YES First Business portfolio

YES Grandeur

YES Grandeur program was launched in April 2024 to cater to the divergent needs of the emerging affluent segment.

It is a pioneering program offering milestone-led benefits, banking privileges and top tier debit card features, designed to leverage on the growing demand of this niche demographic customer segment.

Key Offerings y Simplified banking and digital solutions y Diverse product suite y Majestic milestone benefits

Since its launch, 60k customers have signed up for the program.

YES Premia

YES Premia offers segmented solutions to the mass affluent segment with an emphasis on making banking seamless and enjoyable for the customers. The programme has been carefully curated to provide banking solutions complementing the lifestyles and expectations of varied customer segments. y Priority Servicing y Products and Preferential pricing y Privileges y Powerful Digital banking platforms and solutions

4.7+ lakh

Number of customers in YES Premia portfolio

YES Prosperity

YES Prosperity is the Banks mass retail programme, offering services for customers individual and business banking needs. This offers feature-packed exclusive segmented savings account proposition to garner granular deposits from segments like salaried, senior citizens, women and regular customers of the Bank. Furthermore, for the business clients, it offers current account variants such as Freedom Flexi - a first-of-its-kind five-tier product suite with an auto-upgrade and auto-downgrade facility to ensure the right product fit for every stage of the business lifecycle, along with other curated segmental offerings.

Variants offered to Current Account customers:	Variants offered to Savings Account customers:
y Freedom Flexi five-tier product suite	y P RO Max, PRO Plus, PRO
y Merchant Accounts - Easy and Prime	y Womens Account - YES Essence
y EEFC Accounts	y Senior Citizen Account - YES Respect
y Emerging Markets – Pragati, Pragati Vyapar and Udaan	y Savings Value / Kisan SA
y Special Purpose Accounts – Yes Head Startup, Xtra Gain	y Minors Account - My First YES
	y Smart Salary Account - Platinum Pro, Platinum,
	Exclusive, Advantage
	y YES Vijay Account - Exclusive, Advantage,
	Pension, Agniveer
	y YES Honor Account - Platinum, Exclusive

NRI Banking

The NRI Banking programme is a power-packed customised offering that provides multiple avenues for Non-Resident Indians (NRIs). It helps the NRIs curate and manage wealth across product categories through in-person and digital fulfilment models. This comprehensive product is complemented by a multi-channel servicing capability and benefits that extend beyond banking.

Comprehensive and superior experiential banking services for NRIs and Persons of Indian Origin (PIOs): y Banking services: Deposits, Portfolio Investment Scheme (PIS), remittances and wealth management products along with competitive NRI FX rates y Liability product suite: Savings, fixed and recurring deposit offerings denominated in INR, and fixed deposits in eight foreign currencies y International Financial Services Centre (IFSC) Banking Unit (IBU): Offers Savings and Term Deposits to NRIs in selected currencies

Debit Cards

YES BANK offers a complete suite of Debit Card variants across all three networks, Mastercard, Visa and RuPay. The Bank has card variants across all segments of its customers including Mass & Emerging Affluent, Affluent, Private as well as for segmented offerings for Women, Salaried Individuals, and NRIs, among others. These Debit Cards are designed and customised to meet the specific needs of its customers in Yes Private, YES First, YES Grandeur, YES Premia and YES Prosperity programmes.

Unique benefits across categories: y Reward points on spends across domestic and international spends y Complimentary lounge access and golf lessons (on select Debit Cards) y Exciting offers on retail categories such as entertainment, groceries among others y Insurance cover across purchase protection, accidental insurance and lost card liability The Bank launched systematic installment payments on its debit cards in Jan25 thereby enabling customers to automate their routine monthly payments on their debit cards. The Bank has also revamped and launched new card designs across its portfolio.

14.3 lakh

No. of Debit Cards added in FY 2024-25

50.80 lakh

No. of Debit Cards in force

Easing customers usage of Debit Cards: a) Easy access to card settings on Iris by YES BANK and Internet Banking, helping customers manage card spends and control card security specific parameters. b) Easy access to card settings and Debit Card services across WhatsApp Banking/BOT and a dedicated email ID for blocking/hot-listing cards in unforeseen situations. c) Allowed to set Debit Card pin of their choice (green pin) across YES Online, Iris by YES BANK and ATMs in order to promote paperless banking.

Credit Cards

YES BANKs Credit Card department is well established for prioritising customer satisfaction, offering a diverse range of products to cater to customer expectations, a robust distribution approach and exceptional customer service, well supported by strong risk management systems. The Banks current credit card portfolio consists of 30+ products tailored for consumers, small and medium-sized enterprise (SME) and commercial segments.

11 lakh Credit cards added in FY 2024-25	2.4 million Live credit cards	30% Y-O-Y growth in outstanding balance
41% Y-O-Y growth in credit card spends	19% of Consumer Credit Card spends through UPI route

During the year, the Bank has further scaled on its UPI facility offered on RuPay Credit Cards, which now contributes to 19% of the Consumer Credit Card spends. This offers an engaging proposition to its customers to conduct UPI transactions on their Credit Cards. The Bank issued more than 4.7 lakh

UPI-enabled Credit Cards in FY 2024-25. With this, a total of 27% of spends on Credit Cards was made through Cards on RuPay network.

The Bank remains focussed on acquiring its customers from the existing liability/asset base. However, as a diversification strategy, the Bank has tied up with other partners who have large and engaged customer franchisee, that are digital savvy and have high propensity for online purchases for acquiring Co-brand customers. This strategy helps get a set of customers that are not normally available to the bank through its existing customer base (location wise and profile wise)

End-to-end digital journeys in Credit Cards: a. The Banks entirely digital customer onboarding platform, coupled with a real-time credit card approval process (for eligible applicants), ensures that eligible customers receive their Credit Card details digitally in its mobile application. Over 95% of new credit card approvals in March 2025 were processed digitally. b. The digital onboarding platform supports multiple formats such as DIY, Assisted, Bio-metric and Video KYC. c. The Bank also introduced an option to choose the card network during the journey, thus allowing customers more flexibility to opt for their most preferred option. d. All Co-brand Credit Card launches in FY 2024-25 have been with an end-to end digital only journey.

Retail Banking Assets

The Banks customers can select from a wide range of retail loan products its offers. The share of a diversified Retail Banking assets book across all products stands at 41% in FY 2024-25. Retail Banking Assets products are offered across 650+ locations through branches and channel partners.

Retail Banking products offered under a single roof:

Home	Affordable
Loans	Home Loans
Car Loans	Construction
Auto Loans Used Car Loans	Equipment Loans
Commercial	Loans Against
Vehicle Loans	Securities
Personal	Business
Loans	Loans
Education	Secured
Loans	Business Loans
Loans Against	Working
Property	Capital Finance

The Bank continued to focus on delivering profitable growth led by business-mix optimisation towards its higher return products. It has entered into financing agreements with leading manufacturers of cars and commercial vehicles and with construction equipment, thereby enabling access to the wholesale and retail businesses of manufacturers and dealers across the country. The Bank has adopted a strategic approach to drive higher share of internal sourcing by positioning branches as the fulcrum of growth in order to reduce the cost of acquisition. Sourcing contribution through internal channels crossed 50% for the first time across retail and rural assets in FY 2024-25 as against 42% in FY 2023-24.

Key developments: y Enhancing digital capabilities: The Bank has been enhancing its digital capabilities with additional products/ offerings such as ‘Loan in Seconds platform as well as front-end automation initiatives using YES Robot, to provide customers with shorter response time and drive higher productivity

• Investment in Salesforce: With an eye on future retail-led growth ambitions backed with strong technology, the Bank invested in Salesforce, the worlds leading CRM platform, to build a next-generation cloud-based loan origination system. This shall facilitate concurrent processing integrated with BRE to enable real-time credit decisioning and industry-best turnaround time

• Increasing digital onboarding: During the year, digital loan onboarding powered by Salesforce was made live for Home Loans

96 %

Consistently maintained collection efficiency

The Bank has a diversified retail asset book built around analytics-based collection scorecards, which augments performance of the field force and enhances collection cost efficiencies. The Bank has also invested in collections infrastructure such as New Collection System and additional Scorecards to further augment its collection efficiency.

Rural Banking Assets

This unit addresses the financial requirements of Indian farmers for crop production and ancillary activities through Kisan Credit Card loans and Farm Mechanisation loans.

Key Offerings: y Catering to specific needs of farmers across specialised agri clusters through flagship crop loan product under different variants y Handling farm mechanisation needs of progressive farmers by financing purchase of tractors, harvesters and agri implements

Widened reach through presence in 13 states

Active borrower base of 80,000 farmers

Inclusive & Social Banking

In line with its commitment towards sustainable ‘inclusive growth in the rural and semi urban segment, YES BANK has always focused on catalytic innovations and key partnerships to create and promote viable business models, apart from providing ‘access to finance to its bottom-of-the-pyramid customers. It has a two-pronged strategy involving Inclusive & Social Banking (ISB) and Microfinance Institutions Group (MFIG) for the implementation of various financial inclusion initiatives, albeit in a profitable manner. While the women microfinance borrowers are served for loan and other insurance requirement through ISB division, the Bank, through its IFI business unit provides term loans to Micro-Finance Institutions (MFIs) for lending to similar segments.

Parameters defining the Banks reach to the bottom of the pyramid customers

Active customer base of 6.5 lakh women

Made cumulative disbursement of Rs. 17,700+ crore

Reached out to 40+ lakh families (till date)

The Bank also offers optional insurance products which includes a customised loan cover life insurance product and a new tailored hospital cash product for the rural and semi urban segment. These products are aimed at helping them reduce out-of-pocket hospitalisation expenses during unfortunate times.

Agribusiness Product Management

Agribusiness Product Management (APM) is the Banks specialised unit, which houses industry and banking professionals with relevant domain knowledge and skill sets. The team closely interacts with Food and Agri clients to create customised lending propositions for the agri value chain participants, including farmers, SMEs and corporates. It facilitates in building of banking opportunities in the agri value chain through suitable financial products, while also mitigating the credit risk. The team is also responsible for ensuring that the Bank meets the regulatory Priority Sector Lending (PSL) norms, in collaboration with the other Business Units that generate PSL assets. Financing against pledge of agri commodities in warehouses (warehouse receipt financing) is one of its key offering. y The Bank has created a granular portfolio against the pledging of agri commodities, while ensuring adequate risk mitigation y A specialised team closely monitors commodity pledge financing portfolio and mitigates inherent risks through mark-to-market of commodity prices and in-depth data analysis using various tools and techniques y The end-to-end process is carried out on digital platforms to ensure faster customer service and superior experience Rs. 2,141 crore

Total Portfolio of Warehouse Receipt Financing

(As at March 31, 2025)

Merchant Acquiring Services

YES BANK is one of Indias leading providers of Merchant Acquiring Services, with best-in-class product suite, backed by high service standards and a robust technological infrastructure. Merchant Acquisition plays an integral role in providing a payments solution to its Current Account holders.

The segment caters to more than 2.6 lakh merchant establishments and has 4.2 lakh payment acceptance touchpoints across India. The business saw a 44% growth in its merchant base and 27% in spends processed through payment acceptance devices for FY 2024-25.

The Bank has further enhanced digital onboarding capability through its merchant onboarding platform. At present more than 95% of the merchants are onboarded digitally.

Merchant Acquiring Services offer state-of-the-art Android-based point-of-sale (POS) devices, SoftPOS solution, same-day and holiday settlements, and an array of other value-added services, including SMS Pay, EMI, Dynamic Currency Conversions (DCC) and best-in-class solutions for QR / UPI payments like QR Standee and QR Soundbox.

The Bank continues to invest in new products, enhanced services and advanced digital processes for this business.

Fintech Partnerships1

YES BANK engages with multiple fintech partners to enable the acquisition of incremental new-to-bank (NTB) customers across liabilities, assets and credit cards. By collaborating with select Fintech Partners, the Bank is building a sustainable and scalable low-cost acquisition model. Selecting a Fintech Partner is a well-thought-out strategy with a segmental-based focus to ensure differentiated product offerings and value-creating propositions.

By leveraging unique propositions with the Fintech Partners superior UI/UX and a robust application programming interface (API)-based technology stack, YES BANK is also able to offer and cross-sell the Banks relevant product and services.

During the year, the Bank partnered with a scaled player in the payment ecosystem as the PSP Payments Bank, reflecting the inherent strength in the Banks capabilities and technology infrastructure. This partnership is expected to further aid our market share in the digital payment ecosystem, merchant acquisition, current account balances and transaction banking flow, thereby resulting in further improvement to the Fee Income.

SME Banking

Small & Micro Enterprises (SME) Banking vertical continues to be a key growth engine, recording a strong 23.6% YoY growth in FY 2024-25. Key business unit construing SME Banking are: MIB (Micro enterprise Banking), SEB (Small Enterprise Banking) and MEB (Medium Enterprise Banking) catering to the diverse needs of each segment of the MSME pyramid. Over FY 2023-24, SME Bankings contribution to overall bank advances has gradually increased from 15.5% to 17.7%, highlighting its expanding strategic role within the Bank.

SME Banking offers comprehensive financing solutions tailored to the diverse needs of the MSME ecosystem, delivered through a network of 1,255 branches and robust digital stack, and a dedicated team of Relationship Managers and Product Specialists.

Strategic Focus Areas: y Digital Lending Platform (DLP): Launch of DLP has significantly transformed the login process for SME customers, powered by information available via extant Digital Public Infrastructure (DPI) including GST, Udhyam, IEC, Banking, ITR, Bureau API sets

• Iris for Business: Enhanced Customer Experience, through smart and intuitive YES Business App providing seamless experience for integrated financial management of personal and Business Banking accounts, Digital CA opening and Overdraft facility

• SME Service Desk: Unified Service Desk, which already addresses 50+ non-financial customer requests (Stock Statement Submission, Bank Statement, other non-financial statement) has now been upgraded to include key financial services such as RTGS/NEFT processing, FD booking, and more. This enhancement not only empowers customers with a one-stop solution for their banking needs, but also releases Relationship Manager bandwidth, enabling them to focus on deeper engagement and value-added interactions.

• Launched "PowherUP", a dedicated initiative to support and finance women entrepreneurs in the MSME segment y Portfolio Quality & Risk Management: Proactive initiatives focused on early identification and proactive management of potential stressed accounts, ensuring portfolio health and maintain control over credit cost

• Implementation of E-Sign and E-Stamping enabling faster, paperless loan execution

Growth-Focused Initiatives:

To accelerate future growth, SME Banking has identified high-potential segments and launched targeted initiatives such as:

• Government Schemes: Strong focus on loans backed by Government Guarantee Schemes (CGTMSE, CGSS, etc.)

• Digi OD (Unsecured Product): An end-to-end digitally enabled unsecured overdraft facility; a high yielding product aimed toward driving profitability y SmartFin LOS & LMS: Complete digital solution for Supply Chain Financing encompassing complete Customer lifecycle management from onboarding to drawdown management

• YES Export – Launch of new product for exporters (up to Rs. 15 crore) with the following features:

• F unding up to 10 crore basis charge on current assets only y O nline trade platform

• D edicated support from service desk y Project Orion – A data-driven lead generation engine that leverages the Banks internal customer base to empower SME sales teams with qualified leads This integrated approach, combining digital transformation, customer-centric innovation, and data-driven strategies, has positioned the SME Banking business as one of the fastest-growing and future-ready verticals within the Bank.

WHOLESALE BANKING

As the Bank accelerates its transformational journey, its strategic focus in maintaining sustainable growth is aimed at developing and driving liability franchise and strengthening its asset business, along with strong governance and compliance as well as prudent risk management. To further develop these objectives, the Wholesale Banking Group continues to play a key and pivotal role for the Bank, serving the below segments:

The Banks Wholesale Banking strategy is to build scale and positioning through new client acquisition, up-tiering proposition and cross-selling to cater to the evolving needs of the customers, with a laser focus on Risks & Returns.

Offering comprehensive client-focussed services across:

Large Corporates

YES BANKs Large Corporates segment remains an important component of our wholesale banking strategy, delivering tailored financial and risk management solutions to Indias most prominent companies. Anchored by our philosophy of Ecosystem Banking, the segment adopts a holistic approach, extending beyond traditional banking relationships to serve the broader ecosystem of our clients—including their dealers, vendors, and customers. This interconnected strategy ensures that we address the diverse needs of large corporates, while fostering sustainable growth and deepening client relationships.

In FY 2024-25, Large Corporates business unit continued to strengthen its market position through client centricity, strategic partnerships and robust risk management. We focused on enhancing our product suite, streamlining processes, and leveraging technology to deliver seamless banking experiences.

Our commitment to being a one-stop financial partner is reflected in our comprehensive offerings, which include:

• Corporate Lending: Financing solutions to support capital expenditure, expansion and strategic initiatives

• WorkingCapitalSolutions:Customisedfinancingsolutions to optimise cash flows and support operational efficiency

• Trade Finance and Supply Chain Solutions: Facilitating seamless transactions across the value chain for clients and their ecosystem partners

• Treasury and Forex Services: Providing hedging solutions and market insights to manage currency and interest rate risks

• Transaction Banking: Enabling efficient cash management, payments, and collections through digital platforms

• Wealth Management and Retail Banking Services:

Catering to the personal banking needs of promoters and employees offering them a bouquet of services including savings accounts, credit cards, salary accounts and personal loans through partnership with Retail Banking team

Looking ahead, Large Corporates team is well poised to capitalise on emerging opportunities in Indias evolving economic landscape. We aim to expand our presence in sunrise sectors in alignment with national initiatives such as Make in India and the green energy transition, deepen the ESG-focused offerings and continue investing in technology to deliver frictionless banking experiences. The Large Corporates segment remains committed to driving value for our clients and stakeholders, reinforcing YES BANKs position as a leader in corporate banking while contributing to Indias economic growth.

Mid-Corporates

The Mid Corporates segment focusses on corporates with a turnover between Rs. 100 crore and Rs. 1,500 crore. The segment lives up to its philosophy of supporting local corporates by being closer to its customers, developing a thorough understanding of their banking needs and delivering tailored solutions across the entire spectrum of banking services.

Key pillars of Mid-Corporates segment:

Regional presence	Granular asset and liability book
Robust risk management	Strong digital penetration
Structured cash and trade solutions	Sustainable growth

The Mid Corporate segment is on the path of growth through its two-pronged approach of acquiring New-to-Bank (NTB) clients and deepening its existing relationships.

The Mid Corporate team, which currently runs its operations from 37 locations pan-India, will continue to build this portfolio with a stringent focus on Cross-Sell through synergies with Transaction Banking, Digital Banking, Food and Agribusiness Strategic Advisory and Research (FASAR), Financial Markets, and Retail Banking.

The Mid Corporate segment is also deeply entrenched in Indias new-age entrepreneurship ecosystem through its bespoke digital solutions, incubation and networking platforms provided to E-Commerce, Fintech, and Agritech businesses. The Bank has a dedicated team providing innovative banking solutions to cater to the unique requirements of start-ups.

Indian Financial Institutions

The Indian Financial Institutions segment offers correspondent banking solutions to domestic banks, digital and transaction banking solutions, including market leading API Banking stack for NBFCs, mutual funds, and stockbrokers. It commands a dominant position in co-operative banks space. The unit has built a sustainable asset book with retail focussed NBFCs and strategic Priority Sector Lending (PSL) through Micro Finance Institutions. It also facilitates Co-lending/Direct Assignment (DA) partnerships to build the retail book further. There are superior offerings for Professional Clearing Members (PCM) and Custodial Businesses, along with banking facilities for stockbrokers and exchanges.

The unit engages with domestic financial institutions like National Bank for Agriculture and Rural Development (NABARD), the Small Industries Development Bank of India (SIDBI), the Export–Import Bank of India (EXIM Bank) and the National Housing Bank (NHB) to avail refinance. It also connects with overseas branches of Indian banks to avail Foreign Currency Borrowings and Trade Credit.

International Banking

The International Banking segment maintains relationships with an extensive network of International Banks, Multilateral Financial Institutions and Exchange Houses. It provides a complete suite of products and solutions. The unit leverages its strong correspondent-banking network to create access for its corporate customers and also for internal stakeholders, providing access to the international markets for availing financing and international banking services. The unit leverages the Banks market-leading API banking stack to integrate with Banks and Exchange houses to offer real-time instant settlement services for its cross-border remittance business.

Products & Solutions:

• Trade Finance

• Treasury Services

• Investment Banking Solutions

• Remittance Solutions

• Financial Advisory

Government Banking

The Government Banking segment aims to provide financial, banking, technology-led solutions and strategic advisory services to ministries under the Union Government, State Government, Central and State Public Sector Undertakings, Boards and other affiliates. The unit delivers innovative, structured and comprehensive solutions, and has also concluded several landmark transactions with Maharatnas, Navratnas, Mini-Ratnas and other apex institutions.

The Bank has deployed innovative and customised digital solutions for various Central and State Development and Procurement Agencies. It has also provided support to educational, religious and sporting institutions across India via its unique transaction banking offerings, which are aimed at creating operational and financial working capital efficiencies. The Bank also partners with the State Governments through the Public Financial Management System (PFMS) mode of payment to ensure seamless tracking of last-mile beneficiary disbursement and create operational efficiencies through the Single Nodal Account (SNA) model. The Banks recently launched Agency Banking services will further strengthen the banks offering.

Multinational Corporates

The Bank has established strong relationships with various multinational corporates across key trade corridors and positioned itself to extend its network for their India-linked businesses. The Multinational Corporates unit also engages with various strategic influencers to originate current account leads by leveraging its thought-leadership and transaction banking capabilities. The team also leverages the Banks strong digital and transaction banking capabilities to generate solution-led current account liabilities across all the corporate segments.

Key focus areas:

a) Becoming preferred host-country bank to global clients

b) Source solution-led current account from corporates

c) Capital Account Transactions advisory, Transaction handling and FEMA Reporting

d) Ecosystem Banking through Supply Chain

Financing Solutions

Product Expertise Transaction Banking

The Transaction Banking is a specialised product group providing Trade Finance, Cash Management and Supply Chain Financing services to Corporates, Governments and Financial institutions. It also engages with strategic business groups to provide customised solutions directly and to their clients through its B2B2C approach.

YES Transact is Transaction Bankings comprehensive product suite that caters to the working capital and liquidity management requirements of businesses across sectors and to a spectrum of MSME and wholesale client segments.

The product suite includes: y Cash Management Services

• C ash Management Services for managing receivables and payables

• Cu stomised and innovative digital solutions, including market-leading API banking solutions

• D igital solutions for domestic/international correspondent banking and NBFCs

• S pecialised products and solutions for government entities, including Central and State bodies

• F iduciary services, for e.g., escrow, nodal and RERA

• C apital market-related products, including settlement and custodian services

• C urated solutions for Trusts, Associations, Societies and Clubs (TASC)

• Trade and Supply Chain Finance

• T rade finance, e.g., Letters of Credit, bank guarantees, export and import credit, and remittances

• S tructured trade and supply chain solutions including digitisation initiatives

• F EMA and Capital Account advisory services

• F intech engagements, providing its market leading API

Banking stack, or to leverage its connected banking approach and generate acquisition leads

• F oreign exchange services including cross border business solutions for Payment Aggregators (PA-CB)

• B ullion Sales and Gold Metal Loans

• Remittances

• I nward remittances for Exchange house partners under Rupee Drawing Arrangement

• O utward remittances under LRS for AD2 &

MTO partners

The Transaction Banking leverages its product and technology expertise to offer innovative digital solutions by designing, developing and co-creating products with corporate clients, fintech/technology partners, banks and exchange houses. The Group effectively drives digitisation in the entire financial supply chain of businesses across sectors, and leverages its flagship API banking, fintech partnerships and product knowledge base through its product and sales teams.

The Group also manages Internet Banking and API channels for its corporate clients. As the pioneers of API Banking for a decade, the API Banking stack today provides 1,500+ API-related products and services. Transaction Bankings supply chain unit works with its strategic corporate clients, using technology to harness anchors supply chain linkages and provide critical liquidity solutions to their MSME/SME partners. It also offers the ‘YES Connect platform, an API marketplace that brings together banking (products and services offered by the Bank) and beyond banking (solutions from third-party partners) solutions in a simplified manner.

During the year, YES BANK launched IRIS Biz –a Super App for Corporates. It is omni channel platform and provides services via both web and mobile application. The application has 100+ banking and beyond banking features for corporates. The application allows customers to seamlessly collect funds, make payments and manage their trade finance and remittance requirements. The next generation platform is revolutionising Banking for MSMEs and Corporates.

YES BANK also announced the launch of its Agency Business Mandate, enabling it to act as an agent for various state and central government and regulatory bodies. Through direct integration with the various tax portals, this empanelment enables businesses and individuals to meet their tax obligations swiftly and securely using YES BANKs Retail and Corporate Internet Banking platforms, as well as any of its extensive branch network.

Project Finance & Loan Syndication

The unit facilitates underwriting of project finance exposures across business segments and has built sectoral expertise over the years, across sectors such as energy, ports and logistics, transport, real estate, roads, refineries, metals, warehousing and data centres, amongst others. It has demonstrated its distribution capabilities across Banks, NBFCs and Financial Institutions. The unit provides knowledge inputs to key stakeholders to deepen their understanding of these sectors, market conditions and industry developments, and help devise sector specific strategies. This distinctive approach also helps in improving our mindshare and deepen client relationships. The unit further extends support to the Banks ESG initiatives by lending to sustainability sectors.

Financial Markets

The Financial Markets segment offers a full range of products and services to Large Corporates, SMEs, Government, Retail and Institutional Clients. Whether it is providing comprehensive advisory services, macroeconomic research or debt capital market services, its focus continues to be on maintaining client relationships and ensuring their growth. The Bank currently has 110+ professionals serving the needs of clients at various branches across the country.

FX Sales: The Bank provides customised solutions for FX (foreign exchange) risk management to large and mid-sized corporates, PSUs, MNCs, banks and private equity funds. The Banks well-developed retail franchise for FX business caters to SMEs, HNIs and NRIs, among others. The Bank provides spot and derivative products for efficient hedging of foreign currency and interest rate exposures for its institutional, corporate, SME and retail customers. The Bank also offers solutions in complex derivative products to its clients.

The segment offers products such as FX advisory for trade flows, foreign direct investments (FDIs), capital flows, external commercial borrowing (ECBs), American Depositary Receipts (ADRs) and hedging solutions for currency and interest rate exposures. Every account has a dedicated Treasury Sales Manager that provides key personal services such as timely market insights and sectoral expertise. The Bank provides hedging solutions to its clients outside India through IFSC Business Unit in GIFT City, Gujarat.

Primary Dealership: YES BANK is one of the 21 Primary Dealers (PDs) designated by the RBI to actively trade, underwrite and bid for Government Securities, T-Bills and State Government Bonds in auctions, providing a complete suite of sovereign debt. The Bank has dedicated sales personnel for dealing with mutual funds, insurance companies, foreign portfolio investors (FPIs), cooperative banks, provident funds and retail customers.

Debt Capital Market (DCM): This business is responsible for origination of onshore rupee debt mandates including Non-Convertible Debentures (NCDs), Commercial Papers, PTCs and execution and distribution of these mandates. The Banks clientele in this segment comprises large and mid-market corporates, PSUs, central and state government entities and NBFCs.

On the distribution front, the DCM desk has developed deeply entrenched relationships across various investor segments, including mutual funds, insurance companies, provident and pension funds, FPIs, banks, private wealth managers and NBFCs. It has successfully executed deals ranging from vanilla transactions to highly structured debt solutions, including a renewable asset pooling structure, securitisation of infrastructure assets, lease rental discounting and NCDs issued by InvITs (Infrastructure Investment Trusts). The Banks DCM team has consistently been ranked in the prestigious league table rankings and has also received several awards and accolades over the years.

Balance Sheet Management Group (BSMG): The Banks BSMG team is the custodian of its cash, liquid assets and government securities portfolio. It manages day-today liquidity within the centralised treasury function with governance oversight by the Asset Liability Management Committee (ALCO). It also manages the Banks investments in securities and is responsible for meeting statutory reserve requirements like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Liquidity Coverage Ratio (LCR) and Net Stable Funding Ration (NSFR).

The BSMG team is responsible for management of liquidity risk and interest rate risk exposures within the Banks Balance Sheet. It also provides guidance on funds transfer pricing based on movement of funds within the Bank, which is an essential input for pricing of all the asset and liabilities products offered to its customers.

Bullion: YES BANK imports bullion on a consignment basis to meet outright purchase and gold loan requirements of bullion dealers and jewellery manufacturers (both domestic and export purpose). The Bank has emerged as a dominant player in the Indian bullion market and established itself among the top three bullion importing banks in India. Today, it is one of the leading banks that successfully meets the demand of small and medium-sized manufacturers.

IFSC Banking Unit – GIFT City (IBU)

YES BANK was the first Bank in India to commence operations at the IFSC in GIFT City, Gujarat, in October 2015. IBU provides comprehensive solutions to the Banks corporate and retail clients to meet their foreign currency banking requirements across liability and investments, cross-border trade offerings, external commercial borrowings and foreign currency loan syndications.

Knowledge Banking

Business Economics Banking

Business Economics Banking is the research and knowledge arm providing critical analytical perspectives on domestic and global financial markets. The team produces cutting-edge reports on macro issues and public policy perspectives with an aim towards enabling clients with requisite knowledge base required for their business, backed by adequate research.

Food and Agri Business Strategic Advisory Research (FASAR)

The specialised Food and Agri Business Strategic Advisory and Research (FASAR) unit houses industry specialists with sectoral knowledge and experience in the food and agri business domain. FASAR rolls out strategic initiatives and generates innovative banking opportunities from existing and prospect clients on the back of its knowledge-led banking services.

The unit works closely with corporates, SMEs, multinationals, industry chambers, as well as Central and State Governments operating in the food and agri ecosystem. They focus on executing knowledge backed advisory engagements, ranging from strategic advisory, policy advisory and project advisory, that have high potential for generating banking outcomes. The FASAR unit also publishes regular strategic reports and research papers on key trends and developments in the food and agriculture sector.

Corporate and Government Advisory

The Corporate and Government Advisory segment works across the emerging sectors of Indias economy by executing knowledge and advisory mandates to further the Banks commitment towards Indias holistic, inclusive and sustainable growth.

The Group leverages its in-depth sectoral expertise, research skills and apex-level relationship capital across government and industry ecosystems to assist clients, including Central and State governments, multi-lateral bodies, industry chambers and private sector players, in their development and growth agenda. The focused value-chain driven approach in sectors such as Smart Cities and e-mobility has created new banking opportunities for the Bank and helped in deepening relationships with key customer segments.

Stressed Asset Management

YES BANKs Stressed Asset Management (‘SAM) team leads management (including resolution, early exit, sustaining operations & recovery) of stressed loans (however Standard) and non-performing assets (NPAs) originating from the Banks various Corporate segments including SME. The Group provides effective solutions for resolution of these assets by leveraging its understanding in rehabilitation, restructuring, regulatory, legal, and recovery subjects. Over years, since the team has been independently managing the allocated portfolio, the team has added significant domain expertise and has successfully applied the same in the resolution of the allocated portfolio, involving varying degrees of nuance and complexity and geographies, involving both onshore and offshore. During the financial year, the SAM team continues to be ISO 9001:2015 compliant, reiterating its consistency while delivering quality outcomes, for both internal and external stake holders.

Depending on nature of cases, the SAM team pursues multi-pronged resolution strategies, some of which are detailed under:

• Engaging with strategic investors for either co-participation or complete takeover of Identified stressed asset or sale itself

• Resolution of account through various available legal forums, like Insolvency and Bankruptcy (IBC), Debt Recovery Tribunal (DRT) / Debt Recovery Appellate Tribunal (DRAT), SARFAESI, Arbitration

• Determining the right cashflows and value of the asset/ Corporate Debtor, thus determining and enabling negotiation with borrowers for one-time settlements or undertaking operational and financial restructuring or pursuing Debt Assignment activity

• Depending on case requirement, engagement with the Borrowers principals / counterparties is also undertaken to better understand the subject and pursue Banks mandate

During FY 2024-25, certain portion of Retail portfolio has been transferred to SAM unit for Collection and resolution purpose.

SUPPORT FUNCTIONS

Human Capital Management

A "people-first" culture truly works towards the sustainable competitive advantage for the Bank. It has enabled us to attract and retain the best talent while driving more equitable outcomes. At YES BANK, we enjoy a culture that promotes meritocracy and career enhancement. The Bank has a total of 28,690 employees as at March 31, 2025 of which a net number of 689 employees were added in FY 2024-25. YES BANKs 5C engagement model (Culture, Communication, Connect, Career and Care) provides a consistent and enhanced employee experience.

The Bank implements various talent management and developmental learning initiatives tailored to the needs of the employees, business units as well as the organisation.

These include ‘Maestro, an initiative where key leaders participated in customised talent assessments and development initiatives aligned to their growth needs. To reinforce the Banks commitment to Risk & Compliance Culture, a learning initiative aiming to equip employees with the knowledge to ensure regulatory adherence was launched.

To bolster the Banks focus on Diversity, Equity & Inclusion, structured interventions were introduced to cultivate awareness, to sensitize employees on recognising & reducing the impact of unconscious biases. The aim was to promote more equitable & inclusive behaviours at the workplace. In addition to this, select women executives were identified who underwent a developmental journey that helped them evolve in their current and prepare them to take up larger assignments in future.

The Banks dedication to fostering a positive workplace culture has been recognised with its certification as a Great Workplace by ‘The Great Place to Work Institute (GPTW) for the third consecutive year in India. YES BANK also received a recognition by GPTW for being among the Top 50 in Indias Best Workplaces in BFSI 2025 for the third year in a row. This recognition by the GPTW Institute not only reaffirms our commitment to excellence in ‘people practices, but it also highlights our dedication to nurture a high-trust culture.

Women participation in the Banks workforce increased from 21.8% in FY 2023-24 to 23.2% in FY 2024-25. The Banks attrition rate in FY 2024-25 stood at 35.5%, compared with 38.2% in FY 2023-24.

Risk Management

The Banks long-term financial security and success is built on its risk management architecture. The Banks risk management is based on three lines of defence: (a) business units, (b) independent control functions, and (c) internal audit.

Further, the Banks Board has the overall responsibility of risk management, with the risk management architecture being overseen by the Risk Management Committee (RMC) of the Board. Additionally, risk management is undertaken by other Board-level committees for respective risks as per the Banks Board-approved risk architecture.

The Bank is exposed to three Pillars. Pillar 1 includes risks in the course of its business such as credit risk, market risk, and operational risk. With the evolving banking landscape, the Bank is also exposed to Pillar 2, which includes risks such as liquidity risk, interest rate risk in banking book, and reputation risk.These risks are also critical as they have a bearing on the Banks financial strength and operations. A detailed description of various risks faced by the Bank, their respective governance framework, management and mitigation strategies, and their implication to the Bank is presented in Annexure 1.

The Bank has Board-approved risk policies that define its risk framework. The RMC and the Board monitors the compliance of various risk parameters and risk exposures on a periodic basis. The RMC also ensures that frameworks are established for assessing and managing various risks faced by the Bank. It ensures that the Banks framework is adequate and appropriate for changing business and economic conditions, structure and needs of the Bank and is well within its risk appetite.

Further, the Bank has a structured strategy assessment and management framework as part of Internal Capital Adequacy Assessment Process (ICAAP) to identify, assess and manage the risks that may have a material adverse impact on its business strategy, financial position and capital adequacy. It also has in place a Board-approved risk appetite statement for key risks identified under ICAAP. There are internal policies and processes to ensure that the Bank operates within its risk appetite thresholds.

The Bank has also implemented a Board-approved stress testing framework that forms an integral part of ICAAP and risk assessment. Stress testing involves the use of various techniques to assess the Banks potential vulnerability to extreme, but plausible, stressed business conditions. The Bank evaluates the impact of various stress testing scenarios on account of various Pillar I and Pillar II risks.

Internal Audit

The Banks Internal Audit Department (IAD), which is ISO 9001:2015 certified (Quality Management System), provides an independent and objective assurance and consulting services to add value and improve its risk and control environment. The IAD monitors the adequacy, effectiveness and adherence to internal controls, processes and procedures instituted by the Banks management and extant regulations.

The Internal Audit team reports to the Audit Committee of the Board (ACB) for audit planning, reporting and review, and the Head of the IAD reports directly to the ACB of the Banks Board of Directors. The IAD has unlimited and unrestricted access to all relevant data, systems, personnel and information to achieve its objectives. It is staffed with qualified team members with relevant certifications, and its training programme ensures that all team members are upskilled at frequent intervals.

The IAD has adopted a risk-based approach towards internal auditing, as per regulatory guidelines and internationally established best practices. A risk-based audit plan (RBAP) is prepared annually and is duly approved by the ACB. The IAD audits various businesses, operations, information security (IS), information technology (IT) systems and support units as per the RBAP. The IAD prepares a report for each audit, recommends mitigation plans for the risks identified and ensures compliance with all the recommendations. The ACB monitors the progress of the RBAP on a quarterly basis.

The Bank also subjects its operations to concurrent auditing by reputed audit firms to complement its internal auditing function. Concurrent auditing covers core activities, including operations (including credit), financial markets, data centres (including IT & IS systems) and branches in compliance with regulatory guidelines. All audit reports are circulated to the relevant management teams and the ACB.

Compliance

Ensuring compliance with regulatory requirements, promoting a robust culture of compliance among YES BANKers and building trust among all the stakeholders is an overarching consideration at the Bank. The dedicated Compliance Department strives to be at the forefront of regulatory changes and continues to work closely with all the Banks businesses and operations to be compliant with existing and new requirements. To further this objective, the Chief Compliance Officer at the Bank reports directly to the ACB.

The key functions of the Compliance Department align with various RBI guidelines, which includes identifying effective procedures, corresponding controls to support the Banks business divisions and the dissemination of key regulatory updates affecting the Banks various businesses. The Compliance Department also reviews new products and processes from a regulatory compliance perspective, provides guidance on compliance-related matters, conducts compliance reviews and delivers training to employees on different aspects on compliance. In addition, the Bank has also put in place the KYC and Anti-Money Laundering policy approved by the Board and transaction monitoring procedures, as per the regulatory guidelines.

Company Secretarial (CS)

The Banks Company Secretarial Function is ISO 9001:2015 certified for its functions and processes based on the key attributes which includes risk-based approach, ability to consistently meet customer and regulatory requirements, standard operating procedures across the business process, monitoring and control mechanism and continual improvement framework.

The Bank is committed to achieving highest standards of Corporate Governance and the dedicated Company Secretarial (CS) Function of the Bank, endeavors to follow the best secretarial practices in order to uphold the governance standards of the Bank. The CS Function is responsible for the Regulatory Compliances under various Laws/Acts/ Regulations/Guidelines/Standards prescribed by SEBI, RBI, MCA and other stakeholders of the Bank.

Being the Board Governance facilitator, the CS Function plays a critical role in organising and implementing the Boards decisions, its Committees and General Meetings. It handles the regulatory correspondence and ensures the fair, prompt, uniform and transparent dissemination of information to the stakeholders through stock exchanges. The designated Company Secretary is the KMP under the Companies Act and reports directly to the MD&CEO, and the Chairman of the Board.

Sustainable Finance

The Sustainable Finance (SF) function at YES BANK is responsible for integrating environmental, social and governance (ESG) considerations into the Banks business. It is also responsible for aligning it with the objectives of global and national, sustainability-linked frameworks such as the National Guidelines for Responsible Business Conduct (NGRBC), Sustainable Development Goals (SDGs), the Paris Climate Agreement and the Principles for Responsible Banking (PRB), amongst others. The team works with Sustainability SPOCs (Single Point of Contact) across the Bank to implement its sustainability strategy and achieve its ESG-related targets, as set out by the Sustainability Council (chaired by the MD and CEO). The SF team is also responsible for updating the Board-level Corporate Social Responsibility (CSR) Committee and ESG Committee on the Banks overall ESG performance and progress.

The SF team acts as the custodian of the Banks Environment and Social Policy (ESP) which serves as a structured approach towards responsible lending. The ESP is an integral part of the Banks Environment and Social Risk Management System (ESMS) which sets out the overarching framework for identification and management of potential and/or existing environment and social (E&S) risks commensurate with the nature and scale of transactions and their potential impacts. Through this policy, the Bank integrates environmental and social risks into its overall credit risk assessment framework.

The team also acts as the custodian of YES BANKs Environmental Management Policy which guides the implementation of Bank-wide Environmental Management System (EMS). This EMS is designed to monitor and minimize the negative environmental risks and impacts of the Banks operations by driving continuous improvement in areas such as natural sustainable supply chain and emissions reduction.

In FY 2024-25, 1,186 of the Banks facilities were certified under the ISO 14001:2015 EMS Standard. This was the 12th year of certification and the Bank continues to have the highest number of facilities, certified as per the ISO 14001 Standard, amongst the Banking & Financial Services and the Insurance (BFSI) sector, globally.

The SF function plays a key role in implementing the Banks commitment to align its business strategy to the Paris Climate Agreements goal of limiting global temperature rise. YES BANK continues to be the only Indian banking signatory to UNEP FIs Principle for Responsible Banking. The Bank has pledged to reduce Green House Gas emissions from its operations (scope 1 and 2), to net zero by 2030. To achieve this, the Bank plans to migrate most of its facilities to renewable sources of energy.

Currently, three of the Banks major offices, YES BANK HOUSE, YES Fintech Centre, Airoli and R-Tech Park-Goregaon, along with 50 of the Banks 78 branches in Mumbai have been transitioned to renewables. In FY 2024–25, the Bank reduced its combined scope 1 and scope 2 emissions by

8,034.52 tCO e and achieved a ~26% reduction in emission intensity (per rupee of turnover) compared to the previous year. In FY 2020-21, YES BANK had emerged as the first Indian Bank to measure and report financed emissions of its fund-based electricity generation portfolio. In FY 2022-23, the Sustainability Council had approved decarbonisation targets to reduce the financed emissions intensity of the Banks fund-based electricity generation portfolio, in line with the well below 2 degrees, striving for 1.5-degree scenario. In FY 2024-25, the Bank further expanded the scope of its financed emission measurement and disclosure to include the cement (manufacturing) and iron & steel (manufacturing) portfolio (covering corporate loans, investment (treasury), and project finance). The Bank continues to support climate-aligned sectors like renewable energy, and clean transportation, and aims to develop targeted products for green financing such as YES Kiran, rooftop solar loans dedicated to SMEs and Green Deposits.

The SF function works with teams across the Bank to enhance ESG and climate-related disclosures.

In FY 2024-25, for the third year in a row, YES BANK achieved the highest S&P Global ESG score amongst Indian banks based on the S&P Global Corporate Sustainability Assessment (CSA) 2024 and is the only Indian Bank to be included in S&P Global Sustainability Yearbook 2025. The Banks S&P Global ESG score stood at 73 (out of 100) and S&P Global CSA Score stood at 72 (out of 100) as of November 7, 2024. The S&P Global CSA is considered one of the most comprehensive and granular assessments of an organisations ESG performance, taking into account up to 1,000 data points on an organisations performance across topics such as Climate Strategy, Operational Eco-Efficiency, Financial Inclusion, Human Capital Development, Human Rights, Corporate Governance, Risk Management, amongst others.

For the third year in a row, YES BANK scored ‘A- Leadership Band by CDP for its 2024 Climate Change disclosures, retaining its position as the highest scored Indian Bank for climate disclosures. CDP annually provides scores to global organisations across sectors, based on their climate-related performance. YES BANK earned the ‘Leadership Band (A/ A-) in 11 out of 17 climate-related disclosure categories, including areas such as climate governance, emissions reporting (scope 1, and 2), emission reduction initiatives, and portfolio impact.

In 2025, YES BANK was included as a constituent in the FTSE4Good Index Series for the third consecutive year. The Bank also continues to feature in the MSCI ACWI Low Carbon Leaders Index and ACWI Climate Change Index, among others.

Corporate Social Responsibility (CSR)

The Bank implements various programmes to create and enhance shared value through its unique, scalable and sustainable models to achieve its Corporate Social Responsibility (CSR). The Bank delivers internal and external positive socio-environmental impacts by following a unique approach that focusses on: y Promoting principles of social responsibility and inclusive growth through awareness and support; y Investing in socially and environmentally responsible activities to create a positive impact; y Engaging with stakeholders to further the sustainability agenda of the Bank and empower them with knowledge; and y Collaborating with like-minded institutions and forging partnerships to address the needs of the stakeholders

This unique, multi-pronged approach has enabled the Bank to forge meaningful associations with its stakeholders, including community groups, non-profit organisations, governments, corporate peers and civil society, while delivering an exponential impact and concentrating on the Sustainable Development Goals (SDGs).

In FY 2024-25, the Bank continued to implement its five-year CSR strategy, which aims to inspire Indias youth to lead economic and social development by skilling themselves for market-oriented jobs and by taking to enterprise. This strategy is implemented through YES Foundation, the Banks social development arm, and aims to catalyse employment and entrepreneurship opportunities for 1 lakh individuals by 2026, while retaining its focus on environment sustainability. While the Foundation continued to support ongoing projects across its 3Es focus, the Bank allocated additional CSR funds of Rs. 21.9 crores to YES Foundation for expanding the scale of its projects. A summary of the impact achieved is given below:

Employability: The Bank aims to capitalise on the demographic advantage India has in its younger generations. In FY 2024-25, through YES Foundation, over 7,000 young people were trained for different sectors, with 5,00 being trained from the CSR funds received from the Bank in the financial year under review. At least 70% of these trainees received gainful employment. Skills training provided to the trainees included work readiness and soft skills, which were delivered by employee volunteers through scheduled and structured sessions.

Entrepreneurship: To strengthen the local economies, YES Foundation promotes nano-enterprises with a distinct focus on enhancing income of farmers and empowering women and artisans in the rural areas. In FY 2024-25, over 18,000 people enhanced their income through training and capacity building, market linkages and productivity enhancement initiatives for multiple crops, including watershed management and micro irrigation systems, wherever needed. Of these, 15,000 farmers and women enhanced their income through the CSR funds received in the financial year under review.

Environmental Sustainability: Through YES Foundation, the Bank works on enhancing energy efficiency of the MSME sector and reducing their overall carbon footprint. As a result of this, 100 MSMEs benefited from the walk-through energy audits conducted in FY 2024-25. Further, the Bank, through the Foundation, planted 2 lakh trees across 11 states and geotagged the same. The plantations were carried out on farmers lands with a dual objective of enhancing the green cover as well as enabling an additional income for the farmers.

Central Data Analytics Group (CDAG)

The Banks central analytics function is one of core pillars which focuses on driving value through data driven decisions. The Bank continues to invest in this function to leverage the latest technology and skills to provide deeper insights and better customer experience. During the year, this unit was successful in delivering the following capabilities: y A uniform data strategy which ensures a single source of truth across the Bank y Built the foundation layer of an enterprise data warehouse which will automate all the Banks reporting requirements y Partnered with Credit Information Companies (CIC) to build and deploy scorecards for various business scenarios across acquisition, behaviour and collections y Hyper-personalise customer communication using an in-house propensity framework leading to lower cost of acquisition across various product groups y Developed new models for EWS, AML and transaction fraud monitoring

Business and Digital Technology Solutions (BDTS)

The Business and Digital Technology Solutions (BDTS) function plays a pivotal role in enabling and sustaining the digital and technology backbone of the Bank. Its focus is to drive robust, scalable, and intelligent solutions that fuel growth, enhance customer experience, ensure resilience, and fortify the Banks digital maturity across all fronts.

With the backdrop of rapid transformation in the financial services landscape, BDTS enabled technology-led change with precision and purpose — bringing together engineering excellence, platform modernisation, next-gen cybersecurity, and operational agility. The functions work was anchored in five strategic pillars that not only supported business priorities, but also redefined how the Bank delivers value to customers, employees, and stakeholders at large.

The Five Pillars of BDTS Strategy y Enabling Business Growth with Innovation

BDTS served as a catalyst for innovation-led growth by deploying modern platforms, scaling digital journeys, and embedding open banking frameworks, thereby enabling faster time-to-market for new products, digital channels, and fintech collaborations

• Driving Operational and Cost Efficiencies

Through automation, rationalisation of legacy systems, and unified platforms, BDTS delivered measurable savings and faster throughput across banking processes — enabling leaner operations and superior TATs across all lines of business

• Enhancing Risk and Governance Posture

The function institutionalised robust technology governance, reinforced IT risk management frameworks, ensured enterprise-grade security, and delivered full-stack audit readiness with high compliance to regulatory mandates

• Delivering Sustainable and Secure Services

Technology operations were continuously enhanced for availability, sustainability, and resilience through infrastructure optimisation, EoS/EoL remediations, cloud-readiness, and energy-efficient setups aligned with ESG ambitions

• Nurturing Talent and Building Future-Ready Capabilities

BDTS invested in workforce upskilling, future-tech capability building, and cultural transformation through Center of Excellence and learning cohorts — empowering a transformation-ready, innovation-oriented internal talent base

FY 2024–25: Transformative initiatives

The technology team has aligned its thematic activities with the Banks strategic objectives, ensuring continuous improvement and excellence. This alignment has led to milestone achievements across platforms, channels, core systems, and ecosystems, simplifying customer journeys, digitising operations, and providing a competitive edge to the Banks offerings.

Unified Digital Platforms and Experience Engineering y IRIS Biz and YES Business: Built and launched an enterprise-wide unified banking platform for MSMEs, consolidating over 100+ services across onboarding, lending, collections, payments, and service requests — a monumental step toward a mobile-first, omnichannel experience

• Digital Supply Chain Financing: The roll-out of SMARTFIN allowed supply chain participants to access seamless financing, automated invoice validation, and near real-time disbursals

• GST, Excise, and Customs Payments Integration:

Partnered with regulatory bodies to digitise and simplify tax payments, creating seamless, real-time integration into government systems

Core Modernisation and Infrastructure Rationalisation

• TPH (Transaction Payment Hub): Centralised all payment operations, enabling payment capabilities — enhancing scale, observability, and uptime for all payment systems

• Service Charges – optimised collection of fees: Reduced billing cycles from 45 days to just 2 days, with zero manual intervention. Introduced intelligent controls, dispute workflows, and revenue assurance dashboards

• SME Lending Transformation: Simplified "onboarding to servicing" journey for SME clients with integrated data ingestion, fintech partnerships, and streamlined approval processes — significantly improving TATs and experience

• Digital Collections platform: Enhanced the Banks receivables infrastructure by migrating 100% of clients from legacy systems to the new corporate collections engine, driving standardisation, controls, and client satisfaction

Data and AI as Differentiators y MANTHAN – AI Centre of Excellence: Launched the in-house GenAI and AI Ops platform, with models live in query handling, document classification, and workflow triggers. Integrated into high-frequency support and customer journeys

• Enhanced Enterprise Data Warehouse: Initiated a full-scale modernisation of data infrastructure to enable real-time analytics, customer insights, and AI/ML-based decisioning. EDW 2.0 also brought advanced governance, lineage, and role-based access structures

• API Marketplace Expansion: With 700+ live APIs in API-linked NII, YES BANKs API ecosystem scaled to one of the largest in Indian banking, serving fintechs, corporates, NBFCs, and startups with real-time, secure connectivity

Operational Efficiency and Automation Gains y Turnaround Time (TAT) Reductions: y Y ES AIM Current Account TAT reduced from 2 days to 2 hours y O ne-stop Disbursement (OSD) TAT reduced by 40% y V endor billing cycles compressed from 45 days to 2 days, saving significant working capital effort y Intelligent Observability: 80% of issues are now proactively detected through platforms like Dynatrace, enabling zero-downtime operations and instant remediation

Security, Compliance, and Governance Uplift y End-of-Life/Service Remediation: Over 27,000+ endpoints and critical infrastructure assets were upgraded to meet industry security standards, avoiding audit risks and vulnerability exposure

• Privileged Access Management: CyberArk rollout across high-risk assets ensured secure management of admin rights and credentials, minimising insider and external threats

• 100% Access Certification Compliance: All applications underwent stringent access recertification with automated tracking and role alignment, aligned with RBI and DPDPA norms

• Audit & Regulatory Response Excellence: Delivered full- stack compliance to UIDAI, NSDL, and other regulated entities; improved closure time of audit observations and operational risk mandates

FY 2024–25 was a transformational year for the Banks technology team. The function now stands at the forefront of delivering a secure, intelligent, and responsive technology ecosystem — one that not only powers todays operations, but anticipates the demands of tomorrows digital banking.

Business segment wise update is as follows: Investment Advisory and Wealth Broking

Overview: Wealth Broking business continues to strive to offer the best proposition to its customers. It offers wide range of broking services, investment products and value added services. YSIL has adopted a ‘Digital First approach, which is in line with YES BANKs approach. YSIL successfully launched state-of-the-art web and mobile trading platform during FY 2024-25. These platforms deliver an integrated investment experience, combining seamless functionality with enhanced security and a significantly improved UI/UX. Designed as an all-in-one investment solution, the new platforms reflect the Companys commitment to continuous improvement and user-centric design. Looking ahead, YSIL plans to further strengthen the platform in FY 2025-26 by expanding the range of investment options available to customers.

~95,000

YSILs active client base

Customer Focus: During FY 2024-25, YSIL reported 36% growth in its client base by opening ~1.77 lakh new accounts. Considering customers expectations, YSIL offers a customised set of solutions besides other off-the-shelf products and services. It serves varied customer segments through its digital as well as dealer-based investing experience. A strong product expertise and ‘customer-first culture drives product development and engagements, which helps the customers in their wealth creation journey. The range of products caters to various investor segments such as market novices, active traders, HNIs, Family offices and Corporates. Revenue Growth: Despite challenging regulatory and market condition, in FY 2024-25, income for the Wealth Broking business grew from Rs. 251.26 crore to Rs. 317.20 crore, which represents a growth of 27% Y-O-Y.

Capability Building for Future: The strategy for the upcoming years is focused on building efficiencies and investing in technology and systems to scale in terms of: (i) Acquisition, (ii) Activation, and (iii) ARPU. Ably supported by an experienced leadership team, robust processes and risk management practices, the Wealth Broking business is poised to maintain its growth trajectory and achieve new milestones.

Institutional Broking

Overview: The Companys Institutional Broking division continues to gain strong recognition in the market. The team delivers sharp, insightful research along with efficient sales trading and dealing capabilities to leading institutional investors, including asset management companies, insurance firms, PMSs, AIFs, banks, and corporate treasuries. The business is also working on expanding its footprint among foreign portfolio investors.

With a strong foundation in research, corporate access, and long-standing relationships with institutional clients, the Company is well-positioned to further scale its institutional equities business. It has recently added 11 new institutional clients and is now empanelled with 121 institutions.

The Companys highly experienced Research team brings a cumulative 300+ years of equity research expertise and actively covers over 200 companies, offering one of the broadest coverage in the industry. The team is particularly known for identifying high-conviction midcap opportunities and contra-to-market ideas, leveraging its deep corporate relationships. The institutional business is also well-regarded for its extensive investor engagement through roadshows, events, on-ground diligence, channel checks, and governance assessments of listed stocks.

Financial Performance: The revenue from Institutional Broking business increased by 10.2% YoY from Rs. 22.2 crore during FY 2023-24 to Rs. 24.49 crore during FY 2024-25, driven by increased flow of business from existing customers and new client onboarding. Growth Philosophy: YSIL continues to make astute investments towards augmenting the teams knowledge, leadership position and technical capabilities.

Other Updates

During the year under review, YSIL has applied to surrender its membership with the NCDEX and NCCL. Additionally, to diversify and expand its product offerings, YSIL has initiated the process of obtaining registration with the Insurance Regulatory and Development Authority (IRDA) to distribute insurance products as a corporate agent.

During the year, YSIL surrendered its merchant banking license pursuant to the transfer of its Investment Banking and Merchant Banking business to the Bank.

Overview of Financial Performance

Key Ratios:

Particulars	FY 2024-25	FY 2023-24
Return on average equity (%)	5.2%	3.0%
Return on average assets (%)	0.6%	0.3%
EPS - Basic (FV Rs. 2)	0.77	0.44
EPS - Diluted (FV Rs. 2)	0.77	0.43
Net interest Margin (%)	2.4%	2.4%
Book value per share (FV Rs. 2)	15.24	14.65
Cost to income	71.3%	74.4%
Yield on advances	10.1%	10.2%
Cost of funds	6.5%	6.4%
Capital Adequacy Ratio Basel III
CET 1	13.5%	12.2%
Tier - I	13.5%	12.2%
Tier - II	2.1%	3.2%
Gross non performing advances	1.6%	1.7%
(NPA) % to Total Advances
Net NPA % to Total Advances	0.3%	0.6%
CASA ratio to % of total deposits	34.3%	30.9%

The Bank has CASA ratio of 34.3%. The Banks shareholder returns for FY 2024-25 in terms of basic and diluted EPS were Rs. 0.77 and Rs. 0.77 respectively. The book value per share was Rs. 15.24.

Operating Performance:

Rs. in million

Particulars	FY 2024-25	FY 2023-24	% change
Interest income	308,949.10	275,859.38	12.0%
Interest expense	219,505.64	194,913.18	12.6%
Net Interest Income	89,443.46	80,946.20	10.5%
Non interest Income	58,568.63	51,142.99	14.5%
Operating Revenue	148,012.09	132,089.19	12.1%
Operating expenses	105,472.58	98,226.58	7.4%
Operating Profit	42,539.52	33,862.61	25.6%
Provisions and contingencies	10,856.06	18,862.83	-42.4%
Profit before tax	31,683.46	14,999.78	111.2%
Provision for tax	7,624.86	2,488.99	206.3%
Net Profit/(Loss)	24,058.59	12,510.80	92.3%

Net Profit for FY 2024-25 is Rs. 24,058.59 million as compared to profit of Rs. 12,510.80 million for the FY 2023-24 higher by 92.3%. The Banks operating profit increased by 25.6% Y-O-Y on the back of NII and higher Non-Interest Income.

Net Interest income (NII) of the Bank increased by 10.5% to Rs. 89,443.46 million during FY 2024-25 as compared to Rs. 80,946.20 million during FY 2023-24. The Net Interest Margin (NIM) was 2.4% in FY 2024-25.

Non-interest income consists of commission and fee income, trade income, derivative and foreign exchange income, gain/loss on sale of securities and other income. Non-interest income increased by 14.5% from Rs. 51,142.99 million in FY 2023-24 to Rs. 58,568.63 million in FY 2024-25.

Operating expenses increased by 7.4% from Rs. 98,226.58 million in FY 2023-24 to Rs. 105,472.58 million in FY 2024-25. The employee cost increased from Rs. 37,742.78 million in FY 2023-24 to Rs. 40,084.04 in FY 2024-25. Other operating cost increased by 8.1% from Rs. 60,483.80 million in FY 2023-24 to Rs. 65,388.54 million in FY 2024-25.

Provisions and contingencies (excluding provision for taxes) decreased by 42.4% from Rs. 18,862.83 million in FY 2023-24 to Rs. 10,856.06 million in FY 2024-25.

Net interest income:

The following table sets forth, for the periods indicated, the net interest income and margin: Rs. in million

Particulars	FY 2024-25	FY 2023-24	% change
Interest income	308,949.10	275,859.38	12.0%
Interest expense	219,505.64	194,913.18	12.6%
Net Interest Income	89,443.46	80,946.20	10.5%
Net interest margin	2.4%	2.4%

Net Interest income (NII) of the Bank increased by Rs. 8,497.26 million to Rs. 89,443.46 million during FY 2024-25 as compared to Rs. 80,946.20 million during FY 2023-24.

Non-Interest income:

Rs. in million

Particulars	FY 2024-25	FY 2023-24	% change
Commission, exchange and brokerage	37,132.13	30,742.60	20.8%
Profit on the sale of investments (net)	4,111.27	2,270.96	81.0%
Profit/(Loss) on the revalua- tion of investments (net)	325.23	1,043.29	-68.8%
Profit/(Loss) on sale of land, building and other assets	(152.79)	(20.62)	640.8%
Profit on exchange transactions (net)	6,567.45	6,441.11	2.0%
Income earned by way of dividends etc. from subsidiaries, companies and/or joint ventures abroad/in India	-	-
Miscellaneous income	10,585.34	10,665.65	-0.8%
Total	58,568.63	51,142.99	14.5%
Non-interest income consists of commission and fee income, trade income, derivative and foreign exchange income, gain/loss on sale of securities and other income. Non-interest income of the Bank increased by 14.5% to 58,568.63 million during FY 2024-25 as compared to 51,142.99 million during FY 2023-24 on the back of strong fee growth through cross sell and transaction banking.
Operating expenses:

The following table sets forth, for the periods indicated, the principal components of Operating expenses:

Rs. in million

Particulars	FY 2024-25	FY 2023-24	% change
Payments to and provisions for employees (A)	40,084.04	37,742.78	6.2%
Other operating expense (B)	65,388.54	60,483.80	8.1%
Depr eciation on own property	4,869.20	5,410.40	-10.0%
Other administrative expenses	60,519.34	55,073.40	9.9%
Operating expenses (A)+(B)	105,472.58	98,226.58	7.4%
Cost to income ratio	71.3%	74.4%	-4.2%

Non-interest expenses primarily include employee expenses, depreciation on assets and other administrative expenses. Operating expenses increase by 7.4% from Rs. 98,226.58 million in FY 2023-24 to Rs. 105,472.58 million in FY 2024-25.

Employee costs increased by 6.2% from Rs. 37,742.78 million in FY 2023-24 to Rs. 40,084.04 million in FY 2024-25. The number of employees have increased from 28,001 at March 31, 2024 to 28,690 at March 31, 2025. Employee costs accounted for 38.0% of operating expenses of the Bank for the FY 2024-25 compared to 38.4% for the FY 2023-24.

Other operating expenses increased by 8.1% to Rs. 65,388.54 million in FY 2024-25 primarily driven by business volumes, higher collection charges, higher IT spends due to escalated annual maintenance charges and support resources. Number of branches also increased to 1,255 as on March 31, 2025 from 1,234 as on March 31, 2024.

Provisions/write back of provision and contingencies (including provision for tax

Provisions and contingencies decreased by 13.4% from Rs. 21,352.82 million to Rs. 18,480.92 million primarily due to decrease in provision/write back of provision on investment.

The key components of provisions are provisions for NPAs of Rs. 28,787.16 million [FY 2023-24: Rs. 24,382.31 million], provision for taxation of Rs. 7,624.86 million [FY 2023-24 Rs. 2,488.99 million], and provision for standard assets Rs. (1,790.31) million [FY 2023-24: Rs. (1,011.48) million] and provision/write back of provision on investments of Rs. (17,374.25) million [FY 2023-24: Rs. (5,425.77) million].

During the year ended March 31, 2025, the Bank has transferred 67,765 stressed loans (written off accounts) of gross value Rs. 5,062.71 million to ARCs. The net book value (‘NBV) of these exposures in the Banks books as on the date of assignment was Nil and the final consideration received was Rs. 278.20 million under "100% upfront cash basis". The realized profit amounting Rs. 278.20 million due to cash recovery exceeding the net book value of stressed loans was credited to Profit and Loss Account during the year ended March 31, 2025.

Financial Condition:

Assets:

Particulars	As at March 31, 2025	As at March 31, 2024	% change
Assets
Cash and bank balances	280,590.32	189,296.40	48.2%
Cash and balances with RBI	152,601.33	181,392.39	-15.9%
Balances with banks and money at call and short notice	127,989.00	7,904.01	1519.3%
Investments	851,044.83	902,351.32	-5.7%
SLR in vestments*	753,836.09	806,206.31	-6.5%
N on SLR investments	97,208.73	96,145.01	1.1%
Advances	2,461,884.69	2,277,994.72	8.1%
In India	2,396,277.64	2,218,391.48	8.0%
Outside India	65,607.05	59,603.24	10.1%
Fixed assets	30,654.25	28,565.22	7.3%
Other assets	610,048.92	656,722.25	-7.1%
Total 4,234,223.00	4,054,929.90	4.4%

*Includes investment in government securities, banks in India are required to maintain a specified percentage, 18.00 % as at March 31, 2025, of their net demand and time liabilities by way of liquid assets like cash, gold or approved unencumbered securities.

Total assets of the Bank increased by 4.4% from Rs. 4,054,929.90 million at March 31, 2024 to Rs. 4,234,223.00 million at March 31, 2025, primarily due to increase in advances and investments.

Cash and bank balances

Cash and bank balances include cash in hand and balances with RBI and other banks including money at call and short notice. Cash and balances with Reserve Bank of India decreased from Rs. 181,392.39 million at March 31, 2024 to Rs. 152,601.33 million at March 31, 2025.

Investments

Total investments decreased by 5.7% from 902,351.32 million at March 31, 2024 to Rs. 851,044.83 million at March 31, 2025. SLR investments decreased by 6.5% from Rs. 806,206.31 million in FY 2023-24 to Rs. 753,836.09 million in FY 2024-25. Non SLR investments increased by 1.1% from Rs. 96,145.01 million in FY 2023-24 to Rs. 97,208.73 million in FY 2024-25.

Advances

During FY 2024-25, the Bank recorded addition of 8.1% in its loan book with advances increasing to Rs. 2,461,884.69 million. Net advances of IFSC Banking Unit (IBU) in GIFT City increased from Rs. 59,603.24 million at March 31, 2024 to Rs. 63,361.07 million at March 31, 2025.

Fixed assets and other assets

Net fixed assets is Rs. 30,654.25 million as at March 31, 2025. Increase during the FY 2024-25 in gross block of fixed assets was Rs. 8,801.29 million (excluding premises) mainly driven by addition of computer Software Rs. 4,789.86 million, computer hardware Rs. 2,156.69 million, vehicle Rs. 1,075.86 million. Other assets decreased to Rs. 610,048.92 million in FY 2024-25 from Rs. 656,722.25 million in FY 2023-24.

Financial Condition Liabilities

Rs. in million

Particulars	As at March 31, 2025	As at March 31, 2024	% change
Liabilities
Capital	62,708.23	57,535.76	9.0%
Share Warrants	0.00	9,483.92	-100.0%
Subscription Money
Reserves and Surplus	415,092.31	354,434.23	17.1%
Deposits	2,845,251.33	2,663,721.72	6.8%
Current deposit accounts	433,044.79	413,439.89	4.7%
Sa ving Account	541,756.22	409,729.87	32.2%
CASA	974,801.00	823,169.76	18.4%
T erm Deposit	1,870,450.33	1,840,551.96	1.6%
Borrowings	716,029.68	799,408.80	-10.4%
Borr owing in India 623,274.59	677,547.50	-8.0%
Borrowings outside	92,755.09	121,861.31	-23.9%
India
Other liabilities and provisions	195,141.45	170,345.47	14.6%
Total	4,234,223.00	4,054,929.90	4.4%

Equity Issue

During the year ended March 31, 2025 the Bank has allotted: A. 2,559,761,818 equity shares of Rs. 2/- each pursuant to exercise of share warrants, and B. 26,471,398 equity shares (Previous year: 13,106,772 equity shares) of face value of Rs. 2 each pursuant to the exercise of stock options by employees under the approved stock option schemes.

Movement in Share Capital

Rs. in million

Particulars	As at March 31, 2025	As at March 31, 2024
Opening Share Capital and	67,019.68	66,993.47
Share Warrant
Addition due to exercise of share option	52.94	26.21
Addition due to shares issued on preferential basis	5,119.52	-
Reduction due to exercise of share Warrants	(9,483.92)	-
Closing Share Capital	62,708.23	67,019.68

Deposits

Deposits increased by 6.8% from Rs. 2,663,721.72 million at March 31, 2024 to Rs. 2,845,251.33 million at March 31, 2025. Term deposits increased by 1.6% from Rs. 1,840,551.96 million at March 31, 2024 to Rs. 1,870,450.33 million at March 31, 2025, savings account deposits increased by 32.2% from Rs. 409,729.86 million at March 31, 2024 to Rs. 541,756.22 million at March 31, 2025 and current account deposits increased by 4.7% from 413,439.89 million at March 31, 2024 to Rs. 433,044.79 million at March 31, 2025. The current and savings account deposits increased from Rs. 823,169.76 million at March 31, 2024 to Rs. 974,801.00 million at March 31, 2025. Total deposits at March 31, 2025 constituted 79.9% of the funding (i.e., deposits and borrowings). The Banks CD ratio stood at 86.5% as at March 31, 2025.

Borrowings

Borrowings decreased by 10.4% from Rs. 799,408.80 million at March 31, 2024 to Rs. 716,029.68 million at March 31, 2025.

Other liabilities

Other liabilities increased by 14.6% from Rs. 170,345.47 million at March 31, 2024 to Rs. 195,141.45 million at March 31, 2025.

Regulatory capital

In line with the RBI circular on Basel III Capital Regulations, currently for computing capital requirement, YES BANK has adopted the standardized approach for credit risk, standardized duration approach for market risk and Basic indicator approach for operational risk. The Bank has also put in place a Board approved policy on Internal Capital Adequacy Assessment Process (ICAAP) which defines and sets processes to review and improve the techniques used for identification, measurement and assessment of all material risks and resultant capital requirements. Rs. in million

Capital Adequacy Ratios	As at March 31, 2025	As at March 31, 2024
Total capital ratio (CAR) out of the above	15.6%	15.4%
- CET1	13.5%	12.2%

Subsidiary Performance

During FY 2024-25 YSIL reported a net profit of Rs. 407.41 million. Total revenue from operations of YSIL increased by 24.8% from Rs. 2,738.24 million in FY 2023-24 to Rs. 3,416.93 million in FY 2024-25.

As at March 31, 2025, the total capital infused and outstanding is Rs. 3,987.78 million in YSIL.

Implementation of IFRS converged Indian Accounting Standards (Ind AS)

The Indian Accounting Standards (‘Ind AS), as notified under section 133 of the Companies Act 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, have been formulated keeping the Indian economic and legal environment in view and with a view to converge with IFRS Standards. The RBI through its notification No. RBI/2018-2019/146 DBR.BP.BC. No.29/21.07.001/ 2018-19 dated March 22, 2019 on "Deferral of Implementation of Indian Accounting Standards (Ind AS)" notified to all the scheduled commercial banks that legislative amendments recommended by the RBI are under consideration of the Government of India. Accordingly, RBI has decided to defer the implementation of Ind AS till further notice.

As per RBI directions, the Bank has taken following steps so far:

• The Bank is submitting half yearly Proforma Ind AS financial statements to the RBI

• Formed Steering Committee for Ind AS implementation (‘the IFRS (Ind AS) Management Committee). The IFRS (Ind AS) Management Committee (Committee) comprises Chief Financial Officer (CFO) (Chairman), Chief Risk Officer (CRO), Chief Operating Officer (COO), Chief Information Officer (CIO) as members and senior management from Financial Management, Risk Management and Treasury Operations as invitees. The Committee oversees the progress of Ind AS implementation in the Bank and provides guidance on critical aspects of the implementation such as Ind AS technical requirements, systems and processes, business impact, people and project management. The Committee closely reviews progress of the implementation and related matters

• The Committee gives updates to the Audit Committee of the Board and to the Board on preparedness for migration to Ind AS on a periodic basis

• The Bank will continue to liaise with RBI and industry bodies on various aspects pertaining to Ind AS implementation