1 Background
YES BANK Limited [the Bank or YES BANKs] is a private sector Bank
promoted by Mr. Ashok Kapur & Mr. Rana Kapoor. YES BANK Limited is a
publicly held Bank engaged in providing a wide range of banking and
financial services. YES BANK Limited is a banking Comp. governed by
the Banking Regulation Art, 1949. The Bank was incorporated as a
limited Comp. under the Companies Art, 1956; on November 21, 2003
with its registered office at 9th Floor, Discovery of India Building,
Nehru Centre, Dr, A.B. Road, Worli, Mumbai 400 018. The Bank received
the licence to commence banking operations from the Reserve Bank of
India [RBIs] on May 24, 2004. Further, YES BANK was included to the
Second Schedule of Reserve Bank of India Act, 1934 with effect from
August 21, 2004.
2 Basis of Preparation
The accounting & reporting policies of YES BANK used in the
preparation of these financial statements conform to Generally Accepted
Accounting Principles [GAAPs] in India, guidelines issued by RBI
from time to time & practices generally prevailing within the banking
industry in India. The Bank follows the accrual method of accounting
and the historical cost convention.
The preparation of financial statements requires the management to make
estimates & assumptions considered in the reported amounts of assets
and liabilities [including contingent liabilitiess] as of date of
the financial statements & the reported income & expenses during
the reporting period. Management believes that the estimates used in
the preparation of financial statements are prudent & reasonable.
Future results could be affected by these estimates. The financial
statements have been prepared as per Form A & B [reviseds] of the
Third Schedule to The Banking Regulation Act, 1949.
3 Provisions & Contingencies
The breakup of provision of Bank for years ended March 3 1,
2008 & March 31, 2007 are given below:
[Rs. in thousandss]
2007 2008
Provision for taxation 1,064,628 492,608
Provision for investments 133,161 30,975
Provision for standard advances 179,595 254,229
Provision for non performing advances 24,370 -
Other provisions
Wealth tax 500 500
Country risk provision [2,287s] 2,287
Other credit provisions 100,601 -
TOTAL 1,500,568 780,599
4 Provision on Standard Assets
Provision on standard advances is Rs. 525,816 thousands & Rs. 346,222
thousands as at March 31, 2008 & 2007 respectively.
5 Floating Provision
The Bank has not created or utilised any floating provisions during the
year ended March 31, 2008 & year ended March 31, 2007. The floating
provision as at March 31, 2008 was Nil [Previous year: Nils].
6 Segment Reporting
The Bank reports its operations under the following business segments:
- Treasury: Includes all financial markets activities undertaken on
behalf of Banks customers, proprietary trading, maintenance of
reserve requirements & resource mobilisation from other banks and
financial institutions.
- Corporate/Wholesale Banking: Includes lending, deposit taking and
other services offered to corporate customers.
- Retail Banking: Includes lending, deposit taking & other services
offered to retail customers.
- Other banking operations: Includes para banking activities like third
party product distribution, merchant banking etc.
Note: Fixed assets & related depreciation on fixed assets, Cash and
non treasury related bank balances at branches, Bills payable, Tax
related accounts, Subordinated debt & related interest & operating
expenses which can't be directly allocated to any segments have been
classified as unallocated.
7 Capital Reserve
Profit on sale of investments in the HTM category is credited to the
profit & loss Acc. & thereafter appropriated [net of applicable
taxes & statutory reserve requirementss]. During the year Rs. 102,333
thousands [previous year : Rs. 32,111 thousandss] was transferred to
capital reserve.
8 Operating Leases
Lease payments recognised in the profit & loss Acc. for year
aggregate Rs. 322,447 thousands. [Previous year: Rs. 159,036
thousandss].
9 Penalties Imposed by RBI
No penalties have been imposed by RBI on the Bank during the Financial
Year 2007-08 [previous year: Rs. Nils]
10 Equity Issue
During the Financial Year 2007-08, the Bank has issued 14,700,000 new
equity shares of Rs. 10 each for cash at a price of Rs. 225 per share
[at premium of Rs. 215 per shares] by way of private placement to Orient
Global Tamarind Pte. Ltd, Singapore, aggregating to Rs. 3,307.5 million
and has allotted 1,089,750 shares of Rs. 10 each pursuant to the
exercise of Stock Options by certain employees aggregating to Rs.
10.89 million.
