the “new new-normal” - eosd.org · weave sustainability principles into yes bank’s core...
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The “new new-normal”
Srinath KomarinaVice President
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Vision to become “THE BEST QUALITY BANK OF THE WORLD IN INDIA”2
900 Branches
12,750 employees“The Professionals’ Bank
of India”
Advances$ 16.93 billion
Deposit base$ 21.16 billion
2,000 ATMs
Balance Sheet$ 25.4 billion
Target RoE : 22 – 24%Target RoA : 1.5 – 1.75%
March 2014- On the road to Version 2.0 - 2015
8,798 employees*
*-Stock take 31st March 2014
1,139 ATMs*
$12.56 billion*$18.46 billion*
$9.42 billion*
560 Branches*
24.3% *1.6 % *
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Version 2.0
Link sustainable development with stakeholder value creation through innovative business solutions and services
&Weave sustainability principles into YES BANK’s core business strategy
and processes
Vision
Mission
Strategy
“YES BANK - Be the benchmark financial institution for sustainability”
Deliver internal and external positive socio-environmental impactEnhance YES BANK’s visibility and influence in sustainability space
Responsible Banking
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First Indian Banking sector
signatory to UN Global Compact
First Indian Signatory in
banking sector to the CDP
First Indian Signatory in
banking sector to UNEP FI
First Indian Signatory to the
NCD
First Indian Commercial Bank to release a GRI A
Level checkedSustainability
Report
Creator of India’s first ever
platform on Natural Capital
First Indian Bank to receive ISO
14001:2004 certification
First Indian Bank to win the KSFA and FT-
IFC Sustainable Finance Award
2008-2011
YES BANK FIRSTS
Mainstreaming Sustainability amongst stakeholders
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Sustainability Facilitating Responsible Investments
Corporate Social Responsibility
SUSTAINABLE DEVELOPMENT
RESPONSIBLE BANKING ETHOS
Approach
• Thoughtleadership
• Triple bottomline accounting
• IntegratingESG considera-tions
• EvangelizingBFSI sectorand regulators
• YESCOMMUNITY
• YESFOUNDATION
Need For Environment, Social and Governance (ESG)
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The Environment and Social Policy (ESP)
PROJECT 1
PROJECT 2
PROJECT 3
PROJECT 4
� Socially &Environmentally sustainable
� Respect Rights of local staff and local communities
� Compliant with applicable regulatory requirements ofthe Exclusion List, HostCountry and IFCPerformance Standards andGood International Practice
For All ProjectsCompliance to Exclusion List (Annexure I of ESP) and Host Country Regulations
For Projects Exceeding USD 5 Million
Compliance to Exclusion List, Host Country Regulations and applicable IFC Performance Standards
PROJECT 3
PROJECT 1
Pre-assessment Outcome for all projects:×Either Decline Credit Finance, advisory or other services�Offer Credit Finance, provided all the E&S covenants are pre-agreed
× Involving Harmful /exploitative formsof forced labor/child labor
× Breaching Host Country’s Laws and Regulations Agreements/conventions to which the Host Country is a Signatory
× Production or Trade of Weapons/Munitions, Tobacco or Alcoholic Beverages
× Gambling, Casinos or Equivalent Enterprises× Production Trade of Radioactive Materials
including Nuclear Reactors and Unbonded Asbestos Fibers
× Trade of Logging Operations and Production and Trade in Wood and Other Forestry Products
× Activities Impinging on Land Owned/Claimed by Indigenous Without Consent
E&S Risk Management throughout
Project Lifecycle
Regular Monitoring of E&S parameters of the
project
• Detailed E&S Assessment – Site Visit,Stakeholder Consultation & Document Review in Credit FinanceDocuments
• E&S Assessment Report • Inclusion of E&S Covenants in Credit
Finance Documents
• Desk Based E&SAssessment
• Inclusion of E&S covenants in Credit Finance Documents
Project Risk Categorisation as
Low or High
Request More
Information
HIGH
Project Document/ Information
Request
Project Risk Categorisation as Low or High
Assessment against
Exclusion List
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Integration of ESP In Project Finance
Project Document/ Information
Request
Pre-investment Assessment
Post-Investment Assessment
LOW
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Post-Investment Assessment
E&S Risk Management throughout
Project Lifecycle
Conducting E&S Audit
Regular Monitoring of E&S
parameters
Assess
Measure
Manage Evaluate
Integration of ESP In Project Finance
Able to anticipate risks in advanceThe mining debacle: Conscious decisions helped YES BANK maintain low NPAs
Better hold and connect with the client
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• Private sector Banks average net NPA: 0.52 %• YES BANK net NPA: 0.01 %
First mover advantage
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First mover disadvantage
No level playing fieldResistance from clients to share E&S data
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Way forward
First of its kind ‘Sustainability Series’ in partnership with GIZ and UNEP FI
Case Study
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The Welspun Neemuch Solar PV Project
• Largest Solar PV Project in Asia
• First bank to sanction facilitiesof $33 million(~24.8 millionEuros) to the project
• 151 MW capacity• Electricity for 624,000
households• Offset 216,372 tons of CO2
emissions annually
Education Healthcare Environment Agriculture
Social & Environmental impact
THANK YOU
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