Innovation in Sustainable Finance

Namita Vikas,Senior President & Chief Sustainability Officer

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Vision to become the ‘Finest Quality Bank of the World’ in India by 2020’

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

March 2015- On the road to becoming India’s Finest LARGE Bank

11,000+ employees“The Professionals’

Bank of India”

*-Stock take 31st March 2015

1,190 ATMs*

Deposit base -$14.22 billion*

Balance Sheet -$21.24 billion*

Advances -$11.78 billion *

630 Branches*

19 % *1.6 % *

Introduction to YES BANK

Need For Environment, Social and Governance (ESG)

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India’s Financing Challenges

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Approach

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Welspun Neemuch –Largest solar PV Project

Power - 151 MW capacity• First bank to sanction facilities of

US$ 33 million• Electricity for 624,000 households• Offset 216,372 tons of CO2

emissions annually•Create livelihoods and provide services to BoP

Continuum Wind Energy (India) Private Limited (CWEIPL)

Power - 170 MW capacity• Part underwriter of term debt of

US$ 100 million• Generate 330 gigawatt hour of power

annually • Electricity for 300,000 people • Offset 270,000 tons of CO2

emissions annually

Proactive RE Investments

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Innovations in Fossil Fuels

Commercializing Clean Coal Technology in India

YES SAHAJ•Cost effective & scalable Mobile transaction solution—Micro-ATM model

YES LEAP•Credit, saving & insurance facilities to SHGs through NGOs acting as Business Correspondents of Bank

YES KISAN DAIRY PLUS•Instant payment services to milk vendors through the dairy acting as a BC

• Approximately 3.21 mnunique senders

• USD 0.6 bn worthtransactions in FY2014-15

•Brought financial services to rural households• USD 137 mn worth transactions in FY2014-15

•Extended Financial Inclusionto over 1.2 mn households• USD 4.22 mn in savings

linked SHGs & USD 102 mn in credit linked SHGs

•Immense scaling opportunity as 60% of farmers are using the instant payment services

IMPACT

YES MONEY•Remittance service for unbanked & under-banked population of India

Innovations at BOP

Inclusive and Social Banking

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Server

Dairy Collection

Centre

Dairy Farmer

OTP sent to the farmer ‘s cell phone

Withdrawal transaction request

Credit confirmation SMS

GPRS Connectivity

Withdrawal SMS to customer

Business Correspondent

YES Sahaj –Micro ATM

Instant account credit Cash withdrawal from Micro ATM

OTP entry by the farmer

Diary account debited

andFarmer account credited

Farmer account debited, BC account credited

Card swipe Analyses milk and decides price

Pours milk

YES Kisan Dairy Plus

Innovations at BOP

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Project2

Project3

Project1

Environmental &Social policy

Project 2

1st Indian Bank to launch Green Infrastructure Bonds to raise $156.22 million

1st Indian private Bank to commit to financing 5,000 MW of renewable energy projectsover the next 5 years

Facilitating Responsible Investments

Partnership with OPIC to increase lending to MSMEs in India of upto $220 million

Successfully raised $200 million Loan facility from the ADB to finance small farm households & rural women in SHGs

Evolution of Renewable Energy Financing at YES BANK

September 2014 –500 MW annually

January 2015 - 5 GW over next 5 years

February 2015 –US$156.22 mn Green bonds

In FY14-15, YES BANK achieved 1065 MW exposure to Renewable energy projects

Exclusion list as per ESP× Involving Harmful /exploitative forms

of 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 & Other Forestry Products

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

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Going forward…

Global Environment Facility• Partnership for international

cooperation to address global environmental issues

• Provided $13.5 billion in grantsand leveraged $65 billion in co-financing for 3,900 projects in more than 165 developingcountries

Green Climate Fund• Will support projects,

programmes, policies and otheractivities in developing countries

• Mobilization of $10.2 billion to date and is intended to be thecentrepiece of efforts to raiseClimate Finance of $100 billion ayear by 2020

12Source: Rethinking finance in Circular Economy, ING Economics Department, May 2015

• Need to transition from Linear to circular financial economy• Can provides new business opportunities• Develop valuation and risk models that suit the characteristics of circular

business models• Identify the right incentives for all parties involved• Incorporate ‘Circular value’ of resources in the financial business case

Going forward…

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Partners

THANK YOU