Niranjan Banodkar

Could you provide an overview of YES BANK’s core services and offerings and how they align with the Bank’s mission and vision in the current financial landscape?

YES BANK’s mission is to be a high-quality, customer-centric, service-driven private bank. The Bank’s services cater to diverse customer needs, including corporate banking, retail banking, Small and Medium Enterprises (SME) banking, digital banking, wealth management and Non-Resident Indian (NRI) banking. The Bank aims to deliver exceptional customer experience through its commitment to quality, service and customer-centricity. In the current Indian financial landscape, YES BANK is poised to perform well due to its strong digital foundation, innovative products and focus on sustainable finance. The Bank’s digital-first approach aligns with the government’s digital India initiative and its commitment to Environmental, Social and Governance (ESG) principles resonates with the growing focus on environmental and social responsibility. With these strengths, the Bank is well-positioned to navigate the evolving financial landscape and contribute to India’s economic growth. As the Bank accelerates growth in this dynamic market environment, it remains geared to improve profitability in a risk-calibrated manner and aims to become India’s most trusted financial brands for customers, employees, investors and stakeholders.  

In the clutter of Banking, how do you differentiate YES BANK and its offerings? 

YES BANK is a high quality, customer-centric, service-driven bank catering to the future businesses of India. Over the last few years, the bank has grown into a ‘full service commercial bank’ offering a comprehensive, tailored suite of products and services to its corporate, Ministry of Micro, Small and Medium Enterprises (MSME) and retail customer segments.

As India navigates the path towards a Viksit Bharat, the Bank recognises that the MSME and mid corporate segments are a cornerstone of India’s economic growth. YES BANK’s MSME Banking business caters to end to end financial requirements of the MSME ecosystem, with customised solutions, dedicated relationship teams, knowledge-banking experts and an extensive network delivering unmatched one-stop service to SMEs. The Bank is also actively focused on engaging with the new age ecosystem in India and the Bank’s mid corporate segment has a dedicated new-age banking team with focus on Unicorns and ‘Soonicorns’. In fact, 64 per cent of unicorns and 1,200 plus Start-Ups in India are served by YES BANK’s Mid Corporates segment. 

With customer centricity as the core ethos of its strategy, YES BANK is strengthening its core to deliver an enhanced banking experience with a ‘digital first’ approach, in line with its strategy of building a ‘Digital Bank’. The Bank has built a robust technological and operational architecture for plug-and-play fintech partner integration and a strong platform architecture for seamless payment solutions to government, corporate, start-ups and SMEs. In addition, the Bank is investing in implementing digital journeys and advanced digital banking solutions for onboarding, service and operations, solidifying the Bank’s position as a leader in Retail Banking. 

Within digital payments, YES BANK is the market leader, processing nearly every thief digital transaction in the country which hovers over 12-14 billion on a monthly basis. In FY24, YES BANK became one of the first Indian banks to integrate UPI with the RBI’s Central Bank Digital Currency (CBDC) application. 

How has YES BANK leveraged technology to streamline finance functions and improve efficiency? 

The Bank is currently building a next-gen finance data ecosystem to enable insights-driven decision making and reporting from a centralised ‘single source of truth’. This will help us realise timely and accurate closure of financials and enable deep-dive of every Key Performance Indicator (KPI) at the minutest granular level.

Other key technology led initiatives in the Bank’s finance function include:

Development of an in-house engine for automation of Capital Adequacy computation (bringing down the computation time from five man-days to three hours). With little to no manual interventions, there has been a significant reduction in operational errors too. Thus, the efficacy and efficiency of the reporting of the Bank’s Capital to Risk (Weighted) Assets Ratio CRAR numbers has gone up significantly.

Oracle Financial Services Analytical Applications Funds Transfer Pricing (OFSAA-FTP) implementation, which is an industry-standard software application for implementing a matched rate transfer pricing system. Business units are now held accountable for what they can control – pricing and profitability.

Consolidation of the entire cycle from procurement to payment and accounting through integration of SAP ARIBA and Oracle Payables. This will provide transparency to our suppliers through Supplier Network, as well as better negotiation capabilities to internal teams through centralised historical information & metrics. 

How is YES BANK integrating sustainability into its financial strategies and operations? 

The Bank has set up a robust governance framework comprising a Board level Corporate Social Responsibility and Environmental Social & Governance (CSR & ESG) Committee and an executive level Sustainability Council (chaired by the MD & CEO) to integrate ESG considerations into all aspects of its business and operations. The Bank has adopted an Environment and Social Policy (ESP) based on international frameworks such as International Finance Corporation (IFC) Performance Standards, which serves as a structured approach towards responsible lending and helps integrate environmental and social risks into its overall credit risk assessment framework. 

As the only Indian banking signatory to the United Nations Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking, the Bank strives to align its business with the objectives of the UN Sustainable Development Goals (SDGs) and the Paris Climate Agreement. Towards this, the Bank was the first Indian Bank to measure and report its financed emissions (Category 15 Scope three emissions) of its electricity generation sector exposure (project finance and corporate loans) and set targets in line with global decarbonisation pathways. The Bank has also helped mobilise finance towards SDG-aligned sectors through the launch of India’s first Green Bond in 2015 and the first Green Fixed Deposit product in 2018. 

To minimise the environmental impact of its operations, the Bank has implemented an International Organisation for Standardisation (ISO) 14001:2015 certified Environmental Management System covering 1,186 facilities, the highest amongst the BFSI sector, globally. The Bank has also undertaken a voluntary target to reduce to its scope one and scope two emissions to net zero by 2030 and has migrated three of its key offices, YES BANK House (Santacruz), YES Fintech Centre (Airoli) and Vaman Centre (Andheri), along with 43 of the Bank’s branches in Mumbai to renewables. The Bank has also implemented an Occupational Health and Safety Management System (OHSMS) covering all its facilities with two of its major facilities (YES BANK House and YES Fintech Centre) certified as per ISO 45001, a global standard for occupational safety and health management systems. The Bank continues to foster a diverse and inclusive workplace, and has enhanced the share of women in its workforce from 18.8 per cent in FY 2021-22 to 21.8 per cent in FY 2023-24.

Compliance seems to be getting more complex. This is more critical for the banking sector. How are you keeping on par with all kinds of compliance?

The Bank is committed to complying with RBI’s guidelines and regulations, ensuring a robust compliance culture that prioritises customer protection, risk management, and sustainable practices. The Bank has implemented comprehensive policies and controls to reflect the latest directives, including those related to IT governance, customer service, green deposits, asset quality and investments. The Bank’s leadership is dedicated to fostering a culture of compliance, regularly evaluating and updating our policies to embrace best practices and align with RBI’s vision for a resilient and sustainable banking system.

How has the role of the CFO evolved from basic accounting and compliance to a strategic partner in business operations?

The role of the CFO has undergone a profound transformation, evolving from a primarily transactional focus on financial reporting and compliance to a strategic leadership position that drives business growth and value creation. Today’s CFO is a key architect of the organisation’s financial future, providing strategic insights and expert guidance to inform critical business decisions. He also spearheads investor relations, while championing digital transformation, innovation and ESG.

As a trusted advisor to the Chief Executive Officer (CEO) and board, the CFO plays a vital role in shaping the organisation’s strategic agenda, driving business growth and ensuring long-term sustainability while maintaining the highest standards of financial stewardship and compliance.

How do you see the finance function evolving over the next 3 years? 

Over the next three years, Indian banks’ finance functions will undergo significant transformations. Key developments include: 

Data driven decision making through clearer, faster, richer insights with widespread adoption of data visualisation and advanced-analytics to support the business, whether through more nuanced financial-scenario planning, insight into how to better manage liquidity, or improved guidance on where to best deploy assets. 

Adoption of digital tools, automation for enhanced efficiency and implementation of real-time reporting and dashboards for improved financial visibility and control. 

Casting a wider net for new efficiency opportunities, reaching beyond the transactional activities such as accounts etc. that have long been the primary focus of attention e.g., automated reports, machine learning algorithms to monitor financial performance / risks etc.

Finance function operating model and strategic plans need to evolve in line with industry trends. The Finance function should incorporate significant technology adoption in areas of analytics and reporting and redeploy employees toward activities that require a portfolio-level view (balance sheet and cash flow analytics). 

Making sure businesses have the confidence to accelerate very well knowing that the right checks / balances / controls are in place.