Yes Bank announces Q1FY07 results

Mumbai, July 25, 2006: The Board of Directors of YES BANK Ltd. took on record the unaudited Q1-FY2007 results at its meeting held in Mumbai, today.

The total income for Q1-FY07 was up 170% to Rs. 129.39 crore as compared to Rs. 48.01 crore for Q1-FY06. Operating profit for Q1-FY07 was up 77% to Rs. 29.84 crore as compared to Rs. 16.88 crore for Q1-FY06. Profit after tax for Q1-FY07 was up 50% at Rs. 16.88 crore as compared to Rs. 11.25 crore for Q1-FY06. The Total Advances grew by 262% to Rs. 3,170 crore from Rs. 874 crore as at June 30, 05. The Total Deposits grew by 268% to Rs. 3,220 crore from Rs. 874 crore as at June 30, 05.

Announcing the Q1 results of the Bank, Rana Kapoor, Managing Director & CEO, YES BANK said, "The quarter witnessed significant investments towards branch expansion which increased from eight as at March 31, 06 to 17 as at June 30, 06 (at 20 as at July 24, 06). We have received RBI approval to set up 30 additional branches across India taking our total licensed network to 60 branches. Further, we have received RBI approval for launch of 2 CPUs (Mumbai and Gurgaon) and 75 Off-Site ATMs across India."

" In line with our constant endeavor to provide superior products and services, we launched our first innovative retail product, a special Fixed Deposit Programme which offers about 100 basis points higher interest rates than the standard rates offered by peer Banks. YES BANK has now materialized into a 'full service' commercial bank, well-equipped to offer all wholesale and retail products and services." He added.

Other Performance Highlights and Ratios:

Pursuant to the change in provisioning norms for specified classes of standard assets from 0.40% to 1.00% in the phased manner as notified by RBI, the Bank has stepped up this provision to 1.00% during Q1-FY07 itself, despite maintaining a Nil NPA portfolio as of June 30, 06.

Advances at Rs 3,170 crore; Growth of 262% over June 30, 05.

Deposits at Rs. 3,220 crore; Growth of 268% over June 30, 05.

Return on Assets of 1.5% and Return on Equity of 11.6% in Q1-FY07

Capital Adequacy Ratio of 14.28% (Tier I - 11.94%) at June 30, 06.

Book value per share of Rs. 21.84 as at June 30, 06 and EPS (non-annualized) of Rs. 0.63 for Q1-FY07.

Key Highlights for the Quarter ended June 30, 2006:

YES BANK Investment Bank ranked No.1 in M&A 'Outbound Cross Border' and No. 5 in M&A 'Overall' category in the Bloomberg April 18, 06 league tables.

YES BANK awarded NASSCOM Award in April 06 for 'IT Innovations in Emerging India'. The award was in recognition of the Bank's adoption of innovative technologies for increased customer satisfaction and improving process efficiencies.

YES BANK was appointed as National Consultants and Financial Advisors for the Central Committee headed by the Union Ministry of Agriculture on the establishment of Modern Terminal Market Complexes for agricultural perishables.

YES BANK formed strategic alliance with NABARD Consultancy Services (NABCONS) towards joint execution of advisory/technical consultancy assignments in India as well as countries of strategic value in the Food & Agribusiness (F&A) domain. This is the first time NABCONS has joined hands with an Indian bank.

YES BANK instituted an HR program called "YES Entrepreneur in Action". The program allows a YES BANKER to take time off to pursue his / her goals for a year during which time they will focus on a project of their choice. The first "YES Entrepreneur in Action" for the year 2006-07 will be pursuing initiatives in the area of Rural income generation around the Agri sector, which is in sync with the YES BANK's core focus on rural India, agri sector and income generation at the Base of the Pyramid.

YES BANK inducted Sunil Gulati (formerly Managing Director, GE Commercial Finance) as Group President & Head "� Risk Management & Corporate Development) and Deepak Gaddhyan (formerly Senior Corporate Relationship Manager, ICICI Bank) as Country Head "� Government Relationship Management.

YES BANK appointed Sonal Shah as Senior Director- Agribusiness Funds Management. The first-of-its-kind, YES BANK -Food & Agribusiness Fund will invest in companies operating in the Food/Agri related sectors with an aim to capitalize on their strong growth potential.

Total employee strength stood at 1,070 as at June 30, 2006 (258 as at June 30, 05).

ABOUT YES BANK: YES BANK, India's new age private sector Bank, is the outcome of the professional commitment of its Indian promoters, Rana Kapoor and Ashok Kapur, to establish a high quality, customer centric, service driven, private Indian Bank catering to "Emerging India".

YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. A key strength and differentiating feature of YES BANK is its knowledge driven approach to banking. The Bank has formed a specialized 'Development and Knowledge Banking Division' focusing on key sunrise growth sectors.

YES BANK is steadily building corporate and institutional banking, financial markets, investment banking, business and transactional banking, retail and private banking business lines across the country. The Bank's constant endeavour is to provide a delightful banking experience expressed with simplicity, empathy and totality.