Yes Bank net up 51% to Rs 21.5cr

Mumbai, October 30, 2006: The Board of Directors of YES BANK Ltd. took on record the unaudited Q2-FY2007 results at its meeting held in Mumbai today.

Total income for Q2-FY2007 was up 182.2% to Rs. 166.0 crore as compared to Rs. 58.8 crore for Q2-FY2006. Operating profit for Q2-FY2007 was up 55.4% to Rs. 34.9 crore as compared to Rs. 22.5 crore for Q2-FY2006. Profit after tax for Q2-FY2007 was up 50.8% at Rs. 21.5 crore as compared to Rs. 14.3 crore for Q2-FY2006. Total Advances grew by 177.1% to Rs. 3,730.5 crore from Rs. 1,346.4 crore as at September 30, 2005. Total Deposits grew by 293.1% to Rs. 4,329.9 crore from Rs. 1,101.4 crore as at September 30, 2005.

Announcing the Q2 results of the Bank, Rana Kapoor, Founder / Managing Director & CEO, YES BANK said, "This quarter witnessed a substantial buildup of our Retail and Business Banking functions which include Emerging Corporates and Small & Medium Enterprises Groups. We continue to strengthen our Retail and Business Banking functions with focus on hiring and retaining world-class human capital, and creating a state-of-the-art Retail Banking platform nationally." " The recent investment by a fine marquee investor like Swiss Re, validates our business and financial model, and underlines the confidence of long-term value investors in YES BANK," added Mr. Kapoor.

Other Performance Highlights and Ratios:

Advances at Rs. 3730.5 crore; Growth of 177.1% over September 30, 2005.

Deposits at Rs. 4329.9 crore; Growth of 293.1% over September 30, 2005.

Return on Assets of 1.5% and Return on Equity of 14.2% in Q2-FY2007.

Capital Adequacy Ratio of 12.0% (Tier I "� 10.0%) at September 30, 2006.

Book value per share of Rs. 22.63 as at September 30, 2006 and EPS (non-annualized) of Rs. 0.80 for Q2-FY2007.

Key Business and Financial Highlights:

YES BANK knowledge report titled "Indian Agriculture "� The Winds of Change" was released by The Honourable Prime Minister of India, Dr. Manmohan Singh at the FICCI Agriculture Summit, where YES BANK was the Knowledge Partner. The report presents a holistic development approach across the agricultural value chain and portrays the attractiveness and diverse opportunities existing across several areas of the sector.

YES BANK launched the world's first wi-fi branch banking network in collaboration with Intel using Intel Mobile Technologies. This technology will allow the Bank's customers to access the Internet, and perform wireless banking transactions in a fully secure environment, within the branch premises.

YES BANK announced its decision to issue 10 million equity shares (3.6% of its expanded capital) on a preferential basis to Swiss Reinsurance Company (Swiss Re), one of the world's leading and most diversified re-insurers, and an investor of finest pedigree, at a price of Rs. 120 per share constituting an equity infusion of Rs. 1.2 billion (USD 26.5 mn), subject to regulatory/shareholders approval.

YES BANK has obtained a long-term credit rating of LAA- by ICRA and AA- by CARE to raise an aggregate of Rs 1.8 billion (USD 39.7 mn) of subordinated debt. Under this program, the Bank is in the process of privately placing unsecured, redeemable, non-convertible, subordinated Tier II bonds, aggregating Rs. 1.0 billion (USD 22.1 mn) with an option to retain over-subscription of up to Rs. 800 million (USD 17.7 mn). The bonds have a maturity of 114 months and carry a coupon of 9.1% per annum. The issue has been extremely well received.

The above capital raising initiatives are a part of the Bank's overall plan to raise up to USD 150 mn by the end of the current fiscal year. Towards this, the Bank has also received approval from the Board of Directors  to raise capital from Perpetual Debt Instruments forming part of Tier I capital up to Rs. 85 crore (USD 18.7 mn) and by way of Hybrid Instruments forming part of Upper Tier II capital up to Rs. 280 crore (USD 61.8 mn).

YES BANK signed a foreign currency loan agreement with Wachovia Bank, N.A., a leading Global Bank. The agreement allows YES BANK to borrow USD 30 mn for one year, which will complete the Bank's trade finance product suite. The facility will enable the Bank to provide export related credit products to its corporate clients.

YES BANK has tied up with BillDesk, India's largest bill payment service provider, to facilitate easy online payment of bills. This payment facility gives all customers of the Bank the flexibility of viewing and paying bills online, free of cost.

YES BANK appointed Sanjay Agrawal (formerly Head - SME Credit, Standard Chartered Bank) as Country Head-SME Risk Management, Lovekesh Dev (formerly Head - Operations, Equinox Global Services) as Head - Centralised Business Processes & Contact Centre, and Nilanjan Sinha (formerly Chief Manager "� Legal, ICICI Bank) as the Chief Legal Officer. Total employee strength stood at 1,624 as on September 30, 2006 (311 as on September 30, 2005).

ABOUT YES BANK:

YES BANK, India's new age private sector Bank, is the outcome of the professional commitment of its 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 and an unprecedented customer experience for its retail and wealth clients.

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.