In-Depth SWOT Analysis of Yes Bank + Infographics | IIDE (2024)

In our previous blog, we elaborated on the SWOT analysis of one of the toughest contenders in the private banking sector, HDFC. In this blog will be doing an end-to-end SWOT Analysis of Yes Bank.

Yes Bank has made a jump in its profits of about 74% which was more than the estimated profit during the Q2 of 2021. In the past decade, it has shown its success by winning a variety of awards. Due to its abundant knowledge in the banking sector, it has been providing its customers with different facilities and giving quality services.

They have been using some innovative marketing strategies in this digital era. Digital marketing is one of the most essential methods of marketing for the current time as most people are online and it can cater to a large audience. So if you are interested in learning the latest skills – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

This makes us curious to know how Yes Bank became such a big name in the industry, here we have covered the topic SWOT analysis of Yes Bank in depth. But before we understand its success strategy let us know a bit about Yes Bank as a company, its services, competitors, financial health, and more.

About Yes Bank

Yes bank was established in the year 2004 by Rana Kapoor and Ashok Kapur. It has its headquarters in Mumbai, India, and has been providing its services all over the country and 9 union territories with a large workforce under it.

It has been acknowledged as one of the fastest-growing banks in various national rankings by renowned news outlets and global advisory firms. Yes Bank was one of the top 10 banks in India as of market capitalization in 2018. It has also earned several regional and global honors for its businesses that including Corporate Investment Banking, Treasury, Transaction Banking, and Sustainability.

The Reserve Bank of India seized control of the bank on March 5, 2020, in an attempt to prevent its collapse due to the heavy accumulation of bad loans. Since then, the board has been restructured as the former Chief Financial Officer of SBI was assigned as the new MD and CEO at Yes Bank.

It made a revenue of around ₹10,000 crores (US$1.4 billion) as of 2021. It had a market capitalization of about $6.12B as of 2020. It has total assets of ₹273,543 crores (US$36 billion) as of 2021.

Services of Yes Bank

Through an extensive branch banking network of over 1000 branches and 1,800 ATMs. A wide array of services are offered such as:

• Savings Account
• NetBanking Services
• Corporate Loans
• Home & Personal Loan
• Business Loan

Close Competitors of Yes Bank

Due to its large presence in the market have many competitors all over the country, some of which are:

• HDFC Bank
• ICICI Bank
• Kotak Mahindra Bank
• Axis Bank
• Punjab National Bank
• IndusInd Bank
• Bank of Baroda

Now that we know about the company. Let us now start with the structured SWOT analysis of Yes Bank.

SWOT Analysis of Yes Bank

SWOT analysis refers to the study of the Strengths, Weaknesses, Opportunities, and Threats which a company possesses. This helps the company to know its position in the market and what needs to be improved and what it needs to be prepared for.

SWOT Analysis of Yes Bank can be evaluated through the following points:

Strengths of Yes Bank

Strengths include the potential capabilities and available resources that a firm can utilize for its growth. The following are the strengths of Yes Bank:

• Rising Net Cash Flow and Cash from Operating Activity: Yes bank’s cash flow from operating activities has taken a huge leap to the positive side. Its core business activity improved drastically. Potential for profitability is observed.

• Diversified Business: Yes Bank does business in a variety of sectors, including Commercial Banking, Corporate, and Institutional Banking, Investment Banking, Corporate Finance, Financial Marketing, and Retail Banking.

• High-End Technology: Yes Bank relies on cutting-edge technology to ensure the seamless operation of its banking and financial services.

• Recognised Bank: Popularity among the people is one of the most advantageous strengths of Yes Bank. It has also been a recipient of global and domestic awards such as ‘India’s Fastest Growing Bank of the year’ in 2009 which creates a positive image in public.

• Accessible to all: If there is one criterion that the general public observes while comparing banks, it is how accessible the bank is to them. Digitization of the daily banking activities and a convenient and efficient procedure in Yes Bank gives it an edge over many other banks.

• One of the largest Private Sector Bank: Yes Bank is one of the top private sector banks in India. Recognized by powerful media houses and global advisory firms, this usually becomes a deciding factor when people choose to invest in banks.

• Strong marketing strategies: Yes Bank undertakes Ad campaigns in mainstream newspapers, television advertisem*nts, and print advertisem*nts in its subsidiaries as its promotional activities. Digital marketing is also being utilized, with social networking platforms like Facebook, Instagram, Twitter, and YouTube being leveraged to reach clients.

Weaknesses of Yes Bank

Weaknesses are those elements that impede the company’s growth and prevent it from reaching its objectives. Yes bank has a few deficiencies that must be addressed

• Security over Digital Media: Yes Bank’s banking and financial activities are conducted through digital media, thus there is a greater risk of security in their corporate operations. Many people are opposed to engaging money through digital means.

• Use of Digital in Rural Area: The use of digital media for banking and financial purposes is not widespread in most rural regions.

• Low Profitability: Yes bank is stuck in negative Return on Assets (RoA) for 2 consecutive years. The negative returns on assets refer to the underutilization of its assets to generate sufficient profit.

Opportunities for Yes Bank

Opportunities are favorable conditions that offer a company a competitive edge over rival enterprises. Following are the favorable opportunities for Yes Bank:

• Large Asset in one Client: Yes Bank has substantial assets per client, which provides tremendous potential to serve them while also growing in the banking and financial services industries.

• Global Market: Yes Bank has a higher awareness in the global market and faces fewer restrictions. This gives the bank the ability to go worldwide and achieve its commercial objectives.

• Expanding Services to Clients: Yes Bank provides clients, banks, shareholders, and investors with enhanced advice and customized services. This will attempt to offer them an opportunity to improve their business.

• Business goals towards middle and lower-income groups: Unlike other banks, which primarily serve the upper-middle classes, Yes Bank has expanded its business to serve the medium and lower-income groups of society as well.

• Awareness in Digital Media: People’s increased knowledge of digital media presents a significant potential for the bank to serve more clients.

• Improving Provision Covering Ratio: Yes banks’ dependence on external sources of funding has reduced as the Provision Coverage Ratio has seen a rise. This will provide more funds to be set aside to cover bad loans and cushion them against potential losses.

Threats to Yes Bank

External elements that might affect the firm are referred to as threats. These issues should be addressed as quickly as possible to prevent severe harm to the organization. The threats to Yes Bank are as follows:

• Security threats: If the bank encounters any security difficulties at any moment, it poses a severe threat to the bank. In such circ*mstances, regaining client confidence would be challenging.

• High Fee: The bank’s clients’ strong fee negotiation power poses a significant danger to the bank’s operations.

• Global Competitors: The presence of numerous global giants in banking and financial services poses a significant threat to the bank’s ability to remain competitive in this industry.

• Change in Laws and Regulations: Whenever the government changes the regulations and laws, it might have an impact on the bank’s business operations.

With this, we have completed the SWOT Analysis of Yes Bank, let us conclude the case study.

Conclusion

Yes Bank has been growing exponentially with a jump in profit of about 74%. As we have studied the SWOT Analysis of Yes Bank we have known that it has a rising net cash flow and cash from operating activity with a diversified business and has a good opportunity in the global market. However, some of the factors are potential drawbacks for the company.

With changing market conditions there is an increase in competition in the market and its returns in assets are negative. It can tackle this problem by entering the global market and by the use of digital marketing it can create a large customer base as in modern times most people are active on digital platforms. If you are interested in learning more and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you like such detailed analysis of companies, find more such insightful case studies on our IIDE Knowledge portal.

Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.