Yes Bank

The sustained success of our Bank is based on the key pillars of
 Growth, Trust, Technology, Knowledge Driven Human Capital, Transparency
 and Responsible Banking.
 
 Dear Shareholder,
 
 The Indian Financial Sector has experienced a challenging business
 environment over the past one year, consequent to difficult global
 developments. However, YES BANK has continued its steady GROWTH
 trajectory, and has had a highly satisfactory business and financial
 performance for Financial Year 2008-09, clearly the most challenging
 year in the Banks evolution. Despite the financial challenges, we have
 been able to effectively demonstrate our combined abilities and
 competencies in managing and responding to the impact of the global
 crisis on the Indian Financial Sector and YES BANK. This gives us
 further confidence that the terrific resilience and inherent strengths
 of our young and dynamic Bank will be sustained on a continuous basis,
 with even greater commitment and dedication in the future years to
 truly evolve as a WINNER par excellence.
 
 YES BANK has adapted and responded extremely well to the challenging
 economic environment as has been reflected in our sustained Fiscal Year
 2008-09 financial performance. YES BANKs business and financial model
 leverages our established Relationship Capital, consistent revenue
 generation, while ensuring highly satisfactory Credit Quality and
 Service Standards. These results are an outcome of the concerted
 strategy of our highly dynamic, entrepreneurial and execution focused
 management team, to relentlessly build the highest quality banking
 organisation in India. I also thank all our stakeholders for their
 contribution and support in making this Financial Year highly
 satisfying.
 
 The sustained growth of our Bank is based on the key pillars of Growth,
 Trust, Technology, Knowledge Driven Human Capital, Transparency and
 Responsible Banking. A growing understanding of the need for
 sustainability in the new knowledge economy framework, has paved the
 way for a new generation of business leaders involved with the
 development of the community, and the need for socially responsible
 investing. YES BANK is committed to be a key partner towards further
 augmenting societal responsiveness.  As part of the Triple Bottom Line
 approach of People, Planet, Profit, we have integrated the
 principles of Corporate Social Responsibility and Sustainability as key
 business drivers within our Bank as well as in the broader
 
 Achieving Business Excellence through effective Relationship
 Management has been at the epicentre of our business strategy.
 
 context of the Indian financial community.
 
 Our sustainability mission is to propel economic growth through
 proactive social and environmental engagement across India.
 
 Through a host of corporate citizenship and sustainable development
 initiatives, we at YES BANK have emerged as a responsible banking
 entity in India with growing credibility. Our strong sustainability
 mandate has enabled us to add long-term value to the society, and
 differentiate ourselves in the marketplace. Our continuous support to
 cutting-edge initiatives in areas such as New-Age Technologies
 including renewable energy, Biotech, Nanotech, Sustainable Asset
 Management, Socially Responsible Investing Research and Advisory,
 Social Entrepreneurship and Leadership Development is a reinforcement
 of the same.
 
 Achieving Business Excellence through effective Relationship Management
 has been at the epicenter of our business strategy.  We shall continue
 to pursue a strategy of steady growth, with consistent execution driven
 by knowledge banking industry verticals. This year, we have received
 significant international exposure through our Knowledge Partnerships
 at various industry forums such as CM, FICCI and PHDCCI, among others.
 As part of these strategic partnerships, we have authored several
 Knowledge Reports, in the Agribusiness, Tourism, Pharma,
 Infrastructure, SME and Sustainability space which were released by the
 Chief Ministers of States, Commerce Minister of India and France, and
 Ministers of Agriculture. I firmly believe that our knowledge based
 differentiation will further fuel-growth with YES BANK catering to the
 Future Industries of India.
 
 YES BANK has also been recognised amongst the Top and the Fastest
 Growing Banks in various Indian Banking League Tables by prestigious
 media houses and Global Advisory Firms.  YES BANK has received national
 and international honours for our various Businesses including
 Corporate Finance, Investment Banking, Treasury, Transaction Banking,
 and Sustainable practices through Responsible Banking. The Bank has
 received several recognitions for our world-class IT Infrastructure,
 and Payments Solutions, as well as excellence in Human Capital. This
 year, we have also received several awards and accolades that
 
 YES BANK is focused to become the Bank for EMERGING INDIA catering to
 the vast banking needs of our Corporate and Retail Communities.
 
 provide a significant validation of our entrepreneurial and innovative
 business model in the competitive Indian Banking landscape.
 
 Innovation has been the cornerstone of the success of YES BANK since
 inception, and we have now been recognised among the Worlds 25
 Unsung Innovative Companies by the most prestigious publication -
 BusinessWeek. The survey was conducted by a team of senior executives
 from Boston Consulting Group (BCG) across the world. We were the only
 Bank among the five Indian companies to have received this recognition
 as one of the Most Innovative Company in the world, in a short span
 of 5 years. YES BANK was the only Indian Bank to receive the Most
 Innovative Bank in India award at The New Economy First Annual Banking
 and Finance Awards 2008, held in London, which were announced in the
 December 2008 issue of the International Magazine, The New Economy. YES
 BANK was also ranked as Indias No. I Bank (balance sheet size < INR
 24,000 crore) in the Business Today-KPMG Best Banks Annual Survey 2008.
 We have recently become the first signatory to the United
 
 Nations Global Compact Society.
 
 YES BANK is focused to become the Bank for EMERGING INDIA, catering to
 the vast banking needs of our Corporate and Retail Communities. Our
 achievements over this year and our robust performance are a testimony
 to the united efforts of the entire team that has insulated us against
 any significant adverse impact arising from developments in the
 external business environment. This exceptional growth and unparalleled
 success is a direct outcome of the efforts of all YES BANKers, and I am
 certain that with your continued valuable support, YES BANK will emerge
 even stronger in the future to become Indias best private,
 relationship-driven Banking organization, and steadily achieve our
 ultimate vision of developing into The Best Quality Bank of the World
 in India*.
 
 Sincerely,
 RANA KAPOOR