The year 2010-2011 has demonstrated an impressive financial perfomance
 with the last quarter profit crossing INR 200 crore for the first time
 in YES BANKs history. You will be pleased to know that YES BANK is now
 the Fourth Largest Private Sector Bank in our country. We have achieved
 this steady growth trajectory across all business segments, thereby
 further enhancing our unique financial and business model, which
 emphasizes on value addition and superior, high quality service.
 
 As we aspire further towards building the Best Quality Bank of the
 World in India, I am pleased to report to you that YES BANK has
 successfully completed the first year of Version 2.0 (2010-2015), which
 is truly the most stimulating phase in your Banks lifecycle. With
 current
 
 Branches at 214 across 164 cities pan India, and our distribution
 network rapidly expanding, we will be able to further accelerate growth
 across Commercial Banking and Branch- Retail Banking business segments
 with an inherent focus on garnering branch driven retail- SME
 liabilities.
 
 We aim to further build organically through counter cyclical strategies
 and proactive risk management.
 
 Version 2.0 is all about SCALE AND DIVERSITY. I am pleased to report
 that on the back of stellar performance in FY 2011, the Bank has
 strengthened its platform to deliver on the key goals established for
 FY 2015. The focus for the current phase of growth is primarily on
 deposit mobilization. YES BANK plans to maintain its focus on garnering
 CASA on the back of our expanding distribution network, focusing on
 B2B2C alliances and segmental strategies to create increased momentum
 in granular deposit accretion.  YES BANK is focused on achieving its
 long term goal of building CASA up to 30% of its total deposit base.
 
 Branch expansion is a significant organizational imperative for the
 Banks current phase of growth-Version 2.0, which will further propel
 Retail-SME Banking initiatives. Towards this, YES BANK inaugurated its
 West Bengal and North East Banking operations in June 2010, in the
 presence of Honourable Finance Minister Shri Pranab Mukherjee, to
 further focus on the growing business and financial opportunities in
 this key region in our country. This was followed by New Delhi &
 National Capital Region Banking operations by the Honourable Chief
 Minister, Government of NCT - Delhi, Smt. Sheila Dikshit.
 
 Our aim is to transfom branches from mere transaction outlets to
 Service Oriented Advisory Centers, thus shifting the focus from
 providing vanilla transactions to value added services. Sinc incption,
 your Bank has adopted innovative and creative service technologies that
 facilitate robust systems and processes towards delivering world-class
 banking solutions.
 
 This year was truly significant in the life cycle of YES BANK, with the
 launch of our new retail focused advertisement campaign titled - EK
 SHABDH - YES, SUNNE KO MANN TARSE. Our Brand strategy is to build one
 of the finest financial brands in India. Through this campaign, our
 endeavour is to transform the YES BANK brand into an even more consumer
 centric brand accompanied with the finest levels of service,
 operational delivery and excellence.
 
 YES BANK is driven by an uncompromising mission to build quality, and
 to provide superior and consistent services. I am pleased to advise you
 that we have once again delivered consistent financial performance,
 highest asset quality and received several national and international
 awards & accolades. I sincerely attribute this success to every YES
 BANKer for their outstanding contribution towards sustaining the growth
 and ensuring institutional operational excellence and exemplary
 execution.
 
 This year, YES BANK has been recognized amongst the Top and the Fastest
 Growing Banks in various Indian Banking League Tables by prestigious
 media houses and Global Advisory Firms - Indias No. 1 New Private
 Sector
 
 Bank in the Financial Express-E&Y Best Banks Survey 2010,
 
 Indias Fastest Growing Bank of the Year at the Bloomberg UTV
 Financial Leadership Awards 2011, Indias Best Mid-sized Bank (balance
 sheet < 50,000 Cr.) award at the Business Today-KPMG Best Bank Survey &
 Awards 2010, Fastest Growing Bank award (balance sheet between 30,000
 Cr. - 1,00,000 Cr.) at the Businessworld Best Bank Awards 2010.
 
 YES BANK has also received various national and international honours
 such as the Organization with Most Innovative HR Practices at the
 South-East Asia Human Resources Excellence Awards 2010 in Malaysia,
 Organization with Best Practices in Talent Management at the Talent
 Excellence Awards in London, BestPrax Award for Innovation in the
 Service Sector at the Qimpro Convention 2010, Best Corporate Social
 Responsibility Practice award at the NASSCOM Foundation-BSE Social and
 Corporate Governance Awards 2010, Certificate of Commendation for
 Strong Achievement at CII-ITC Sustainability Awards, and the ISACA
 award for Implementation of IT Governance Practices.
 
 The year culminated with two significant achievements -
 
 YES BANK received its maiden International Investment Grade Baa3
 long-term rating from Moodys Investor Services, which is a true
 validation of the superior financial performance and strong risk
 management practices of YES BANK, and the ISO 27001:2005 Certification
 for its Information Security Management System by the British
 Standards Institution (BSI).
 
 With best-in-class Human Capital of over 4000 YES BANKers, and focused
 vision and strategy encompassing Version 2.0, these recognitions will
 further act as key drivers of sustained growth and will help propel the
 Bank for its take-off to become the Best Quality Bank of the World in
 India.
 
 While we have the added responsibility of performing significantly
 better every year, and maximize value for all stakeholders, we remain
 committed to pursuing the highest levels of professional integrity,
 ethical standards, highest levels of compliance and the most
 transparent corporate governance norms, which have been the cornerstone
 of our success in the last seven years.
 
 I take this opportunity to thank my entire team for the commendable
 performance, dedication and hard work put in over the past several
 years. I sincerely believe that with the continued support of our
 valued stakeholders, we will achieve our destination vision for Version
 2.0 -
 
 Building the Best Quality Bank of the World in India, with a strong
 organizational character reflected in our Human Resources as the
 Professionals Bank of India.
 
 Thank you.
 Sincerely,
 
 RANA KAPOOR
 
 Managing Director & CEO