1.1 Background
 
 Yes Bank Limited (the Bank or Yes Bank) is a private sector Bank
 promoted by the late Mr. ashok kapur and Mr. Rana kapoor. Yes Bank
 Limited is a publicly held Bank engaged in providing a wide range of
 banking and financial services. Yes Bank Limited is a banking company
 governed by the Banking Regulation act, 1949. The Bank was incorporated
 as a limited company under the Companies act, 1956 on november 21,
 2003. The Bank received the licence to commence banking operations from
 the Reserve Bank of India (RBI) on May 24, 2004. Further, Yes Bank
 was included to the second schedule of the Reserve Bank of India act,
 1934 with effect from august 21, 2004.
 
 1.2 Basis of preparation
 
 The financial statements have been prepared in accordance with
 requirements prescribed under the Third schedule (Form a and Form B) of
 the Banking Regulation act, 1949. The accounting and reporting policies
 of the Bank used in the preparation of these financial statements
 conform to Generally accepted accounting Principles in India (Indian
 GaaP), the guidelines issued by the Reserve Bank of India (RBI) from
 time to time, the accounting standards (as) prescribed by the Companies
 (accounting standards) Rules, 2006 to the extent applicable and
 practices generally prevalent in the banking industry in India. The
 Bank follows the accrual method of accounting (except where otherwise
 stated), and the historical cost convention.
 
 1.3 Use of estimates
 
 The preparation of financial statements requires the management to make
 estimates and assumptions that are considered while reporting amounts
 of assets and liabilities (including contingent liabilities) as of the
 date of the financial statements and income and expenses during the
 reporting period. Management believes that the estimates used in the
 preparation of the financial statements are prudent and reasonable.
 Future results could differ from these estimates. any revision to
 accounting estimates is recognized prospectively in current and future
 periods.
 
 1.3.1 Segment Reporting
 
 Pursuant to the guidelines issued by RBI on as-17 (segment Reporting) -
 enhancement of Disclosures dated april 18, 2007, effective from period
 ending March 31, 2008, the following business segments have been
 reported.
 
 - Treasury: Includes investments, all financial markets activities
 undertaken on behalf of the Banks customers, proprietary trading,
 maintenance of reserve requirements and resource mobilisation from
 other Banks and financial institutions.
 
 - Corporate - Wholesale Banking: Includes lending, deposit taking and
 other services offered to corporate customers.
 
 - Retail Banking: Includes lending, deposit taking and other services
 offered to retail customers.
 
 - Other Banking Operations: Includes para banking activities like third
 party product distribution, merchant banking etc.
 
 1.3.2 Related Party Disclosures
 
 a) as per as 18 Related Party Disclosures, prescribed by the
 Companies (accounting standards) Rules, 2006, the Banks related
 parties for the year ended March 31, 2011 are disclosed below:
 
 Individuals having significant infuence:
 
 - Mr. Rana Kapoor, Managing Director & CEO
 
 Key Management Personnel (KMP) (Wholetime Director)
 
 - Mr. Rana Kapoor, Managing Director & CEO
 
 # In Financial Year 2010-11, there was only one related party in the
 said category, hence the Bank has not disclosed the details of
 transactions in accordance with circular issued by the RBI on March 29,
 2003 Guidance on compliance with the accounting standards by banks.
 
 b) as per as 18 Related Party Disclosures, prescribed by the
 Companies (accounting standards) Rules, 2006, the Banks related parties
 for the year ended March 31, 2010 are disclosed below:
 
 Individuals having significant infuence:
 
 - Mr. Rana Kapoor, Managing Director & CEO
 
 Key Management Personnel (KMP) (Wholetime Director)
 
 - Mr. Rana Kapoor, Managing Director & CEO
 
 1.3.4 Operating Leases
 
 Lease payments recognised in the Profit and loss account for the year
 ended March 31, 2011 was Rs. 833,371 thousands (Previous year: Rs. 823,443
 thousands).
 
 1.3.5 Earnings Per Share (EPS)
 
 The Bank reports basic and diluted earnings per equity share in
 accordance with as-20, earnings per share. The dilutive impact is
 mainly due to stock options granted to employees by the Bank.
 
 1.3.6 ESOP disclosures
 
 statutory Disclosures Regarding Joining stock Option scheme:
 
 The Bank has fve employee stock Option schemes viz. Joining stock
 Option Plan I (JsOP I) , Joining employee stock Option Plan II (JesOP
 II), Joining employee stock Option Plan III (JesOP III), YBL esOP
 (consisting of two sub schemes) and YBL JesOP V- PesOP II (consisting
 of three sub-schemes). The schemes include provisions for grant of
 options to eligible employees. all the aforesaid schemes have been
 approved by the Board Remuneration Committee and the Board of Directors
 and were also approved by the members of the Bank.
 
 JSOP I is administered by the Board Remuneration Committee of the Bank
 and was in force for employees joining the Bank on or before March 31,
 2005. all the grants under JsOP I were made before the IPO of the Bank.
 
 JESOP II and JESOP III are administered by the Board Remuneration
 Committee of the Bank and were in force for employees joining the Bank
 up to March 31, 2006 and March 31, 2007 respectively.
 
 YBL ESOP (JESOP IV), a sub scheme of YBL esOP and YBL JESOP V, a
 sub-scheme of YBL JesOP V- PesOP II are also administered by the Board
 Remuneration Committee of the Bank and are in force for employees
 joining the Bank from time to time.
 
 Under the above Plans, vesting takes place at the end of three years
 from the grant date for 50% of the options granted and at the end of
 fve years for the balance. Options under all these plans are granted
 for a term of 10 years (inclusive of the vesting period) and are
 settled with equity shares being allotted to the benefciary upon
 exercise.
 
 YBL ESOP (PESOP I), a sub scheme of YBL ESOP, YBL PESOP II and YBL
 PESOP II - 2010, sub-schemes of YBL JESOP V- PESOP II are Performance
 stock Option Plans and are also administered by the Board Remuneration
 Committee of the Bank. Under YBL esOP (PESOP I) vesting takes place at
 the end of each year from the grant date for 25% of the options granted
 and are settled with equity shares being allotted to the benefciary
 upon exercise. Under YBL PESOP II, 30% of the granted options vest at
 the end of frst year, 30% vest at the end of second year and balance
 40% vest at the end of third year. Further grants under PESOP II had
 been discontinued with effect from January 20, 2010. Under YBL PESOP II
 – 2010, 30% of the granted options vest at the end of the third year,
 30% vest at the end of the fourth year and balance vest at the end of
 the ffth year.
 
 1.3.7 Provisions and Contingencies
 
 The breakup of provisions of the Bank for the year ended March 31, 2011
 and March 31, 2010 are given below:
 
                                               (Rs. in thousands)
  
                                    March 31, 2011     March 31, 2010
 
 Provision for taxation                3,650,407        2,487,461
 
 Provision for investments               (71,892)         154,103
 
 Provision for standard advances         520,976          388,655
 
 Provision made- write off for non 
 performing advances- off balance
 sheet exposure                          392,628          876,039
 
 Other provisions                        140,408          (50,335)
 
 TOTAL                                 4,632,527        3,855,923
 
 1.4 Other Disclosures
 
 1.4.1 Movement in Floating Provisions
 
 The bank has not created or utilized any foating provisions during the
 financial year ended March 31, 2011 and financial year ended March 31,
 2010. The foating provision as at March 31, 2011 was Rs. nil (Previous
 year: Rs. nil).
 
 1.4.2 Drawdown on Reserves
 
 During the financial year ended March 31, 2011, the Bank has charged to
 share Premium account, an amount of Rs. 54,457 thousands on account of
 the possible disallowance of tax beneft on certain expenses incurred in
 the financial year ended March 31, 2006, in connection with the Initial
 Public Offering. In the Financial Year ended March 31, 2006, these
 expenses were charged net of taxes to the share premium account.
 
 In financial year ended March 31, 2010 the Bank has utilized the share
 premium received from issue of shares under QIP to meet the share issue
 expenses of Rs. 146,065 thousands .
 
 1.4.3 Disclosure of complaints
 
 A.  Customer Complaints
 
 Year ended March 31, 2011 i) no. of Complaints pending at the beginning
 of the year 5
 
 ii) no. of Complaints received during the year 629
 
 iii) no. of Complaints redressed during the year 628
 
 iv) no. of Complaints pending at the end of the year 6
 
 B.  Awards passed by the Banking Ombudsman
 
 Year ended March 31, 2011 i) no. of unimplemented awards at the
 beginning of the year nil
 
 ii) no. of awards passed by the Banking Ombudsman during the year nil
 
 iii) no. of awards implemented during the year nil
 
 iv) no. of unimplemented awards at the end of the year nil
 
 1.4.3 Dues to Micro, Small and Medium Enterprises
 
 Under the Micro, small and Medium enterprises Development act, 2006
 (MsMeD) which came into force from October 02, 2006, certain
 disclosures are required to be made relating to Micro, small and Medium
 enterprises. On the basis of information and records available with the
 management and confrmation sought by the management from suppliers on
 their registration with the specifed authority under MsMeD, there have
 been no reported cases of delays in payments to micro, small and medium
 enterprises or of interest payments due to delays in such payments.
 
 1.4.4 Letter of comfort
 
 The Bank has not issued any letter of comfort during the year ended
 March 31, 2011 and March 31, 2010.
 
 1.4.5 Description of contingent liabilities
 
 1.  Claims against the Bank not acknowledged as debts
 
 The Bank is a party to various legal proceedings in the normal course
 of business. The Bank does not expect the outcome of these proceedings
 to have a material adverse effect on the Banks financial conditions,
 results of operations or cash fows.
 
 2.  Liability on account of forward exchange and derivative contracts.
 
 The Bank enters into foreign exchange contracts, currency options,
 forward rate agreements, currency swaps and interest rate swaps with
 interbank participants and customers.  Forward exchange contracts are
 commitments to buy or sell foreign currency at a future date at the
 contracted rate. Currency swaps are commitments to exchange cash fows
 by way of interest-principal in one currency against another, based on
 predetermined rates.  Interest rate swaps are commitments to exchange
 fixed and foating interest rate cash fows. The notional amounts of
 financial instruments of such foreign exchange contracts and derivatives
 provide a basis for comparison with instruments recognized on the
 balance sheet but do not necessarily indicate the amounts of future
 cash fows involved or the current fair value of the instruments and,
 therefore, do not indicate the Banks exposure to credit or price
 risks. The derivative instruments become favorable (assets) or
 unfavorable (liabilities) as a result of fuctuations in market rates or
 prices relative to their terms. The aggregate contractual or notional
 amount of derivative financial instruments on hand, the extent to which
 instruments are favourable or unfavourable and, thus the aggregate fair
 values of derivative financial assets and liabilities can fuctuate
 significantly.
 
 3. Guarantees given on behalf of constituents, acceptances,
 endorsements and other obligations
 as a part of its commercial banking activities the Bank issues
 documentary credit and , guarantees on behalf of its customers.
 Documentary credits such as letters of credit enhance the credit
 standing of the customers of the Bank. Guarantees generally represent
 irrevocable assurances that the Bank will make payments in the event of
 the customer failing to fulfll its financial or performance obligations.
 
 4.  Other items for which the Bank is contingently liable
 
 - Value dated purchase of securities
 
 - Capital commitments
 
 - Foreign exchange Contracts (Tom and spot)
 
 1.4.6 Prior period comparatives
 
 Previous periods fgures have been regrouped where necessary to conform
 to current year Classification.