A PROJECT REPORT

0N
FINANCIAL ANALYSIS OF yes Bank
(Dharamshala)
Submitted to HPU for the partial fulfilment towards the award
of
Degree in BACHELOR OF BUSINESS ADMINISTRATION

Affiliated to
Himachal Pradesh University, Shimla (H.P.)
(SESSION 2020-2023)
Government Post Graduate
College Dharamshala (176215)

SUBMITTED TO: SUBMITTED BY:

MRS. MEENAKSHI SAROCH KINJAL
(Project guide) BBA-6THSEM
Univ. Roll No: 5200310024
 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude, thanks

and regards towards all of those who have directly or indirectly
helped me in the successful completion of this project.

I express my sincere gratitude to principal Dr. Sanjivan Katoch and

coordinator Dr. Sanjay Pathania .I present my sincere thanks to
Mrs. Meenakshi Saroch for completion of my project under her
guidance and for lending and directing me at every step of the project.
I would like to thank her for her invaluable help and for her crucial
role throughout the course.

Last but not the least I would like to thanks all the people especially
my parents who have helped, encouraged and inspired me to
complete the project effectively and timely.

2
 DECLARATION

I KINJAL student of BBA 6TH Semester declare that the Project on

“FINANCIAL ANALYSIS OF YES BANK LTD” has been
personally done by me under the guidance of Mrs. Meenakshi
Saroch. All the data represented in this project is true & correct to the
best of my knowledge & belief.

I also declare that this project report is my own preparation and not
copied from anywhere else.

Signature of candidate
KINJAL

3
 CERTIFICATE

This is to certify that the report entitled "FINANCIAL ANALYSIS

OF YES BANK" submitted to Government Post Graduate College,
Dharamshala in partial fulfillment of the requirement for the
completion of the BBA course prescribed by the Department of BBA
is a record of work done by Ms. Kinjal under my supervision.

(Project guide)
Mrs. Meenakshi Saroch

TABLE OF CONTENTS
4
Sr.
no. Title Page no.

1. Industry Profile 1-10

2. Company Profile 11-20

3. Research methodology 21-27

4. Financial statement analysis 28-34

5. Data analysis and interpretation 35-43

6. Findings, Conclusions and 44-47

Suggestions

7. Bibliography 48

5
 Chapter -1

INDUSTRY PROFILE

1
 THE HISTORY OF BANKING

Banking is almost as ancient as civilization itself. The history of

banking may be traced back to the invention of money. The first metal
coins were made in Mesopotamia around 2500 B.C. The first
handwritten European banknotes debuted in Sweden in 1661. In the
1700s and 1800s, cheques and printed paper money debuted, and
many banks were established to deal with increased commerce.
Banking history in each country parallels the growth of commerce
and industry, as well as the level of political confidence and
stability.The ancient Romans created a sophisticated banking system
to support their extensive commerce network that spanned Europe,
Asia, and Africa.
Venice was the birthplace of modern banking. The term "bank" is
derived from the Italian word "ban co," which means "bench,"
because moneylenders used to work on benches in market areas. The
Bank of Venice was founded in 1171 to assist the government in
raising funds for a war.
Simultaneously, in England, merchants began to pay goldsmiths to
keep gold and silver in their safes. Receipts supplied to the Merchant
were occasionally used to buy or sell metal, with the metal itself kept
under lock and key. The goldsmith realized that they might lend part
of their gold and silver and charge interest because not all of the
merchants would request the gold and silver at the same time. Instead
of taxing the merchants, the goldsmiths eventually compensated them
to deposit their gold and silver.
The Bank of England was established in 1694 to borrow money from
the general population in order for the government to support the
Augsburg war against France. By 1709, goldsmiths were utilizing
bank of England notes as receipts.

2
In the 1900s, new technology revolutionized the banking business
around the world, as banks consolidated into larger and fewer
groupings and moved into other countries.

INDIA'S BANKING STRUCTURE:

In today's fast-paced world, banks are required for a country's
development. Banks play an important role in improving all sectors.
They have contributed to the globalization of development, and India
is no exception.
Banks perform the function of a financial intermediary. This means
that it serves as a medium for transferring funds from those with
surpluses to those with deficits (however temporarily). In layman's
terms, banks transfer monies from depositors whose accounts are in
credit to borrowers whose accounts are in debit.
Without the banks as an intermediary, both depositors and borrowers
would have to contact each other directly. Of course, this can and
does occur. This is what has led to the establishment of financial
institutions such as banks.
Before a few decades, there were some powerful persons who used to
land money. However, a significantly high rate of interest was levied,
making borrowing money out of reach for the vast majority of people,
necessitating the necessity for a financial intermediary. The banks'
functions have evolved to the point where direct contact between
depositors and borrowers is now referred to as disintermediation.

3
THE PURPOSE OF BANKS

 Accepting deposits is an example of a classic banking activity.

 Assuming the role of trustees, keeping valuables in a secure
location.
 Financing government loans.
 Money transfer from one location to another.

1. One of the two main functions of banks is to accept deposits;

This is why they are often known as custodians of public funds. In
essence, the money is accepted as a deposit for safety. However, since
the banks utilize the funds to collect interest from customers who are
in need of cash, they split some of this interest with the depositors.
However, there is a lot of bookkeeping and other work involved in
receiving deposits and managing the money.

2. Making loans to the general public.

This is one of a bank's two main business lines. In a sense, the
bank serves as a middleman between individuals with money to
lend and others who require money to conduct commercial
activities. This activity imposes its own demands on the bank's
resources. A bank must have the following for this to perform
effectively:
 Enough of a deposit
 Capability to evaluate the activities and possible borrower.
 Legal documentation expertise.
 The ability to track and keep an eye on how the money it lends
is being used.
 A mechanism that delivers credit well.

3. Moving money from one location to another;

In addition to receiving deposits and distributing loans, banks also
handle local and international money transfers on behalf of their
4
clients. The term "Remittance business" refers to this activity.
Banks provide the facility of rapid money transfers, also referred
to as telegraphic transfers or Tele cash Orders, in addition to
issuing demand draughts, bankers checks, money orders, etc. for
the transfer of money.

4. The business of acting as trustees;

Banks also serve in this capacity for a variety of reasons. When a
business wants to issue secured debentures, for instance, it must
designate a financial intermediary as trustee to manage the
security for the debentures and protect the interests of the
holders. Such organisations must have adequate status in the
market society, financial knowledge, and credibility to inspire
confidence in the minds of potential debenture holders. the
clients' natural preference is for banks.

5. Safeguarding valuables;
Banks are in the business of giving the general public access to
money and goods. While the security of the money is ensured by
providing various deposit schemes, the security of valuables is
guaranteed by having protected areas accessible to the public for
the storage of these items. Lockers are available to use as these
areas. The latter are tiny chambers with built-in dual locking
mechanisms for the sturdy cabinets. These are fully protected and
kept in the Bank's Strong rooms. Both the hirer and the bank are
unable to open lockers on their own. To open the locker, both
must come together and use their separate keys.
To make this facility available to its customers, the Banks must
provide;
• Physical facilities house the lockers
• Locker cabinets

5
 • Security procedures

6. Government business;
Historically, all types of transactions involving the government
were conducted through the government treasury. However,
banks now work on the government's behalf to take its taxes and
tax collections. The majority of governmental payments, including
pensions and tax refunds, are made through banks.

MODERN BANKING ACTIVITIES:

The current banking activities can be divided into two categories:
1. Merchant banking: Merchant banking is described as an institution
that manages a variety of activities, including managing client
services, managing portfolios, syndicating credit, accepting credit,
offering counseling, and offering insurance, among others. A
merchant banker is defined by the notification of the ministry of
finance as any person who engages in the company's activities of
issue management, whether by arranging for the sale, purchase, or
subscription of securities, or by acting as managers, consultants, or
advisors, or by providing corporate advisory services in connection
with such issue management.
 Merchant bank services;
 Project consultation
 Issue resolution
 Cost of the problem
 Post-issue control
 Financing a public problem
 Managers, consultants, or issue advisors
 Portfolio administration

6
2.Consumer loans: Banks offer a personal loan programme through
which consumers can buy durable goods for their homes. Salary
workers and professionals can receive loans for terms of 12 to 48
months. Instead, there is no assurance on consumer credit. With slight
differences in the interest rate, payback time, or requirement for a
third party guarantee, these schemes' basic characteristics are
essentially the same. Banks benefit greatly from consumer finance.
Consumer credit is only available for short- and medium-term needs,
making it easier to manage assets and liabilities.

3. Venture money: Venture capital is long-term, high-risk financing

for high-tech projects. It entails risk but also has a great potential for
expansion. Venture capitalists combine their resources, including their
managerial skills, to help fledgling business owners throughout the
first year of their projects.

4. Banking Mutual funds: According to the Securities and Exchange

Board of India Regulations, 1993, a mutual fund is a trust that has
been set up by a sponsor to raise money through the sale of units to
the general public under one or more schemes for investing in
securities.

7
 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule banks

State co-op- Commercial

banks banks

Indian Foreign

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8
 INDIAN BANKING INDUSTRY ANALYSIS:
Traditionally, the banking scenario in India has been changing at a
rapid pace, with the focus shifting to more differentiated and
customised product/service provider from regulation to liberalisation
in 1991, from planned economy to market.

The economy has changed quickly, from licensing to integration with

Global Economics.

Almost every economic area has been impacted, and the banking
sector is no exception. As a result, the whole banking system in the
country has experienced significant upheaval. Let us examine how
banking has evolved over the last 57 years.

Following independence in 1947 and the proclamation in 1950, the

country began to chart its course for the future, and SBI was
established in 1955 to spearhead the spread of banking into rural India
and accelerate the process of magnetization.

Political pressures forced the bank's nationalisation in 1969, and

lobbying by bank employees and their unions added a few years later
to the list of nationalised banks.

Unions gradually rose in strength, while bank management remained

stagnant. Customer service suffered as a result, complaints grew, and
bank management was unable to identify the problem.

Meanwhile, technology was becoming a global phenomenon with no

view of the future, and banks made a costly mistake by rejecting bank
technology upgrades. They anticipated, incorrectly, that technology
would lead to retrenchment and, finally, the marginalisation of
unions.

9
The banking industry's dilemma was quickly revealed in its balance
sheet sheets. However, banks were unable to avoid the issue due to
current accounting practises.

In 1993, the rules of the game under which banks functioned altered.
Income recognition, asset classification, and loan loss provisioning
standards were implemented, and capital adequacy ratios became
mandatory. All of these changes have had an impact on the concept of
state ownership in banks. It is becoming increasingly evident that
state control of banks is no longer viable.

With the modification of the Banking Regulation Act in 1993, new

private sector and international banks entered the market.

INDIA'S MOST IMPORTANT PLAYER

1. YES BANK LTD.

2. ICICI BANK LTD.
3. STATE BANK OF INDIA LIMITED
4. PUNJAB NATOINAL BANK LIMITED
5. BARODA BANK LTD
6. AXIS BANK LTD.
7. IDBI BANK LTD.
8. INDUSIND BANK LTD.
9. HDFC BANK LTD.

10
 Chapter-2

COMPANY PROFILE

11
 INTRODUCTION

YES BANK is a full service commercial bank providing a complete range

of products, services and technology driven digital offerings, catering to
Retail, MSME as well as corporate clients.
YES BANK operates its Investment banking, Merchant banking &
Brokerage businesses through YES SECURITIES, a wholly owned
subsidiary of the Bank. Headquartered in Mumbai, it has a pan-India
presence including an IBU at GIFT City, and a Representative Office in
Abu Dhabi.

Yes Bank, India's new age private sector bank, is the result of Mr.
Rana Kapoor's professional commitment, supported by his highly
competent top management team, to establish a high quality,
customer-centric, service-driven private Indian bank catering to the
"Future Industries of India."

Yes Bank has implemented international best practises, the highest

service quality and operational excellence standards, and provides
complete banking and financial solutions to all of its valued
customers. Yes Bank's knowledge-driven approach to banking and
unparalleled customer experience for its retail and wealth
management clients is major strengths and differentiators.

Across the country, Yes Bank is progressively expanding its corporate

and institutional banking, financial markets, investment banking,
corporate finance, business (Small and Medium Enterprises) and
transaction banking, international banking, retail banking, and wealth
management business lines. The Bank's continual goal is to create a

12
wonderful banking experience characterised by simplicity, empathy,
and totality.

Through Yes Bank's Knowledge Banking methodology and the goal

of being the "Bank for an Emerging India," Yes Bank recognises the
financial demands of the Government of India in its progress and
development role of a "Growing India." Yes Bank is still committed
to serve this specialised market.

Yes Bank's knowledge bankers provide innovative, systematic, and

complete solutions employing a "Money Doctor" approach that
emphasises diagnostic and prescriptive attention to detail. This is
made possible by Yes Bank's technological leadership, which
provides proven, easy-to-use solutions for government undertakings
and agencies.

Yes Bank has offered financial and consultancy services to Union

Government Ministries, State Governments, Central and State Public
Sector Undertakings (PSUs), and Government Agencies.

Over the course of three and a half years, the Government

Relationship Management (GRM) team has built strong partnerships
with over 100 organisations. The GRM team is dedicated to the key
values of client orientation, innovation, and excellent service
experience that underpin all Yes Bank businesses.

GRM team provides Knowledge Advisory, Liquidity Management

and Investment Products, Transaction Banking, trade finances, cash
management services, Treasury services, Forex Remittances, debt
capital markets, investment managements, corporate salary accounts,
Advisory structured transactions, term loans, and cash credit limits to
various government operations such as IFFCO, SAIL, Airport
Authority of India, IOCL, NDPL, HPCL, Bridge & Roof co.(India)
Itd, and many others.

13
YES BANK HEAD QUARTER:MUMBAI

YES BANK MD AND CEO:PRASHANT KUMAR

LOGO OF YES BANK:

SLOGAN OF YES BANK :“EXPERIENCE OUR

EXPERTICE”

Industry Banking, Financial services.

Incorporation date 21 November, 2003.

14
 HISTORY
Yes Bank's history may be traced back to 1999, when three Indian
bankers decided to form a non-banking financial venture. They were
Ashok Kapur, who had previously worked as the ABN Amro Bank's
national head, Harkirat Singh, who had previously worked as the
Deutsche Bank's country head, and Rana Kapoor, who had previously
worked as the ANZ Grindlays Bank's head of corporate finance. The
remaining 75% of the shares in the non-banking financial industry
were held by Rabobank in the Netherlands. Each of the three Indian
promoters held 25% of the company.

It was relaunched as Yes Bank in 2003. It was also the same year that
Harkirat Singh quit owing to worries over Rabobank's influence in the
choice of CEO and executive chairman roles. Yes Bank has been
unable to raise capital in recent years, resulting in a continuous
worsening of its financial status. This has resulted in probable loan
losses, which has led to downgrades, prompting investors to activate
bond covenants and clients to withdraw savings. The bank has
accumulated losses and virtually little income during the preceding
four quarters. As a result, Rana Kapoor was sacked, and he was
detained in connection with an INR 466 crore money laundering case.

Under Kumar's new leadership, the bank's management promptly

repositioned itself and dealt with all internal and market-related
difficulties in order to regain customer and depositor confidence.
Mehta assured shareholders of a speedy recovery under the
coordinated efforts of the new board and management, even as the
Reserve Bank of India (RBI), State Bank of India (SBI), HDFC Bank,
ICICI Bank, Axis Bank, and other banks lent it support through the
historic Yes Bank Reconstruction Scheme 2020.

Yes Bank Ltd closed their follow-on public offer (FPO) in July 2020,
with 95% participation driven by institutional investors. Yes Bank is a

15
subsidiary of State Bank of India, which owns 30% of the company as
of July 28, 2020.

Yes Bank granted 2,13,650 equity shares to its employees under the
business ESOP plan on February 21, 2023.

SHAREHOLDING:

According to Yes Bank Ltd.'s annual shareholder report for March

2018, the three largest owners were foreign portfolio investors (43%),
insurance corporations (14%), and mutual funds including UTI
(10%).

Smaller (less than 5%) stakes were held by its three promoters [Rana
Kapoor (4%), Yes Capital (India) Pvt. Ltd. (3%), and Morgan Credits
Pvt. Ltd. (3%)], as well as other investors such as Madhu Kapur (8%),
Mags Finvest Pvt. Ltd. (2%), and LIC India (10%).

During the financial crisis in March 2020, State Bank of India

invested 7,250 crore (US$910 million) in Yes Bank and now owns
30% of the company as of July 28, 2020.

OPERATIONS:

Yes Bank operates in the retail, SME, and corporate banking sectors.
Through retail banking and asset management services, it provides a
diverse range of specialised solutions to corporate and retail
consumers. The Reserve Bank of India (RBI) took control of the
bank on March 5, 2020, in an attempt to prevent its collapse due to an
excess of bad loans. Prashant Kumar, former chief financial officer
and deputy managing director of State Bank of India, was later named
MD & CEO of Yes Bank, along with Sunil Mehta, former non-
executive chairman of Punjab National Bank, as Yes Bank's non-
executive chairman.

16
In October 2017, the bank launched Yes Pay, a digital wallet that
integrates with BHIM and UPI.

Yes Bank inked an MoU with the government on 3 November 2017

to offer 1,000 crore (equivalent to 12 billion or US$150 million in
2020) funding for food processing projects.

As of September 2018, Yes Bank had received syndicated loans

ranging from US$30 million to US$410 million from eight significant
international organisations, including ADB, OPIC, European
investment banks, and Taiwan and Japanese banks.

It also collaborated with the US government's OPIC and Wells Fargo

to help women businesses.

Yes Bank offers the (UPI) Unified Payments Interface facility, which
enables users to make different financial transactions via their mobile
devices in an easy and safe manner via third-party software providers
such as PhonePe and Yuva Pay.

Yes Bank processed 25.94 million transactions of INR 14811.73

crores through its own UPI app in July 2021, according to NPCI
(National Payments Corporation of India) data.

On May 30, 2020, Yes Bank purchased a 24.19% share in Dish TV,
India's largest direct-to-home (DTH) business in terms of customers.

SUBSIDIARIES:

YES Securities (India) Limited, YES Trustee Limited, and YES Asset
Management (India) Limited are its three subsidiaries.

MORATORIUM:

The Reserve Bank of India (RBI) said on 5 March 2020 that, in the
interests of its customers and depositors, it would suspend and replace
17
Yes Bank's board of directors and impose a 30-day moratorium on its
operations. The RBI cited, among other things, Yes Bank's failure to
raise fresh funding to cover its non-performing loans, misleading
statements of confidence in its ability to receive new funding, and
underreporting of its non-performing assets as reasons for the
suspension.

During this time, Yes Bank customers could only withdraw up to

50,000 (US$630) per month from their accounts, except in certain
circumstances such as medical treatment, emergencies, higher
education costs, and mandatory expenses for ceremonies such as
weddings (subject to RBI approval).

The situation would be handled quickly, according to RBI Governor

Shaktikanta Das, and Finance Minister Nirmala Sitharaman, who
revealed a planned turnaround plan in which the State Bank of India
would purchase a 49% interest in Yes Bank and install a new board.

The prohibition interrupted several e-commerce platforms, making it

difficult for consumers to conduct online purchases or use popular
payment methods such as UPI.

Almost two weeks later (12 days), the bank lifted the moratorium and
restored full-service banking activities on March 18, 2020. Yes Bank
received funding from a consortium of eight public and private banks
led by State Bank of India. And, just nine months after the
moratorium was imposed, Yes Bank was on the mend. The bank's
operational profits and recoveries were sufficient to cover credit
expenses, and it would not require more capital for future operations.

On March 13, 2020, the Union Cabinet approved the Yes Bank
rehabilitation project, noting that the moratorium would be lifted three
days after notice of the scheme. Seven investors invested 12,000
crore (US$1.5 billion) in Yes Bank during this reconstruction, and
Prashant Kumar was suggested as the bank's new CEO. State Bank of

18
India, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank,
Rakesh Jhunjhunwala, Radhakishan Damani, and Azim Premji trust
are among the investors.

On March 6, 2020, ICRA lowered Yes Bank's core bonds to a "D"

rating, while Moody's cut them to a "Caa3" rating. Yes Bank founder
Rana Kapoor was arrested by the Enforcement Directorate on March
8, 2020, on charges of money laundering.

Yes Bank Ltd. was fined 25 crore (US$3.1 million) by India's market
regulator SEBI (Securities and Exchange Board of India) in April
2021 for fraudulently selling certain risky bonds without the requisite
warnings and risk assessments. The Securities Appellate Tribunal
(SAT) issued an interim stay on SEBI's ruling in May 2021.

LISTING:

Yes Bank owns stocks on the Bombay Stock Exchange and the
National Stock Exchange of India, as well as bonds on the London
Stock Exchange. Yes Bank was floated on the Indian stock exchanges
in June 2005, with a face value of 10 and an issue price of 35 rupees.

RECONSTRUCTION:

Yes Bank has managed to restructure its risk and governance

procedures while avoiding reputational issues under new
management. The bank's liquidity profile is far above the needed
regulatory standards.

The board of directors approved INR 10,000 crore in debt securities

fundraising in June 2021.

Yes Bank had a 55% increase in deposits and a 42% increase in

operating income in fiscal year 2020-21. The bank's recapitalization
drive garnered 15,000 crore in follow-on public offers in July 2020.

19
Yes Bank remains focused on digital payments, emphasising on its
market position in UPI and IMPS transactions, while it intends to
disburse 10,000 crore in retail and MSME loans in the third quarter of
FY21.

Due to market conditions, Yes Bank cancelled its intended $1 billion

share offering in September 2016.

Following the appointment of a new set of bankers, the company

attempted to resume its failed capital raising operation.

RATINGS IMPROVEMENT:

ICRA improved its ratings on securities issued by Yes Bank Ltd in

September 2020, taking into account several favourable developments
in the bank's financial profile. Infrastructure bonds and lower tier II
Basel II compliant bonds were upgraded to 'BBB' from 'BB+'.

Tier II bonds that are Basel III compliant have been upgraded to
'BBB-' from 'BB'. Tier I and upper tier Il Basel II compliant bonds
have been raised to 'BB' from a default rating.

Moody's upgraded Yes Bank's long-term issuer rating to B3 from

Caa1 in August 2020. CARE Ratings raised its rating on YES Bank's
infrastructure bonds from 'CARE B1' to 'CARE BBB' in November
2020.

20
 Chapter -3

RESEARCH
METHODOLOGY

21
A research methodology is a description of how a certain piece of
research is carried out. It specifies the tools or procedures used to
identify and analyse data on a certain research topic. The research
technique, then, is concerned with how a researcher designs their
study in such a way that they can achieve valid and trustworthy data
while also meeting their research objectives.

Thus, research is a unique contribution to the current body of

knowledge that advances it. The objective and systematic process of
seeking solutions to problems in research is used to search for
knowledge.

RESEACH DESIGN:

The fantastic research approach for strategy picked for specific

project has to be conducted considerably ensuring that the data is
collected accurately and economically.

The study employed a descriptive research design in order to get

insight into the problem. Its purpose is to present an accurate image of
some characteristics of the market environment.

 Collection of data
 Organization of data
 Presentation of data
 Analysis of data
 Interpretation of data

Data collecting method:

The data collection method process begins once a research challenge

has been determined and the research design has been reviewed.
There are two kinds of information.

22
1.Primary Data: Primary data is information gathered by researchers
directly from primary sources, such as interviews, surveys, and
experiments. Primary data are typically acquired from the source of
the data and are regarded as the best type of data in research.

Primary data sources are typically chosen and adjusted particularly to

satisfy the expectations or objectives of a certain research project.
Also, before selecting a data collection source, the purpose of the
research and the target population must be determined.

2.Secondary data: Secondary data is research data that has already

been obtained and can be accessed by researchers. Primary data, on
the other hand, is data acquired directly from its source.

Secondary data is utilised to improve the sample size of research

projects, as well as for the efficiency and speed that comes with
utilising an already existing resource. Secondary data supports
massive research efforts in which multiple research groups collaborate
to acquire secondary data. The primary researcher is then free to
concentrate on primary research or specific areas of interest.

DATA ORGANISATION:

Data organisation is the process of arranging raw data in a logical

order. Data organisation techniques include classification, frequency
distribution tables, pictorial representation, graphical representation,
and so on.

Data organisation assists us in organising data so that it can be read

and worked on simply. It is tough to deal with or analyse raw data. As
a result, we must organise the data in order to properly describe it.

DATA PRESENTATION:

23
Data presentation is really important nowadays. After all, anything
visually appealing never fails to capture our attention. The exposition
or display of data in a beautiful and helpful manner so that it may be
easily interpreted is referred to as data presentation. The three primary
types of data presentation are:

1. Presentation of text

2. Tables of data

3. Graphical presentation

DATA ANALYSIS:

The practise of systematically applying statistical and/or logical

approaches to describe and demonstrate, condense and recapitulate,
and assess data is known as data analysis.

While statistical approaches may be used in qualitative research,

analysis is frequently an ongoing iterative process in which data is
continuously collected and analysed virtually concurrently.

DATA INTERPRETATION:

The process of reviewing data and arriving at meaningful conclusions

using various analytical methods is referred to as data interpretation.
Data interpretation assists researchers in categorising, manipulating,
and summarising information in order to answer crucial issues.

LIST OF RESEARCH METHODOLOGY TYPES:

Different criteria are used to classify research methodologies. They

are as follows: general category, study nature, study purpose, and

24
research design. In addition, interviews and case studies based on
research technique are included. In certain studies, more than two
methods are merged, whilst in others, only a few approaches are
considered for the investigation.

According to the General Category:

1. Quantitative Analysis

As the name implies, quantitative refers to numbers. Data is collected

using numbers, and a summary is generated from these figures. In
quantitative research, graphs aid in quantifying the results.

2. Qualitative Analysis

The non-numerical parts of the investigation are referred to as

qualitative.

When numbers cannot convey knowledge or facts, qualitative

research comes to the rescue. Though not as trustworthy as
quantitative research, qualitative research aids in the formation of a
better synthesis of hypotheses in the data.

Based on the nature of the research:

3. Descriptive Research based on the nature of the research

To clarify the facts, descriptive methods such as surveys and case

studies are used. These serve to determine and explain the facts using
examples, and they are not rejected. In descriptive research, many
variables can be employed to explain the facts.

4. Analytical Study

25
Analytical research uses previously proven facts as the foundation for
the research, and critical evaluation of the material is carried out in
this technique.

5. Applied Study

Applied research is action research in which only one domain is

considered and the facts are generally generalised. Variables are
assumed to be constant, and forecasting is performed so that
approaches in applied research can be easily discovered. The research
employs technical jargon, and the summary is founded on technical
facts.

6. Fundamental Investigations

Fundamental research is the basic or pure research done to discover

an element or a hypothesis that has never been discovered before in
the world. Several domains are linked, and the goal is to discover how
traditional things might be modified or something new developed.
The summary is written entirely in normal English, and logical
findings are used in the research.

Based on research design:

7. Exploratory Research

Exploratory studies are based on hypotheses and their explanations,

but they do not reach any conclusions about the research issue. The
structure is incorrect, but the approaches provide a flexible and
inquisitive approach to the topic. The theory is not tested, and the
outcome will be of little use to the outside world. The findings will be
topic-specific, which will aid in furthering the research.

8. Conclusive Research

26
Conclusive study seeks to provide a solution to the study topic and
has an appropriate technique design. A well-designed structure aids in
the formulation, resolution, and presentation of hypotheses and
results. The outcomes will be generic and beneficial to the rest of the
planet.

Researchers will feel a sense of accomplishment when they solve

challenges and benefit society as a whole.

9. Surveys

Not to be overlooked, surveys play an important part in research

technique. It aids in the collection of large amounts of real-time data
and aids in the research process. It is less expensive and can be
completed faster than any other way. Surveys can be conducted using
either quantitative or qualitative methodologies. Because quantitative
surveys produce numerical outputs and the data is actual, they should
always be prioritised over qualitative surveys. Surveys are mostly
used in business to determine market demand for a product and to
forecast production based on the survey results.

27
 Chapter -4

FINANCIAL STATEMENT
ANALYSIS

28
 AN OVERVIEW OF FINANCIAL ANALYSIS

Meaning of Financial Analysis :-

A financial statement is a statement that offers financial information

about a company. They report the profitability and financial status of
the company at the end of the fiscal period. The word financial
statement refers to at least two statements prepared by the accountant
at the end of an accounting period. The following are the two
statements:

 The Balance Sheet

 Profit and Loss Account

They provide extremely useful information in that the balance sheet

reflects the financial position on a specific date in terms of asset
structure, liabilities, and owner equity, and so on, and the profit and
loss account shows the result of operations over a specific time period
in terms of revenues obtained and costs incurred during the year.
Thus, the financial statement summarises a company's financial
situation and operations.

The first task of financial analysis is to select the information

relevant to the decision under consideration to total information in
way to highlight significant relationship. The final step is
interpretation and drawing of the interface and conclusions.

29
Financial Statement is the process of selection, relation and
evaluation.

FINANCIAL ANALYSIS FEATURES :

 To convey complex facts from a financial statement in a clear

and understandable format.
 To categorise the items in the financial statement into
inconvenient and sensible groupings.
 To compare various groups in order to get various conclusions.

PURPOSE OF FINANCIAL STATEMENT ANALYSIS

 To determine the earning capacity or profitability, as well as the

solvency.
 To understand the financial strengths.
 To determine the ability to pay interest and dividends.
 To do comparison research with another firm.
 To understand the business's trend.
 To determine the management's efficiency.
 To offer management with useful information.

FINANCIAL STATEMENT ANALYSIS PROCESS

The following approach is used for financial statement analysis and

interpretation:

 The analyst should be familiar with the management's plans and

policies so that he can determine whether or not these plans are
being carried out appropriately.

30
  The scope of the analysis should be determined so that the scope
of work may be determined. If the goal is to determine the
enterprise's earning capacity, an income statement analysis will
be performed. However, if the financial position is to be
evaluated, a balance sheet analysis will be required.
 The financial data in the statement should be recognised and
organised, which will entail grouping similar data under specific
headings. Individual components of the statement are broken
down according to their nature. A relationship is formed
between financial statements using analysis tools and strategies
such as ratios, trends, common size, and fund flow, among
others.
 The data is analysed in a straightforward and understandable
manner. The importance and utility of financial data in decision
making is explained.
 The report presents the management with the conclusion
obtained from the interpretation.

Analysing financial statements entails assessing three

aspects of the company:

Its liquidity.

 Its profitability.

 Its insolvency.

A short-term creditor, such as a bank, is mostly concerned with

liquidity. A long-term creditor, such as a bondholder, looks to
profitability and solvency criteria to determine the company's ability
to endure over time.

FINANCIAL STATEMENT ANALYSIS LIMITATIONS:

31
Analysis of Financial Statements assists interested parties in
determining an enterprise's strengths and flaws, although it has
significant limits.

They are as follows:

 Historical examination.
 Ignores fluctuations in the pricing level.
 Quantitative aspects were disregarded.
 Suffers from the Financial Statements' restrictions.
 Not without bias.
 Accounting practise variations.
 Dressing the windows.

TOOLS USED FOR ANALYSIS:-

 PROFIT AND LOSS STATEMENT

 BALANCE SHEET

STUDY RATIOS INCLUDE:

 Gross Profit Ratio -GPR is a computation that returns a

figure representing the proportion of profit earned on an
organization's net sales. The net sales value of an organisation is
computed by deducting any credits granted for product returns,
discounts, or rebate programmes from the gross sales figure.
The entire direct cost of sales (inventory + direct costs) is
calculated and applied to net sales to define gross profit. Simply
explained, the ratio represents the profitability of a sales
transaction after selling credits are deducted. The gross profit
ratio is determined as follows:
32
 Gross Profit Ratio = Gross Profit × 100
Net Sales
 Net Profit Ratio-The net profit percentage is the after-tax
profit to net sales ratio. It shows the leftover profit after all
production, administration, and finance costs have been
deducted from sales and income taxes have been deducted. As
such, it is one of a firm's overall performance, especially when
combined with an assessment of how successfully it uses its
working capital. To judge performance over time, the measure is
frequently reported on a trend line. It is also used to compare a
company's performance to that of its competitors.

Net Profit Ratio = Earnings after Tax × 100

Net Sales

OR

Net Profit Ratio = Net Profit × 100

Net Sales

 Current ratio- A liquidity ratio that measures a

company's capacity to pay short-term and long-term
obligations. The current ratio compares a company's current
total assets (both liquid and illiquid) to its current total
liabilities to assess this ability.

Current Ratio = Current assets

Current Liabilities

 Quick Ratio- The quick ratio measures a company's

ability to meet its short-term financial liabilities. The acid

33
 test ratio, also known as the acid test ratio, can be calculated
as follows:

Quick Ratio =Cash + Marketable Securities +

Account Receivables
Current Liabilities

 Debt Equity Ratio (D/E):This financial ratio shows the

proportion of shareholders' equity and debt used to finance the
company's assets. The ratio, often known as risk, gearing, or
leverage, is closely related to leveraging.

It can be determined using a straightforward formula:

Debt Equity Ratio = Total Liabilities

Shareholder Funds or Equity

34
 Chapter – 5

DATA ANALYSIS
AND
INTERPRETATION

35
 DATA ANALYSIS AND INTERPRETATION

A collection of techniques known as data analysis are used to

summarise facts, find patterns, create explanations, and test ideas. It is
employed in administration, business, and policy. The numerical
outcomes of a data analysis are typically straightforward: It locates
the number that characterises a typical value and detects variations in
numbers. Data analysis reveals averages, such as the average income
or the average temperature, as well as disparities, such as the income
disparity between groups or the variations in the average temperature
between years. The numerical conclusions drawn from data analysis
are, at their core, that straightforward.

The data collected were edited, classified and tabulated for analysis.
These are the analytical methods applied in this study:

 Comparative balance sheet.

 Ratio analysis.

36
LAST THREE-YEAR BALANCE SHEET OF
YES BANK
Balance sheet FY 2023 FY 2022 FY 2021
of Yes bank
{Rs. Cr.}

Equities And
liabilities
Shareholder funds
Equity share capital 6699.35 5010.99 5010.98
Total share capital 6699.35 5010.99 5010.98
Reserves and 34043.11 28730.89 28185.35
surplus
Total reserves and 34043.11 28730.89 28185.35
surplus
Total 40742.46 33741.88 33196.33
Shareholder funds
Deposits 217501.86 197191.73 162946.64
Borrowings 77451.99 72204.58 63949.08
Other liabilities & 19089.82 15082.03 13450.71
provisions
Total capital and 354786.13 318220.23 273542.77
liabilities

Assets
Cash & Balances 12864.08 9067.27 6812.79
Balances with banks 6410.35 37572.32 22495.94
money at a call and
short notice

Investment 76888.30 51895.56 43319.15

Advances 203269.44 181051.99 166892.99
Fixed assets 2444.77 2133.13 2148.53
Other assets 52909.18 36499.96 31873.36
Total assets 354786.13 318220.23 273542.77

37
PROFIT& LOSS STATEMENT
Profit & Loss 2023 2022 2021
Account of Yes Bank
(in Rs. Cr.)
Income
Interest /discount 17822.40 15094.91 16641.97
on advances/ bill
Income from 3564.60 2878.09 2680.07
Investment
Interest on balance 841.03 702.07 332.76
with RBI and other
inter-bank funds

Others 469.40 348.44 387.76

Total interest Earned 22697.43 19023.51 20041.84

Other income 3926.65 3262.47 3340.72

Total income 26624.08 22285.98 23382.56
Expenditure
Interest Expended 14779.86 12525.66 12613.23
Payments to and 3362.70 2855.69 2430.38
provision for
employees
Depreciation 0.00 398.36 353.23
Operating expenses 5298.76 3590.34 3008.40

Total operating 8661.46 6844.39 5792.02

expenses
Provision towards 245.51 0.00 0.00
income taxes
Provision toward 0.00 0.00 -1272.85
Deferred taxes
Other provision and 2219.85 1849.72 9712.38
contingencies
Total provisions and 2465.36 1849.72 8439.53
contingencies

Total expenditure 25906.68 21219.77 26844.78

Net profit/Loss for 717.40 1066.21 -3462.23
the year

38
Yes Bank Ltd. Company Financial Ratios Analysis:
Profitability Ratios

Particular 2021 2022 2023

Gross Profit 15.4 13.9 2

Net Profit -17.3 5.6 3.16

 Gross Profit Ratio for Three Years

 Year - 2021
Gross Profit × 100
Gross Profit Ratio =
Net Sales

=
3086.314
x100 Gross profit ratio
20041 18
16 15.4
13.9
= 15.4% 14
12
10 Gross profit ra-
8 tio
 Year – 2022
6
2644.197 4
Gross Profit Ratio = x100 2
19023 2
0
= 13.9% 2021 2022 2023

 Year - 2023
453.94
Gross Profit Ratio= x100
22697
= 2%

Interpretation -
Gross profit ratio reveals profit earning capacity of business with reference to its
sales. In case of Yes Bank, decrease in Gross profit ratio means increases in cost
or sales at lesser price.

39
  Net Profit Ratio for Three Years

 Year - 2021
Net Profit ×100
Net Profit Ratio =
Net Sales

−3462.23
=
20041.84
= -17.3% Net profit ratio
10
5.6
5 3.16
 Year - 2022 0 Net profit ratio
1066.21 2021 2022 2023
Net Profit Ratio = x100 -5
19023.51
-10
=5.6%
-15

-20 -17.3

 Year - 2023
717.40
Net Profit Ratio = x100
22697.43
= 3.16%

Interpretation –
Increase in Net profit ratio shows better performance, on other hand decrease
shows managerial inefficiency and excessive selling and distribution expense.
Above results reveals net profit ratio of Yes bank in 2022 shows significant
amount of increase in ratio but starts declining in 2023.

40
  Liquidity ratio

Particular 2021 2022 2023

Current Ratio 2.2 3.1 1.1

Quick Ratio 0.5 0.6 0.6

• Current Ratio for Three Years

 Year – 2021

Current Ratio = Current Assets

Current Liabilities
29308.73
= 13450.71
Current ratio
3.5
= 2.2% 3.1
3
2.5 2.2
 Year - 2022 2 Current ratio
46639.59 1.5
Current Ratio = 1.1
15082.03 1

= 3.1% 0.5
0
2021 2022 2023
 Year – 2023

19274.43
Current Ratio =
19089.82
1.1%

Interpretation: -
The higher the ratio, the better it is. The ideal current ratio is 2:1.
In case of Yes bank, it decreases in the current year which indicates lack of
liquidity and shortage of working capital.

41
  Quick Ratio for Three Years

 Year - 2021

Cash+ Account Receivables

Quick Ratio =
Current Liabilities

6812.79
=
13450.71

= 0.5%
Quick Ratio
0.7 0.6000000000
0.6000000000
00001 00001
0.6
0.5
 Year – 2022 0.5
0.4 Quick Ratio
9067.27 0.3
Quick Ratio =
15082.03
0.2
0.1

=0.6% 0
2021 2022 2023

 Year – 2023
12864.08
Quick Ratio =
19089.82

= 0.6%

Interpretation –
Traditionally, a quick ratio of 1:1 is considered to be a satisfactory ratio.
Above result reveals that quick ratio of yes bank is unfavourable for the
business.

 SOLVENCY RATIO
 Debt Equity Ratio for Three Years

42
 Particular 2021 2022 2023
Debt Equity 8.2 9.4 8.7
Ratio

 Year – 2021

Total Liabilities
Debt Equity Ratio =
Shareholder Funds∨Equity

273542.77
=
33196.33
= 8.2%

 Year – 2022
Debt Equity Ratio
318220.23
Debt Equity Ratio = 9.5 9.4
33741.88
9.4% 9
8.7
Debt Equity ratio
8.5
8.2
 Year -2023
8
354786.13
Debt Equity Ratio =
40742.46 7.5
2021 2022 2023
=8.7%

Interpretation –
Debt – equity ratio is calculated to assess the ability of firm to meet its long
term liabilities .
Debt – equity ratio 2:1 is considered safe. Above result shows that debt –equity
ratio of Yes bank is more than that, which is more dangerous for long term
lenders .

43
 Chapter – 6

FINDINGS ,
CONCLUSIONS AND
SUGGESTIONS

44
FINDINGS-

 The Gross profit ratio of company is declining, which is

bad for the company.

 As the table shows, Net profit ratio of company has

increased in 2022, but drop by 2% in 2023.

 The current ratio of Yes bank has shown growth in 2022,

but not up to the mark in 2023, which indicates lack of
liquidity.

 The quick ratio is consistent as its 0.6 % in both 2022 and

2023, but is still unfavourable.

 Debt – equity ratio of company is higher than the standard

or ideal Debt – equity ratio which is 2:1, which means
shareholders have high risk.

45
SUGGESTIONS-

 The RBI established a new board to oversee the governance of

the bank. The RBI has a drafting restoration plan for YES Bank
that suggests safeguarding depositors' money.

 Loans should only be offered to businesses that can repay them

so that there are no future issues with defaulted loans.

 For at least a year, the employees would likewise have the same
service conditions, including compensation. According to the
plan, the SBI, which has board approval to participate in YES
Bank, will acquire up to a 49% ownership at a cost of no less
than Rs.10 for each share with a face value of Rs.2.

 Yes Bank was rescued from its deterioration, and by June 2020,
it was back on course with its operations. The bank also
understands how to attract customers. Over the past few months,
Bank management has improved.

 Without a doubt, Yes Bank is the largest bank in the private

sector, and even the majority of UPI apps are reliant on it. As a
result, when the news broke that week, apps were having
problems.

46
CONCLUSIONS-

 A private sector bank is Yes Bank. Yes Bank encountered a

major catastrophe in March 2020. There were several poor loans
made by banks, and depositors withdrew sizable sums from the
bank, among other factors, which brought Yes Bank to this
catastrophe. The depositors' sheet and the loan sheet were not in
balance. In order to preserve Yes Bank, RBI imposed a 30-day
moratorium.

 The possibility of other financial institutions collapsing was a

significant consequence of the Yes Bank disaster. But the
Reserve Bank of India took action and prevented a serious
collapse of Yes Bank.

47
 BIBLIOGRAPHY
Internet sources –
Investopedia
o www.google.co.in

o https://www.moneycontrol.com

o YES BANK (DHARAMSALA BRANCH)

48