Yes Bank Ltd

Dear Shareholders,

It is with great pride and optimism that I present to you the Integrated Annual Report for the financial year 2024-25. Last year, your Bank completed 5 years of the new journey of "YES BANK of Today", marking it a special year which was characterised by YES BANK's renewed strength, strategic clarity, and a steadfast commitment to delivering value to all our stakeholders.

India's economy continued its resilient growth trajectory in FY 2024-25, with real GDP expanding by approximately 6.5%. Despite global uncertainties, domestic demand remained robust, supported by government-led infrastructure investments, a rebound in rural consumption, and a stable monetary policy environment. CPI Inflation moderated to 4.6% in FY 2024-25, and the current account deficit was contained at 0.6% of GDP, reflecting strong services exports and remittances. The recent reduction in the repo rate signals a shift towards supporting growth while maintaining inflation control. Consumer and business confidence for the year ahead remain high and the investment scenario is brighter as corporations step into FY 2025-26 with robust balance sheets and high profitability. India's GDP is projected to grow by 6.5% in FY 2025-26, while consumer price inflation is expected to remain below 4% during the same period.

Your Bank delivered a 92.3% Y-O-Y increase in Net Profit, reaching Rs. 2,406 crore in FY 2024-25. This was driven by improvements across Interest and Non-Interest income, cost discipline, asset quality, while delivering calibrated growth across SME, Mid Corporate and Large Corporate segments. The Bank's Total Assets in FY 2024-25 stood at Rs. 4.23 lakh crore, with deposits crossing Rs. 2.85 lakh crore and CASA ratio at 34.3%. At the same time, the Return on Assets (RoA) for FY 2024-25 further expanded to 0.6% from 0.3% in the previous year, and the annualised RoA for the Quarter ended March 31, 2025 was at 0.7%. Further in FY 2024-25, there was a notable improvement in asset quality, as the Net Non-Performing Assets (NPA) ratio declined to 0.3% of Net Advances with PCR now at 80%. Furthermore, the value of Net Security Receipts was reduced to nil. Borrowings for the Bank for the year ended March 31, 2025 stood at Rs. 71,603 crore, a reduction of ~ 8,338 crore from the previous year aided by reduction in RIDF balances. The Bank's journey through the current financial year has been marked by innovation, collaboration, and its sharp focus on strategy of profitable growth.

Your Bank continues to strengthen its digital capabilities and investing in new-age digital technologies to offer superior customer experience. Your Bank has digital journeys for seamless customer acquisition, servicing, and cross-sell in place for retail as well as corporate customers.

The Bank has implemented comprehensive digital onboarding journey with an industry-first, data-backed product recommender in real time for new-to-bank current account. It offers boutique of 238 unique digital offerings across various applications. Your Bank launched seamless GST payment solutions for both customers and non-customers. To augment its offerings, your Bank continues to partner with various FinTechs and corporates and continues to be a leading player in new-age digital payments. To grow its digital volumes further and build resilience, the Bank has implemented enhanced API banking and cloud-native infrastructure. These initiatives reflect our commitment to delivering secure, intelligent, and personalised banking experiences.

Your Bank is committed to upholding the highest standards of corporate governance and fostering a robust risk culture. Our governance framework is designed to ensure transparent decision-making, effective risk management, and ethical conduct across all levels of the organisation. Your Board of Directors play a pivotal role in overseeing the Bank's strategic direction, financial performance, and risk management practices. Your Bank has established comprehensive policies and procedures to ensure accountability, integrity, and compliance with regulatory requirements. Your Bank's risk management framework is built on the principles of proactive identification, assessment, and mitigation of risks. We employ advanced risk management tools and techniques to monitor and manage credit, market, operational, and liquidity risks effectively. The Board's Risk Management Committee provides oversight on risk-related matters, ensuring that risk management practices are aligned with the Bank's strategic objectives. Regular reviews and audits are conducted to assess the effectiveness of our risk management framework. Your Bank is committed to maintaining the highest ethical standards in all our operations. Our Code of Conduct outlines the principles and values that guide our actions, ensuring that we operate with integrity, transparency, and respect for all stakeholders.

The past year has been pivotal for ESG integration in India's financial sector, marked by a series of progressive regulatory developments to strengthen sustainability-related governance and transparency. SEBI has advanced ESG efforts by refining the BRSR framework, launching the ESG Debt Securities framework, and eased operations for ESG rating providers. The Ministry of Finance's Draft Climate Finance Taxonomy offers timely clarity for aligning green lending. Meanwhile, IFSCA's anti-greenwashing guidelines mark a shift toward credible ESG practices. YES BANK remains actively engaged, aligning its strategy with these evolving standards.

At YES BANK, we view this transition as a catalyst for long-term value creation. As the only Indian banking signatory to the UNEP FI Principles for Responsible Banking, the Bank is committed to aligning its business with the objectives of the United Nations Sustainable

Development Goals (UN SDGs) and the Paris Climate Agreement. In FY 2024-25, the Bank strengthened this commitment by undertaking significant actions, and progressing on its targets of reducing its financed emission intensity (electricity generation sector portfolio), migrating the Bank's facilities to renewable energy, enhancing its gender diversity and expanding financial inclusion amongst rural women borrowers. To deepen climate awareness at the highest level of governance, the Bank conducted a dedicated workshop on ‘Climate Risks and Opportunities' for its Board of Directors and key management personnel, strengthening internal alignment on the transition to a low-carbon economy. The Bank also continued to be recognised for its benchmark sustainability disclosures, achieving the highest S&P Global ESG score and CDP rating for its climate disclosures, amongst Indian banks, for the third year in a row.

Through YES Foundation's employability and entrepreneurship initiatives, over 25,000 individuals have benefited, including 7,000 youth trained and more than 18,000 farmers, women, and artisans who have seen increased incomes. Additionally, more than 2 lakh trees have been planted, with a goal of reaching 1 million by 2026, and over 30 crore litres of water have been conserved through water harvesting structures. Your Bank's ESG strategy is anchored in the 3Es – Employability, Entrepreneurship, and Environmental Sustainability having a positive impact on the overall development of the community being served and aligned with the UN SDGs and India's national priorities.

As we look to the future, YES BANK is well-positioned to build on this momentum. With a strong balance sheet, a digitally-empowered platform, and a clear strategic vision, we are committed to delivering sustainable growth and long-term value for all stakeholders.

On behalf of the Board of Directors, I extend my heartfelt thanks to our shareholders, customers, employees, and partners for their unwavering support. We deeply value the continued trust of our shareholders, customers, and partners. Together, we are shaping a stronger, more inclusive, and more resilient YES BANK.

Sincerely,

Chairman