YES bank clarifies on derivatives exposure

Yes Bank Ltd has clarified to as under:

"There have been unfounded rumors on Yes Bank's foreign exchange derivatives exposure and its implications on the Bank's operations.

Yes Bank confirms that it has a highly qualified top management and treasury team responsible for the Bank's foreign exchange risk portfolio with highly robust risk management and mitigation systems, processes and controls embedded within the Bank.

Yes Bank reiterates it has no uncovered exposure in the foreign exchange derivatives business and has a highly valuable treasury customer base which is consistently meeting all its maturing financial obligations.

Yes Bank continues to execute its strategy across Corporate, SME and Retail Banking businesses. The Bank currently has 60 operational branches and is in the process of launching 57 additional branches taking the total licensed network to 117.

The Bank reported a Net profit of INR 1355.2 million for the nine months period ended December 31, 2007, a growth of 114% over the corresponding period last year. Other key operating parameters include:

- Q3FY08 Return On Assets of 1.53% (annualized) and Return on Equity of 20.46% (annualized)

- Deposits at Rs 111.29 billion as at December 31, 2007

- Capital Adequacy Ratio of 14.18% as at December 31, 2007

- Book value per share of Rs 42.53 as at December 31, 2007

- Nil NPA portfolio as of December 31, 2007."