Try this:
SELECT
T1.col2
,CASE WHEN T2.col1 IS NULL THEN 'No' ELSE 'Yes' END
FROM T1
LEFT OUTER JOIN T2 ON ',' + T2.col2 + ',' LIKE '%,' + T1.col1 + ',%'
AND T1.col3 = T2.col3
If you have possible duplicates and you want eliminate them (showing a Yes over a No) then use this:
SELECT DISTINCT
T1.col2
,MAX(CASE WHEN T2.col1 IS NULL THEN 'No' ELSE 'Yes' END)
FROM T1
LEFT OUTER JOIN T2 ON ',' + T2.col2 + ',' LIKE '%,' + T1.col1 + ',%'
AND T1.col3 = T2.col3
GROUP BY
T1.col2