YES Bank's CASA ratio improves in Q2 FY25, loan book grows over 13%

Mumbai-based lender's overall deposit growth better than other commercial banks

YES Bank improved the share of low cost money –current and savings accounts (CASA) – in total deposits to 32 per cent in the second quarter of FY25 from 29.4 per cent a year ago, it said on Thursday. Sequentially, CASA share improved from 30.8 per cent at the end of June 2024.

CASA deposits grew 28.4 per cent year-on-year (Y-o-Y) -- higher than 18.3 per cent for overall deposits, said the private bank in a BSE filing.

Indian banks face a challenge in protecting the CASA share due to flows to term deposits that offer higher interest rates and investors moving money to other asset classes. The share of CASA in total deposits of private banks fell to 37.9 per cent in the Q1 FY25 from 44.6 per cent in the same period in FY24, according to CareEdge Ratings.

YES Bank’s overall deposit growth rate (18.3 per cent Y-o-Y) was better than other commercial banks (11.6 per cent) till September 6, 2024, according to data from the Reserve Bank of India (RBI).

The bank’s outstanding deposits stood at Rs 2.77 trillion at the end of September 2024. Its liquidity coverage ratio (LCR) stood at 131.9 per cent in September 2024, up from 120.9 per cent a year ago. It was down more than 137.8 per cent in June 2024.

The Mumbai-based lender reported a 13.1 per cent Y-o-Y growth in advances at the end of September 2024. Loan growth of 14.7 per cent Y-o-Y (till September 2024) was lower than other commercial banks.

YES Bank’s credit to deposit (CD) ratio dipped to 85.3 per cent at the end of September 2024 from 89.2 per cent a year ago and 86.6 per cent in June 2024. The RBI has frequently flagged the concern over the gap in credit growth and deposit growth of the banking sector which pushed the industry CD ratio to 77.16 per cent as on September 06, 2024, up from 76.07 per cent about a year ago.