YES Bank plans to bring down credit-to-deposit ratio to below 100% by March

Private sector lender YES Bank expects to bring down credit-to-deposit (C/D) ratio to below 100 per cent by March 2021, from the current levels of 122 per cent in order to bring a balance in the asset-liability equation. The C/D ratio was 122.9 per cent in September, down from 140.2 per cent in June. It was at 162.7 per cent in March.

Bank officials said while it was possible to bring down the ratio below 100 per cent much earlier, YES Bank, too, has to look at interest earning for which credit expansion is equally important. It posted 1.4 per cent rise in advances at Rs 1.66 trillion in the second quarter ended September, from Rs 1.64 trillion at the end of the June quarter.

The lender, which is an associate of State Bank of India, disbursed Rs 3,795 crore to the retail segment during July-September. It had disbursed Rs 424 crore to the retail segment in Q1FY21, according to a BSE filing. Its stock was trading 1.43 per cent higher at Rs 13.35 per share on the BSE on Monday.

Its loan book shrunk 2.7 per cent in six months, when compared to outstanding loans of Rs 1.71 trillion at the end of March. Deposits rose 15.7 per cent to Rs 1.35 trilllion at the end of September, from Rs 1.17 trillion at the end of June. In the April-September period, deposits rose 28.9 per cent, from Rs 1.05 trillion in March.

Low-cost deposits — current account and savings account  — rose to Rs 33,713 crore in September, from Rs 30,326 crore in June and Rs 28,063 crore in March.