Yes Bank Q1 Business Update: Gross Advances Increase Nearly 15% to Rs 2.29 Lakh Crore

Yes Bank Ltd. reported a strong 14.8% y-o-y increase in gross advances, reaching Rs.2.29 lakh crore in the April-June quarter, according to the provisional quarterly business updates filed with stock exchanges yesterday. This marks an improvement from Rs.2 lakh crore in the same period last year. The bank also saw a 0.9% sequential rise in loans and advances, up from Rs 2.28 lakh crore in Q4FY24. In April, Yes Bank reported a net profit of Rs.451 crore for Q4FY24, a 123% surge from Rs.202 crore. 

Deposit Growth and CASA Ratio

Deposits showed a 20.8% y-o-y growth, totaling Rs.2.64 lakh crore for the first quarter, compared to Rs.2.19 lakh crore in the same quarter the previous year. However, there was a slight 0.5% decline in deposits sequentially, down from Rs.2.67 lakh crore in the March quarter.

The CASA (Current Account Savings Account) ratio, a key indicator of a bank’s cost of funds, dipped marginally from 30.9% in the previous quarter to 30.7% in the April-June quarter. Despite this slight decline, it remains higher than the 29.4% recorded in the same quarter last year. A higher CASA ratio is beneficial as it represents cheaper funds for the bank, given the lower or no interest paid on these accounts.

Credit-to-Deposit Ratio and Liquidity

Yes Bank’s credit-to-deposit ratio for the first quarter stood at 86.4%, a decrease from 91.3% in the same quarter last year which indicates the proportion of a bank’s deposits that are given out as loans. A lower ratio can suggest more liquidity or a conservative lending approach.

The Liquidity Coverage Ratio (LCR), another critical metric, improved to 137.8% from 116.1% in the previous quarter and 127% in the year-ago period. This ratio measures a bank’s ability to meet short-term obligations, with higher values indicating better liquidity.

Conclusion: Yes Bank’s Q1 update reflects solid growth in both advances and deposits, improved liquidity, and significant profit gains. These indicators suggest a positive track for the bank as it continues to boost its financial stability and market presence.

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