Yes Bank’s CASA, Liquidity Coverage Ratio rises in Q2, loan growth up 13.1%
Source: Business Standard
Yes Bank’s overall deposit growth rate of 18.3 per cent Y-o-Y was higher than the 11.6 per cent Y-o-Y growth
Private sector lender Yes Bank increased the share of low-cost money—current account and savings account (CASA)—in total deposits to 32 per cent in the second quarter ended September 2024, from 29.4 per cent a year ago. Sequentially, the CASA share was also higher than 30.8 per cent at the end of June 2024.
According to the bank’s filing with BSE, the year-on-year (Y-o-Y) growth in its CASA deposits, at 28.4 per cent, was higher than the overall deposit growth rate of 18.3 per cent Y-o-Y.
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Banks have been facing the challenge of maintaining their CASA share, given the shift in flows to term deposits where higher interest rates are offered, as well as the movement of investors’ money to other asset classes. The share of CASA in total deposits for private banks fell to 37.9 per cent in the quarter ended June 2024 (Q1FY25), from 44.6 per cent in the June 2023 quarter and 37.9 per cent in the March 2024 quarter, according to CareEdge ratings.
Yes Bank’s overall deposit growth rate of 18.3 per cent Y-o-Y was higher than the 11.6 per cent Y-o-Y growth recorded by commercial banks as of September 6, 2024, as per Reserve Bank of India data.
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, though it was down from 137.8 per cent in June 2024.
In terms of loan growth, the Mumbai-based lender reported a 13.1 per cent Y-o-Y increase by the end of September 2024. However, this was lower than the 14.7 per cent Y-o-Y loan growth rate recorded by commercial banks as of September 6, 2024.
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 Reserve Bank of India (RBI) has frequently expressed concern over the gap between credit growth and deposit growth in the banking sector, which pushed the industry’s CD ratio to 77.16 per cent as of September 6, 2024, up from 76.07 per cent a year ago.
First Published: Oct 03 2024 | 1:39 PM IST
