Yes Bank Sees Deposits Rise, But CASA Liabilities Remain Low
Yes Bank’s outstanding deposits have grown nearly 30% since the start of 2020-21.
Yes Bank Ltd. witnessed an increase in its outstanding deposits during the quarter ended September as the private lender continues to regain normalcy under a new management.
The bank’s outstanding deposits rose to Rs 1.35 lakh crore as on Sept. 30, up 15.7% from Rs 1.17 lakh crore as on June 30, according to provisional figures released to the stock exchanges. Compared with March 31, the rise is a steeper 29%, the bank said.
Yes Bank got a new managing director and chief executive officer in March after the Reserve Bank of India put the lender under moratorium owing to weak financials. The regulator had also replaced the bank’s board and appointed two additional directors. After the bank was put under moratorium, it had witnessed a rapid outflow of deposits as customers opted for safer banks.
While the lender has been slowly rebuilding its liabilities franchise after Prashant Kumar took the reins, low-cost current account-savings account deposits are recovering at a slower pace.
The bank’s CASA deposits stood at Rs 33,713 crore as on Sept. 30, up 11.2% from the preceding quarter. Compared with March 31, the increase is 20%. As a ratio of total deposits (ex-certificate of deposits), CASA deposits stand at 26.2% at the end of the second quarter compared with 28% as on June 30.
Total certificate of deposits fell 19.6% quarter-on-quarter to Rs 7,259 crore as on Sept. 30.
Yes Bank’s total advances rose 1.4% quarter-on-quarter to Rs 1.67 lakh crore at the end of the second quarter. Total advances fell 2.7% since March 31, the data released by the lender showed.
The lender has repaid Rs 50,000 crore it had borrowed from the RBI under a special liquidity facility, Chairman Sunil Mehta said while addressing shareholders at an annual general meeting held on Sept. 10.
The short-term facility was introduced so that the bank could repay depositors when they were looking to withdraw their funds.
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In July, the bank managed to raise Rs 15,000 crore through a follow-on public offer, which helped it post better capital adequacy numbers. The FPO came after a Rs 10,000-crore rescue plan in March led by State Bank of India and a host of private lenders.