YES Bank shares fall after Q2 business update; key details

Shares of YES Bank Ltd fell in Thursday's trade, even as the private lender said its deposits grew 18.3 per cent and advances jumped 13.1 per cent year-on-year (YoY) in the September quarter. The lender's liquidity coverage ratio declined sequentially, YES Bank informed stock exchanges. The bank stock fell 1.65 per cent to Rs 22.05 amid weakness in the broader market.

YES Bank said its loans and advances for the September quarter stood at Rs 2,36,512 crore against Rs 2,09,106 crore in the corresponding quarter last year. The 13.1 YoY growth was lower than 14.8 per cent YoY growth in advances that YES Bank recorded in the June quarter. YES Bank said its advances were up 3 per cent sequentially in Q2 over Rs 2,29,565 crore in the June quarter.

YES Bank said its deposits were up 18.3 per cent YoY at Rs 2,77,173 crore against Rs 2,34,360 crore in the same quarter last year. This is against a 20.9 per cent YoY growth in total deposits it recorded in the June quarter. Sequentially, the deposit growth stood at 4.6 per cent for the September quarter against .

CASA ratio came in a 32 per cent for the quarter against 30.8 per cent in June and 29.4 per cent in the year-ago quarter. Liquidity coverage ratio came in at 131.9 per cent against 137.8 per cent in June and 120.9 per cent in the year-ago quarter.

For the June quarter, while opex and credit costs for YES Bank declined QoQ, return on asset (RoA) was flattish due to lower other income (MTM loss). Post the warrant conversion, CET 1 stood at 13.3 per cent at the end of June quarter.
Analysts said operating parameters were on improving trajectory, though RoA remains burdened by bulky RIDF investments. The bank is making concerted efforts in organic PSL origination, which should ease incremental RIDF burden, aiding yields and RoAs, ICICI Securities said post the lender's Q1 results.