Will continue growing deposits faster than advances: YES Bank CEO

Will deposit growth continue outpacing credit in H2 FY26?

Deposit growth reached 6.5% last quarter, with retail and branch-led deposits expanding twice as fast. Our CASA ratio has consistently strengthened over six to eight quarters, diverging from industry declines. Strategic focus remains on granular, low-cost deposits rather than high-cost corporate deposits. This approach reduced deposit costs by 20 basis points sequentially. Deposit repricing at lower rates will further decrease costs, though market conditions could influence future rate adjustments.

How has credit demand evolved post-GST adjustments?

Robust demand spans corporate, commercial, and retail segments. Corporate loans grew 7% sequentially, while commercial banking and retail segments show sustained appetite. Secured business loans, commercial vehicles, and select unsecured products drive growth. While festive momentum and GST reductions may contribute, overall market sentiment remains strong. Corporate pricing remains highly competitive, with demand evident in both working capital and term loans.

Will capital raising follow recent ratings upgrades?

With CET-1 capital at 14%, current levels adequately support projected double-digit credit growth through FY26. No immediate capital requirements are anticipated.

Are unsecured loans showing improved performance?

Unsecured loan stress stabilized after Q4FY25, showing recovery signals in both credit cards and personal loans. Bounce rates, recoveries, and resolutions demonstrate positive trajectory. Special-mention accounts remained unchanged sequentially.

What potential does acquisition finance hold?

This long-awaited regulatory development offers significant opportunities previously dominated by foreign banks and private credit. Final guidelines must address inherent risks like over-leveraging and ALM mismatches. With established project finance expertise, we’re well-positioned to engage once regulatory frameworks are clarified.

Could recent Swiss rulings on AT-1 bonds affect YES Bank?

A Swiss lower court decision regarding Credit Suisse holds no relevance to ongoing Supreme Court proceedings in India.

Has CEO succession planning progressed?

Internal deliberations will prioritize the institution’s long-term interests. Collective assessment will determine leadership transitions aligned with organizational growth objectives.