YES Bank stock in focus as private lender shares Q2 business updates

Shares of YES Bank will be in focus in Wednesday’s trading session after the private lender shared its provisional business updates for the quarter ended September 30 (Q2FY24) post Tuesday’s market hours. The bank said its total loans and advances rose 9.5 per cent on a year-on-year (YoY) basis in the September quarter to Rs 2,10,576 crore from Rs 1,92,300 crore in the year ago period. On a quarter-on-quarter (QoQ) basis, loans & advances rose 5.2 per cent over Rs 2,00,204 crore in the June quarter. Advances growth, normalised for ARC transaction, rose 12 per cent YoY, the bank said in a BSE filing YES Bank's deposits grew 17.2 per cent YoY to Rs 2,34,360 crore from Rs 2,00,021 crore on a yearly basis. Its deposits stood at Rs 2,19,369 crore in the June quarter, suggesting a growth of 6.8 per cent on QoQ basis. Deposits growth, excluding certificate of deposits (CDs), improved 18.3 per cent in Q2FY24 compared to the same quarter previous year. The private lender said CASA improved 11.1 per cent to Rs 68,957 crore from Rs 62,073 crore on YoY basis and 6.8 per cent over June quarter’s Rs 64,568 crore. CASA to total deposits ratio (net of CDs) declined to 29.4 per cent from 31.3 per cent YoY, but was flat sequentially. YES Bank's credit to deposit ratio, which suggests the ratio of deposits deployed as loans, came in at 89.9 per cent in Q2FY24 against 91.3 per cent in Q1FY24 and 96.1 per cent in Q2FY23. Its consolidated liquidity coverage ratio (LCR) stood at 116.7 per cent in the July-September quarter compared with 103.9 per cent in the year ago period. Recently, the private lender acquired 1.8 crore shares in its wholly-owned subsidiary YES Securities at 55.75 apiece for a total consideration of about Rs 100 crore. Yes Bank owns 100 per cent of paid-up share capital of YES Securities. Yes Bank made an application to the RBI in May this year for infusion of additional capital in its broking arm to the tune of Rs 100 crore. Shares of YES Bank settled marginally lower on Tuesday at Rs 17.17, commanding a total market capitalisation of roughly Rs 50,000 crore. Shares of YES Bank have declined about 8 per cent in the last one month. They are down 21 per cent in 2023 so far.