YES Bank, a leading private-sector lender, recently released its business updates for the third quarter of FY24 (December 2024). The report highlighted significant growth in core business parameters, including loans and advances, deposits, and CASA (Current Account Savings Account) ratios, reflecting the bank’s steady recovery and resilience.
Performance Metrics
1. Loans and Advances
- Year-on-Year (YoY) Growth:
- Loans and advances surged 12.6% YoY, climbing to ₹2.45 lakh crore in Q3 FY24 from ₹2.17 lakh crore in the corresponding quarter of FY23.
- Quarter-on-Quarter (QoQ) Growth:
- Sequential growth stood at 4.2% QoQ, indicating consistent business traction.
2. Deposits
- YoY Growth:
- Deposits rose 14.6% YoY, reaching ₹2.77 lakh crore in Q3 FY24 from ₹2.41 lakh crore in Q3 FY23.
- QoQ Growth:
- Growth remained flat on a quarterly basis, showing stability in deposit mobilization.
3. CASA Ratio
- YoY Growth:
- CASA balances surged 27.6% YoY to ₹91,575 crore in Q3 FY24, reflecting increased customer trust.
- QoQ Growth:
- A moderate sequential rise of 3.4% QoQ in CASA balances.
Stock Market Performance
On January 2, 2025, YES Bank shares closed flat at ₹19.60 on the Bombay Stock Exchange (BSE), compared to the previous close of ₹19.63.
- Market Capitalization: ₹61,445 crore
- Volume Traded: 74.70 lakh shares
- Turnover: ₹14.58 crore
The flat closing suggests that investors are cautiously optimistic, awaiting further clarity on the bank’s financial health and future trajectory.
Analysis of Key Trends
Growth in Core Operations
YES Bank’s double-digit growth in loans, advances, and deposits demonstrates its improved lending capabilities and stronger depositor confidence. These metrics indicate a rebound from the challenging period following the financial crisis faced by the bank in earlier years.
CASA Ratio Improvement
The 27.6% YoY rise in CASA balances highlights effective strategies to attract low-cost deposits, a critical component for sustainable profitability.
Stock Stability
While the stock closed flat, the consistent trading volume of 74.70 lakh shares reflects continued interest from investors. The steady market capitalization of ₹61,445 crore underscores the bank’s ongoing recovery efforts.
Strategic Implications
- Business Growth: The robust YoY growth in loans, advances, and deposits suggests that YES Bank is on a stable growth path, expanding its lending operations and deposit base.
- Improved Customer Engagement: A higher CASA ratio indicates improved customer engagement, as more clients choose YES Bank for their transactional and savings needs.
- Investor Confidence: Stable stock performance amid a volatile market environment reflects cautious investor confidence in the bank’s turnaround strategy.
Future Outlook
YES Bank’s performance in Q3 FY24 underscores its resilience and strategic growth trajectory. The continued improvement in key financial metrics, including CASA balances and loan growth, positions the bank for long-term success.
However, challenges like maintaining asset quality, managing non-performing assets (NPAs), and navigating a competitive banking landscape will be critical for sustained growth.
Key Takeaways
- Loans and advances rose 12.6% YoY and 4.2% QoQ to ₹2.45 lakh crore.
- Deposits grew 14.6% YoY, stabilizing at ₹2.77 lakh crore.
- CASA balances surged 27.6% YoY to ₹91,575 crore.
- The stock closed flat at ₹19.60, with a market cap of ₹61,445 crore.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are encouraged to conduct their research or consult a financial advisor before making investment decisions.
