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Informist, Saturday, Jul. 18, 2026

 

--YES Bk: Strong corporate, retail demand support loan growth
--CONTEXT: YES Bank management comments at post earnings press conference

--YES Bk: Aims to deepen deposits, CASA growth in FY27

--YES Bk: Loan demand across sectors to aid credit growth in coming qtrs

--YES Bk: Already seeing better traction for FCNR(B) deposits

--YES Bank: Pressure on oil prices led to strong loan growth in Q1 

--YES Bk: Loan growth to sustain in coming quarters

--YES Bank: See credit, deposit growth in line with industry

 

MUMBAI – YES Bank Ltd. expects its loan growth to sustain in the coming quarters, after it clocked an over seven-year high loan growth in the June quarter. "...this time it could have been more because of the pressures that were on the country for oil," the lender's management said at a press conference post its earnings on Saturday. The management also said it is seeing better traction in foreign currency non-resident bank deposits.

 

For the June quarter, the bank's loans were at INR 2.85 trillion, up 18.3% on year. "I think one of the benefits also is that since we've achieved this growth early in the year, this will also hold us in good stead for the rest of the year," Vinay Tonse, managing director and chief executive director of YES Bank, said at the conference. The bank expects strong corporate and retail demand to support its loan growth.

 

According to the management, YES Bank aims to deepen growth in deposits and current account savings account in 2026-27(Apr-Mar). "...even on a sequential basis when I look through CASA, we continue to see a sequential growth of anywhere between 4–5%," said the management. Improvement in the CASA mix will continue to be in focus, although the management said it had to consider it as a structural lever, which takes its time to grow. 

 

Asked about the margin guidance, the management underscored three medium-to-long-term levers expected to support its margin growth. The Rural Infrastructure Development Fund balance, which is currently at around INR 270 billion, is expected to come down to INR 210 billion by March 2027. This is likely to add to the company's margin.

 

Second, its focus on improvement of the CASA mix would benefit the bank's margin growth. And, retail growth regaining momentum is the third lever, which is expected to support margins, according to the management. "But of course, while disbursements in retail are growing faster, in excess of 30%, for that to get reflected in the book, I think we might still be about three quarters away," Tonse said. The bank also expects the current credit growth and deposit growth to continue at the industry level.

 

"We are very clear that we want to expand the core franchise ROAs (return on assets) to about 20 basis points or so," Executive Director Rajan Pental said. For the quarter ended June, YES Bank's return on assets was 0.9%, up from 0.8% a year ago, but down from 1.0% in Jan-Mar.

 

The bank will closely monitor its exposure to West Asia in the backdrop of the ongoing geopolitical concerns. "And as of now, we do not see any specific sector or even any of our clients who are facing any impairment," said the management.

 

For the June quarter, the lender posted a nearly 34% on-year rise in its net profit at INR 10.71 billion. Its net interest income came in at INR 27.86 billion, up 17.5% on year. Total income for the reporting quarter was INR 98.42 billion, up over 5% on year. On Friday, shares of the bank ended 0.6% lower at INR 23.61 on the National Stock Exchange.  End

 

Reported by Arundathi A R and J Navya Sruthi

Edited by Avishek Dutta

 

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