YES Bank’s loan book expanded aggressively in the quarter ended September 30, with advances reaching ₹3,09,675 crore. That represents a 23.8% jump from ₹2,50,212 crore a year ago, outpacing the 17.7% growth seen in the prior quarter. Deposits followed suit, climbing 19.5% year-on-year to ₹3,54,084 crore, a 12.3% increase from the June quarter. These figures are provisional, as noted in the bank’s Sunday filing.
The funding mix, however, tells a different story. The Current Account and Savings Account (CASA) ratio slipped to 30%, down from 32.7% in the June quarter and 33.7% a year ago. CASA deposits themselves grew a modest 6.6% year-on-year to ₹1,06,255 crore. The decline in the ratio suggests the bank is leaning more on term deposits to fund its rapid lending growth, a trade-off that typically pressures net interest margins over time.
Liquidity metrics reflect this shift. The Credit-to-Deposit (CD) ratio stood at 87.5%, up from 84.5% a year ago but down from 90.4% in the previous quarter. The average quarterly Liquidity Coverage Ratio (LCR) on a consolidated basis was 131.4%, compared to 138.2% in the June quarter. Certificate of Deposit (CD) balances swelled to ₹11,382 crore from ₹6,604 crore in June, indicating a significant reliance on higher-cost term funding.
Stripping out the impact of Foreign Currency Non-Resident (FCNR) deposits and related term loans from the GIFT City branch—part of the RBI’s concessional swap facility—the picture normalizes. Adjusted advances growth slowed to 3.3% quarter-on-quarter, while adjusted deposit growth was 6.5%. The normalized CASA ratio was 31.7%, and the normalized CD ratio stood at 83.2%. These adjusted figures exclude the specific USD/INR Forex Swap Facility mechanisms introduced via the RBI’s June 8 and August 14, 2026 circulars.
The market reaction was muted. Yes Bank shares ended October 1 at ₹20.70 on the BSE, down ₹1.19 or 0.25%. Investors will now watch how the lower CASA ratio impacts profitability in the upcoming Q3 earnings, as the cost of funds may rise relative to the previous period.