Big news has emerged regarding Yes Bank, with Japan's leading financial institution, Sumitomo Mitsui Banking Corporation (SMBC), acquiring a 20% stake in the bank in May. This strategic investment is considered a significant vote of confidence for Yes Bank.
Yes Bank Limited, a prominent private sector bank, released its initial business update for the first quarter of fiscal year 2026, spanning April to June 2025, on Thursday evening. This update presented key figures such as the bank's advances, deposits, CASA ratio, and Liquidity Coverage Ratio. The report revealed that while the bank's deposits and loans showed growth on a year-on-year basis, a decline was observed quarter-on-quarter.
Yearly Growth in Deposits
Yes Bank reported that its total deposits reached ₹2.75 lakh crore in the April-June quarter, reflecting a 4.1% year-on-year increase. This figure stood at ₹2.65 lakh crore in the corresponding period last year. However, a decline of approximately 3% was noted compared to the March 2025 quarter, when deposits were around ₹2.84 lakh crore.
The bank stated that the annual growth in deposits reflects customer confidence, but a slight slowdown was evident in deposits during the recent quarter.
Mixed Trends in CASA Deposits
The figures for Current Account and Savings Account (CASA) deposits also presented a similar picture. There was a 10.8% year-on-year increase, reaching approximately ₹90,347 crore. However, this was a decrease of 7.3% from the March quarter, when CASA deposits were at ₹97,480 crore, representing a decrease of 7.3% over three months.
The bank's CASA ratio stood at 34.3% in the March 2025 quarter, which decreased to 32.7%. However, this is still better than the 30.8% reported in the previous year. The CASA ratio indicates the bank's capacity for low-cost funding, and a decrease suggests that the bank is not receiving funds as inexpensively as before.
Slowdown in Loan and Advances Growth
The bank reported that its total loans and advances increased by 5.1% year-on-year to ₹2.41 lakh crore. However, this figure was ₹2.46 lakh crore in the March quarter, indicating a decline of approximately 2% on a quarterly basis.
These figures indicate that while the bank's loan growth continues to grow annually, a slight slowdown is being observed on a quarterly basis. This directly implies that credit demand has been weak in the current quarter.
Improvement in Liquidity Coverage Ratio
Yes Bank stated that its Liquidity Coverage Ratio (LCR) increased to 135.7% from 125% in the March quarter. However, it was 137.8% in the first quarter of the previous year, indicating a slight decline year-on-year.
The LCR indicates whether the bank has sufficient liquidity to meet short-term needs. It is considered an indicator of the bank's financial strength in the banking sector.
Key Information Regarding the SMBC Deal
In May 2025, another major development concerning Yes Bank came to light. Sumitomo Mitsui Banking Corporation (SMBC), a major financial company from Japan, acquired a 20% stake in Yes Bank. This deal involved the State Bank of India and other banks that supported Yes Bank during the crisis in 2020.
SMBC acquired this stake at a price of ₹21.50 per share. This has provided the bank with a b partner, and the deal is considered strategically significant.
How the Bank Performed in the Stock Market
On Friday morning, Yes Bank's performance in the stock market was observed with a slight weakness. The bank's share was trading around ₹20.17 at around 10 a.m., slightly below the SMBC deal price.
Looking at the past month, Yes Bank's share has recorded a decline of approximately 4.5%. Market experts attribute the weakness in the quarterly business figures as the primary reason.
Market Focus on the Complete Results
Currently, Yes Bank has only released an initial business update. The complete picture will emerge when the bank presents its full financial results. These results will reveal profits, expenses, bad loans (NPAs), and other significant figures.
The market is now keen to see whether the bank will strengthen again in the coming quarters and whether the participation of a large foreign institution like SMBC will bring any significant changes to the bank's strategy.
