YES Bank plans to reduce loan-to-deposit ratio to less than 100% by March
Private sector lender YES Bank plans to reduce the credit-to-deposit (C / D) ratio to less than 100% by March 2021, from current levels of 122% in order to balance the asset-liability equation. The P / D ratio was 122.9% in September, up from 140.2% in June. It was 162.7% in March.
Bank officials said it was possible to lower the ratio below 100 percent much earlier, but YES Bank also needs to look at interest income where credit expansion is just as important. . It posted a 1.4 percent increase in advances to Rs 1.66 trillion in the second quarter ended September, from Rs 1.64 trillion at the end of the June quarter.
The lender, who is a partner of the State Bank of India, paid Rs 3,795 crore to the retail segment from July to September. He had disbursed Rs 424 crore to the retail segment in the first quarter of FY21, according to an ESB filing. Its stock was trading 1.43 percent higher at Rs 13.35 per share on BSE on Monday.
Its loan portfolio has shrunk by 2.7% in six months, compared to an outstanding loan of Rs 1.71 trillion at the end of March. Deposits rose 15.7% to Rs 1.35 trillion at the end of September, against Rs 1.17 trillion at the end of June. During the April-September period, deposits increased 28.9%, compared to Rs 1.05 trillion in March.
Low-cost deposits – current account and savings account – reached Rs 33,713 crore in September, compared to Rs 30,326 crore in June and Rs 28,063 crore in March.