YES Bank reported a steady expansion in its balance sheet for Q4 FY26, with advances rising 10.7% year-on-year to ₹2,72,454 crore. Notably, deposit growth outpaced credit expansion, increasing 12.1% y-o-y to ₹3,18,970 crore, signalling a continued strengthening of the bank’s liability franchise and funding base.
CASA accretion enhances cost efficiency
A key highlight of the quarter was robust growth in low-cost deposits. CASA balances rose 14.9% YoY to ₹1,11,960 crore, outpacing overall deposit growth and nudging the CASA ratio higher to 35.1% from 34.3% a year ago. This improvement reflects a gradual shift towards a more stable and cost-efficient deposit mix, which could support margins in a competitive rate environment.
Credit growth remains steady but measured
Advances growth at 10.7% indicates a calibrated approach to lending, with the bank balancing growth ambitions against asset quality considerations. While the pace is moderate compared to some peers, it suggests a continued focus on portfolio quality and risk-adjusted returns.
CD ratio moderation signals conservative stance
The credit-to-deposit (CD) ratio moderated to 85.4% from 86.5% in the previous year, reinforcing the trend of deposit-led growth. This indicates improved liquidity positioning and a more conservative lending stance, providing headroom for future credit expansion without immediate funding pressures.
Liquidity buffer remains comfortable
The Liquidity Coverage Ratio (LCR) stood at 119%, down from 125% a year ago but still comfortably above regulatory thresholds. While the decline suggests some optimisation of excess liquidity, the buffer remains adequate to manage short-term obligations and volatility.
Strategic takeaway: strengthening the core
Overall, YES Bank’s Q4 FY26 update points to a strategy centred on strengthening core liabilities, improving deposit granularity and maintaining disciplined credit growth. The sharper rise in CASA and deposits relative to advances positions the bank well to enhance margins and sustain growth, even as it continues to rebuild scale and stability.