Yes Bank's loans, advances shrink in Q1 over Covid-19 impact

Topics YES Bank

With no disclosure on the true extent of losses, it may be difficult to convince depositors to continue to hold their funds in YES Bank
Private lender Yes Bank's loans and advances shrank in the Q1FY22 on a year-on-year (Y-o-Y) basis and also sequentially, reflecting the economic and business impact of the Coronavirus (Covid-19) pandemic.

Sequentially, the loan book contracted by 1.8 per cent to Rs 1,63,914 crore at the end of June 2021 from Rs 1,66,893 crore in the previous quarter ended March 2021. The outstanding loans were at Rs 1,64,510 crore at the end of June 2020 (Q1FY20), according to its filing with BSE.

These are provisional figures and come ahead of the announcement of financial results for the quarter ended June 2021, the bank said in the filing. The lender's stock was trading flat at Rs 13.5 per share on the BSE.

The retail disbursements in Q1FY22 were at Rs 5,099 crore, down from Rs 7,828 crore in the preceding quarter (Q4FY21). The disbursements were just Rs 424 crore in the quarter ended June 2020 (Q1FY21).

The bank's deposits rose by just 2 per cent to Rs 1,63,295 crore in June 2021 on a sequential basis from Rs 1,62,947 crore. However, the deposits saw a 39.1 per cent rise on a year-on- year basis from Rs 1,17,360 crore in June 2020 (Q1FY21). The share of low cost – current account and savings deposits – CASA improved to 28.1 per cent in June 2021 from 27.3 per cent in March 2021 and from 28 per cent in June 2020.

The credit to deposit ratio (C\D ratio) declined to 100.4 per cent in June 2021 from 102.4 per cent in March 2021. The C\D ratio was at 140.2 per cent in June 2020.




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