Yes Bank, India’s sixth-largest private sector bank, has reported a significant 20.8 per cent year-on-year (Y-o-Y) growth in total deposits, reaching Rs 2,65,072 crore as of Q1FY25. This notable increase underscores the strong trust and confidence customers place in the bank and highlights its successful turnaround over the past four years.
This achievement aligns with recent regulatory guidance aimed at strengthening the financial resilience of the banking sector, which has emphasised the importance of deposit growth.
A critical factor behind Yes Bank's success is its strategic focus on enhancing its low-cost deposit base. The bank has improved its Current Account Savings Account (CASA) ratio, which rose to 30.8 per cent in Q1FY25 from 29.4 per cent in the same quarter the previous year. This improvement is attributed to the bank’s emphasis on granular CASA deposits, resulting in the addition of approximately 17 lakh new CASA accounts during FY 2023-24. A 23 per cent increase in CASA balances further bolstered the bank's low-cost deposit base, highlighting the effectiveness of its customer acquisition and retention strategies.
Supporting this performance are investments in expanding the bank’s distribution network. During FY 2023-24, Yes Bank opened 133 new branches in CASA-rich regions, increasing its total to 1,453 outlets across various states and union territories. This expansion has enabled the bank to offer a wide range of financial products, deepening customer engagement and driving deposit growth. Consequently, Yes Bank achieved a Compound Annual Growth Rate (CAGR) of 22.3 per cent in branch banking-led deposits over the past two years, significantly surpassing the industry average of 11.9 per cent and the 17.4 per cent CAGR among private banks.
According to an official statement issued by the bank, Yes Bank's success in deposit growth can be attributed to three key factors: enhancing efficiencies within its existing and expanding franchise, focusing on acquiring high-value customers, and improving the quality and value of its deposit base. Looking ahead, Yes Bank aims to maintain its growth momentum by deepening customer relationships, expanding its product offerings, and aligning its deposit growth strategy with evolving regulatory requirements and market conditions. By building on its solid financial foundation and customer-focused strategies, the bank is well-positioned to navigate the challenges and opportunities in the banking industry.
