“Our CASA growth has been more than double our total deposit growth, and we’ve managed to reduce our cost of deposits by 20 basis points,” Kumar said.
While the 7% sequential deposit growth may not be sustainable every quarter, Kumar expects double-digit deposit growth for the year ahead.
Loan growth outlook: Double-digit expansion ahead
Yes Bank is targeting double-digit loan growth in FY25, led by corporate, commercial, and select retail segments. Corporate loans have already grown 7% sequentially, and commercial banking continues to deliver 16% year-on-year growth.
“In the next three to four years, Yes Bank will comfortably achieve 15–16% annual loan growth,” Kumar noted.
He added that retail disbursements are gaining traction, despite a cautious approach toward low-margin products like new car loans and prime home loans.
SMBC stake strengthens business synergies and cross-selling
The entry of Sumitomo Mitsui Banking Corporation (SMBC) as a 24.2% shareholder, along with SBI’s 10.8% holding, is expected to accelerate Yes Bank’s execution pace.
“With SMBC’s presence, we can tap into opportunities across large corporates, their supply chains, and employees for both retail and SME offerings,” Kumar explained.
The collaboration is also expected to enhance Yes Bank’s capabilities in transaction banking, cash management, and credit finance, while opening doors for cross-selling to corporate clients.
Asset quality remains stable despite minor fluctuations
Addressing concerns about asset quality, Kumar said the bank’s gross slippages have fallen from 2.4% to 2%, with strong improvements in retail credit performance and minimal new corporate slippages.
“Our credit cost remains stable at 40 basis points,” he said, adding that some quarter-to-quarter fluctuations are due to timing mismatches in recoveries from ARC transactions and provisioning releases.
The restructured book has reduced to just ₹200 crore, indicating normalization of legacy stress.
Outlook: Digital focus and cost efficiency to drive growth
Looking ahead, Yes Bank aims to deepen its digital offerings, improve customer experience, and maintain focus on profitable, granular growth.
The bank is confident that its strong deposit base, stable asset quality, and diversified growth strategy will sustain its recovery momentum and help it reach mid-teen growth levels in the medium term.