1 min read.Updated: 04 May 2021, 12:40 AM ISTAparna Iyer
Yes Bank reported 54% year-on-year growth in its deposits for the March quarter
Low cost current and savings account deposits remain a sour spot, with these being just a quarter of the total deposit base
One year since its precipitous fall to the bottom, Yes Bank has managed to build back its depositors’ trust. But there is a long time before the private sector lender regains a large part of its lost health and the pandemic won’t make this easy either.
Yes Bank reported 54% year-on-year growth in its deposits for the March quarter. Of course, a large part of this growth was because of a low base.
Recall that the lender has been losing deposits hand over fist, which along with depleted capital, led to a near collapse in early 2020.
The erosion has been stemmed for now and in FY21, the bank’s retail deposits grew 33%, and corporate deposits grew 60%. But the good news ends for Yes Bank here.
Low-cost current and savings account deposits remain a sour spot. Also, its loan book is still ravaged with bad assets, an outcome of bad decisions by the former management. More than 15% of its loan portfolio is bad as of March and the pandemic has made it more difficult to repair the balance sheet.
Its entire operating profit for FY21 has gone into plugging the holes left behind by defaulters. Notwithstanding forbearance, slippages have only increased for the lender.