Synopsis : Yes Bank reported a decline in both deposits and loans in Q1FY26, signaling concerns over growth momentum despite maintaining strong liquidity buffers. The bank’s shares remained under pressure, reflecting investor caution.
Yes Bank released its Q1FY26 provisional business update, revealing a 3% quarter-on-quarter decline in deposits and a 2% dip in loans and advances, highlighting near-term growth challenges for the lender. Total deposits fell to Rs 275,921 crore from Rs 284,525 crore in the previous quarter, while loans and advances slipped to Rs 241,355 crore from Rs 246,188 crore.
The bank’s credit-to-deposit ratio also eased to 86.5% from 87.5%, indicating a slowdown in lending activity despite sufficient liquidity. This cautious lending stance comes amid broader challenges in credit demand and competitive pressure in the banking sector.
Yes Bank’s share price reflected the sentiment, dropping 0.79% intraday on Friday, and marking a 16% decline over the past year. Investors are watching closely for signals on revival in lending traction and deposit growth to assess the bank’s next growth trajectory in FY26.
Disclaimer : This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making any investment decisions.
