Yes Bank Q2 Loan Growth Rises by 23.8% YoY

Yes Bank (

) reported strong Q2 FY27 business momentum, with loans and advances rising 23.8% YoY to around ₹3.1 lakh crore. The loan book also grew 8.6% sequentially from ₹2.85 lakh crore in Q1 FY27, indicating that the growth is not limited to a low base effect. Deposits Are Growing Alongside Loans Deposits increased 19.5% YoY to ₹3.54 lakh crore, compared with ₹2.96 lakh crore a year earlier. Sequentially, deposits rose 12.3% from ₹3.15 lakh crore in Q1 FY27. CASA deposits increased around 7% YoY to ₹1.06 lakh crore. However, the CASA ratio declined to 30% from 33.7% a year ago and 32.7% in the previous quarter. Normalised for the special RBI scheme, the CASA ratio stood at 31.7%. The credit-to-deposit ratio also moved up to 87.5% from 84.5% a year ago, although it improved from 90.4% in Q1 FY27. My View The headline numbers are encouraging, particularly because Yes Bank is showing strong loan growth alongside nearly 20% deposit growth. For me, however, the more important question is the quality and profitability of this growth. The 23.8% loan growth is clearly positive, but the decline in the CASA ratio shows that deposit mobilisation remains an area to monitor. A bank can grow its loan book quickly, but sustainable value creation ultimately depends on the cost of deposits, margins, asset quality and return on equity. The improvement in the credit-to-deposit ratio from 90.4% in Q1 to 87.5% is also constructive from a funding perspective. But investors will need to see whether Yes Bank can maintain this growth without sacrificing pricing discipline or profitability. The stock has still fallen more than 3% in 2026 and around 8% over the past month, despite outperforming the Nifty Bank index on a year-to-date basis. That suggests the market is still waiting for stronger evidence that the improvement in operating momentum can translate into a sustained earnings recovery.