YES BANK Q2 FY25 Earnings: ₹553 Cr Net Profit, 145.6% Growth

YES BANK reported Net Interest Income (NII) of ₹2,200 crore in Q2 FY25, showing a year-over-year (Y-o-Y) increase of 14.3%. Net Interest Margins (NIM) stood at 2.4%, up slightly from 2.3% in Q2 FY24 and consistent with the previous quarter. 

Non-interest income reached ₹1,407 crore, at 1.4% of the average assets on an annualised basis, marking a 12.6% Y-o-Y rise and 9.0% growth quarter-over-quarter (Q-o-Q) after accounting for investment and treasury gains. Operating costs increased by 12.8% Y-o-Y to ₹2,632 crore, with Priority Sector Lending Certificates (PSLC) costs doubling to ₹78 crore. Adjusting for these costs, operating expenses rose 11.3% Y-o-Y and 2.4% Q-o-Q.

The bank’s operating profit grew 21.7% Y-o-Y and 10.2% Q-o-Q to ₹975 crore, while the cost-to-income ratio improved to 73.0%, down from 74.4% in Q2 FY24. Provision costs (non-tax) dropped by 40.6% Y-o-Y to ₹297 crore. Net profit surged 145.6% Y-o-Y to ₹553 crore, with Return on Assets (ROA) at 0.5%, compared to 0.2% in Q2 FY24.

Balance Sheet Overview

YES BANK’s total advances increased by 12.4% Y-o-Y to ₹2,35,117 crore, maintaining a diverse portfolio split between Retail & SME, Mid Corporate, and Corporate at 59:16:25. Fresh disbursements for the quarter totalled ₹23,998 crore. Total deposits rose 18.3% Y-o-Y to ₹2,77,214 crore, with the CASA (Current Account Savings Account) ratio reaching 32.0%, up from 29.4% in Q2 FY24. Quarterly Liquidity Coverage Ratio (LCR) averaged a healthy 132.0%, while the CET 1 ratio stood at 13.2%, and the Total Capital Adequacy Ratio (CRAR) was 16.1%.

Asset Quality Metrics

Gross Non-Performing Assets (GNPA) decreased to 1.6% from 2.0% in Q2 FY24, with Net Non-Performing Assets (NNPA) stable at 0.5%. Provision Coverage Ratio (PCR) rose to 70.0%, with technical write-offs increasing it to 81.5%. Gross slippages for Q2 FY25 were ₹1,314 crore, up slightly from Q1. The bank’s overdue book in the 31-90 days category declined to ₹3,762 crore, while restructured accounts reduced significantly to ₹2,125 crore due to successful resolutions and upgrades.

Other Achievements

The bank’s ratings for Basel III Tier II and Infrastructure Bonds were upgraded to ‘A+’ by CRISIL and CARE. Key senior management hires included Mr. Nirav Dalal as Country Head for Financial Markets and Mr. Sumit Bali as Country Head for Retail Assets & Debt Management.

About YES BANK

YES BANK, based in Mumbai, is a full-service commercial bank providing a range of products, services, and digital solutions to retail, MSME, and corporate customers. It operates a brokerage division through its wholly-owned subsidiary, YES SECURITIES. The bank has a strong presence across India, an International Banking Unit (IBU) at GIFT City, and a representative office in Abu Dhabi.

On October 28, 2024, YES BANK’s share price opened at ₹20.35, touching the day’s high at ₹21.29, as of 10:00 AM on the NSE.

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