New Delhi : YES BANK, India’s sixth largest private sector bank announced its Q2FY25 results with a notable 145.6% YoY increase in Net Profit to INR 553 crore, alongside a 10.1% QoQ growth. The Bank’s Operating Profit rose to INR 975 crore, marking a 21.7% YoY and 10.2% QoQ increase. Net Interest Income (NII) stood at INR 2,200 crore, up 14.3% YoY, with stable Net Interest Margin (NIM) at 2.4%, and Non-Interest Income rose to INR 1,407 crore, achieving a 16.3% YoY and 17.3% QoQ growth. Despite a 12.8% YoY rise in Operating Expenses, the Cost-to-Income Ratio improved to 73.0%. The balance sheet shows sustained momentum, with deposits growing 18.3% year-over-year (y-o-y) and 4.6% quarter-over-quarter (q-o-q), and a CASA ratio up to 32.0%, increasing by 260 basis points y-o-y. Net advances grew 12.4% y-o-y, led by strong gains in SME (25.8%), mid-corporate (25.5%), and corporate advances (21.8% y-o-y and 4.6% q-o-q), while retail advances remained flat to focus on profitability. Additionally, there was no priority sector lending (PSL) shortfall for Q2FY25, achieved through increased organic balances and PSLC purchases.
Asset quality improved, with the GNPA ratio falling to 1.6% from 2.0% y-o-y and the Provision Coverage Ratio (PCR) rising to 70.0%. The balance sheet grew 14.5% y-o-y, with CD Ratio at 84.8% v/s 89.2% in Q2FY24 and 86.6% in Q1FY25. Net advances rose 12.4% y-o-y, fuelled by strong growth in SME, mid-corporate, and corporate advances, while retail advances held steady to support profitability goals. The combined metric of Net NPA and net carrying value of security receipts as a percentage of advances more than halved on a y-o-y basis, reaching 0.9% in Q2FY25, while remaining stable q-o-q. The NPA Provision Coverage Ratio (PCR) also improved significantly to 70.0%, up from 56.4% in Q2FY24 and 67.6% in Q1FY25. Recovery and resolution momentum held strong, achieving INR 1,021 crore in Q2FY25. Standard restructured accounts fell to INR 2,125 crore (0.9% of advances), down from 2.2% in Q2FY24 and 1.6% in Q1FY25, driven by ongoing resolutions and upgrades.
Commenting on the results and financial performance, Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, “Our Q2FY25 performance has been encouraging, especially if seen in the context of industry headwinds. The Deposit momentum has been maintained with 18% y-o-y growth, along with a healthy CASA ratio (now at 32%) expansion on both y-o-y & q-o-q basis, on the back of CA growth at 26% y-o-y & 11% q-o-q and SA growth at 30% y-o-y & 7% q-o-q. At same time, the slippage ratio (at 2.2% of Advances) remains range-bound within the guidance range. Other Asset Quality parameters such as GNPA ratio, PCR and O/S Restructured loans have all improved on q-o-q basis.
The Bank continues to deliver as per the stated strategic objectives, with superior growth in SME and Mid Corporate segments, growth resumption in the Corporate segment and calibration of growth in Retail segment, aimed at profitability improvement. Bank also continues to maintain NIL PSL shortfalls.
These along with other drivers have enabled the Bank to deliver healthy Operating Profit and Net Profit growth. The RoA of the Bank has been consistently at 0.5% over last 3 quarters. The Bank has also strengthened its management team with key senior hires in Retail Assets and Financial Markets Team. We have received external validation in the form of Credit Rating upgrades over the last 2 quarters. While we navigate the challenges in the operating environment, we remain confident of our progress towards building a franchise which delivers superior returns to our stakeholders.”
