Yes Bank has reported its Q3 FY25 financial results, showcasing robust performance across key metrics. The bank’s net profit for the quarter surged by 165% year-on-year (YoY) to ₹612.27 crore, compared to ₹231.46 crore in the same period last year. Operating profit also posted a 25% YoY growth, reaching ₹1,079.02 crore from ₹863.45 crore in Q3 FY24.
Net Interest Income (NII) Gains Momentum
Net Interest Income (NII), a key profitability indicator for banks, grew to ₹2,224 crore in Q3 FY25, marking a 10.3% increase from ₹2,016 crore in the corresponding quarter of the previous year. The growth reflects higher interest earnings from advances and improved operational efficiency.
Improved Asset Quality
Yes Bank continued to improve its asset quality on a quarter-on-quarter (QoQ) basis:
•Gross Non-Performing Assets (GNPA): Declined to ₹39,634.7 crore (1.6%) in Q3 FY25 from ₹38,894.3 crore (1.6%) in Q2 FY25.
•Net Non-Performing Assets (NNPA): Reduced to ₹11,426.2 crore (0.5%) from ₹11,680.2 crore (0.5%) in the previous quarter.
The consistent reduction in NPAs highlights the bank’s focus on credit monitoring and recovery strategies.
Key Financial Highlights
•Total Income: ₹9,341.15 crore, compared to ₹8,174.95 crore in Q3 FY24.
•Interest Earned: ₹7,829.14 crore, up 12% YoY from ₹6,984.85 crore.
•Capital Adequacy Ratio: Basel III CAR improved to 15.2%, compared to 15.6% in the preceding quarter.
The bank’s net advances grew to ₹2,44,834 crore, registering a 12.6% year-on-year increase and a 4.1% rise on a sequential basis. This growth was driven by significant momentum in key segments. SME advances surged by 26.7% year-on-year, while mid-corporate advances also grew by 26.7% over the same period. Corporate advances rose by 26.8% year-on-year and 7.5% quarter-on-quarter. Retail advances remained flat on a sequential basis, in line with the bank’s strategic focus on improving profitability. Fresh disbursements during the quarter amounted to ₹25,256 crore.
The CASA ratio improved significantly to 33.1% from 29.7% in Q3 FY24. Current account balances grew by 21.1% year-on-year, with average balances recording a 22.1% increase. Savings account balances surged by 33.3% year-on-year and 9.2% quarter-on-quarter, driven by robust CASA acquisition, with approximately 3.14 lakh new retail CASA accounts opened during the quarter.
Yes Bank’s credit-deposit ratio stood at 88.3%, improving from 84.8% in Q2 FY25. The capital adequacy ratio (CET 1) remained healthy at 13.3%, with the total CRAR at 15.9%. Return on assets (RoA) expanded to 0.6% from 0.5% reported over the last three quarters. Liquidity coverage ratio (LCR) during the quarter stood at 133.2%, underscoring the bank’s strong liquidity position. The total balance sheet grew by 8.7% year-on-year, with significant contributions from the retail and SME segments.
Prashant Kumar, Managing Director and CEO of Yes Bank, expressed optimism about the bank’s performance and future trajectory. He stated, “Q3FY25 is the fifth quarter in a row where the bank has demonstrated sustained sequential expansion in profitability. The RoA of the bank has also expanded to 0.6% from 0.5%, reported over the last three quarters. It is quite encouraging that we have also started seeing expansion in our operating profitability.”
Kumar further highlighted two critical trends shaping the bank’s profitability trajectory. First, the balances of deposits placed in lieu of PSL shortfalls reduced to 8.5% of assets this quarter from 10.4% in Q2 FY25, which is expected to aid expansion in net interest margins and operating profits. Second, fresh slippages in the retail segment remained flat on a quarter-on-quarter basis, aligning with earlier guidance and potentially reducing gross credit costs.
