YES Bank has reported solid financial results for Q2 FY25, showing robust growth across key metrics. The bank recorded a 15.2% year-on-year (YoY) increase in interest income, which rose to ₹7,730 crore, compared to ₹6,711 crore in Q2 FY24. Net interest income (NII) also saw a healthy increase, growing by 14.3% YoY to ₹2,200 crore from ₹1,925 crore.
The most notable achievement for the quarter was the bank’s 145.6% surge in profit after tax (PAT), rising to ₹553 crore from ₹225 crore in the same period last year.
Key Financial Metrics Q2 FY25:
- Interest Income: ₹7,730 crore (up 15.2% YoY)
- NII: ₹2,200 crore (up 14.3% YoY)
- PAT: ₹553 crore (up 145.6% YoY)
On the asset quality front, the bank’s Gross Non-Performing Assets (GNPA) stood at ₹3,889 crore, slightly up by 0.1% quarter-on-quarter (QoQ) from ₹3,885 crore in Q1 FY25. However, the Net NPA improved, reducing by 6.3% QoQ to ₹1,168 crore from ₹1,246 crore in the previous quarter.
Despite the slight increase in GNPAs, the bank managed to maintain its GNPA ratio at 1.6%, down from 1.7% QoQ. The Net NPA ratio remained stable at 0.5%.
Asset Quality Metrics Q2 FY25:
- GNPA: ₹3,889 crore (up 0.1% QoQ)
- NNPA: ₹1,168 crore (down 6.3% QoQ)
- GNPA Ratio: 1.6% (down from 1.7% QoQ)
- NNPA Ratio: 0.5% (flat QoQ)
Balance Sheet Growth
YES Bank continues to demonstrate effective execution in its strategic objectives, with deposit accretion growing 18.3% YoY and 4.6% QoQ. The bank also showed strong expansion in CASA ratio, which reached 32.0%, up by 260 basis points YoY and 120 bps QoQ.
Net advances grew 12.4% YoY, driven by robust momentum in:
- SME Advances: Up 25.8% YoY.
- Mid Corporate Advances: Increased by 25.5% YoY.
- Corporate Advances: Rose by 21.8% YoY, with a 4.6% QoQ increase.
Asset Quality Improvements
YES Bank has made significant strides in improving its asset quality. The Gross NPA ratio decreased to 1.6%, down from 2.0% YoY and 1.7% QoQ, while the Net NPA ratio stands at 0.5%, maintaining stability QoQ. The Provision Coverage Ratio (PCR) improved to 70.0%, up from 67.6% in Q1 FY25.
The bank’s Resolution momentum continues, with recoveries and resolutions amounting to ₹1,021 crore in Q2 FY25. Additionally, the standard restructured accounts have reduced to ₹2,125 crore (0.9% of advances), down from 2.2% in Q2 FY24.
Strategic Highlights and Credit Rating
The bank’s overall execution aligned with its strategic objectives, and it received credit rating upgrades from CRISIL and CARE for its Basel III Tier II Bonds and Infrastructure Bonds, moving up to A+ from A.
Commenting on the results and financial performance, Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, “Q2FY25 performance has been encouraging, esp. if seen in the context of Industry headwinds. Deposit momentum has been maintained with 18% Y-o-Y growth, along with 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.”
