YES BANK has announced its financial results for the quarter ended June 30, 2024, showcasing a significant increase in net profit and steady growth across various financial metrics.

The bank’s net profit for Q1FY25 stands at INR 502 crores, marking a 46.7% year-over-year (Y-o-Y) increase and an 11.2% quarter-over-quarter (Q-o-Q) rise.

YES BANK’s net profit for Q1FY25 reached INR 502 crores, a notable 46.7% increase Y-o-Y and an 11.2% Q-o-Q growth. Net Interest Margins (NIMs) for the quarter were steady at 2.4% Q-o-Q. The bank’s non-interest income for Q1FY25 was INR 1,199 crores, with normalized growth of 20.5% Y-o-Y.

Notably, there was no Priority Sector Lending (PSL) shortfall for the quarter, achieved through a combination of increased organic balances and PSLC purchases.

YES BANK has made significant strides in advancing its strategic objectives, with net advances growing by 14.7% Y-o-Y, supported by robust growth in SME (23.8% Y-o-Y), mid-corporate advances (25.0% Y-o-Y), and a resurgence in the corporate segment (13.8% Y-o-Y growth). The bank has also maintained a strong asset quality, with Gross Non-Performing Assets (GNPA) at 1.7% and Net Non-Performing Assets (NNPA) at 0.5%.

The bank’s total balance sheet grew by 14.6% Y-o-Y, with total deposits increasing by 20.8% Y-o-Y. The Current Account Savings Account (CASA) ratio remained flattish Q-o-Q at 30.8%, despite the seasonal factors of Q1. Additionally, YES BANK reported strong resolution momentum with recoveries and resolutions amounting to INR 1,581 crores for the quarter.

During the quarter, both CA Basque Investments and Verventa Holding Ltd. exercised their outstanding warrants, resulting in a 100 basis points (bps) accretion to the bank’s Common Equity Tier 1 (CET1) ratio. In a significant endorsement of YES BANK’s financial health, global rating agency Moody’s upgraded the bank’s rating outlook to “Positive” from “Stable,” reflecting an anticipated improvement in the bank’s depositor base and lending franchise. ICRA also upgraded the bank’s credit rating from A- to A.

Prashant Kumar, Managing Director & CEO of YES BANK, highlighted the bank’s strong start to the financial year, emphasizing sustained profitability and strategic execution. Kumar noted the bank’s effective cost management and resolution momentum, which have contributed to lower net credit costs and aided in Return on Assets (RoA) expansion. He also highlighted the bank’s focus on SME and mid-corporate segments and the ongoing growth in retail and branch banking-led deposits.

YES BANK Financial Highlights

– Net Interest Income (NII): INR 2,244 crores, up 12.2% Y-o-Y and 4.2% Q-o-Q.

– Operating Costs: INR 2,558 crores, up 10.1% Y-o-Y but down 9.3% Q-o-Q.

– Operating Profit: INR 885 crores, up 8.2% Y-o-Y.

– Provision Costs: INR 212 crores, down 41.2% Y-o-Y and 55.0% Q-o-Q.

– Net Advances: INR 2,29,565 crores, up 14.7% Y-o-Y.

– Total Deposits: INR 2,65,072 crores, up 20.8% Y-o-Y.

– CASA Ratio: 30.8%.

– CET1 Ratio: 13.3%.

– GNPA: 1.7%.

– NNPA: 0.5%.

The financial results of YES BANK for Q1FY25 indicate a strong performance, driven by strategic growth in key segments such as SME and mid-corporate advances, as well as effective management of operating costs and credit risks. The bank’s robust deposit growth and improved asset quality metrics highlight its resilience and strategic focus on sustainable profitability.

  Asset Quality, Corporate Advances, Deposit Growth, ICRA Upgrade, Moody’s Rating, Net Profit, Q1FY25 Financial Results, SME Growth, Yes Bank