Yes Bank on Saturday released its fiscal second quarter earnings with profit at Rs 566.59 crore, posting a jump of 147.8 per cent in comparison to Rs 228.64 crore during the corresponding quarter of previous fiscal year, beating etimates. The Bank recorded total income during the quarter at Rs 9225.45 crore, up 15.6 per cent as against Rs 7980.61 crore posted during the same period of FY24.
Meanwhile, on a standalone basis, Q2 profit was at Rs 553.04, up 145.6 per cent from Rs 225.21 crore during Q2FY24. The company NII, which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, stood at Rs 2,200 crore for Q2FY25, up 14.3 per cent YoY and NIMs remained stable sequentially at 2.4 per cent. https://imasdk.googleapis.com/js/core/bridge3.674.1_en.html#goog_1565698464Also ReadNo pressure on Bank of Baroda to hike deposit rates: MD&CEO
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Yes Bank Q2 Results 2024: Date, Time and Where to Watch
Yes Bank recorded net advances at Rs 2,35,117 crore, recording a growth of 12.4 per cent YoY with a diversified loan book split of 59:16:25 among Retail & SME, Mid Corporate, and Corporate segments. Fresh disbursements, it added, remained robust at Rs 23,998 crore, contributing to a balance sheet growth of 14.5 per cent YoY.
The private lender posted total deposits at Rs 2,77,214 crore, registering a growth of 18.3 per cent YoY. CASA ratio stood at 32 per cent in Q2. While the current account balances grew by 26.2 per cent on-year, savings account balances went up by 30.5 per cent YoY.
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 per cent YoY growth, along with healthy CASA ratio (now at 32 per cent) expansion on both YoY & QoQ basis, on the back of CA growth at 26 per cent YoY & 11 per cent QoQ and SA growth at 30 per cent YoY & 7 per cent QoQ. At same time, the slippage ratio (at 2.2 per cent of Advances) remains range-bound within the guidance range.”
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 per cent over the last 3 quarters,” he added.
Yes Bank’s asset quality
Yes Bank’s gross NPA stood at Rs 3,889.4 crore whereas net NPA came in at Rs 1168 crore during the quarter in review. In terms of ratio, gross NPA ratio was at 1.6 per cent vs 2.0 per cent in Q2FY24. Net NPA ratio, meanwhile, stood at 0.5 per cent as against 0.9 per cent in Q2FY24. NPA Provision Coverage Ratio (PCR) was at 70.0 per cent.
The Bank said that gross slippages for Q2FY25 was at Rs 1,314 crore. Overdue book of 31-90 days was at R 3,762 crore, 31-60 days book at Rs 1,896 crore, and 61-90 days book at Rs 1,866 crore.
Other key developments
During the quarter, Yes Bank said that it received credit rating upgrades from CRISIL and CARE: Bank’s Basel III Tier II Bonds and Infrastructure Bonds ratings upgraded to A+ from A.
The Bank had also announced the appointment of Nirav Dalal as Country Head- Financial Markets and Sumit Bali as Country Head Retail Assets & Debt Management, during Q2FY25.
Prashant Kumar, in a statement, said, “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.”