Q1FY25 Results: Yes Bank Reports 46.7% YoY Increase In Net Profit
The bank has also seen strong resolution momentum, with recoveries/resolutions at Rs 1,581 crore in Q1FY25
Yes Bank has reported a net profit of Rs 502 crore for Q1FY25, marking a 46.7 per cent year-on-year (YoY) and 11.2 per cent quarter-on-quarter (QoQ) increase. The net interest margin (NIM) for Q1FY25 remained steady QoQ at 2.4 per cent, while non-interest income grew by 20.5 per cent YoY to Rs 1,199 crore.
The bank has maintained a NIL PSL shortfall for Q1FY25, due to a combination of organic balance growth and PSLC purchases. Net provision costs have decreased by 41.2 per cent YoY and 55.0 per cent QoQ.
The bank's balance sheet momentum has sustained, with effective execution in line with strategic objectives. Deposit accretion has been robust, growing by 20.8 per cent YoY, while the CASA ratio has remained flattish QoQ at 30.8 per cent despite Q1 seasonality. Net advances have grown by 14.7 per cent YoY, driven by sustained growth momentum in SME (23.8 per cent YoY), mid corporate Advances (25.0 per cent YoY) and resumption of growth in the corporate segment (13.8 per cent YoY growth).
Asset quality metrics have shown improvement, with GNPA at 1.7 per cent, NNPA at 0.5 per cent and PCR at 67.6 per cent (up 100 bps QoQ). The (NNPA and net carrying value of SR) as a percentage of advances has continued to improve to 0.9 per cent in Q1FY25, compared to 2.4% in Q1FY24 and 1.1 per cent in Q4FY24.
The bank has also seen strong resolution momentum, with recoveries/resolutions at Rs 1,581 crore in Q1FY25.
Prashant Kumar, Managing Director and CEO, Yes Bank said, “The Bank has started the financial year on a strong footing with RoA sustaining QoQ at 0.5 per cent despite seasonality of Q1 and NIL PSL shortfalls. While the Income Engines are continuing to fire with normalised Net Income Growth at 15 per cent YoY, the bank has been able to contain the Operating Cost growth at 8.0 per cent YoY (ex- PSLCs). At the same time, the resolution momentum continues to be strong, leading to lower Net Credit Costs, which is also aiding in RoA expansion.''
On the Balance Sheet front, the bank is executing its strategic objectives of sustained momentum in SME and mid-corporate segments, resumption of growth in the corporate segment and calibration in retail Assets with a focus on profitability. Similarly, retail and branch banking led deposits continue to grow at a faster pace than wholesale deposits, he added.
‘’Other key highlights of the quarter were i) exercise of outstanding warrants by the private equity investors and ii) credit rating outlook upgrade by Moody’s and Credit Rating upgrade by Icra- these external stakeholder validations reinforce faith & confidence in the growth and profitability expansion trajectory of the franchise,'' Kumar stated.
