Yes Bank Q2 Results: Net profit up 145% to Rs 553 crore, NII up 14%

Yes Bank reported a 145% jump in its September quarter standalone net profit from Rs. 225.21 crore against Rs. 553 crores.

The interest earned by the lender during the quarter was Rs. 7,730 crore as against Rs. 6,711 crore was 15% higher.

Net Interest Income (NII) for Q2FY25 was Rs. 2,200 crore was recorded which was up 14.3% YoY while net interest income (NIMs) remained stable at 2.4% QoQ.

Net profit for Q2FY25 was up 10% on QoQ basis. Operating profit rose 21.7% YoY and 10.2% QoQ to Rs. 975 crore was recorded.

The interest expense incurred by the lender in the quarter under review is Rs. 5,530 crore as compared to Rs. 4,786 crores. It was up 15% year-on-year.

The bank’s non-interest income for Q2FY25 was Rs. 1,407 crore, up 16.3% YoY and 17.3% QoQ. Operating expenses rose 12.8% YoY and 2.9% QoQ.

Yes Bank’s gross NPAs declined year-on-year and sequentially to 1.6% in Q2FY25 as against 1.7% in Q1FY25 and 2% in Q2FY24. Meanwhile, its net NPAs remained flat at 0.5% on a QoQ basis while declining by 40 bps on a YoY basis.

GNPA in Q2FY25 was Rs. 3,889 crore in Q1FY25 as against Rs. 3,845 crore in Q2FY24 and Rs. 4,319 crore was recorded. Net NPAs were recorded at Rs 1,168 crore in the July-September quarter of FY25 as against Rs 1,246 crore in Q2FY25 and Rs 1,885 crore in Q2FY24.

Cost-to-income ratio was lower at 73.0% against 74.4% in Q2FY24 and 74.3% in Q1FY25. ROA (Return on Assets) for Q2FY25 was 0.2% in Q2FY24 and 0.5% in Q1FY25 versus 0.5% in Q1FY25.

Balance sheet

Balance sheet momentum is sustained with effective execution in line with strategic objectives, the lender said in its filing to the exchanges. Net Advances Rs. 2,35,117 crore, registering a growth of 12.4% YoY and 2.4% QoQ. Strong momentum in fresh disbursements in Q2 of FY25 at Rs. 23,998 crore was seen.

Total balance sheet grew by 14.5% year-on-year.

Meanwhile, total deposits of Rs. 2,77,214 crore, up 18.3% YoY and 4.6% QoQ. CASA ratio was 32% in Q2FY24 and 30.8% as against 29.4% in QoQ.

Current account balance grew at 26.2% YoY and 11.1% QoQ while savings account balance growth was at 30.5% YoY and 6.6% QoQ. 3.64 lakh retail CASA accounts were opened in Q2FY25.

Commenting on the earnings, MD & CEO Prashant Kumar said, Q2FY25 performance is encouraging in terms of industry headwinds.

While deposit momentum has been maintained with a healthy CASA ratio (now at 32%) expanding on the back of CA and SA growth, the slippage ratio remains range-bound within the guidance range, Kumar said.

“The Bank continues to deliver as per the stated strategic objectives, with the objective of improving profitability, with better growth in SME and mid corporate segments, resumption of growth in corporate segment and calibration of growth in retail segment. Bank also continues to maintain NIL PSL shortfalls.
These along with other drivers have enabled the bank to grow healthy operating profit and net profit,” said the MD and CEO.

“The bank has also strengthened its management team with key senior appointments in the Retail Assets and Financial Markets teams. We have received external recognition in the form of credit rating upgrades in the last 2 quarters. While we navigate the challenges in the operating environment. Confidence in our progress towards franchise building Keep that which gives the best return to our stakeholders,” he added.

Gross slippage for Q2FY25 in Q2FY24 was Rs. 1,263 crore in Q1FY25 and Rs. 1,204 crore against Rs. 1,314 crores.