YES Bank beats the Street, Q2 net profit spikes to ₹553 crore
In the corresponding quarter of the previous fiscal, YES Bank posted a net profit of ₹225.2 crore, the bank said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹543.6 crore for the quarter under review.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 14.3%, coming at ₹2,200.5 crore against ₹1,925.1 crore in the corresponding quarter of FY24.
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The CNBC-TV18 poll had predicted a net interest income of ₹2,254.5 crore for the quarter under review. The gross non-performing asset (GNPA) ratio stood at 1.6% in the September quarter against 1.7% in the June quarter. The net NPA ration came flat at 0.5%.
In monetary terms, gross NPA stood at ₹3,889.4 crore against ₹3,845 crore quarter-on-quarter, whereas net NPA came at ₹1,168 crore against ₹1,246 crore quarter-on-quarter.
YES Bank reported a 12.8% year-over-year and 2.9% quarter-over-quarter rise in operating costs, totalling ₹2,632 crore, with Priority Sector Lending Certificates (PSLC) costs increasing to ₹78 crore from ₹39 crore in Q2FY24. Excluding PSLC costs, operating expenses rose by 11.3% year-over-year and 2.4% quarter-over-quarter.
Operating profit for Q2FY25 reached ₹975 crore, marking a 21.7% year-over-year and 10.2% quarter-over-quarter growth. The bank’s cost-to-income ratio improved to 73.0%, down from 74.4% in Q2FY24 and 74.3% in Q1FY25, while non-tax provision costs fell 40.6% year-over-year to ₹297 crore.
Return on Assets (RoA) stood at 0.5%, up from 0.2% in Q2FY24, maintaining the same level as Q1FY25. Net advances grew 12.4% year-over-year and 2.4% quarter-over-quarter to ₹2,35,117 crore, with a diversified loan book split of 59:16:25 among Retail & SME, Mid Corporate, and Corporate segments.
Fresh disbursements continued robustly at ₹23,998 crore, contributing to a total balance sheet growth of 14.5% year-over-year. The Credit-Deposit (CD) ratio decreased to 84.8%, compared to 89.2% in Q2FY24 and 86.6% in Q1FY25. Total deposits rose by 18.3% year-over-year and 4.6% quarter-over-quarter to ₹2,77,214 crore, with the CASA ratio improving to 32.0% from 29.4% in Q2FY24 and 30.8% in Q1FY25.
Current account balances grew by 26.2% year-over-year and 11.1% quarter-over-quarter, while savings account balances saw a 30.5% year-over-year and 6.6% quarter-over-quarter increase. Retail CASA accounts opened in the quarter reached approximately 3.64 lakh.
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The Non-Performing Asset (NPA) Provision Coverage Ratio (PCR) improved to 70.0% from 56.4% in Q2FY24 and 67.6% in Q1FY25; including technical write-offs, PCR reached 81.5%, up from 72.1% in Q2FY24 and 80.1% in Q1FY25. The overdue 31-90 day book amounted to ₹3,762 crore, down from ₹3,898 crore in Q2FY24 and ₹3,623 crore in Q1FY25.
Sustained resolution momentum led to recoveries and resolutions totalling ₹1,021 crore in Q2FY25, with cumulative recoveries of ₹2,600 crore in H1FY25. Standard restructured accounts were reduced to ₹2,125 crore, representing 0.9% of advances, down from ₹4,499 crore (2.2% of advances) in Q2FY24 and ₹3,643 crore (1.6% of advances) in Q1FY25, primarily due to resolutions and upgrades.
The results came after the close of the market hours. On October 25, shares of YES Bank Ltd ended at ₹19.40, down by ₹0.61, or 3.05% on the BSE.
