Yes Bank Shines with Remarkable 164% Surge in Q3FY25 Net Profit to Rs 612 Crore
MUMBAI: In a stunning financial feat, Yes Bank has reported a net profit of Rs. 612 crore for the quarter ended on December 31, 2024. This figure marks an impressive 164.5% increase from Rs. 231 crore in the same period the previous year, showcasing exceptional growth. Moreover, the bank also saw a 10.7% rise from the preceding quarter, solidifying its position as a force to be reckoned with in the banking sector.
Net Interest Income and Non-Interest Income Propel Growth
The bank’s net interest income (NII) experienced a healthy growth of 10.2% year-on-year, reaching Rs. 2,224 crores. Notably, net interest margins (NIMs) remained stable at 2.4%, highlighting the bank’s ability to maintain a strong financial foundation. Furthermore, non-interest income surged by an impressive 26.6% year-on-year to Rs. 1,512 crore, contributing significantly to the overall increase in total net income by 16.3% to Rs. 3,736 crore.
Strategic Moves and Operational Success
Prashant Kumar, the MD & CEO of Yes Bank, attributed the bank’s profitability to a well-crafted roadmap focused on improving margins, boosting fee income, and reducing costs. Despite facing challenges such as liquidity concerns and fluctuating economic conditions, Yes Bank has managed to deliver five consecutive quarters of escalating net profit. Kumar highlighted the bank’s strategic shift towards increasing priority sector loans as a key factor in safeguarding margins and reducing reliance on low-yield funds.
Asset Quality and Provisions Show Significant Improvement
Operating profit for Q3FY25 saw a substantial 24.9% year-on-year increase, reaching Rs. 1,079 crore. Operating expenses grew by 13.2% year-on-year but remained relatively flat compared to the previous quarter, leading to an enhanced cost-to-income ratio of 71.1%. Asset quality also saw marked improvement, with the gross non-performing asset (GNPA) ratio dropping to 1.6% from 2.0% in Q3FY24, and the net NPA ratio decreasing to 0.5% from 0.9%. Additionally, provisions decreased significantly by 53.4% year-on-year to Rs. 259 crore, reflecting the bank’s prudent financial management.
Deposits and Advances Witness Positive Growth
Yes Bank’s deposits witnessed a robust 14.6% year-on-year growth, amounting to Rs. 2,77,224 crore, supported by a 15.7% rise in average deposit balances. The current account and savings account (CASA) ratio also showed improvement, climbing to 33.1% from 29.7% a year ago. Moreover, advances increased by 12.6% year-on-year to Rs. 2,44,834 crore, with notable growth in SME and mid-corporate lending, both registering a 26.7% increase.
Strong Financial Indicators and Capital Position
The provision coverage ratio, including technical write-offs, surged to 82.4% from 71.9% a year ago, underscoring the bank’s commitment to maintaining robust asset quality. Yes Bank’s capital adequacy ratio stood at a healthy 15.9%, with the CET-1 ratio at 13.3%, indicating a strong capital position and resilience in the face of challenges.
In conclusion, Yes Bank’s stellar performance in Q3FY25 not only showcases its financial prowess but also underscores its strategic acumen and operational efficiency. With a sharp focus on improving margins, enhancing asset quality, and driving sustainable growth, Yes Bank continues to set new benchmarks in the banking industry, reaffirming its position as a leading financial institution.
