Yes Bank Q3 Results: Lender Earned Net Profit Of Rs 612 Crore, Up 2.6x; Below Rs 20, Midcap Stock In Focus

Yes Bank Q3 Results: The private sector lender Yes Bank recorded a 2.6 times jump in its net profit to Rs 612 crore during Q3FY25. PAT was up by 10.7% sequentially. Furthermore, the lender posted a 10.2% YoY growth in net interest income (NII) to Rs 2,224 crore during the quarter. Asset quality continued to improve. Accordingly, Yes Bank's share price will be in focus on Monday after Q3 results.

In Q3FY25, the bank's net interest margins stood at 2.4% which was flat on both YoY and QoQ terms. Operating profit jumped by Rs 24.9% YoY and 10.6% QoQ to Rs 1,079 crore.

Furthermore, in Q3FY25, the bank's net Advances Growth at 12.6% Y-o-Y aided by --- Sustained growth momentum in SME (up 26.7% Y-o-Y), Mid Corporate Advances up 26.7% Y-o-Y, and Corporate Advances up 26.8% Y-o-Y and 7.5% Q-o-Q. However, Retail Advances growth flattish Q-o-Q, in line with the strategy to improve profitability.

Meanwhile, the bank sustained momentum in Deposit accretion with a focus on CASA Ratio expansion and Retail & Branch Banking Deposits. Average Deposit balances are up 15.7% Y-o-Y and 2.3% Q-o-Q. Average Deposit balances are up 15.7% Y-o-Y and 2.3% Q-o-Q. CASA Ratio at 33.1% up 340 bps Y-o-Y and 110 bps Q-o-Q.

Prashant Kumar, Managing Director & CEO, of YES BANK said, "Q3FY25 is the fifth quarter in a row where the Bank has demonstrated a sustained sequential expansion in profitability. The RoA of the Bank has also expanded to 0.6% from 0.5%, reported over the last 3 quarters. It is quite encouraging that we have also started seeing expansion in our Operating Profitability."

Kumar added that two distinct trends which I think are important to highlight in terms of the trajectory of the Bank's profitability going forward are, 1) reduction in balances of deposits placed in lieu of PSL shortfalls to 8.5% of Assets this quarter, from 10.4% of Assets in Q2FY25, and 2) fresh slippages in Retail Segment remaining flat on Q-o-Q basis. Both of these are in line with our earlier guidance, and while one of the factors is likely to aid expansion in Net Interest Margins and Operating Profits, the other may likely result in a reduction of gross credit costs.

In terms of asset quality, Yes Bank's gross NPA ratio was lower on Y-o-Y and flattish on Q-o-Q basis at 1.6% v/s. 2.0% in Q3FY24 and 1.6% in Q2FY25. While net NPA ratio is at 0.5% v/s. 0.9% in Q3FY24 and flat in comparison to 0.5% in Q2FY25. Gross Slippages for Q3FY25 at Rs 1,348 crore versus Rs 1,233 crore in Q3FY24 and Rs 1,314 crore in Q2FY25.

On BSE, Yes Bank's share price stood at Rs 18.25 apiece, down by 1.24% with market cap of Rs 57,215.32 crore.

YES BANK, a full-service commercial bank headquartered in Mumbai, offers a wide array of products, services, and digital solutions, catering to Retail, MSME, and Corporate clients. The Bank operates its Brokerage business through YES SECURITIES, a wholly-owned subsidiary of the Bank. The Bank has a pan-India presence including an International Banking Unit (IBU) at GIFT City, and a Representative Office in Abu Dhabi.