In the first quarter of the current fiscal year 2024–25, private lender YES Bank Ltd. recorded a 46.69 percent increase in its year-over-year (YoY) standalone net profit (Q1 FY25). Profit for the quarter under review was Rs 502.43 crore, up from Rs 342.52 crore in the same time last year.
From Rs 7,584.34 crore in the same period last year to Rs 8,918.14 crore in Q1 FY25, the bank’s overall income increased by 17.59 percent.
“In Q1 FY25, non-interest income reached Rs 1,199 Cr. YoY, normalized growth increased by 20.5%. YoY, net provision expenses decreased by 41.2%. According to a press release, “Return on asset (RoA) was at 0.5 percent compared to 0.4 percent in Q1 FY24.”
“In July 2024, the rating outlook was raised from “Stable” to “Positive” by the international rating agency Moody’s. It further emphasized that ICRA had raised the bank’s instrument credit rating from A- to A.
YES Bank’s Managing Director and CEO, Prashant Kumar, stated that the bank has begun FY25 on a solid foundation, with RoA holding steady at 0.5% despite Q1’s seasonality and “Nil priority sector lending (PSL) shortfalls.”
“The bank has been able to contain the operating cost growth at 8% YoY, while the income engines are still firing with normalized net income growth at 15% YoY.” The resolution momentum is still strong at the same time, he continued, and this is lowering net credit costs and promoting an increase in return on assets.
Kumar stated that YES Bank is successfully carrying out its strategic goals of maintaining momentum in the SME and mid-corporate categories, restarting growth in the corporate segment, and calibrating retail assets with an emphasis on profitability with regard to the balance sheet.
He further stated that retail and branch banking deposits continue to grow faster than wholesale deposits.
The gross non-performing asset (NPA) proportion decreased from 2% in Q1 FY24 to 1.7% in the June 2024 quarter. In comparison to the same period previous year, when the net NPA percentage was 1%, it decreased to 0.5% YoY.
YES Bank’s stock ended the day 3.80% lower at Rs 24.78 on Friday. The stock has increased 9.45% at this pricing so far in 2024.
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