Yes Bank gains as Q1 PAT climbs 47% YoY to Rs 502 crore

Yes Bank advanced 3.39% to Rs 25.62 after its standalone net profit jumped 46.69% to Rs 502.43 crore on 17.59% rise in total income to Rs 8,918.14 crore in Q1 FY25 over Q1 FY24.

Profit before tax was at Rs 673.52 crore in the June 2024 quarter, up 47.02% from Rs 458.11 crore recorded in the corresponding quarter last year.

Net interest income (NII) stood at Rs 2,244 crore in Q1 FY25, up 12.2% YoY. Net interest margin (NIM) declined to 2.4% in Q1 FY25 as compared to 2.5% registered in Q1 FY24.

During the quarter, operating profit was at Rs 885 crore, up 8.2% from Rs 818 crore posted in the same period a year ago.

 

Provisions (other than tax) and contingencies dropped 41.22% YoY to Rs 211.77 crore in quarter ended June 2024.

On asset quality front, the bank's gross non-performing assets (NPAs) rose 5% to Rs 3,844.90 crore as on 30 June 2024 as against Rs 4,072.67 crore as on 30 June 2023.

The gross NPA ratio reduced to 1.7% as on 30 June 2024 as compared to 2% as on 30 June 2023. The net NPA ratio shed to 0.5% as on 30 June 2024 as against 1% as on 30 June 2023.

Gross slippages for Q1 FY25 stood at Rs 1,205 crore as against Rs 1,482 crore posted in corresponding quarter previous year.

Prashant Kumar, managing director & CEO, said, The bank has started the financial year on a strong footing with RoA sustaining QoQ at 0.5% despite seasonality of Q1 and NIL PSL shortfalls. While the Income Engines are continuing to fire with normalised Net Income Growth at 15% YoY, the Bank has been able to contain the Operating Cost growth at 8% YoY (ex-PSLCs). At the same time, the resolution momentum continues to be strong, leading to lower net credit costs, which is also aiding in RoA expansion.

On the Balance Sheet front, the Bank is effectively executing its strategic objectives of sustained momentum in SME and Mid- Corporate segments, resumption of growth in corporate segment and calibration in retail assets with focus on profitability. Similarly, the retail and branch banking led deposits continue to grow at faster pace than wholesale deposits.

Other key highlights of the quarter were i) exercise of outstanding Warrants by the Private Equity Investors, and ii) Credit Rating Outlook upgrade by Moodys and Credit Ratingupgrade by ICRA- these external stakeholder validations reinforce faith & confidence in the growth and profitability expansion trajectory of the franchise.

Yes Bank is a full service commercial bank providing a complete range of products, services and technology driven digital offerings, catering to Retail, MSME as well as corporate clients.

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