YES Bank stock soars 10% after green signals in Q2FY25 results; NII up 14%

On Monday, YES Bank shares jumped 9.74 per cent at Rs 21.29 per share on the BSE. This came after the bank reported a steady quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25). 

 

The private sector bank reported a significant increase in net profit for Q2, posting Rs 553 crore, up from Rs 225 crore in the same quarter last year. The bank’s net interest income (NII) rose by 14.3 per cent to Rs 2,200 crore, compared to Rs 1,925.1 crore in Q2 FY24, reflecting steady growth in core lending operations. Net interest margins improved to 2.4 per cent, consistent with the previous quarter but up from 2.3 per cent a year ago.

 

 

Prashant Kumar, Managing Director and CEO, stated that YES Bank continues to meet its strategic objectives, achieving strong growth in the SME and mid-corporate segments, resuming growth in the corporate sector, and calibrating retail growth for profitability. The bank maintained zero shortfalls in priority sector lending (PSL).

 

The bank's asset quality showed improvement, with the gross non-performing asset (GNPA) ratio declining to 1.6 per cent as of September 30, 2024, down from 1.7 per cent a year earlier. The net NPA ratio remained stable at 0.5 per cent. In absolute terms, GNPAs increased slightly to Rs 3,889.43 crore from Rs 3,844.90 crore quarter-on-quarter, while net NPAs decreased to Rs 1,168 crore from Rs 1,246 crore, indicating improved credit quality.

 

The NPA provision coverage ratio (PCR) improved to 70.0 per cent from 56.4 per cent in Q2 FY24 and 67.6 per cent in Q1 FY25. Including technical write-offs, the PCR stood at 81.5 per cent, up from 72.1 per cent in Q2 FY24 and 80.1 per cent in Q1 FY25. Gross slippages for Q2 FY25 were Rs 1,314 crore, compared to Rs 1,263 crore in Q2 FY24 and Rs 1,204 crore in Q1 FY25.

 

Total deposits reached Rs 2.77 lakh crore, an 18.3 per cent increase year-on-year and up 4.6 per cent quarter-on-quarter. The CASA ratio improved to 32.0 per cent in the July-September quarter, compared to 29.4 per cent in Q2 FY24 and 30.8 per cent in the previous quarter. 

 

Current account balances grew by 26.2 per cent year-on-year and 11.1 per cent quarter-on-quarter, while savings account balances increased by 30.5 per cent year-on-year and 6.6 per cent quarter-on-quarter. Approximately 3.64 lakh retail CASA accounts were opened in Q2 FY25.

 

The company has a total market capitalisation of Rs 66,047.89 crore. Its shares are trading at a price to earnings multiple of 43.10 times and at an earning per share of Rs 0.45. 

 

At 9:49 AM, the stock price of the company was up 8.51 per cent at Rs 1,288.60 a piece on the BSE. By comparison, the BSE’s Sensex surged 0.26 per cent to 79,608.36 level.