Yes Bank on Saturday announced its fiscal third quarter earnings report with profit at Rs 612.27 crore, posting a jump of 164.53 per cent in comparison to Rs 231.46 crore during the corresponding quarter of FY24. It posted Net Interest Income (NII) at Rs 2,224 crore, up 1.02 per cent YoY. Net Interest Margin (NIMs) for the quarter came in at 2.4 per cent flat YoY. The banking major recorded a total income of Rs 9,341.15 crore during the quarter in review, recording a growth of 14.20 per cent as against Rs 8179.45 crore during the same period of previous financial year.
Prashant Kumar, Managing Director & CEO, Yes Bank, said, “Q3FY25 is the fifth quarter in a row where the Bank has demonstrated sustained sequential expansion in profitability. The RoA of the Bank has also expanded to 0.6 per cent from 0.5 per cent, reported over the last 3 quarters. It is quite encouraging that we have also started seeing expansion in our Operating Profitability.”
“Two distinct trends which I think are important to highlight in terms of trajectory of the Bank’s profitability going forward are, 1) reduction in balances of deposits placed in lieu of PSL shortfalls to 8.5 per cent of Assets this quarter, from 10.4 per cent of Assets in Q2FY25, and 2) fresh slippages in Retail Segment remaining flat on QoQ 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 reduction of gross credit costs,” he added.
Asset quality
Yes Bank recorded gross NPA ratio lower on YoY basis at 1.6 per cent as against 2.0 per cent in Q3FY24. Net NPA ratio, meanwhile, was at 0.5 per cent in comparison to 0.9 per cent in Q3FY24. Gross slippages for Q3FY25, it said, stood at Rs 1,348 crore vs. Rs 1,233 crore in Q3FY24. Retail segment fresh slippages for Q3 was at Rs 1,174 crore.
Balance sheet
Total balance sheet, it said, grew 8.7 per cent YoY and CD ratio was at 88.3 per cent vs 89.9 per cent in Q3FY24.
Yes Bank posted net advances at Rs 2,44,834 crore, recording a growth of 12.6 per cent YoY.
- Diversified loan book – Retail & SME: Mid Corp: Corp. mix at 58:16:26 vs. 63:14:23 last year and 59:16:25 last quarter
- Sustained growth momentum in SME Advances (up 26.7 per cent YoY),
- Mid Corporate Advances up 26.7 per cent YoY, and
- Corporate Advances up 26.8 per cent YoY
- Retail Advances growth flattish QoQ, in line with strategy to improve profitability
- Fresh Disbursements at Rs 25,256 crore in Q3FY25
Total deposits, meanwhile, were at Rs 2,77,224 crore, up 14.6 per cent YoY.
- Avg. Deposit Balances up 15.7 per cent YoY
- Retail & Branch Banking led Deposits growth at 21.8 per cent YoY
- CASA ratio at 33.1 per cent vs. 29.7 per cent in Q3FY24
- Current Account balances grew 21.1 per cent YoY
- Savings Account balances growth at 33.3 per cent YoY
- Retail CASA Accounts opened: ~3.14 lakh in Q3FY25
Prashant Kumar said, “Other key vectors of the Bank continue to post encouraging trends in line with our strategic objectives. The Deposits momentum sustained with around 15 per cent YoY growth, wherein the Avg. Balances recorded a higher 15.7 per cent YoY and 2.3 per cent QoQ growth. Outperformance to Industry continued on CASA acquisition, with CA and SA deposits growing 21.1 per cent YoY and 33.3 per cent YoY respectively and the Avg. balances recording a similar growth. On the Advances front, SME and Mid Corporate segments maintained 25%+ Y-o-Y growth trajectory, while strategic reorientation continued in the Retail segment, aimed at profitability improvement. Q3FY25 was another strong quarter of Fee Income performance, aided by the granular and transactional fee streams. Asset Quality also further improved with (NNPA + Net Carrying Value of SRs) now at 0.6 per cent.”