Shares of YES Bank Ltd will be in focus during the trading session on Monday after the company announced its consolidated and standalone earnings for the quarter ended on June 30, 2024 (Q1FY25). The private lender announced its results on Saturday, July 20, 2024.
YES Bank reported a 47 per cent rise on a year-on-year (YoY) basis in the net profit at Rs 502.43 crore in the first quarter of the current financial year. It had posted a net profit of Rs 342.52 crore in the year ago period. On sequential basis (QoQ), net profit rose 11.2 per cent from Rs 451.89 crore.
Net interest income (NIIs) grew 12.2 per cent YoY to Rs 2,244 crore in Q1FY25 from Rs 2,000 crore in Q1FY24. On a sequential basis, NIIs rose 4.2 per cent QoQ from Rs 2,153 crore. YES Bank's net interest margins (NIMs) came in at 2.4 per cent for the June 2024 quarter, mostly flat.
In the reporting quarter, the gross non-performing assets (NPA) ratio of the bank stood at 1.7 per cent as of June 30, as compared to 1.7 per cent in the quarter-ago period and 2 per cent in a year ago period. Likewise, the net NPA came in at 0.5 per cent as of June 2024 quarter, lower from 0.6 per cent previous quarter and 1 per cent YoY.
Operating profit stood at 885 crore in Q1FY25, rising 8.2 per cent YoY from Rs 818 crore in Q1FY24. However, its decline was 1.9 per cent QoQ from Rs 902 crore in the March 2024 quarter. Return on assets (RoA) stood at 0.5 per cent in the June 2025 quarter, which was 0.4 per cent in the year ago period, while 0.5 per cent in the previous quarter.
Shares of YES Bank settled at Rs 24.78 during the trading session on Friday, falling nearly 3.8 per cent in the previous trading session. The total market capitalization of the lender stood at Rs 77,650 crore as of the previous close.
The Bank has started the financial year on a strong footing with RoA sustaining QoQ at 0.5 per cent despite seasonality of Q1 and NIL PSL shortfalls. While the Income Engines are continuing to fire with normalised net income growth at 15 per cent YoY, the Bank has been able to contain the operating cost growth, said Prashant Kumar, Managing Director & CEO, YES Bank.
"The resolution momentum continues to be strong, leading to lower net credit costs, which is 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," he said.
Net Advances stood at Rs 2,29,565 crore, registering growth of 14.7 per cent YoY and 0.8 per cent QoQ, while the total deposits stood at Rs 2,65,072 crore, up 20.8 per cent YoY but marginally down by 0.5 per cent QoQ, said the lender in its release. Its total balance sheet grew 14.6 per cent YoY.
During the quarter both CA Basque Investments and Verventa Holding have exercised the outstanding warrants- the proceeds resulting in 100 bps accretion to CET 1 per cent. Global Rating Agency Moody’s upgraded the rating outlook to 'positive' from 'stable' in July 2024. ICRA has also upgraded the credit rating on YES Bank's instruments from 'A-' to 'A'.