Yes Bank slashes provisions, doubles net profit. What’s driving its ₹612 crore jump?

Yes Bank slashes provisions, doubles net profit. What’s driving its ₹612 crore jump?

Yes Bank’s gross slippages during the quarter stood at ₹1,348 crore, slightly higher than ₹1,314 crore in the previous quarter but manageable in the context of the bank’s overall performance.

On the advances front, the bank reported a 12.6% year-on-year increase in net advances, totaling ₹2.44 lakh crore.
Business Today Desk
  • Jan 25, 2025,
  • Updated Jan 25, 2025, 2:45 PM IST

Yes Bank posted a twofold rise in net profit to ₹612 crore for the December quarter, driven by a sharp decline in provisions. Sequentially, net profit rose 11%, showcasing steady growth for the lender. Provisions and contingencies fell by over 50% year-on-year to ₹259 crore, signaling improved asset quality and operational efficiency.

The bank’s net interest income rose 10% year-on-year to ₹2,223 crore, though net interest margins remained flat at 2.4% both annually and sequentially. Asset quality remained stable, with gross non-performing assets (GNPA) holding at 1.6% at the end of December, down from 2% a year ago. Net NPAs also fell, reaching 0.5% compared to 0.9% a year ago.

Related Articles

Yes Bank’s gross slippages during the quarter stood at ₹1,348 crore, slightly higher than ₹1,314 crore in the previous quarter but manageable in the context of the bank’s overall performance.

On the advances front, the bank reported a 12.6% year-on-year increase in net advances, totaling ₹2.44 lakh crore. Retail advances, however, declined to ₹99,805 crore from ₹1 lakh crore in the previous quarter and ₹1.03 lakh crore a year ago, making up 41% of total advances, a drop from 47% a year earlier.

Total deposits rose nearly 15% year-on-year to ₹2.77 lakh crore, with the current account and savings account (CASA) ratio improving to 33%, compared to 32% in the previous quarter and 30% a year ago. The credit-to-deposit ratio of 88.3% was slightly lower than 89.9% a year earlier, reflecting cautious loan growth.

Yes Bank’s retail, SME, and mid-corporate loan mix shifted slightly, ending the quarter at 58:16:26, compared to 63:14:23 a year ago. Despite minor declines in retail lending, the overall metrics indicate a focus on maintaining balance sheet stability while navigating growth.

With improving profitability, controlled provisions, and steady operational performance, Yes Bank’s latest results underscore a cautiously optimistic outlook for the quarters ahead.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Read more!
RECOMMENDED