Yes Bank standalone net profit doubles to ₹553 crore in Q2FY25

Yes Bank Ltd. reports strong financial performance in Q2FY25 with increased profit, stable asset quality, and growth in deposits.

Yes Bank Ltd. standalone net profit increased more than two fold to ₹553.04 crore in the second quarter of fiscal 2025, compared with ₹225 crore in the year ago period.

The bank’s net interest income increased 14.3% to ₹2,200 crore and net interest margin stayed flat at around 2.4% in the reporting quarter as compared with the same period in the previous year. The lender’s asset quality stayed the same as gross non-profitable asset ratio(NPA) was at 1.6% in the reporting quarter. The net NPA ratio too was flat at 0.5% in Q2FY25. The bank reduced its standard restructured accounts to 0.9% of the advances, down from 2.2% in the year ago period. In terms of value, the restructured accounts came in at ₹2,125 crore in the current quarter.

The deposit growth came in at 18.3% in the reporting quarter, as against 17.2% in the corresponding period last fiscal. However, this comes on a higher base set in the last quarter of FY24, when the deposits grew at 22.5% followed by 21% in the first quarter of the current fiscal. Loan advanced grew 12.4% on a year-on-year basis, spruced by a nearly 26% increase in MSME lending.

“The Bank continues to deliver as per the stated strategic objectives, with superior growth in SME and Mid Corporate segments, growth resumption in the Corporate segment and calibration of growth in Retail segment, aimed at profitability improvement. Bank also continues to maintain NIL PSL shortfalls” said Prashant Kumar, Managing Director & CEO, YES BANK, in a statement.

The lender increased provisioning coverage ratio to 70% in the reporting quarter, as compared with 56.4% in the same quarter last year.

In another set of regulatory filing, Yes Bank also listed the use of proceeds of green bond issuances. According to the filing, Yes bank was among the firsts to issue green bonds.As of September 30 2024, the bank has a green bond outstanding valule of abour ₹1315 crore of which just ₹1000 crore issued in February 2015 were allotted. The rest has not yet been allotted according to the regulatory filings. The has used the procceeds to nine fund green energy projects across states, and the largest one being a 300 MW solar energy project in Rajasthan which took more than ₹421 crore from the allotted ₹1000 crore. All the projects put together will potentially avoid 2.9 lakh total CO2 per year of emission, the filing said.

During the quarter, CRISIL and Care upgraded the bank’s Basel III Tier 2 infrastructure bonds rating to A+ from A, the company said in its statement.