In a significant display of financial resilience, YES Bank has reported an impressive 18% year-on-year increase in net profit for the second quarter of fiscal year 2025, reaching ₹654 crore. The results showcase the bank's continued recovery trajectory and operational strength in a competitive banking landscape.
Financial Performance Highlights
The bank's core income metrics demonstrated substantial improvement, with Net Interest Income (NII) climbing 10.7% to ₹2,105 crore compared to the same period last year. This growth underscores the bank's enhanced lending operations and improved interest margin management.
Net Interest Margin (NIM), a critical indicator of banking profitability, expanded to 2.7% for Q2 FY25, showing steady improvement from previous quarters and reflecting better asset-liability management.
Asset Quality Remains Stable
In a positive signal for investors, YES Bank maintained stable asset quality during the quarter. The Gross Non-Performing Assets (GNPA) ratio stood at 1.5%, while the Net NPA ratio remained at 0.4%, indicating effective risk management and recovery efforts.
The bank's provision coverage ratio remained healthy at 75%, providing adequate buffer against potential credit losses. This stability in asset quality marks a significant achievement in the bank's ongoing transformation journey.
Business Growth and Capital Position
YES Bank continues to expand its franchise with advances growing by 13.7% year-on-year to ₹2.34 lakh crore. The deposit base also showed healthy expansion, increasing by 18.3% to ₹2.67 lakh crore, reflecting sustained customer confidence.
The bank maintained a comfortable capital adequacy ratio of 16.1% with Common Equity Tier 1 (CET-1) ratio at 13.1%, providing sufficient headroom for future growth and regulatory requirements.
Operational Efficiency Improvements
The quarterly results highlight the bank's focus on operational efficiency and cost management. The consistent improvement in key profitability metrics suggests that YES Bank's strategic initiatives are yielding positive results across business segments.
These results position YES Bank as one of the notable performers in the Indian private banking space for the September quarter, with investors closely watching the sustainability of this growth momentum in the coming quarters.
