YES Bank Q1: Net Profit Climbs 46.7 Per Cent, Net Interest Income Gains To Rs 2,244 Crore

The gross Non-Performing Assets (GNPAs) improved to 1.7 per cent in the quarter ended June 30, 2024 in FY25, from 2 per cent logged in the corresponding quarter a year earlier

YES Bank on Saturday reported a 46.7 per cent jump in its net profit after tax on a year-on-year (YoY) basis in its first quarter (Q1) earnings in the 2024-25 fiscal year (FY25). It logged a net profit of Rs 502 crore for the June quarter in the current financial year (FY25) against a net profit of Rs 343 crore in the first quarter of the previous 2023-24 fiscal year (FY24).

This growth was attributed to a robust rise in the net interest income and a sharp plunge in provisions. The asset quality of the lender improved in the quarter under review on a year-on-year (YoY) basis. The gross Non-Performing Assets (GNPAs) improved to 1.7 per cent in the quarter ended June 30, 2024 in FY25, from 2 per cent logged in the corresponding quarter a year earlier.

The Net Non-Performing Assets (NNPAs) of the lender also improved to 0.5 per cent in Q1FY25, against 1 per cent in Q1FY24. NPAs are loans or advances issued by the bank which are subject to late repayment or unlikely to be repaid by the borrower in full.

 The Net Interest Income (NII) of the bank climbed 12.2 per cent from Rs 2,000 crore in the April-June quarter in FY24 to Rs 2,244 crore in the same quarter in the current fiscal year. NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors.

Elaborating on the lender’s performance, Prashant Kumar, MD and CEO, YES Bank, said, “The Bank has started the financial year on a strong footing with RoA sustaining Q-o-Q 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 Y-o-Y, the Bank has been able to contain the Operating Cost growth at 8.0 per cent Y-o-Y (exPSLCs). At the same time, the resolution momentum continues to be strong, leading to lower Net Credit Costs, which is also 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.”