Yes Bank, a private sector lender, saw its net profit increase by 46.7 per cent to Rs 502 crore in the first quarter of FY25 (Q1 FY25), up from Rs 343 crore in the same period last year, driven by a healthy rise in net interest income and a significant drop in provisions. Sequentially, the bank’s profit rose by 11.2 per cent from Rs 452 crore in the last quarter of FY24.
The bank’s net interest income (NII) grew by 12.2 per cent to Rs 2,244 crore in the reported quarter, compared to Rs 2,000 crore in the same quarter a year ago. Sequentially, NII increased by 4.2 per cent from Rs 2,153 crore in Q4 FY24.
Provisions declined by 41.2 per cent to Rs 212 crore in Q1 FY25, from Rs 360 crore in the year-ago period. Sequentially, provisions fell from Rs 471 crore in Q4 FY24.
The bank’s net interest margin (NIM) slipped to 2.4 per cent from 2.5 per cent in Q1 of FY24. Sequentially, NIM remained flat at 2.4 per cent in Q4 of FY24.
Advances grew by 14.7 per cent year-on-year to Rs 2.29 trillion at the end of June 2024, while sequentially, it increased by 0.8 per cent. Total deposits rose by 20.8 per cent year-on-year to Rs 2.65 trillion, though they slipped by 0.5 per cent from Q4 FY24.
During a post-earnings media call, Prashant Kumar, MD & CEO of Yes Bank, stated that the lender is targeting loan growth of 16 to 17 per cent and deposit growth of 20 to 22 per cent in FY25, with credit growth being driven by the SME and mid-market segment.
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