In This Article:
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Net Profit: INR 2,406 crores, up 92.3% YoY.
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Return on Assets (ROA): 0.6% for FY25, up from 0.3% in FY24; 0.7% in Q4 FY25.
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Net Interest Margin (NIM): Stable at 2.4% for FY25; 2.5% in Q4 FY25, up 10 basis points sequentially.
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Net Interest Income (NII): INR 8,944 crores, up 10.5% YoY.
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Cost-to-Income Ratio: Improved to 71.3% from 74.4% in FY24.
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Pre-Provisioning Operating Profit (PPOP): INR 4,254 crores, up 25.6% YoY.
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Gross NPA Ratio: 1.6% at the end of FY25.
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Net NPA Ratio: 0.3% at the end of FY25.
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Provision Coverage Ratio (PCR): 79.7%, up from 71.2% last quarter.
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CASA Ratio: 34.3% at the end of FY25, up from 30.9% in Q4 FY24.
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Capital Adequacy: CET1 at 13.5%; overall capital at 15.6%.
Release Date: April 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Yes Bank Ltd (BOM:532648) reported a net profit of INR 2,406 crores, marking a 92.3% year-over-year increase, the highest since March 2020.
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The bank's return on assets improved to 0.6% for the full year, with a sequential increase to 0.7% in Q4.
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Net interest margin saw a sequential uptick of 10 basis points in Q4, reaching 2.5%, supported by efforts to contain deposit costs and reduce high-cost borrowings.
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The bank achieved 100% compliance in priority sector lending (PSL), reducing RIDF and other mandated deposits to 8.7% of total assets from 11% in FY24.
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Asset quality improved with gross NPA and net NPA ratios at 1.6% and 0.3%, respectively, the best since March 2020, and a provision coverage ratio increased to 79.7%.
Negative Points
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Despite improvements, the bank's cost-to-income ratio remains high at 71.3%, though it has improved from 74.4% in FY24.
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The bank's net interest income growth of 10.5% over fiscal '24 may not meet investor expectations for higher growth.
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There is pressure on net interest income growth due to a competitive macro environment and tighter liquidity positions.
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The bank's retail segment has experienced increased losses, attributed to higher provisioning to improve the provision coverage ratio.
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The bank's advances and deposits growth was moderate, reflecting a strategy focused on profitable growth rather than aggressive expansion.
Q & A Highlights
Q: What is the projected growth rate for Net Interest Income (NII) and how does Yes Bank plan to compete with peers raising capital for growth opportunities? A: Prashant Kumar, CEO, stated that the bank's current core capital (CET1) of 13.5% is sufficient for its growth aspirations for the current financial year. The bank targets a loan growth of 12% to 15%, depending on market opportunities. Despite competitive pressures, Yes Bank believes its NII growth is reasonable and expects improvement as retail loan growth increases.