Yes Bank Q2 Results: Net Profit Rises 18% to Rs 654 Crore, Asset Quality Remains Stable
Yes Bank Ltd. reported an 18.3% year-on-year rise in standalone net profit for the September quarter to Rs 654 crore, compared with Rs 553 crore a year earlier, according to its notification to the exchanges on Saturday.
Net interest income increased 4.6% to Rs 2,301 crore from Rs 2,200 crore in the same quarter last year. Asset quality remained stable, with gross non-performing assets at 1.6% and net NPA at 0.3%, both unchanged from the previous quarter.
Key Highlights of Yes Bank’s Q2 Results
- Net profit up 18.3% to Rs 654 crore versus Rs 553 crore.
- NII up 4.6% to Rs 2,301 crore versus Rs 2,200 crore.
- Gross NPA flat at 1.6% (QoQ).
- Net NPA flat at 0.3% (QoQ).
"Asset quality strengthened during the quarter, with decline in fresh slippages and overdue balances as well as an improvement in provision coverage ratio," managing director and chief executive Prashant Kumar said.
Yes Bank’s return on assets, on an annualised basis, came up to 0.6% from the previous quarter’s 0.8%. "We firmly remain on track to achieve the stated objective of 1% RoA by FY27," Kumar added in the press release.
The lender’s return on equity, as per a press release, came up to 5.4% for the quarter under review versus the previous quarter’s 6.6%.
Advances and Deposits
Advances grew 6.4% year-on-year to Rs 2.5 lakh crore, while total deposits jumped 6.9% in the same period to Rs. 2.96 lakh crore as on Sept. 30.
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Net Interest Margin
The company’s net interest margin remained flat at 2.5% for the September quarter compared to the previous three months.
"NIM was broadly stable, aided by lower RIDF balances and deposit rate actions/repricing, which largely offset the impact of asset repricing," Kumar said.
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CASA Ratio and Gross Slippages
CASA ratio, on a sequential basis, rose to 33.7% from 32.8%. Meanwhile, gross slippages for the quarter came up to 2% of advances at Rs 1,248 crore, versus the previous quarter’s Rs 1,458 crore, which translated to 2.4% of advances.
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Conclusion
Yes Bank’s Q2 results indicate a stable asset quality and an increase in net interest income. The bank’s focus on improving its provision coverage ratio and reducing fresh slippages is expected to yield positive results in the long term.
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