Earnings Outlook
YES Bank Jan-Mar PAT seen up 39% on year, NII up 4.2%
This story was originally published at 19:59 IST on 18 April 2025
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By Kshipra Petkar
MUMBAI – YES Bank's net profit for the quarter ended March is seen rising sharply on year by 39% to INR 6.26 billion, according to the average of estimates by six brokerage reports. Sequentially, the bottomline is seen rising 2.3%. According to the estimates, the net profit of the bank is expected in the range of INR 5.70 billion-INR 6.97 billion for Jan-Mar.
The net interest income of the bank is seen rising 4.21% on year to INR 22.44 billion in Jan-Mar, as per the average of estimates. On a quarter-on-quarter basis, it is seen rising just 1%. The net interest income estimates are in the range of INR 21.8 billion-INR 23.0 billion.
"We expect a muted NII (net interest income) growth (flat yoy) led by slower loan growth and mix change. The bank is a bit more cautious in select segments of the retail portfolio," Kotak Institutional Equities said in its pre-earnings report. The net interest margin is expected to remain stable in quarter ended March. The bank reported net interest margin of 2.4% in Oct-Dec.
In terms of loan book mix, the bank has been increasing its share in the wholesale advances and cutting down on retail advances since FY23, as per the investor presentation for the previous quarter.
According to the provisional figures released by the bank, loans were up 8.2% on year and the deposits grew 6.8% on year. The current account, savings account deposits grew 18.4% on year and CASA ratio stood at 34.3% as on Mar. 31, a tad up from 33.1% as on Dec. 31. On a sequential basis, deposit growth was higher than credit growth. The credit-deposit ratio of the bank stood at 86.7% as on Mar. 31, higher as compared to 85.5% a year ago. The bank's commentary on margins and loan-deposit growth will be monitored.
"Staff cost will be a key monitorable led by any sharp change in provision for retirement-related obligations," Kotak Institutional Equities said. "We should see steady traction on recovery and upgrades this quarter (mostly reflected in changes to the value of security receipts). Building slippages of INR 14 billion (2.2% of loans). Earnings impact is difficult to forecast given the nature of provisioning policy. Focus is shifting towards rebuilding the business for the bank," the report said.
The bank will announce its results on Saturday. Shares of YES Bank closed 1.2% higher at INR 18.09 on Thursday on the National Stock Exchange.
Following are the Jan-Mar earnings estimates for YES Bank based on reports from 6 brokerage firms in descending order by the estimate of net profit:
| Brokerage | Net Interest Income (In INR million) | Net Profit (in INR million) |
| ICICI Securities | 22,547.00 | 6,979.00 |
| Anand Rathi Share and Stock Brokers | 22,653.00 | 6,520.00 |
| Emkay Global Financial Services | 23,004.00 | 6,313.00 |
| JM Financial Institutional Securities | 2,092.00 | 6,081.00 |
| Kotak Institutional Equities | 21,821.00 | 5,982.00 |
| Nomura Equity Research | 22,500.00 | 5,700.00 |
| Average | 22,436.17 | 6,262.50 |
Edited by Vandana Hingorani
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