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Informist, Saturday, Jul. 19, 2025

By Sourabh Kumar

MUMBAI – YES Bank Ltd.'s net profit for the June quarter surged due to a sharp rise in other income, beating all analysts' estimates. YES Bank's provisions, while rising from the year-ago period, fell sequentially, thereby helping the bank to register an on-quarter growth in net profit. 

The net profit of the bank surged nearly 60% on year in the June quarter to INR 8.01 billion. Sequentially, the profit rose 8.5%. The other income of the bank was sharply up, around 46% on year, to INR 17.52 billion in Apr-Jun. It was also the bank's highest net profit figures since its reconstruction.

YES Bank was expected to post a net profit of INR 6.20 billion for the June quarter, as per the average of estimates from six brokerage firms. 

The total income of the bank increased merely 4.8% on year to INR 93.48 billion in the June quarter. However, this was largely similar to the previous quarter's income of INR 93.55 billion. The net interest income rose 5.7% on year and 4.2% on quarter to INR 23.71 billion in the latest quarter. This was better than the analysts' expectations – the average of their estimates suggested the net interest income could fall to INR 22.34 billion. YES Bank's non-interest income jumped 46% on year to INR 17.52 billion in the quarter ended June. However, sequentially, it rose just 0.7%. 

While sequentially, the net interest margin of the lender held steady at 2.5%, it rose from last year's 2.4%, "supported by reduction in deposits made in lieu of priority sector lending shortfall and savings account rate cut reduction, partially offset by re-pricing impact," YES Bank said in the press release. 

Provisions of the bank increased 34.1% on year, but declined 10.7% on quarter, to INR 2.84 billion in the reporting quarter. YES Bank's non-performing assets provision coverage ratio improved to 80.2% as of Jun. 30, from 79.7% in the previous quarter and 67.6% last year. The gross non-performing asset ratio was 1.6% as of Jun. 30, unchanged from the previous quarter, but down 10 basis points from the year-ago period. The net non-performing asset ratio was also flat on quarter, but fell 20 bps from last year to 0.3% as of Jun. 30.

YES Bank reported a rise in gross slippages to INR 14.58 billion in the June quarter, up from INR 12.23 billion in the previous quarter. Total recoveries and upgrades stood at INR 11.70 billion, which included INR 3.38 billion from security receipts. As of Jun. 30, the bank had a liquidity coverage ratio of 129.7%. The Basel III capital adequacy ratio was 15.80% as of Jun. 30, up from 15.60% in the previous quarter, but down from 16.30% last year.

The bank's return on assets was 0.8% in the June quarter, which was higher than the previous quarter's 0.7% and last year's 0.5%. Its cost-to-income ratio fell to 67.1% from 67.3% a quarter ago and 74.3% on year.

YES Bank's net advances grew 5% on year, but fell 2.1% on quarter, to INR 2.41 trillion as of Jun. 30. Of the total loan mix, retail loans constituted the most at 49%, followed by corporate and institutional banking at 26%. The loan mix has remained the same from the previous quarter. Disbursements fell 10.4% on year to INR 188.12 billion. Sequentially, the fall was much more, at 32.2%. Yield on advances of the bank fell to 9.9% in the June quarter from 10.1% a quarter ago. Cost of funds also fell to 6.3% in the June quarter from 6.4% in the previous quarter.

YES Bank's total deposits rose 4.1% on year to INR 2.76 trillion in the June quarter but were down 3.1% sequentially. The credit-deposit ratio increased to 87.4% as of Jun. 30 from 86.5% in the previous quarter. The current account savings account deposit ratio decreased to 32.8% in Apr-Jun from 34.3%. The bank's cost of deposits fell 20 basis points, both on year and on quarter, to 5.9%. Meanwhile, Japan's Sumitomo Mitsui Banking Corp. acquired a 20% stake in YES Bank and has applied to the Reserve Bank of India for approval to raise its stake in the bank by another 4.9%. 

On Friday, shares of YES Bank ended 0.1% higher at INR 20.17 on the National Stock Exchange.  End

Edited by Subhojit Sarkar

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