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Informist, Friday, Oct. 17, 2025

 

By Shubham Rana

 

NEW DELHI – YES Bank Ltd. is likely to report a year-on-year rise in its net profit for the September quarter because of lower provisions, according to brokerages tracking the lender. Recoveries from asset reconstruction companies may also boost the bank's bottom line for the quarter, according to Emkay Global Financial Services Ltd.

 

The private sector bank is expected to report a net profit of INR 6.71 billion for the September quarter, up 21% on year, according to the average of estimates from six brokerages. Sequentially, the net profit is seen down 16%.

 

The lowest net profit estimate is INR 3.49 billion by Kotak Securities and the highest estimate is INR 7.99 billion by Anand Rathi Share and Stock Brokers. YES Bank will release its September quarter earnings Saturday.

 

Emkay Global sees a 33% rise in YES Bank's pre-provisioning operating profit in Jul-Sept and a 42% jump in net profit. The bank's provisions had risen 34% on year to INR 2.84 billion in the June quarter.

 

"Growth, margins to remain subdued; however, better recoveries from asset reconstruction companies to support earnings. We expect slippages to remain elevated due to stress in retail loans," Emkay Global said in an earnings preview report.

 

The lender saw moderate credit growth in the September quarter with loans rising 6.5% on year to INR 2.50 trillion as on Sept. 30, according to provisional data. The bank's deposits were at INR 2.97 trillion as on Sept. 30, up 7.1% on year. In July, the bank's management had said it is confident of 12-15% loan growth in the current financial year.

 

YES Bank's net interest income--the difference between interest earned and expended--is seen at INR 23.18 billion for the quarter ended September, according to an average of estimates from six brokerages. This is 5.4% higher on year and 2.3% lower on quarter.

 

The bank's net interest margin is seen declining around 10 basis points on quarter to 2.4% in the September quarter, in line with the industry trend. Margins are expected to be lower across the banking sector in the September quarter following the 100-bps reduction in the policy repo rate by the Reserve Bank of India's Monetary Policy Committee between February and June.

 

Brokerages have a mixed view on YES bank's stock, with two recommending a 'buy' with an average target price of INR 36. Three brokerages have a 'sell' rating and an average target price of INR 16 and one recommends holding the stock.

 

YES Bank's share price has risen 10% since it released the June quarter earnings on Jul. 19. On Friday, shares of the bank closed at INR 22.25 on the National Stock Exchange, down almost 4% from the previous close.

 

The following are the Jul-Sept earnings estimates for YES Bank from six brokerages in descending order of the estimate of net profit in INR million:

 

Brokerage Firm	Net Interest Income (in INR million)	Net Profit (in INR million)
Anand Rathi Share and Stock Brokers Ltd.	23,251	7,989
Emkay Global Financial Services Ltd.	23,094	7,828
ICICI Securities Ltd.	22,949	7,639
JM Financial Institutional Securities Pvt Ltd.	23,392	6,926
Nomura Equity Research	23,500	6,400
Kotak Securities Ltd.	22,900	3,491
Average	23,181	6,712

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Nishant Maher

 

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