Monday, February 3, 2025

YES Bank Q3 FY25 PAT jumps over two-fold

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Private sector lender YES Bank on Saturday reported over two-fold year-on-year (y-o-y) and 11 per cent quarter-on-quarter (q-o-q) rise in net profit for the quarter ended December at ₹612 crore, led by higher total income and lower provisions.

During Q3 FY25, the bank’s net interest income (NII) rose 10 per cent y-o-y to ₹2,224 crore, whereas other income rose 27 per cent y-o-y to ₹1,512 crore.Net interest margin (NIM), a key indicator of banks’ profitability, was stable at 2.4 per cent.

NIM to improve

The bank’s management said it has a medium term plan to improve NIM over the period of next two-three years by 80-100 basis points (bps) via staggered reduction of bank’s funds parked in lowering yielding Rural Infrastructure Development Fund (RIDF), recalibrating retail loan journeys towards higher yielding assets, maintaining stable cost of funds by garnering low-cost current account and savings account (CASA) deposits.

“We had close to about ₹44,000 crore of balances in lower yielding RIDF deposit as of September and it has come below ₹40,000 crore in December. The benefit of that didn’t play into margin, as it came towards later half of Q3. As RIDF balances come down, it will be critical factor that play into margin,” said Niranjan Banodkar, CFO, YES Bank. The RIDF balance now stands at 8 per cent of total assets and will reduce to 5 per cent of total assets over 2-3 years period.

Further, the bank’s overall deposit went up 15 per cent y-o-y to ₹2.77 lakh crore in Q3, while advances rose 13 per cent y-o-y to ₹2.44 lakh crore. Deposits will continue outpacing credit going ahead, the management said.

Lastly, YES Bank’s asset quality was stable in the reporting quarter, with gross and net non-performing asset ratio flat q-o-q at 1.6 per cent and 0.5 per cent, respectively. 44 per cent of the bank’s retail slippages emanated from unsecured credit portfolio. Overall provisions of the bank fell 53 per cent y-o-y to ₹259 crore, aiding bottomline growth.







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