Yes Bank announced its third-quarter results for FY25, reporting a stellar 164.5 per cent year-on-year (YoY) jump in net profit to ₹612.27 crore. The bank also witnessed a 10.2 per cent YoY growth in Net Interest Income (NII), reaching ₹2,224 crore, while maintaining steady Net Interest Margins (NIMs) at 2.4 per cent.
The bank’s interest income rose 12 per cent YoY to ₹7,829.13 crore, while interest expenses increased by 12.8 per cent to ₹5,605.62 crore. Despite rising costs, operating expenses grew marginally by 0.9 per cent quarter-on-quarter (QoQ), leading to a sequential improvement in the cost-to-income ratio, which declined to 71.1 per cent from 73.1 per cent in Q3 FY24.
Yes Bank demonstrated significant improvement in asset quality. The Gross Non-Performing Asset (GNPA) ratio declined to 1.6 per cent in Q3 FY25, down from 2 per cent in Q3 FY24, while the Net Non-Performing Asset (NNPA) ratio reduced to 0.5 per cent, compared to 0.9 per cent in the same quarter last year.
The bank also reported growth in its CASA ratio, which rose to 33.1 per cent in Q3 FY25 from 29.7 per cent in Q3 FY24, reflecting improved customer engagement.
Prashant Kumar, Managing Director & CEO of Yes Bank, said that, “Q3FY25 is the fifth quarter in a row where the Bank has demonstrated sustained sequential expansion in profitability. The RoA of the Bank has also expanded to 0.6 per cent from 0.5 per cent, reported over the last 3 quarters. It is quite encouraging that we have also started seeing expansion in our Operating Profitability.”
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“Two distinct trends which I think are important to highlight in terms of trajectory of the Bank’s profitability going forward are, 1) reduction in balances of deposits placed in lieu of PSL shortfalls to 8.5 per cent of Assets this quarter, from 10.4 per cent of Assets in Q2FY25, and 2) fresh slippages in Retail Segment remaining flat on Q-o-Q basis. Both of these are in line with our earlier guidance, and while one of the factors is likely to aid expansion in Net Interest Margins and Operating Profits, the other may likely result in reduction of gross credit costs,” Kumar added.
The results underscore Yes Bank’s focus on efficiency, asset quality improvement, and sustained profitability, signaling a positive outlook for the bank’s financial trajectory.
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