YES Bank’s 35-40% retail fresh slippages came from unsecured portfolio in Q2FY25, says CEO Prashant Kumar

Prashant Kumar

Private sector lender, YES Bank has seen a 35-40 percent of the retail fresh slippages coming from the unsecured portfolio of the bank in the second quarter of the current financial year, said managing director and chief executive officer Prashant Kumar.

“Of the total fresh retail additions in this quarter, 35-40 percent came from unsecured portfolio,” Kumar said during post earning call. In July-September quarter, the lender have reported Rs 1,179 crore of fresh retail slippages, as per investor presentation.

Gross Slippages for Q2FY25 at Rs 1,314 crore (2.2 percent of Advances) as compared to Rs 1,263 crore (2.4 percent of Advances) in Q2FY24 and Rs 1,204 crore (2.1 percent of Advances) in Q1FY25, presentation added.

The bank’s asset quality showed improvement, with the gross non-performing asset (GNPA) ratio decreasing to 1.6 percent as on September 30, 2024, from 1.7% as on September 30, 2023, while the net NPA ratio remained stable at 0.5 percent. In absolute terms, GNPAs stood at Rs 3,889.43 crore, a slight increase from Rs 3,844.90 crore quarter-on-quarter.

Net NPAs were down to Rs 1,168 crore from Rs 1,246 crore in the previous quarter, indicating improved credit quality and lower default risk.NPA Provision Coverage Ratio (PCR) at 70.0 percent as compared to 56.4 percent in Q2FY24 and 67.6 percent in Q1FY25; Including Technical Write- offs, PCR at 81.5 percent as compared to 72.1 percent in Q2FY24 and 80.1 percent in Q1FY25, as per press release.

Yes Bank reported a significant jump in net profit for Q2, posting Rs 553 crore, a substantial increase from Rs 225 crore in the same quarter last year. The bank’s net interest income (NII) rose by 14.3 percent to Rs 2,200 crore, compared to Rs 1,925.1 crore in Q2 FY24, reflecting steady growth in core lending operations.