YES Bank soars 10% as profit jumps over two-fold YoY in Q2FY25

YES Bank reported robust deposit growth, with total deposits rising 18.3 percent YoY in Q2FY25

YES Bank's stock soared 10 percent to Rs 21.3 per share on October 28, following the announcement of stronger-than-expected results for the July-September quarter (Q2FY25).

The bank posted a remarkable two-fold year-on-year (YoY) increase in net profit, reaching Rs 553 crore in Q2FY25, compared to Rs 225 crore in the same period last year. Net interest income (NII) also registered solid growth, rising 14.3 percent YoY to Rs 2,200 crore from Rs 1,925 crore in Q2FY24.

On the asset quality front, YES Bank reported a marginal improvement, with its gross non-performing asset (GNPA) ratio at 1.6 percent in Q2FY25, compared to 1.7 percent in the previous quarter. The net NPA ratio held steady at 0.5 percent.

The bank’s cost-to-income ratio improved to 73 percent in Q2FY25 from 74.4 percent in Q2FY24 and 74.3 percent in Q1FY25. Returns on assets (RoA) for the quarter stood at 0.5 percent, up from 0.2 percent in Q2FY24 and consistent with the previous quarter.

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YES Bank reported robust deposit growth, with total deposits rising 18.3 percent YoY to Rs 2.7 lakh crore and 4.6 percent quarter-on-quarter (QoQ). The current and savings account (CASA) ratio improved to 32 percent, compared to 29.4 percent a year ago and 30.8 percent in the previous quarter, indicating healthy retail deposit growth.

Commenting on the results, MD & CEO Prashant Kumar expressed optimism, stating, “Our Q2FY25 performance is encouraging, especially amid ongoing industry challenges. We have sustained deposit momentum alongside a healthy CASA ratio of 32 percent, driven by growth in current and savings accounts.” Kumar added that the bank remains focused on meeting strategic objectives, with strong growth in the SME and mid-corporate segments.

Despite the positive quarterly results, the bank’s stock has faced challenges, declining over 16 percent in the past three months. However, it has outperformed the benchmark Nifty 50 index, which dropped over 2 percent during the same period.

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