Yes Bank Net Profit Jumps 63% in Q4 – What Does It Mean for the Stock?

Yes Bank has delivered strong financial results for the March quarter of the last financial year, posting a 63% year-on-year rise in net profit to ₹738 crore. For the entire FY2024-25, the Mumbai-based private sector lender reported a 92.3% surge in annual net profit to ₹2,406 crore, signaling a turnaround for the bank after years of restructuring and asset quality concerns.

Q4 Highlights: Strong Performance Across Core Metrics

In its filing with the stock exchanges, Yes Bank stated that its net interest income (NII) – a key measure of banking profitability – grew 5.7% to ₹2,276 crore in the January-March quarter. The bank’s advances rose by 8.1%, while the net interest margin (NIM) saw a marginal increase of 0.1%.

In terms of total income, the bank recorded ₹9,355.39 crore, up from ₹9,015.77 crore in the same quarter last year.

Deposit and Loan Book Growth

The bank reported deposit growth of 6.8%, taking its deposit base to ₹2.85 lakh crore. Advances stood at ₹2.46 lakh crore by the end of Q4 FY25. According to Prashant Kumar, MD & CEO of Yes Bank, the lender is targeting loan growth of 12-15%, subject to macroeconomic conditions, with deposit growth expected to outpace credit expansion.

Asset Quality Stable; NPA at Multi-Year Low

Yes Bank has maintained its asset quality, with gross NPAs remaining steady at 1.6%, and net NPAs at 0.3% – the lowest since March 2020. The bank made provisions worth ₹318.1 crore during the quarter, a 23% increase sequentially.

Additional performance metrics include:

• CASA ratio improved by 340 basis points YoY to 34.3%

• Return on Assets (RoA) for the quarter stood at 0.7%

• Achieved 100% Priority Sector Lending (PSL) compliance

• Secured receipts' net carrying value brought down to zero

Market Outlook: Can the Stock Bounce Back?

Following the result announcement, analysts expressed optimism about the stock’s potential upside, citing the consistent improvement in fundamentals. Although the bank’s stock closed 1.2% higher at ₹18.09 in the last trading session (Thursday), it has declined by 24.5% over the past year.

Given the solid quarterly earnings, strong asset quality, and improving operating metrics, market experts believe that Yes Bank shares could see positive momentum in the coming sessions. However, they also advise caution due to the stock’s past underperformance and ongoing restructuring.

Disclaimer: This article is intended for informational purposes only. Investors are advised to consult a certified financial advisor before making investment decisions. Neither the publisher nor the author will be responsible for any financial loss arising from investment activities based on this report.