YES Bank has announced its financial results for the fourth quarter of the financial year 2024-25, posting an impressive 63.7% year-on-year (YoY) increase in net profit. The bank
YES Bank has announced its financial results for the fourth quarter of the financial year 2024-25, posting an impressive 63.7% year-on-year (YoY) increase in net profit. The bank reported a standalone net profit of Rs 738.12 crore for the quarter ended March 31, 2025, up from Rs 451.9 crore during the same period last year. The surge in profit has been attributed to a combination of lower provisions, increased interest income, and a notable improvement in asset quality.
This performance reflects YES Bank’s steady progress in strengthening its balance sheet and enhancing profitability amidst a challenging economic environment. The results underline the bank’s focus on prudent risk management, operational efficiency, and its strategic objective of improving overall financial health.
YES Bank’s total income for the fourth quarter of FY25 stood at Rs 9,355.4 crore, registering an increase from Rs 9,015.8 crore a year earlier. The rise in income was supported by a marginal improvement in interest income, which grew to Rs 7,616.1 crore from Rs 7,447.2 crore in the corresponding quarter last year.
The growth in interest income was complemented by an increase in other income, which rose to Rs 1,739.3 crore from Rs 1,568.6 crore year-on-year. This indicates the bank’s sustained efforts in diversifying its income streams and maintaining operational stability even amidst market volatility.
The bank’s operating profit before provisions also displayed strong growth, rising to Rs 1,314.4 crore during Q4FY25, compared to Rs 902.5 crore in the same quarter of the previous year. A major factor contributing to the increase in profitability was a sharp reduction in provisions and contingencies. Provisions fell significantly to Rs 318.1 crore from Rs 470.9 crore a year earlier.
This reduction in provisions signals the bank’s improving asset quality and effective recovery mechanisms, enabling it to allocate fewer resources towards provisioning for bad loans.
YES Bank achieved considerable progress in enhancing its asset quality metrics. Gross non-performing assets (GNPA) for the quarter stood at Rs 3,935.6 crore, with the GNPA ratio improving to 1.6%, down from 1.7% a year ago. The net NPA also declined sharply to Rs 800 crore, bringing the net NPA ratio down to 0.3% from 0.6% in the same quarter last year.
These improvements reflect the bank’s diligent approach to managing its asset book, reducing stressed assets, and improving credit discipline. The consistent decline in bad loans positions YES Bank on a healthier and more sustainable growth trajectory.
The net interest income (NII), a critical measure of a bank’s core earnings from its lending and deposit activities, increased by 5.7% year-on-year. The bank reported an NII of Rs 2,276.3 crore for Q4FY25, compared to Rs 2,153 crore in the year-ago period.
This growth in NII demonstrates YES Bank’s ability to enhance its lending portfolio while maintaining control over funding costs. The steady increase in interest income is a positive sign of rising credit demand and a healthy business environment for the bank.
For the entire financial year FY25, YES Bank posted a significant increase in net profit, reporting Rs 24,058.6 crore compared to Rs 12,510.8 crore in FY24. This remarkable growth underscores the bank’s successful turnaround and operational resilience.
The improvement was achieved through a combination of higher income, reduced provisions, enhanced asset quality, and focused operational management. These achievements affirm the bank’s progress toward meeting its long-term strategic objectives and regaining investor confidence.
Prashant Kumar, Managing Director and CEO of YES Bank, expressed satisfaction over the quarterly and annual performance. He remarked that the fourth quarter of FY25 marked another important milestone in YES Bank’s journey of sustainable growth. He highlighted several key accomplishments, including achieving 100% Priority Sector Lending (PSL) compliance, reducing gross and net NPA ratios to their lowest levels since March 2020, and improving the bank’s Current Account Savings Account (CASA) ratio by 340 basis points year-on-year to 34.3% in FY25.
Kumar also emphasized the bank’s focus on maintaining profitability while ensuring balance sheet quality. He noted that the bank successfully brought down the net carrying value of Security Receipts to zero, which had been a lingering issue from the bank’s previous stressed asset phase.
On the stock market front, shares of YES Bank closed at Rs 18.09 on Thursday, April 17, 2025, marking a gain of Rs 0.22 or 1.23% on the Bombay Stock Exchange (BSE). Despite this uptick, the stock witnessed a decline of 12.75% during the fourth quarter of FY25.
The bank’s share price movement reflects investor sentiment amidst broader market volatility and the bank’s gradual recovery from its previous financial difficulties. Market participants will closely monitor YES Bank’s future performance and strategic initiatives as it continues to regain its footing in the banking sector.
In the preceding December quarter (Q3FY25), YES Bank reported a net profit of Rs 612 crore, a sharp 165% rise from Rs 231 crore in the corresponding period of the previous year. The bank’s NII during this quarter grew by 10% to Rs 2,223.52 crore from Rs 2,016.88 crore year-on-year.
The December quarter also witnessed further improvement in asset quality, with GNPA decreasing to 1.6% of total advances from 2% in the prior year and net NPA improving to 0.5% from 0.9%. Provisions for bad loans during this period stood at Rs 258.68 crore, a significant reduction from Rs 555 crore in the same quarter of the previous year.
Source : Business Today
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