Yes Bank's Q4FY25 results: Net profit up 63.3% Y-o-Y at Rs 738.1 crore

Net interest income grew by a mere 5.7 per cent to Rs 2,276 crore during the quarter

Private sector lender Yes Bank’s net profit rose by 63.3 per cent year-on-year (Y-o-Y) to Rs 738.12 crore in the January-March quarter of the financial year 2024-25 (Q4FY25) from Rs 451.9 crore reported in the same period last year, aided by fall in provision amid muted growth in core income.

 

Net interest income, the difference between interest earned and interest expended, grew by a mere 5.7 per cent to Rs 2,276 crore during the quarter, while non-interest income was up 10.9 per cent to Rs 1,739 crore.

 

Net interest margin (NIM) for Q4FY25 was at 2.5 per cent as compared to 2.4 per cent in Q4FY24. NIM for FY25 was at 2.4 per cent.

 

Sequentially, the profit was up by 20.55 per cent from Rs 612 crore in Q3FY25.

 

The provisions of the bank dropped by 32.45 per cent Y-o-Y in Q4FY25 to Rs 318.07 crore in the quarter from Rs 471 crore, last year.

 

The asset quality of the lender was stable with gross non-performing assets ratio (GNPA) flat at 1.60 per cent as of March 31, 2025 compared to the last quarter (Q3FY25). The Net NPA Ratio was down to 0.30 per cent as of March 31, 2025 as against 0.50 per cent as of December 31, 2024.

 

“Gross Slippages for Q4FY25 was at Rs 1,223 crore (2.0 per cent of advances) compared to Rs 1,348 crore (2.2 per cent of advances) in Q3FY25,” the bank said.

 

Out of the Rs 1,115 crore fresh slippages in retail, Rs 780 crore is retail assets, Rs 56 crore is from rural, Rs 93 crore from MSME and Rs 184 crore is from the credit card portfolio. 

 

The bank reported a loan growth of 8.1 per cent year-on-year (Y-o-Y) to Rs 2.46 trillion, while deposits grew by 6.8 per cent to Rs 2.84 trillion. The share of current and savings account deposits in total deposit was 34.3 per cent as on March 31, 2025 compared to 30.9 per cent a year ago.

 

Going forward, the bank is targeting a loan growth of 12 to 15 per cent for FY26 depending on the macroeconomic situation, with deposits growing slightly higher than loans. The retail business loan book is expected to grow 10–12 per cent, the Yes Bank management said in their post earnings media call.

 

Although the growth in retail loan book at 41.3 per cent has been 3.4 per cent down as of March 31, 2025 compared to last year, the bank intends to keep their product mix at 60 per cent retail and 40 per cent corporate.

 

“It was a long-term strategy for us to have 60 per cent coming from retail and SME and 40 per cent from the corporate and mid-market.  We would continue to have that strategy. And if you see, only this year the retail growth has been negative and again that was a very strategic conscious call. But going forward, we would continue to have this ratio between 60-40,” Prashant Kumar, MD & CEO, Yes Bank said.

 

Kumar also said that the lender’s retail and wholesale business has been restructured in-line with the lender’s five-year strategy.

“Restructuring involves wholesale banking, as well as retail. So what we have done is that we have consolidated the entire liability part of the retail into branch banking. Because our strategy is to make the branches as the focal point for dealing with the customers, as well as for acquisition of customers. In the wholesale business, multinational banking corporations and the new age businesses, which are mostly liability-based, have converged together. There has been a formation of a financial institution group, which takes care of both domestic as well as international,” he said.

 

Regarding the changes in the retail department of the bank, Kumar said, “The people who have exited, they have been extremely good, very competent leaders. It's only because the restructuring has been done, those positions are not available to us…. I really don't know from where this type of news is coming in terms of sacking 500 people. If you see, there has been an addition of 500 people in FY24. There has been an addition of 700 people in FY25.  Every year there has been an addition of the headcount, but definitely you would agree with me whenever there is a restructuring, some positions don't exist anymore and the people who are wearing those positions, they move out for better opportunities. The current restructuring has been done, keeping in view our business strategy for the next five years.”

 

With an addition of 700 people in FY25, the current headcount of the bank stands at 28,700. The bank which opened 270 new branches in the last four years plans to add another 400 branches in the next five years.