Yes Bank has announced a significant 63% increase in its net profit, reaching Rs 738.12 crore for the quarter ended March 2025 (Q4FY2025). The bank also saw a 6% rise in net interest income (NII) and a 6% growth in its core fee income during this period.
The Net Interest Margin (NIM) increased to 2.50% in Q4FY2025, up from 2.40% in the same period last year. The bank’s total business grew by 7%, with a notable 8% rise in its loan book.
Asset Quality Improvement:
Yes Bank continued to improve its asset quality in Q4FY2025. New loan defaults (slippages) were Rs 1,223 crore, down from Rs 1,348 crore in the previous quarter and Rs 1,356 crore in the same quarter last year. The bank also recovered Rs 275 crore from non-performing assets (NPAs) and upgraded Rs 253 crore worth of loans. It wrote off Rs 724 crore worth of loans in Q4FY2025.
The provision coverage ratio improved to 87.60%, compared to 82.40% in the previous quarter and 79.30% a year ago. The bank’s capital adequacy ratio stood at 15.6%, with a Tier I ratio of 13.5% as of March 2025.
Business Growth:
Yes Bank’s business grew by 7% year-on-year (YoY) to Rs 530,714 crore by March 2025, driven by an 8% rise in advances (loans). Deposits also grew by 7%, reaching Rs 284,525 crore.
The bank’s CASA (Current Account Savings Account) deposits rose 18% YoY to Rs 97,480 crore, with savings account deposits jumping 32% to Rs 54,176 crore. The CASA ratio increased to 34.3% from 30.9% a year ago.
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Loan Growth:
The growth in retail loans slowed down, with a 3% YoY decline to Rs 101,560 crore. However, the credit to MSMEs (Micro, Small, and Medium Enterprises) grew by 23% to Rs 85,556 crore, and corporate loans increased by 12% to Rs 59,073 crore.
Margins and Branch Expansion:
Yes Bank maintained a stable cost of deposits at 6.40%, while the yield on advances (interest earned on loans) dropped by 20 basis points to 10.10%. The NIM improved by 10 basis points to 2.50% in Q4FY2025.
The bank expanded its presence by adding 8 branches and 5 ATMs in Q4FY2025, bringing the total to 1,255 branches and 1,331 ATMs.
Quarterly Performance:
The bank’s net interest income (NII) rose by 6% to Rs 2,276.36 crore. Core fee income also grew by 6% to Rs 1,527 crore. However, forex income fell by 31%, limiting the overall growth in non-interest income to 11%, reaching Rs 1,739.26 crore.
Operating expenses dropped by 4% to Rs 2,701.24 crore, helping to reduce the cost-to-income ratio to 67.3% from 75.8% a year ago. The operating profit increased by 46% to Rs 1,314.38 crore.
Provisions for bad loans decreased by 32%, to Rs 318.07 crore. The effective tax rate for Q4FY2025 rose to 25.9% from a negative 4.7% in Q4FY2024. Net profit surged by 63% YoY to Rs 738.12 crore.
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Full-Year Performance (FY2025):
Yes Bank reported a 92% increase in net profit for the year ended March 2025, reaching Rs 2,405.86 crore. Net interest income grew by 10%, while non-interest income rose by 15%. This led to a 12% increase in total income for the year.
Operating expenses increased by 7%, but provisions for bad loans fell by 42%, allowing the profit before tax to more than double, rising by 111% to Rs 3,168.34 crore. The cost-to-income ratio improved to 71.3% from 74.4% in FY2024. The effective tax rate rose to 24.1% from 16.6% in FY2024.
Overall, Yes Bank’s performance in FY2025 reflects strong growth in profit, asset quality, and margins, positioning it well for the future.
