Yes Bank Q1 Results: Net profit rises 59% YoY to ₹801 crore

In a strong start to FY25, Yes Bank Ltd. has reported a 59% year-on-year (YoY) jump in net profit to ₹801 crore for the quarter ended June 30, 2025, compared to ₹505 crore in the same period last year. The private sector lender's robust performance was primarily supported by improved asset quality, expanding loan book, and higher interest income.

Key Highlights: Q1 FY25

• Net profit rose 59% YoY to ₹801 crore

• Net Interest Income (NII) stood at ₹2,284 crore, up 4.2% YoY

• Net Interest Margin (NIM) was steady at 2.4%

• Gross NPA ratio improved to 1.7% from 2.2% a year ago

• Net NPA ratio came down to 0.6%

• Provision coverage ratio (PCR) stood at 83.6%

• Advances grew 14.1% YoY to ₹2.20 lakh crore

• Deposits rose 22.4% YoY to ₹2.58 lakh crore

Strong Loan Growth and Deposit Accretion

Yes Bank’s loan book grew at a healthy pace, clocking a 14.1% YoY rise in advances, reaching ₹2.20 lakh crore in Q1FY25. This expansion was led by a steady uptick in retail, MSME, and corporate lending.

On the liabilities side, total deposits rose 22.4% YoY to ₹2.58 lakh crore. The bank's Current Account Savings Account (CASA) ratio stood at 30.4%, slightly lower than the 30.8% in the previous quarter but higher YoY.

Operating Performance Holds Firm

Yes Bank’s Net Interest Income (NII)—the difference between interest earned and expended—grew modestly by 4.2% YoY to ₹2,284 crore. The Net Interest Margin (NIM) remained steady at 2.4%, indicating a balanced yield on assets and cost of funds.

The bank also reported a significant increase in non-interest income, which rose 33.7% YoY to ₹1,270 crore. This was driven by fee income from retail banking, wealth management, and treasury gains.

Asset Quality Improves Further

The lender reported a gross non-performing asset (GNPA) ratio of 1.7%, a sharp improvement from 2.2% in Q1FY24 and 1.8% in the previous quarter. The net NPA ratio also declined to 0.6%, showcasing enhanced recovery efforts and prudent risk management.

Provisions for bad loans stood at ₹500 crore, down from ₹676 crore in the same quarter last year. The Provision Coverage Ratio (PCR) stood healthy at 83.6%, providing a buffer for future credit losses.

Management Commentary

Prashant Kumar, MD & CEO of Yes Bank, expressed optimism about the bank’s growth trajectory:

“Our Q1 performance reflects the continued progress of our transformation journey. With stronger fundamentals, healthier asset quality, and robust balance sheet growth, we are well-positioned for sustained profitability and growth in the upcoming quarters.”

He further added that the bank remains focused on expanding its retail and MSME footprint while investing in digital innovation and customer-centric services.

Analyst Views: Cautious Optimism

Market analysts largely welcomed the results, citing them as a positive continuation of the bank’s turnaround strategy.

Ravi Singh, Senior Analyst at Share India Securities, said:

“Yes Bank has delivered a stable quarter with decent profit growth and improving asset quality. However, the bank needs to enhance its core margin performance and CASA base further to remain competitive.”

Jyoti Roy, DVP-Equity Strategist at Angel One, added:

“The jump in profit is encouraging, but investors would watch closely for NIM expansion and sustained deposit momentum, especially as competition in retail banking intensifies.”

Market Reaction

Following the earnings announcement, Yes Bank shares witnessed mild buying interest in early trade on Friday, gaining around 1.5% intraday on the NSE. Analysts believe the positive sentiment could gain traction if the bank maintains consistency in operational performance and boosts return ratios over the next few quarters.

The stock has gained approximately 15% year-to-date (YTD), outperforming the Bank Nifty, driven by investor optimism around the ongoing turnaround strategy and stabilization of legacy issues.

Outlook: Cautiously Positive

Yes Bank’s Q1FY25 results suggest a resilient performance marked by strong profit growth, better asset quality, and solid credit demand. However, the bank’s path to reclaiming its former stature hinges on sustaining profitability, improving operating efficiency, and enhancing return on assets (RoA) and equity (RoE).

The bank’s focus on technology-driven banking, diversified loan book, and de-risked asset profile are expected to support future growth, but challenges such as margin pressures, competition, and regulatory risks remain on the horizon.

Yes Bank’s June quarter performance reinforces the belief that the lender is steadily progressing in its post-revival phase. With net profit growth of 59% YoY, declining NPAs, and a healthy increase in advances and deposits, the bank has delivered a solid Q1 show. Investors, however, would be prudent to monitor sustainability in margins and asset quality over the coming quarters before making long-term bets.