Q2 2025 Yes Bank Ltd Earnings Call Transcript
Key Points
- Yes Bank Ltd (BOM:532648) reported the highest quarterly profit since reconstruction, with a net profit of INR 553 crore, up 146% YoY and 10% sequentially.
- The bank's deposit growth momentum continued with an 18% YoY and 5% quarter-on-quarter growth, with CASA ratio improving by 260 basis points YoY.
- Asset quality showed improvement with the gross NPA ratio declining to 1.6% from 1.7% in the previous quarter, and the provision coverage ratio increased to 70%.
- Net interest income grew by 14% YoY, and non-interest income increased by 16% YoY and 17% quarter-on-quarter.
- The bank's strategic focus on SME and mid-corporate advances resulted in a superior growth rate of 26% each.
- Despite strong financial performance, Yes Bank Ltd (BOM:532648) has not seen significant growth in its share price, raising concerns among investors.
- The unsecured segment, particularly credit cards and personal loans, is contributing to heightened stress, with about 35% to 40% of slippages coming from this segment.
- The bank's net interest margin remains lower compared to peers at 2.4%, with challenges anticipated due to potential interest rate reductions.
- The CET1 ratio slightly decreased from 13.3% to 13.2% due to increased risk weights on certain portfolios.
- The bank's cost-to-income ratio remains high at 73%, indicating room for efficiency improvements.
Ladies and gentlemen, good day, and welcome to YES Bank's Q2 FY25 earnings conference call. On the management panel, we have with us today, Mr. Prashant Kumar, Managing Director and Chief Executive Officer; Mr. Rajan Pental, Executive Director; Mr. Niranjan Banodkar, Chief Financial Officer; Mr. Manish Jain, Country Head, Wholesale Banking; Mr. Pankaj Sharma, Chief Strategy and Transformation Officer; and Mr. Sunil Parnami, Head of Investor Relations and Sustainability. Mr. Prashant Kumar will now give you an overview of the results, which will be followed by a Q&A session.
(Operator Instructions) Please note that this conference is being recorded. Participants are requested to ask questions pertaining to the bank's Q2 results only. For any other information, you may reach out to the corporate communications team separately. I now hand the conference over to Mr. Prashant Kumar.
Thank you, and over to you, sir.
A very good afternoon, and thank you
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