YES Bank shares climb 5% after Q1 profit grows 47% YoY to Rs 502 crore

Meanwhile, the interest earned in the reported quarter stood at Rs 7,719.15 crore, higher by 19.8% from Rs 6,443.22 crore reported in the corresponding quarter of the previous financial year.
Interests expended during the reported quarter stood at Rs 5,475.11 crore, up from Rs 4,443.6 crore reported by the lender in the year-ago period. This was a 23% YoY growth.The net profit for Q1FY25 was up by 11.2% on a quarter-on-quarter basis versus Rs 452 crore in Q4FY24. The net interest margins (NIMs) for the reported quarter for Q1FY25 were steady on the QoQ basis at 2.4%, a company filing to the stock exchanges said.

Net provision costs were lower by 41.2% YoY and 55% on the QoQ basis. The returns on assets (RoA) for Q1FY25 stood at 0.5% versus 0.4% in Q1FY24 and 0.5% in Q4FY24.

The deposit accretion remained robust gaining 20.8% YoY. CASA ratio was flat on the QoQ basis at 30.8% despite Q1 seasonality.

Net Advances grew at 14.7% YoY aided by sustained growth momentum in SME (at 23.8% YoY), mid-corporate advances (at 25.0% YoY), and resumption of growth in the corporate segment (13.8% YoY growth).

The company delivered improvement in its asset quality metrics. The GNPA (gross non-performing assets) ratio was reported at 1.7% as of June 30, 2024, versus 1.7% in Q4FY24 and 2% in Q1FY24. Meanwhile, NNPA (net-non-performing assets) ratio improved to 0.5% versus 0.6% in the last quarter and 1% in Q1FY24.

Following the Q4 results, brokerage firm Kotak Securities maintained its Sell rating on YES Bank with an unchanged target price of Rs 19.

Yes Bank reported 45% YoY earnings growth led by a 40% YoY decline in provisions and 8% YoY operating profit growth. Slippages were at 2.1%, the lowest in 8 quarters. Write-back in investment depreciation mostly related to resolutions in loans sold earlier aided a lower provision. We maintain SELL (FV unchanged) as the risk-reward remains unfavorable with the underlying RoE improvement likely to be slow.

At 10:04 am, the scrip was trading 2.6% higher at Rs 25.4 on BSE. The stock has also surged over 40% in the past year.

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