Share Price of Yes Bank Climbs on Impressive Q3 Gains and Improved Asset Quality

What Boosted Yes Bank's Share Price?

Yes Bank's share price surged over 3% on January 27, 2025, following the release of its impressive Q3 FY25 financial results. The private sector lender reported significantly improving its performance metrics, leading to positive investor sentiment.

Key Highlights of Yes Bank's Q3 FY25 Results

• Net Profit Surge:

Yes Bank posted a net profit of ₹612.27 crore, marking an extraordinary 164.5% year-on-year (YoY) growth compared to the same quarter last year.

• Net Interest Income (NII):

The Bank's NII grew 10.2% YoY to ₹2,224 crore, showcasing steady growth in its core lending business.

• Stable Net Interest Margins (NIMs):

NIMs remained stable at 2.4%, reflecting the Bank's consistent profitability in lending operations.

Improved Asset Quality:

• Gross Non-Performing Assets (GNPA): Fell to 1.6% in Q3 FY25 from 2.02% in the previous quarter.
• Net Non-Performing Assets (NNPA): Maintained stability at 0.5% compared to the September quarter.

CASA Growth:

The Current And Savings Account (CASA) ratio rose to 33.1%, a notable improvement from 29.7% in the same quarter last year.

Provision Coverage Ratio (PCR):

PCR improved significantly to 71.2%, compared to 56.6% in the year-ago period and 70.0% in the preceding quarter.The Provision Coverage Ratio (PCR) improved significantly to 71.2%, from 70.0% in the previous quarter and 56.6% in the same period last year.

Gross Slippages:

Gross slippages for the quarter were reported at ₹1,348 crore, slightly higher than the ₹1,233 crore recorded in Q3 FY24.

Yes Bank Share Price Trend

Despite the recent jump, Yes Bank shares have faced challenges over the past year:

• One-Month Decline: Share price fell by over 5%.
• Six-Month Performance and Yearly Decline: A steep decline of more than 25%.
• Two-Year Growth: The stock has risen by just over 6% during this period.

Yes Bank Shares Market Capitalization was over ₹58.786 crores as the shares traded at ₹18.70 on the BSE (2.47% up at 9:50 AM)

Summary

Yes Bank's Q3 FY25 results demonstrated financial growth, marked by significant improvements in net profit, asset quality, and CASA ratio. While the stock's recent performance has boosted investor confidence, its broader trend over the past year remains challenging. The long-term outlook will likely depend on sustained improvements in its financial metrics and market conditions.