Shares of YES Bank rose 2.03 per cent to ₹18.61 on the NSE at 11 AM on today after the company reported a significant increase in net profit for the October-December 2024 quarter.
Net profit more than doubled compared to the same period last year and saw a modest increase compared to the previous quarter at ₹612 crore, driven by higher total income and lower provisions.
Net interest income (NII) and other income both witnessed substantial year-on-year growth while, the net interest margin (NIM) remained steady at 2.4 per cent.
Gross and net non-performing asset ratios remained unchanged from the previous quarter and deposits increased by 15 per cent y-o-y, outpacing loan growth.
Provisions for bad loans decreased significantly, contributing to the strong profit performance. The bank plans to improve NIM in the next 2-3 years by reducing its holdings in low-yielding government securities and focusing on higher-yielding retail loans. The bank expects deposit growth to continue to outpace loan growth.
YES Bank delivered a strong performance in the third quarter of the fiscal year, driven by robust revenue growth and improved asset quality. The bank’s focus on improving profitability and managing its balance sheet effectively bodes well for its future prospects.