Yes Bank Share Price in Focus As It Rises Over 5%

Yes Bank share price rose by ₹0.91 (4.74%) as of 12:30 PM on November 26. Earlier in the day, the stock opened at ₹20.39, reached a high of ₹20.63, and a low of ₹19.20. Yes Bank Ltd’s stock price has increased by ₹0.75, or 3.87%, over the past five days, reaching ₹20.11. This growth reflects positive investor sentiment and a strong performance in recent trading sessions.

The company has a market capitalisation of ₹62.98K crore and a P/E ratio of 34.32. Its 52-week high stands at ₹32.85, while the 52-week low is ₹19.02. The bank also holds a CDP score of A-, indicating a strong credit profile.

Yes Bank’s Strong Q2FY25 Performance

Yes Bank’s net profit more than doubled in the second quarter of FY25, reaching ₹553 crore, compared to ₹269 crore in the same period last year. Consistent gains in net interest income drove this growth, as did non-interest income and a significant provision reduction. The bank’s net profit grew by 10.1% from ₹502 crore in Q1FY25.

Key Financial Highlights

• Net Interest Income (NII): Yes Bank’s NII rose 14.3% year-on-year to ₹2,200 crore, up from ₹1,925 crore in Q2FY24. However, it saw a slight decline of 1.9% from ₹2,244 crore in Q1FY25.
• Non-Interest Income: The bank’s non-interest income, which includes fees and commission, grew by 16.3% year-on-year to ₹1,407 crore. Recoveries stood at ₹1,021 crore, including ₹258 crore from security receipts.
• Asset Quality Improvement: Gross non-performing assets (NPAs) fell to 1.6% in September 2024, down from 2.0% a year ago. Net NPAs dropped to 0.5% from 0.9%. The provision coverage ratio improved to 81.5% from 72.1% a year ago.

Loan Growth and Strategy

Yes Bank’s total advances grew by 12.4% year-on-year to ₹2.35 trillion. Retail advances remained stable, while SME advances rose by 25.8%, and mid-corporate advances grew by 25.5%. The bank aims to increase its loan book by 13-14% and deposits by 17-18% in FY25. It will also closely monitor the performance of its unsecured loans.

Deposit Growth and Capital Position

The bank’s total deposits increased by 18.3% year-on-year to ₹2.77 trillion. The share of low-cost deposits, or CASA (current and savings accounts), rose to 32.0% from 29.4% in the previous year. Yes Bank’s capital adequacy ratio stood at 16.1%, with Common Equity Tier-1 (CET1) at 13.2% as of September 2024.

Prashant Kumar, the bank’s MD and CEO, expressed optimism about Yes Bank’s growth and stated that it will continue exploring opportunities in the microfinance sector, recognising it as an important segment for future expansion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.