Yes Bank Q2 profit jumps 18.3 per cent to Rs 654 crore

Yes Bank posted an 18.3 per cent rise in Q2 net profit to Rs 654 crore, driven by growth in non-core income. Core NII, deposits, and operational efficiency improved. The bank aims 10 per cent credit growth and plans 80 new branches in FY2

Mumbai: Yes Bank on Saturday reported an 18.3 per cent rise in its September quarter net profit at Rs 654 crore on non-core income growth. The private sector lender had reported a net profit of Rs 553 crore in the year-ago period.

The core net interest income rose 4.6 per cent on the back of 6.4 per cent growth in its loanbook and a 0.10 per cent expansion in the net interest margin. Managing director and chief executive Prashant Kumar said the bank will be aiming to accelerate the credit growth to 10 per cent for the fiscal year. He added that the worst is over for the NIMs, and the same will go up from here on.

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The other income for the bank rose by 16.9 per cent to Rs 1,644 crore during the quarter. The deposit growth came at 6.9 per cent in the July-September period. The operating expenses increased by just 0.6 per cent on-year to Rs 2,649 crore, and a senior official explained that it used levers like focus on more productivity, decreasing the reliance on direct sales agents to distribute products, and also winding down old systems, which reduced the cost of annual maintenance contracts.

From an asset quality perspective, the fresh slippages came at Rs 1,248 crore, down from Rs 1,458 crore in the quarter-ago period. Gross non-performing assets ratio stood unchanged at 1.6 per cent as of September 30.

The overall provisions for the bank stood at Rs 419 crore, up 41 per cent as compared to the year-ago period, and were attributed largely to the impact of a corporate account’s resolution. The capital adequacy of the lender stood at 15.6 per cent at the end of the quarter, which included the core buffer level at 13.9 per cent.

Kumar said there is no immediate plan to change the business outlook after Japanese entity SMBC’s over 24 per cent stake buy, and added that the bank will have its annual planning meeting as usual, where the way forward will be decided.

The bank has a plan to add 80 new branches in FY26 and has already done 43 of the new points of presence, Kumar said.