YES Bank Reports 59.4% YoY Jump in Q1 Net Profit to ₹801 Crores, Marks Seventh Consecutive Quarter of Growth

2 min read     Updated on 25 Jul 2025, 11:52 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Yes Bank's Q1 financial results show robust growth with net profit up 59.4% YoY to ₹801.00 crores. Pre-Provisioning Operating Profit rose 53.4% to ₹1,358.00 crores, while Net Interest Income increased 5.7% to ₹2,371.00 crores. The bank maintained stable asset quality with Gross NPA at 1.6% and Net NPA at 0.3%. Return on Assets improved to 0.8% from 0.5% last year. The bank saw growth in advances and deposits, with a strong capital position reflected in a CET1 ratio of 14% and CRAR of 16.2%. Multiple credit rating upgrades were received, including from Moody's to Ba2 with a stable outlook.

15013374

*this image is generated using AI for illustrative purposes only.

Yes Bank , one of India's leading private sector banks, has reported a robust financial performance for the first quarter, demonstrating consistent growth and improved profitability.

Key Highlights

  • Net profit surged 59.4% year-on-year to ₹801.00 crores
  • Pre-Provisioning Operating Profit (PPOP) rose 53.4% YoY to ₹1,358.00 crores
  • Net Interest Income increased 5.7% YoY to ₹2,371.00 crores
  • Return on Assets (ROA) improved to 0.8% from 0.5% in Q1 last year
  • Gross NPA ratio remained stable at 1.6%, Net NPA at 0.3%

Consistent Growth and Profitability

Yes Bank has reported a net profit of ₹801.00 crores for Q1, marking a significant 59.4% increase year-on-year and an 8.5% growth sequentially. This performance represents the seventh consecutive quarter of sequential profit expansion for the bank, underscoring its commitment to sustainable growth.

The bank's Pre-Provisioning Operating Profit (PPOP) showed impressive growth, rising by 53.4% YoY to ₹1,358.00 crores. This marks the fourth consecutive quarter of PPOP expansion, supported by stable Net Interest Margins (NIMs), treasury income, and continued discipline in expense management.

Improved Asset Quality and Operational Efficiency

Yes Bank's asset quality remained stable, with the Gross Non-Performing Asset (NPA) ratio at 1.6% and the Net NPA ratio at 0.3%. The NPA provision coverage ratio further improved to 80.2% from 79.7% in the previous quarter.

The bank's operational efficiency saw significant improvement, with the cost-to-income ratio decreasing to 67.1% from 74.3% in Q1 of the previous year. This improvement reflects the bank's focus on cost management and operational optimization.

Business Growth and Balance Sheet Strength

Advances grew by 5% year-on-year, with notable growth in the Commercial Banking and Corporate and Institutional Banking segments. Total deposits increased by 4% to ₹2.75 lakh crores, with retail and branch-led deposits showing strong growth of 20% YoY.

The bank's capital position remained strong, with the CET1 ratio improving to 14% and the total capital adequacy ratio (CRAR) at 16.2%.

Credit Rating Upgrades

Yes Bank received multiple credit rating upgrades during the quarter, including an upgrade from Moody's to Ba2 with a stable outlook. These upgrades reflect the bank's improved financial profile and stronger loss absorption buffers.

Management Commentary

Prashant Kumar, Managing Director and CEO of Yes Bank, commented on the results, stating, "Our focus on profitable growth has yielded positive results, as evidenced by our seventh consecutive quarter of profit expansion. We remain committed to improving our asset quality, enhancing operational efficiency, and delivering sustainable returns to our stakeholders."

Outlook

Yes Bank's management expressed confidence in maintaining this growth trajectory, targeting a Return on Assets (ROA) of 1% by the exit of FY26. The bank continues to focus on reducing its Rural Infrastructure Development Fund (RIDF) deposits, optimizing its balance sheet, and enhancing its digital capabilities to drive future growth.

As Yes Bank navigates through the evolving economic landscape, its consistent performance and strategic initiatives position it well for continued success in the Indian banking sector.

Historical Stock Returns for Yes Bank

1 Day5 Days1 Month6 Months1 Year5 Years
-2.05%-2.83%-3.11%+6.00%-20.39%+59.35%
like20
dislike

Yes Bank Secures Approval for Investment Agreement Modifications with Verventa Holdings

1 min read     Updated on 24 Jul 2025, 08:12 AM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Yes Bank has approved changes to its investment agreement with Verventa Holdings Limited (VHL). Key modifications include VHL's right to nominate one non-executive director liable to retire by rotation, removal of alternate directorship rights, and a revised fall-away threshold. VHL now maintains nomination rights with a 5% stake in Yes Bank's total paid-up share capital, down from the previous 50% requirement. VHL currently holds a 9.19% stake in the bank.

14870547

*this image is generated using AI for illustrative purposes only.

Yes Bank , a prominent Indian private sector bank, has recently obtained approval for significant changes to its investment agreement with Verventa Holdings Limited (VHL), an affiliate of funds advised and managed by Advent. The bank's board of directors approved these modifications through a circular resolution passed on July 23, 2025.

Key Modifications to the Investment Agreement

The amendment to the investment agreement, originally executed on July 29, 2022, introduces several important changes:

  1. Director Nomination Rights: VHL now has the right to nominate one non-executive director liable to retire by rotation on Yes Bank's board. This replaces the previous provision for nominating a non-retiring non-executive director.

  2. Removal of Alternate Directorship: The amendment eliminates VHL's rights to appoint an alternate director.

  3. Revised Fall-away Threshold: The threshold for VHL to maintain its right to nominate a director has been significantly adjusted. Previously, VHL needed to hold at least 50% of the securities issued to it upon completion of the original investment agreement. Now, this right is maintained as long as VHL holds at least 5% of Yes Bank's total paid-up share capital on a fully diluted basis.

Current Shareholding and Impact

As of the latest disclosure, Verventa Holdings Limited holds a 9.19% stake in Yes Bank's total paid-up share capital. This positions VHL well above the new 5% threshold required to maintain its board nomination rights.

Regulatory Compliance

Yes Bank has emphasized that this transaction does not fall under the category of related party transactions. The bank has duly informed the National Stock Exchange of India and BSE Limited about these changes, in compliance with the Securities and Exchange Board of India (SEBI) regulations.

Implications for Yes Bank

These modifications to the investment agreement signify an evolution in the relationship between Yes Bank and Verventa Holdings. The changes in director nomination rights and the lowered threshold for maintaining these rights could potentially lead to more dynamic board composition and governance structures for the bank in the future.

Yes Bank continues to navigate its strategic partnerships and investment agreements, demonstrating its commitment to transparent communication with regulators and shareholders alike. As the banking sector in India continues to evolve, such modifications to key investment agreements may play a crucial role in shaping the bank's future trajectory and governance model.

Historical Stock Returns for Yes Bank

1 Day5 Days1 Month6 Months1 Year5 Years
-2.05%-2.83%-3.11%+6.00%-20.39%+59.35%
like18
dislike
More News on Yes Bank
Explore Other Articles
Creative Castings Reports Q1 Profit, Sets AGM Date, and Recommends 100% Dividend 3 minutes ago
Nibe Limited Inks Strategic Defense Tech Deal with Israel's Elbit Systems 19 minutes ago
Fabheads Automation Secures ₹83 Crore in Series A Funding to Revolutionize Composite Manufacturing 16 hours ago
Veranda Learning Completes Acquisition of Remaining Stakes in Neyyar Academy and Neyyar Education 27 minutes ago
19.60
-0.41
(-2.05%)