Yes bank

Summary of Yes Bank Q2 FY25 Investor Concall Highlights:

• Record Profit Growth: Yes Bank posted a significant quarterly profit of ₹553 crore in Q2 FY25, marking a 146% year-on-year increase and 10% growth from the previous quarter, driven by a strong operating profit and 14% increase in net interest income.
• Improved CASA Ratio: The bank’s CASA (Current Account Savings Account) ratio reached 32%, reflecting an increase in low-cost deposits that contribute to stable net interest margins and reduced funding costs.
• Strategic Focus on Retail Growth: Yes Bank is carefully expanding its retail assets, balancing profitability with risk management, particularly due to industry-wide challenges in unsecured retail lending.
• Enhanced Asset Quality: Asset quality improved with a gross NPA (Non-Performing Assets) ratio decrease to 1.6% from 1.7% in the previous quarter, and a provision coverage ratio of 70%.
• Commitment to Shareholders: Management reassured investors regarding share price performance and dividend policy, emphasizing their goal of consistent financial performance and optimized returns for stakeholders.
• Managing Margin Pressures: Despite potential pressure from moderating interest rates, the bank expects stable margins due to well-matched assets and liabilities and plans to reduce SLR (Statutory Liquidity Ratio) and RFR (Risk-Free Rate) security holdings, which have impacted margins.
• Improved Credit Practices: Yes Bank is enhancing asset quality in unsecured retail lending through stricter underwriting standards and improved collection processes.
• CASA Growth Strategy: The robust CASA growth is attributed to a focused strategy on service quality, customer engagement, and expanding branch networks.

Overall: Yes Bank’s investor call highlighted strong Q2 results, a proactive approach to industry challenges, and dedication to sustainable growth and profitability.