YES Bank shares jump 10% on strong Q2 results; check details

The bank reported a 147% jump in its consolidated net profit to ₹566.59 crore, thanks to a reduction in provisioning.

The city-headquartered lender had reported a net profit of ₹228.64 crore in the year-ago period, while the same in the preceding June quarter stood at ₹516 crore.

The core net interest income increased 14.3% to ₹2,200 crore for the reporting quarter on the back of 12.4% growth in overall advances and the net interest margin inching up to 2.4%.

The non-interest income grew 16.3% to ₹1,407 crore during the quarter. The overall deposits came at 18%, bucking an industry-wide trend of it falling short of credit growth.

The bank is targeting 17-18% deposit growth and 13-14% in advances in FY25, its chief executive and managing director Prashant Kumar said.

The bank witnessed fresh slippages of ₹1,314 crore during the quarter, of which ₹1,179 crore came from retail assets. Up to 40% of the stress in retail asset setbacks was on account of unsecured loans, where the industry has been facing challenges.

The senior official said the slippages on the unsecured front seem to have hit peak levels and will stay flat for the remainder of the year before beginning a southward journey.

The bank is not aggressively increasing its unsecured retail book, he said, adding that there is no upsurge in bounce rates, and the collections are also strong at present.