Yes Bank, a prominent private sector lender in India, has reported a remarkable increase in its financial performance for the March quarter. On Saturday, the bank announced a staggering 63.3% year-on-year (YoY) rise in standalone net profit, amounting to Rs 738 crore. This impressive financial outcome showcases the bank's strong recovery and growth trajectory, particularly after facing challenges in previous years.

Alongside the net profit increase, the bank also recorded a 5.7% YoY growth in net interest income (NII), reaching Rs 2,276.3 crore. Both the net profit and NII figures surpassed the expectations set by market analysts, indicating that Yes Bank is performing better than anticipated.

During this quarter, Yes Bank reported a 2.3% YoY increase in interest income, which grew to Rs 7,616 crore. This upward trend emphasizes the bank's effective management of its interest-earning assets. Furthermore, the bank demonstrated an improvement in its asset quality, with net non-performing assets (NPA) decreasing to 0.3%, down from 0.5% in the previous quarter.

While Yes Bank's gross NPA remained stable at 1.6% sequentially, the provisions for bad loans saw a significant spike, increasing by 23% quarter-on-quarter to Rs 318.1 crore. This proactive approach illustrates the bank's commitment to maintaining robust financial health and reducing potential risks.

In terms of lending and deposits, Yes Bank achieved an 8.1% YoY growth in advances, totaling Rs 2.46 lakh crore. The deposit base also saw a healthy rise of 6.8% YoY, reaching Rs 2.85 lakh crore in the fourth quarter of FY25.

Prashant Kumar, the Managing Director and CEO of Yes Bank, commented on the bank's performance, stating, The Bank exited the year with a quarterly return on assets (RoA) of 0.7%. We achieved 100% Priority Sector Lending (PSL) compliance and improved both Gross and Net NPA ratios to 1.6% and 0.3% respectively, marking the lowest levels since March 2020." He also highlighted a significant reduction in the net carrying value of Security Receipts to NIL and an impressive increase in the CASA (current account and savings account) ratio by 340 basis points YoY to 34.3% for FY25.

The banks net interest margin (NIM) for the fourth quarter stood at 2.5%, a slight improvement from 2.4%2.4%. The total balance sheet also grew by 4.4% YoY, reinforcing the bank's solid financial standing.

Additionally, Yes Bank reported gross slippages during the quarter amounting to Rs 1,223 crore, which constituted 2% of total advances, a decrease from Rs 1,348 crore (equating to 2.2%) in Q3FY25. Kumar emphasized that Yes Bank's core franchise has gained considerable momentum and is strategically positioned for sustained growth. He reiterated the bank's disciplined approach to execution, with a concentrated focus on enhancing its market positioning and profitability. Kumar characterized Q4FY25 as another pivotal quarter, noting the steady improvements made across multiple key performance metrics.