YES Bank is set to announce its financial results for the fourth quarter and full financial year 2024-25 later today. The earnings report comes at a crucial time as investors look for signals on the lender’s growth outlook, asset quality, and margin trajectory.
Shares of YES Bank declined 12.75% during Q4 FY25, reflecting subdued investor sentiment ahead of the results. The stock, however, closed 1.23% higher at ₹18.09 on Thursday, suggesting cautious optimism in the run-up to the earnings.
Q3 performance recap
In the December 2024 quarter, YES Bank reported a net profit of ₹612 crore, a significant jump of 165% from ₹231 crore in the same period a year ago. Net interest income (NII) rose 10% YoY to ₹2,223.52 crore, while asset quality improved with gross NPA at 1.6% and net NPA at 0.5%.
The bank also saw a sharp drop in provisions, which fell to ₹258.68 crore from ₹555 crore in Q3 FY24.
What to watch in Q4 FY25
According to a note by Goldman Sachs, YES Bank’s loan growth is expected to slow to 8% in Q4 FY25, compared to 13% in the previous quarter. Net interest margin (NIM) is likely to show a slight uptick to 2.15% from 2.14%.
However, Pre-Provision Operating Profit (PPOP) is expected to fall to 0.60%, down from 1.07%, and Return on Assets (RoA) is projected at 0.50%.
Goldman Sachs also highlighted that the sector is showing early signs of stabilisation in asset quality, with expectations of moderating slippages and credit costs beginning 2HFY26. The investment bank believes the sector may be nearing the bottom of the cycle.
