YES Bank's Profits Soar in Q4

YES Bank's net profit skyrocketed by 123.2% to Rs 452 crore in the fourth quarter of FY24. The bank's net interest income (NII) also saw a significant increase, reaching Rs 2,153 crore. This surge in profits was driven by improved margins and asset quality, although higher operating costs did put some pressure on the bottom line. Net advances grew by 12.1% year-on-year and 4.7% quarter-on-quarter, reaching Rs 2.3 lakh crore, with SME and mid-corporate advances leading the growth charge. Deposits also saw a healthy increase of 22.5% year-on-year and 10.1% quarter-on-quarter, reaching Rs 2.7 lakh crore. The bank's CASA ratio improved to 30.9%, reflecting a strong deposit base. Looking ahead, YES Bank aims for deposit growth of 18.5% and loan growth of 17% in FY25, with a focus on SME and mid-segment loans. The bank's management is optimistic about future margin improvements, driven by a strategic shift in the product mix. Despite challenges such as elevated retail slippages, YES Bank remains committed to strengthening its asset quality and provisioning buffer. The bank's gross NPA ratio improved to 1.7% in March 2024, down from 2.2% a year ago, while the net NPA ratio also showed improvement. Overall, YES Bank's Q4 results paint a picture of resilience and growth in a challenging economic environment.