Yes Bank Limited — Important, 19-11-2024: General Updates

**Financial Highlights:**

YES Bank achieved a net profit of ₹553 crore for Q2FY25, marking a 145.6% year-on-year increase. Net Interest Income (NII) rose 14.3% to ₹2,200 crore, with stable NIM at 2.4%. Non-Interest Income reached ₹1,407 crore, up 16.3% year-on-year. The Cost-to-Income ratio improved to 73.0% compared to 74.4% in Q2FY24. The bank's GNPA ratio stands at 1.6% and NNPA at 0.5%.

**Strategic Initiatives and Growth Drivers:**

The bank continues to focus on retail and SME segments, with SME advances up 25.8% year-on-year. The CASA ratio strengthened to 32.0%, reflecting improved deposit growth, particularly in retail banking, where deposits grew by 18.3% year-on-year.

**Business Developments:**

YES Bank has made significant strides in enhancing its digital capabilities, particularly with its Super App, 'IRIS,' and expanded partnerships in transaction banking. The increase in the retail and SME loan book demonstrates a commitment to profitability and efficient asset allocation.

**Market Position and Competitive Advantage:**

Positioned as a leading player in the Indian banking landscape, YES Bank processes one in three digital transactions in the country. Its diversified portfolio and robust technology infrastructure support its competitive advantage in retail and transaction banking.

**Investor Implications:**

YES Bank's strong quarterly performance and focus on digital transformation indicate a positive outlook for future growth. The bank’s consistent improvement in asset quality and capital adequacy ratios enhances investor confidence, suggesting potential for continued value creation in the coming quarters.