Yes Bank Shares Surge After Strong Q4 Results: Profit Jumps 63%, Asset Quality Improves

Yes Bank’s stock saw a solid jump of 7% in early trade on Monday, April 21, 2025, after the bank announced strong financial results for the fourth quarter of FY25. This early rally reflected investor optimism about the bank’s performance. However, by 2 PM, the excitement slightly cooled down, and the share was trading at ₹18.90, up by 4.48%.

What Led to the Surge in Yes Bank’s Share Price?

The key reason behind the rise in Yes Bank’s stock was its strong Q4FY25 earnings. The private sector lender reported a 63.3% year-on-year (YoY) increase in net profit, which stood at ₹738.1 crore. This strong growth in profit was mainly due to improved asset quality, which boosted investor confidence in the bank’s future.

Growth in Core Lending and Interest Income

Another positive sign was the steady growth in the bank’s core lending business. The net interest income (NII)—which is the difference between what the bank earns from lending and what it pays on deposits—grew by 5.7% to ₹2,276.3 crore. This is a healthy increase from ₹2,153 crore in the same period last year, indicating that the bank is on the right track in terms of its operations.

Focus on Risk Management and Strong Provisioning

Yes Bank also made progress in managing risks better. The provision coverage ratio (PCR), which shows how much buffer the bank has for bad loans, increased to 79.7%. A higher PCR means the bank is more prepared to deal with potential loan defaults, which is a good sign for long-term stability.

Improvement in Asset Quality

The asset quality of Yes Bank also showed improvement:

• Gross NPAs (non-performing assets) remained stable at 1.6%.
• Net NPAs dropped to 0.3%, down from 0.5% in the previous quarter.
• The total amount of NPAs also declined from ₹1,142.6 crore to ₹800.1 crore.
• Gross NPAs came down slightly to ₹3,935.6 crore.

These figures show that the bank is actively reducing its bad loans, which makes it more attractive to investors and depositors.

Strategic Decisions and Expansion Plans

During the quarter, Yes Bank issued shares to its employees under its stock option plan. This shows the bank’s focus on rewarding employees and keeping talent motivated.

Managing Director and CEO Prashant Kumar shared more updates:

• The minimum interest rate on savings accounts with balances up to ₹10 lakh has been reduced to 3%.
• Kumar assured this change won’t impact the bank’s CASA (Current Account and Savings Account) ratio, which is an important metric for low-cost deposits.
• The bank opened 37 new branches in FY25 and plans to open 80 branches every year for the next five years, showing a clear push toward expansion.