Yes Bank Share Price Rises on Q4 Profit Surge

Yes Bank experienced a 7% surge in its share price on Monday, April 21, 2025 in early trade. This rally followed the private lender's announcement of strong Q4 results, which boosted investor confidence. However, by 2 Pm, the company’s stock price momentum cooled and was trading at ₹18.90, up by 4.48%. 

Key Driver: Strong Q4 Results

The primary reason for this positive market reaction was the bank's robust performance in the fourth quarter (Q4) of the fiscal year 2025. Yes Bank’s Q4FY25 net profit jumped 63.3% YoY to ₹738.1 crore, driven by improved asset quality, boosting investor confidence. 

Improvement in Net Interest Income

The bank also witnessed growth in its core lending business, with net interest income rising by 5.7% to ₹2,276.3 crore. The net interest income came in at ₹2,276.36 crore, up nearly 6% from ₹2,153 crore in the corresponding period last year. This suggests a steady improvement in the bank's fundamental operations.

Increased Provision Coverage Ratio

Yes Bank also adopted a more conservative approach to risk management, as reflected in the provision coverage ratio, which rose to 79.7%. Better provisioning further contributed to the positive sentiment surrounding the bank's financial health

Improvement in Asset Quality

Investor confidence in Yes Bank rose as asset quality improved. Gross NPAs held steady at 1.6%, while net NPAs fell to 0.3% from 0.5% sequentially. Total NPAs declined to ₹800.1 crore from ₹1,142.6 crore, and gross NPAs dipped slightly to ₹3,935.6 crore. The steady reduction in bad loans signals stronger financial stability.

Other Relevant Information 

During the reported period, Yes Bank allotted equity shares to employees under its stock option schemes. The bank's managing director and CEO, Prashant Kumar, informed that the bank has reduced the minimum interest rate to 3% for balances up to ₹10 lakh. However, he expressed confidence that this would not impact the CASA ratio. Kumar also stated that the bank opened 37 branches in FY25 and plans to add 80 branches annually for the next five years.

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