Yes Bank Q4 Profit Jumps 45% To ₹1,068 Crore, Signals End Of 6-Year Recovery Phase & Shift To Growth Mode
Yes Bank posted a 45 percent rise in Q4 profit to Rs 1,068 crore, signalling the end of its long recovery phase. With improved asset quality, strong capital, and steady deposit growth, the bank now plans to align its loan growth with the broader banking sector while maintaining strict risk discipline.
Yes Bank posted a 45% rise in Q4 profit to ₹1,068 crore, signalling the end of its long recovery phase. | File Image |
Mumbai: Yes Bank reported a strong performance in the March quarter, with net profit rising 45 percent year-on-year to Rs 1,068 crore. This marks a significant improvement and highlights the bank’s steady turnaround after years of financial stress.
Recovery Phase Nears End
The bank’s management indicated that its long recovery phase, which began around 2020, is now largely over. Over the past few years, the focus was on cleaning up the balance sheet and improving asset quality rather than aggressive growth.
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Shift Towards Growth
Managing Director and CEO Vinay M. Tonse said the bank will now aim to grow in line with the overall banking sector. Earlier, the bank had deliberately slowed its loan growth to ensure better risk control. Going forward, it plans to match market growth while maintaining strict lending standards.
Strong Financial Metrics
The bank’s net interest income (NII) rose nearly 16% to ₹2,638 crore. Net interest margin (NIM) improved slightly to 2.7%, while advances (loans) grew by 11%. Non-interest income stood at ₹1,730 crore, supporting overall earnings.
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Deposits grew by 12%, showing improving customer confidence. The credit-deposit ratio declined to 85.7%, indicating a balanced lending approach.
Improved Asset Quality
One of the biggest positives was the improvement in asset quality. Gross non-performing assets (NPAs) fell to 1.3%, reflecting better loan recovery and risk management. Earlier, the bank had transferred over ₹40,000 crore of bad loans to an asset reconstruction company to clean up its books.
Strong Capital Position
The bank also highlighted that it has enough capital to support growth for the next 4–5 quarters. This gives it confidence to expand lending without immediate need for fresh capital.
In March 2020, Reserve Bank of India and the government stepped in to rescue Yes Bank after a surge in bad loans and governance issues. Since then, the bank has been working to rebuild its financial health.
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