YES Bank Share Price Soars with Strong Q1 Deposits and Advances Growth

YES Bank shares are trading higher following the latest business update, which showed strong growth in deposits and advances for the June-ended quarter (Q1FY25). However, the stock has underperformed the Nifty Bank index, which has hit a record high and was up over 1.7% around 10 am.

So far this year, shares of the private lender have surged over 12%, outperforming the 10% rise of the benchmark Nifty 50 index. YES Bank share price reached their 52-week high of ₹32.8 apiece on February 9, 2024.

Analysts at ICICI Securities note that although YES Bank's balance sheet has strengthened, its profitability remains burdened by the unproductive bulky rural infrastructure development fund (RIDF). "Valuation, too, unattractive with the stock trading at ~1.9/1.8/1.6x FY24/25E/26E ABV," they noted, retaining a 'Sell' rating, with a revised target price of ₹20 per share.

YES Bank's loans and advances increased by 14.8% year-on-year (YoY) to ₹2.3 lakh crore in the April-June quarter, up from ₹2 lakh crore in the same period last year. On a sequential basis, it saw a modest increase of 0.9%.

The lender's deposits also saw robust growth, rising 20.8% YoY to ₹2.64 lakh crore in Q1FY25. However, on a QoQ basis, deposits declined by 0.3%. The CASA ratio stood at 30.7% during the April-June quarter, compared to 30.9% in the previous quarter and 29.4% a year ago. Additionally, the liquidity coverage ratio improved to 137.8% in the June-ended quarter.

In the March-ended quarter, YES Bank reported a 123% year-on-year increase in profit, reaching ₹452 crore. The net interest income (NII) saw a marginal uptick of 2% YoY to ₹2,153 crore, while net interest margins (NIMs) remained steady at 2.4%.

The bank's standalone net profit soared by 123.23% to ₹451.89 crore in Q4 FY24, compared to ₹202.43 crore in Q4 FY23. Total income grew by 24.87% year-on-year to ₹9,015.77 crore in the quarter ended 31 March 2024.

YES Bank is a full-service commercial bank offering a comprehensive range of products, services, and technology-driven digital solutions, catering to retail, MSME, and corporate clients.