The results that YES Bank is set to reveal for the quarter ended December 2015 might bring back the memories of the second quarter or Q2 numbers, which were characterized by a splendid YoW increase in profit, or the third quarter or Q3 results could be like Q2 performance. However, QoQ earnings may stay more subdued, with the possibility of the bank’s Q3 NIM staying flat.
On account of the same, analysts and experts are overwhelmingly optimistic about the stable performance of the bank on the top-line for the quarter ended Q3FY25; profitability and major asset quality ratios are deemed to be the probable factors of investor interest coupled with the views of bank management regarding the strategic directions that the bank is willing to undertake in future.YES Bank Q3 Earnings Preview: Anticipating Strong PAT Growth Amidst Stable NIM
YES Bank Q3 Result Expectations
During the Q3 business update in the first week of January, YES Bank said it has its loans and advances of ₹2,45,035 crore, a 4.20 percent QoQ increase from ₹2,35,117 crore and 12.60 percent YoY from ₹2,17,523 crore.
Deposits of the bank were ₹2,77,199 crore in Q3FY25 as against ₹2,41,831 crore in Q3FY24, showing a rise of 14.60 percent.
Analysts pointing out the latest business-arrival of the YES Bank, have predicted that the public-listed lender’s Q3 earnings are likely to be in the stable territory.
However, most of the respondents anticipated pressure on NIM as there is likely to be a shortfall in PSL figures.
Based on this data, it is clear that YES Bank is well-placed to offer steady performance this quarter. That said, there could be some pressure on NIM due to sub-par PSL compliance, which is currently credited to low-yielding, such as the Rural Infrastructure Development Fund or RIDF, and can likely remain a problem for the medium term, according to StoxBox ‘s research analyst Abhishek Pandya.
Pandya emphasized that YES Bank has provided figures that indicate that the growth rate of its deposits has been way higher than its advances, and the bank is being cautious from this point forward, especially in view of the stress that is visible in the microfinance institution (MFI) and the unsecured lending arms in the banking system.
Market Performance And Investor Sentiment
The stock performance of YES Bank has been under scrutiny, especially after experiencing a decline of over 25% in the past six months and a drop of 44% from its 52-week high earlier this year. As of January 25, shares were trading around ₹18.24, indicating investor caution amid fluctuating market conditions.
The bank’s recent business updates show that while loan growth remains strong, deposit growth has stabilized, with CASA deposits rising by 27.6% year-on-year. However, analysts have noted that overall credit growth has moderated, leading to concerns about the sustainability of this upward trajectory.