Yes Bank Q2 Preview: PAT Set To Soar As Investors Eye Key Metrics

Image Source: The Economic Times

:Yes Bank is expected to post a strong Q2 FY25 performance with up to 41% year-on-year growth in profit after tax (PAT) and a 4–7% rise in net interest income (NII). Analysts are watching nine key indicators, including asset quality, loan growth, and margin trends.

Profit momentum builds ahead of earnings release

Yes Bank is gearing up to announce its Q2 FY25 results on October 18, and market analysts are optimistic about a robust performance. The private-sector lender is projected to report a year-on-year PAT growth of up to 41%, driven by healthy loan disbursements and improved asset quality. Net interest income is also expected to rise by 4–7%, reflecting better yields and a stable cost of funds.

Despite global macroeconomic headwinds, Yes Bank has maintained a steady growth trajectory, supported by its focus on retail and SME lending, digital transformation, and improved operational efficiency.

Nine key metrics to monitor

As investors await the official numbers, analysts have outlined nine critical factors to assess the bank’s performance and future outlook:

- PAT likely to grow up to 41% YoY, indicating strong bottom-line recovery
- NII expected to rise between 4% and 7% YoY, reflecting improved loan yields
- Net interest margin (NIM) trends amid changing interest rate environment
- Loan growth, particularly in retail and SME segments
- Deposit growth and CASA (Current Account Savings Account) ratio movement
- Asset quality metrics, including gross and net non-performing assets (NPAs)
- Provisions and contingencies, especially in light of macroeconomic risks
- Fee income and other non-interest revenue streams
- Management commentary on credit demand and capital adequacy

Strategic outlook and investor sentiment

Yes Bank’s performance in Q2 will be a litmus test for its ongoing turnaround strategy. The bank has been working to rebuild investor confidence after past challenges, and a strong quarterly showing could reinforce its recovery narrative. Analysts also anticipate updates on digital initiatives, cost optimization, and future growth plans during the post-results conference call.

With the stock gaining over 40% in the past six months, expectations are high. A positive earnings surprise could further boost investor sentiment ahead of the festive season.

Sources: Economic Times, ET Now, Business Today