Bank stocks jumps 9% after companies net profits increases by up to 247% YoY
Bank stocks jumps 9% after companies net profits increases by up to 247% YoY
Two prominent private sector banks delivered exceptional performance in Q2FY25, with one bank doubling its profits to Rs 553 crore and another recording a 30% jump to Rs 937 crore. Both institutions demonstrated robust deposit growth and enhanced profit margins, showcasing resilience despite challenging market conditions.
1. Yes Bank
About the Company
Yes Bank, a prominent private sector bank in India, demonstrates remarkable growth in its recent financial performance. The bank maintains a strong focus on retail banking, SME lending, and mid-corporate segments. Under the leadership of MD & CEO Prashant Kumar, Yes Bank continues to strengthen its market position despite industry challenges.
Stock Movements
Yes Bank’s stock witnessed a significant surge of 10% on October 28, reaching Rs 21.3 per share. However, the bank’s shares faced headwinds, declining over 16% in the past three months. Notably, Yes Bank outperformed the benchmark Nifty 50 index, which dropped only 2% during the same period.
Financial Performance
Furthermore, Yes Bank’s Q2FY25 results showcase impressive growth across key metrics. The bank’s net profit doubled to 247% year-on-year to Rs 553 crore in Q2FY25. Additionally, the net interest income grew substantially by 14.3% YoY to Rs 2,200 crore. Meanwhile, the bank’s asset quality improved, with GNPA ratio decreasing to 1.6% from 1.7% quarter-on-quarter. The cost-to-income ratio enhanced to 73% in Q2FY25, showing operational efficiency. Moreover, Yes Bank’s deposit base expanded significantly, growing 18.3% YoY to Rs 2.7 lakh crore. Subsequently, the CASA ratio strengthened to 32%, indicating robust retail deposit growth.
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2. Bandhan Bank
About the Company
Bandhan Bank, a leading private sector lender, focuses on serving diverse customer segments across India. The bank specializes in retail banking, particularly in the Emerging Entrepreneurs Business (EEB) segment. Additionally, Bandhan Bank maintains a strong presence in commercial banking and housing finance.
Stock Movements
Unfortunately, Bandhan Bank’s shares faced pressure on October 25, closing at Rs 168.30. The stock declined by Rs 12.35, representing a 6.84% decrease on the BSE. Nevertheless, the bank’s fundamental performance remains strong, supporting long-term growth prospects.
Financial Performance
First, Bandhan Bank reported exceptional Q2FY25 results, with net profit surging 30% YoY to Rs 937.4 crore. Subsequently, the bank’s net interest income increased impressively by 20.7% to Rs 2,948.2 crore. Meanwhile, the bank’s gross advances grew 21% YoY to Rs 1.31 lakh crore. Furthermore, the retail book showed remarkable growth of 92% YoY. Additionally, the bank’s deposit base expanded significantly, reaching Rs 1.43 lakh crore, marking a 27% YoY increase. Moreover, the CASA ratio stood strong at 33.2%, with CASA plus Retail Term Deposits comprising 68% of total deposits. Finally, the bank’s asset quality metrics showed stability, with GNPA at 4.68% and net NPA at 1.29%.
Written By Fazal Ul Vahab
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