PPoP is seen at Rs 1,020 crore, which could go up by 27% YoY and 15% on a QoQ basis.
Bank’s loans at the end of September ended quarter could be at Rs 2,36,500 crore, which will likely be a 13% growth over Q2FY24 and 3% over Q1FY25. Meanwhile, deposits are likely to jump 18% on a YoY basis and 5% on a QoQ basis at Rs 2,77,200 at the end of the September quarter.
The lender’s net interest margin (NIM) is seen at 2.4%, a 5 bps YoY gain, while a 5 bps fall over the April-June quarter.
Kotak Equities expects relatively stable NII growth of 11% YoY at Rs 2,129 crore, led by industry average loan growth of 13% YoY). Meanwhile, it may decline by 5% over the April-June quarter.
PAT may jump by 97% YoY at Rs 444 crore while witnessing a 12% sequential fall.
PPoP is seen around Rs 831 crore in Q2FY25, gaining by 4% YoY while falling by 6% on a sequential basis.
The bank could report an NIM of 2.6%, which is expected to be a 14 bps YoY fall while 19 bps on a QoQ.
“The bank is a bit more cautious in select segments of the retail portfolio. Deposit growth is relatively strong at 18% YoY. We expect NIM to be at 2.3% (decline of 10 bps QoQ), but there is likely to be a lot of volatility, given the nature of the income booked when security receipts mature,” this brokerage said in its earnings preview note.
Prashant Kumar, Managing Director & CEO, YES BANK, said, “Q2FY25 performance has been encouraging, esp. if seen in the context of Industry headwinds. Deposit momentum has been maintained with 18% Y-o-Y growth, along with healthy CASA ratio (now at 32%) expansion on both YoU & Q-o-Q basis, on the back of CA growth at 26% Y-o-Y & 11% Q-o-Q and SA growth at 30% Y-o-Y & 7% Q-o-Q. At the same time, the slippage ratio (at 2.2% of Advances) remains range-bound within the guidance range.
Other Asset Quality parameters such as GNPA ratio, PCR, and O/S Restructured loans have all improved on a Q-o-Q basis. The Bank continues to deliver as per the stated strategic objectives, with superior growth in SME and mid-corporate segments, growth resumption in the Corporate segment, and calibration of growth in the Retail segment aimed at profitability improvement. The bank also continues to maintain NIL PSL shortfalls.
