Yes Bank

The CD ratio stood at 86.6%, well within the guided comfort range of 85-90%. (5 met across 5 tracked commitments)

The bank reported operating expenses as a percentage of assets at 2.5% for Q1FY25, meeting the target of staying below 2.6%. (1 met across 1 tracked commitment)

The bank has delivered on its growth targets for these segments, with SME advances growing at 23.8% Y-o-Y and Mid Corporate advances growing at 25.0% Y-o-Y as of Q1FY25. (1 met, 1 exceeded, 1 in progress across 3 tracked commitments)

Management confirmed that unsecured stress (specifically in personal loans and credit cards) is expected to remain range-bound for the next two quarters (until March '25). (1 in progress, 1 met across 2 tracked commitments)

ROA doubled year-on-year to 0.6% for FY25, with a Q4 exit rate of 0.7%, showing progress toward the 1% target. (2 in progress, 1 met across 3 tracked commitments)

Non-interest income as a percentage of average assets has meaningfully increased from 1.1% in FY23 to 1.4% in FY25, driven by granular fee income streams. (5 expanding across 1 engine)

The bank's ownership structure is shifting from a rescue-led consortium to a strategic global partnership with Sumitomo Mitsui Banking Corporation (SMBC) acquiring a 20% stake. This transition from the 2020 Reconstruction Scheme to a long-term strategic investor is expected to drive the next phase of profitability and value creation. (1 expanding)

The bank further strengthened its financial safety net, with the Provision Coverage Ratio (PCR) increasing to 79.7% (excluding technical write-offs) and 87.6% including them, marking a significant improvement from the previous year. (5 expanding)

RoA reached a milestone of 1.0% in Q3FY26, a significant jump from 0.6% in the same quarter last year, reflecting the success of the turnaround strategy. (1 expanding)

The technological moat is being augmented by SMBC's global governance and credit rating standards. While the bank maintains its digital leadership, the partnership aims to unlock new business opportunities through cross-border expertise and access to global corporate clients. (3 expanding, 1 stable)

Capital levels have dipped slightly due to growth and risk-weight changes, but remain healthy and are expected to rise following warrant exercises. (1 decelerating, 2 steady across 3 signals)

The bank is successfully reducing the drag from mandated low-yield deposits by meeting Priority Sector Lending (PSL) targets organically. (5 accelerating across 5 signals)

The bank is continuing its physical footprint expansion to target CASA-rich clusters, adding 9 new branches in the current quarter. (2 steady, 1 accelerating across 3 signals)

Capital adequacy remains strong and stable at 13.3%, significantly improved from the stress period of FY20, providing a solid foundation for future credit growth. (2 steady across 2 signals)

Physical distribution expansion is steady, with 134 new branches opened since January 2023 to support deposit mobilization. (1 steady, 1 accelerating across 2 signals)

Asset quality is at its best since 2020, with Gross NPA at 1.6% and Net NPA at 0.3%. Slippage ratios also improved to 2.1%. (3 easing, 1 intensifying, 1 stable)

The bank has now made 100% provision on outstanding Security Receipts (SRs), meaning the net carrying value is now NIL, removing the balance sheet risk. (2 resolved, 2 stable, 1 easing)

The risk remains high but is transitioning into a phase of strategic partnership. While the legacy PSL drag persists, the entry of SMBC as a 20% shareholder (becoming the largest) is intended to drive a 'next phase of growth and profitability' which may eventually offset these costs through better global expertise and capital access. (1 stable)

The Cost to Income ratio improved significantly to 67.1% from 74.3% a year ago, though it remains high compared to top-tier peers. (2 easing, 1 stable)

NIM is showing a slight upward trend, increasing 10bps year-on-year to 2.5%, supported by a 200bps improvement in the CASA ratio to 32.8%. (2 easing)