Yes Bank Q4 review: PAT may jump up to 44%, but NII faces margin headwinds

Yes Bank is expected to report double-digit growth in its March quarter earnings, with net profit rising by 35–44% on a year-on-year basis, according to estimates by a couple of brokerages. The topline could be in the range of Rs 608 crore to Rs 652 crore in Q4FY25. The lender’s Net Interest Income (NII) could show a modest single-digit uptick in the quarter under review amid margin pressure.

The estimates are from JM Financial and Anand Rathi Share and Stock Brokers.

Yes Bank will announce its earnings on Saturday, April 19, 2025, along with heavyweights HDFC Bank and ICICI Bank.

Here's what they recommend:

JM Financial’s Estimates

JM Financial expects Yes Bank to report a PAT of Rs 6,081 crore, reflecting a strong 34.6% YoY growth. However, this may be marginally down sequentially at 0.7%, suggesting pressure on the bottom line despite yearly gains.

Yes Bank's NII is projected at Rs 2,209 crore, showing a modest increase of 2.6% YoY, but slipping 0.6% on a QoQ basis. Meanwhile, Net Interest Margins or NIMs are expected to remain under pressure at 2.1%, lower than the 2.2% reported in Q4FY24, and flat compared to 2.1% in Q3FY25.

The Pre-Provision Operating Profit (PPOP) is forecasted to be Rs 1,040 crore, which could be a 15.2% YoY growth, but a decline of 3.6% QoQ.

In terms of business growth, loans are expected to grow by 8.2% YoY and 0.7% QoQ to reach Rs 2,465 crore. As for the deposits, a hike of 6.8% YoY and 2.6% QoQ could come amounting to Rs 2,845 crore.

The lender is expected to report softness in its credit costs for the quarter under review at 0.4% in comparison to 0.8% in Q4FY24 and flat against 0.4% in Q3FY25.

JM Financial maintains a ‘Sell’ rating on Yes Bank as concerns around margin compression, limited loan growth momentum, and valuation considerations remain.

Also Read: HDFC Bank Q4 results: PAT may jump up to 7% YoY, NII to likely rise by up to 9%

Anand Rathi’s Estimates

Anand Rathi projects a much stronger earnings momentum for Yes Bank, forecasting PAT growth of 44.3% YoY to Rs 652 crore. On a sequential basis, profits are seen rising by 6.5%.

The brokerage has pegged NII at Rs 2,265 crore, which could be a growth of 5.2% YoY and a rise of 1.9% QoQ.

Further, PPOP is expected at Rs 1,113 crore, with robust 23.3% YoY and 3.1% QoQ growth, suggesting healthy operating performance and better efficiency metrics.

Also Read: ICICI Bank Q4 preview: PAT may jump up to 15% YoY on robust loan growth; NII growth seen at 7-11%

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)