Mumbai, January 17 — Private sector lender YES Bank announced its third-quarter financial results, highlighting a significant jump in profitability and asset quality metrics. The bank posted a standalone net profit of ₹951.62 crore for the December quarter of FY26, reflecting a 55.4% year-on-year increase from ₹612.27 crore in the same period last year.
Operating profit also saw a healthy rise of 14.3% YoY, reaching ₹1,234 crore. Prashant Kumar, Managing Director and CEO of YES Bank, described the quarter as a “breakthrough,” citing factors such as accelerated profitability, improved asset quality, increased business disbursements, and a leading performance in CASA (Current Account Savings Account) deposits.
Kumar further highlighted that the bank’s quarterly Return on Assets (RoA), excluding gratuity impacts, crossed the 1.0% threshold for the first time since its reconstruction phase. This was driven by an expansion in net interest margins (NIMs), buoyant fee income, and stringent cost controls. Net credit costs remained negligible, aided by low slippage levels of 1.6% of advances and redemptions from security receipts.
Key Highlights:
- Net Interest Income (NII): ₹2,466 crore, up 10.9% YoY and 7.2% QoQ
- NIM: Improved by 20 basis points YoY to 2.6%, and up 10 basis points QoQ
- CASA Ratio: Increased to 34% from 33.1% (Q3FY25) and 33.7% (Q2FY26)
- Gross NPA Ratio: Declined by 10 basis points YoY and QoQ to 1.5%
- Net NPA Ratio: Fell by 20 basis points YoY to 0.3%; stable QoQ
- Advances: Rose 5.2% YoY and 2.9% QoQ to ₹2,57,451 crore
- Deposits: Grew 5.5% YoY but declined 1.3% QoQ to ₹2,92,524 crore
Kumar attributed the NIM expansion to reduced deposit balances made for PSL shortfalls and deposit rate adjustments, which offset asset repricing impacts. Despite industry challenges, the bank’s CASA ratio growth has contributed to a more favorable cost of deposits compared to peers.
Overall, YES Bank’s latest results underscore its ongoing recovery trajectory, driven by improved profitability, asset quality, and deposit franchise strength.
