YES Bank reported a 55% Y-o-Y increase in net profit to INR 952 crores for Q3 FY26, with an annualized Return on Assets (ROA) improving to 0.9%. The bank’s strategy focuses on profitable growth, with strong core operating performance across profitability, asset quality, and granularity. The bank aims for a full-year ROA of 1% for FY27 and 1.5% in the mid-term.
Financial Performance
YES Bank reported a net profit of INR 952 crores for Q3 FY26, representing a strong growth of 55% Y-o-Y and 45% on a quarter-on-quarter basis. The annualized Return on Assets (ROA) for the quarter improved to 0.9%, compared to 0.6% in the previous quarter and the corresponding quarter last year. The annualized reported ROA for the 9-month period improved to 0.8% from 0.5% in the previous financial year. The results included an impact of INR 155 crores due to incremental gratuity provision.
Key Profitability Drivers
The bank’s pre-provisioning operating profit adjusted for gratuity impact improved by 28.7% Y-o-Y and 7.1% sequentially, reaching INR 1,389 crores. This was driven by an expansion in operating jaws, with 9.7% Y-o-Y growth in total income against 2% Y-o-Y growth in OpeX adjusted for gratuity impact. The cost-to-income ratio adjusted for gratuity impact was 66.1% for Q3 FY26.
Asset Quality and Advances
Total advances stood at INR 2.57 lakh crores at the end of Q3 FY26, showing a sequential growth of 2.9%. The bank strategically focused on segments with attractive risk-adjusted returns, leading to improved asset quality. Gross NPAs improved to 1.5% from 1.6%, and the Provision Coverage Ratio increased to 83.3% against 81% in the previous quarter.
Deposits and CASA
Total deposits reached INR 2.93 lakh crores, registering 5.5% growth. The bank prioritized profitability and granularity in deposit mobilization, with retail-led and CASA-accretive growth. Retail deposits grew by 12% Y-o-Y, with Retail Current Account balances growing by 19.4% Y-o-Y and Retail Savings Account balances by 16.3% Y-o-Y. The Bank’s CASA and Retail TD accounted for 66.2% of total deposits, compared to 62.6% in the corresponding quarter of the previous year.
Future Outlook
YES Bank aims for a full-year ROA of 1% for FY27 and 1.5% in the mid-term. The bank will calibrate growth based on profitability objectives and market opportunities.
Source: BSE
