YES BANK Strong Profitability Momentum Continues with 1.0% RoA in Q3FY26 Amidst Franchise Growth

YES BANK announced solid Q3FY26 results, reporting a Net Profit of ₹952 Crore, marking a 55.4% Year-on-Year (YoY) growth. The Return on Assets (RoA) reached 1.0% (annualized). Key drivers included a 10.9% YoY growth in Net Interest Income (NII) and significant improvements in asset quality, with the GNPA ratio reducing to 1.5%. The bank continues to leverage its robust digital stack and expanding franchise across retail and wholesale segments.

YES BANK has demonstrated strong momentum through Q3FY26, achieving significant milestones in profitability, asset quality, and franchise digitization. The results reflect strategic interventions over the past 6-8 quarters coming to fruition.

Profitability Trajectory Reaches Key Milestones

The bank’s strategic focus on profitability delivered encouraging outcomes for the quarter ending December 31, 2025:

Net Profit for Q3FY26 stood at ₹952 Crore, registering a substantial 55.4% YoY growth.
Return on Assets (RoA) reached 1.0% (annualized), up from 0.6% in Q3FY25.
Net Interest Income (NII) grew by 10.9% YoY to ₹2,466 Crore, driven by a 20bps YoY improvement in NIM to 2.6%.
Operating Profit (Adjusted for gratuity impact) grew by 28.7% YoY to ₹1,389 Crore.
Cost of Funds decreased by 60 bps YoY due to lower Cost of Deposits.

Asset Quality Maintains Best-in-Class Levels

Asset quality continues to be a major strength, with all key metrics showing significant year-on-year improvement:

The Gross NPA (GNPA) ratio improved to 1.5% (down 10bps QoQ and YoY).
Net NPA (NNPA) ratio stabilized at 0.3%.
Provision Coverage Ratio (PCR) increased further to 83.3%.
Gross Slippages for the quarter were low at 1.6% of Advances (INR 1,050 Crore).
Annualized Credit Costs for Q3FY26 were notably low at 0.04% of Average Assets.

Balance Sheet Expansion and Capital Strength

The balance sheet expanded by 3.0% YoY to reach ₹426,007 Crore. The growth was driven by Advances (up 5.2% YoY) and Deposits (up 5.5% YoY). The bank maintained a strong liquidity and capital position:

Credit-to-Deposit (CD) Ratio stood at a healthy 88.0%.
CET 1 Ratio remained robust at 13.9%.
The proportion of granular Retail & Branch Banking led Deposits grew to 66.2% of total deposits.

Franchise Growth and Digital Leadership

YES BANK is enhancing its franchise across all segments, supported by its extensive digital ecosystem:

Retail Banking: Advances grew 2.3% YoY, with strong traction in Credit Cards and Rural Banking (both up 20% YoY in disbursements). Retail Fee Income showed continued momentum.
Wholesale Banking: Corporate & Institutional Banking (CIB) advanced by 2.9% YoY, while Commercial Banking saw strong momentum, growing 13.6% YoY in advances.
Digital Banking: The bank processes approximately 1 in 3 digital payment transactions in India. The IRIS Super App has 44 Lakhs registered customers, and 99% of Credit Cards are now sourced digitally.
YES PAY NEXT user base grew 14% quarterly, and YES Pay Biz (Merchant solution) reached over 390,000+ registered merchants.

ESG and Governance Highlights

The bank’s commitment to sustainability is evidenced by an improved S&P Global ESG Score of 79 (out of 100). Governance structure remains strong, bolstered by the induction of nominees from major shareholders like SMBC.

Source: BSE