YES BANK reported a strong Q2 FY26 with a 18.3% YoY increase in PAT to INR 654 Crs. Deposit growth, particularly in CASA, remains strong. Asset quality improved with lower slippages. The bank reaffirms its target of achieving a 1% RoA by FY27. SMBC becomes the largest shareholder with a 24.2% stake. The bank now has an upgraded credit rating of AA- from all domestic credit rating agencies.
Key Financial Highlights
In Q2 FY26, YES BANK’s PAT reached INR 654 Crs, reflecting an 18.3% YoY increase. Adjusting for tax refunds in Q2 FY25, the PAT growth is approximately 30% YoY. The Return on Assets (RoA) stands at 0.6%, compared to 0.5% in Q2 FY25 and 0.8% in Q1 FY26. Net Interest Margin (NIM) is stable QoQ at 2.5%, showing a 10bps YoY increase. The Cost of Deposits decreased by 40bps YoY and 20bps QoQ, reaching 5.7%.
Balance Sheet Performance
Total Deposits reached INR 2,96,276 Crs, marking a 6.9% YoY and 7.4% QoQ increase. CASA Deposits grew by 12.5% YoY, with the CASA Ratio increasing to 33.7%, up 170 bps YoY and 90 bps QoQ. Retail & Branch Banking led to a 13.7% YoY growth in Deposits; Retail CASA reached 39.6%. Advances crossed INR 2.5 lacs Crs, with Net Advances at INR 2,50,212 Crs up 6.4% YoY and 3.8% QoQ. Disbursements picked up across segments.
Asset Quality and Credit Rating
Asset Quality improved, with Slippages lower QoQ at 2.0% of Advances (compared to 2.4% in Q1 FY26). The Provision Coverage Ratio (PCR) improved to 81.0%. GNPA and NNPA ratios remained stable QoQ. Credit rating upgrades were received from India Ratings and CRISIL, upgrading the Long Term rating to AA- from A, revising the outlook to ‘Stable’.
Strategic Developments
YES BANK opened 43 new branches so far in FY26, targeting 80 branches for the year. SMBC became the largest Shareholder, acquiring a 24.2% stake. SBI continues to be a major shareholder with over 10% holding.
Key Ratios and Metrics
The Cost to Income Ratio is at 67.1%. The Operating Profit is at INR 1,296 Crs, which is up by 32.9% YoY. The CET I Ratio stands at 13.9%. The bank aims to achieve a 1% RoA by FY27.
Source: BSE
