Yes Bank's fiscal first quarter net profit jumped 59.4 percent year-on-year to Rs 801 crore, its highest quarterly profit since its reconstruction, it said in a stock exchange filing on Saturday. The private sector lender's Q1 FY26 earnings were driven by strong growth in non-interest income, improved cost efficiency, and stable asset quality.
Yes Bank's net interest income (NII) for the quarter ended June 2025 rose 5.7 percent year-on-year to Rs 2,371.5 crore, aided by a reduction in the cost of funds. Net interest margin (NIM) stood at 2.5 percent, up 10 basis points from a year ago and stable sequentially.
Non-interest income surged 46.1 percent on-year to Rs 1,752 crore, supported primarily by treasury gains. Core fees grew modestly by 3 percent to Rs 1,268 crore, with retail contributing 56.4 percent to the fee base. However, fees from digital banking products declined sharply on account of a one-time UPI fee adjustment.
Operating profit rose 53.4 percent year-on-year to Rs 1,358 crore, while provisions (non-tax) increased 34.1 percent to Rs 284 crore. The cost-to-income ratio improved to 67.1 percent, down from 74.3 percent a year ago.
Asset quality remained stable, with gross non-performing assets (GNPA) at 1.6 percent and net NPA at 0.3 percent. The provision coverage ratio (PCR) improved to 80.2 percent. The bank reported total recoveries and upgrades of Rs 1,170 crore for the quarter, including Rs 338 crore from security receipts. Slippages, however, rose to Rs 1,458 crore compared to Rs 1,223 crore in the previous quarter.
Advances grew 5 percent year-on-year to Rs 2.41 lakh crore, driven by a 19 percent growth in commercial banking and 11.2 percent growth in the micro banking segment. Retail advances were flat, growing just 0.3 percent.
Total deposits rose 4.1 percent on-year to Rs 2.76 lakh crore, led by strong traction in retail and branch banking. The bank’s CASA ratio improved to 32.8 percent, up 200 basis points from a year earlier. Retail and branch-led deposits grew 20 percent year-on-year.
Yes Bank’s CET-1 ratio rose to 14 percent, up from 13.3 percent a year ago, while total capital adequacy stood at 16.2 percent.
In a key strategic development, Sumitomo Mitsui Banking Corporation (SMBC) signed a definitive agreement to acquire a 20 percent stake in Yes Bank from SBI and other Indian banks, further bolstering investor confidence. The quarter also saw long-term rating upgrades by Moody’s, CARE, and ICRA.
Managing Director & CEO Prashant Kumar said, “The Bank entered the new financial year on a strong footing and delivered a robust performance… Key metrics such as RoA (0.8%), PPoP (Rs 1,358 crore), and NIM (2.5%) showed notable improvement.”
Earlier, on Friday, Yes Bank shares ended slightly up by 0.25% at Rs 20.19 on NSE.
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