YES Bank Q2 results: Net profit grows over 18% YoY; asset quality improves, NIM stable

Its net interest income (NII) for Q2 FY26 saw a 4.6% year-on-year (YoY) growth to ₹2,300 crore as against ₹2,200 crore in the corresponding quarter of FY25.

Asset quality improved, with slippages falling quarter-on-quarter to 2.0% of advances. Gross NPAs stood at ₹4,055.3 crore, slightly up from ₹4,022 crore quarter-on-quarter (QoQ), keeping the ratio steady at 1.6%. Net NPAs edged down to ₹770.8 crore from ₹797.3 crore, with the ratio remaining flat at 0.3%.

The net interest margin (NIM) remained flat at 2.5% QoQ but rose 10 bps on a yearly basis.

“Asset quality further strengthened during the quarter, with a decline in fresh slippages and overdue balances as well as an improvement in the provision coverage ratio. Net Interest Margin was broadly stable, aided by lower RIDF balances and deposit rate actions/repricing, which largely offset the impact of asset repricing,” said Prashant Kumar, Managing Director & CEO, YES Bank.

“Core fee income witnessed healthy growth, led by forex, loan processing fees, and third-party distribution, while operating expenses were tightly controlled, resulting in healthy growth in core operating profitability. All these enabled the Bank to deliver an RoA of 0.7% for H1FY26, and we firmly remain on track to achieve the stated objective of 1% RoA by FY27,” he added.

YES Bank said its balance sheet growth gains traction, with deposit momentum continuing.

Further, SMBC became the largest shareholder of the bank, acquiring a stake of 24.2%. State Bank of India (SBI) continues to be a major shareholder with over 10% holding.

Current account savings account (CASA) deposits rose 12.5% year-on-year, with the ratio improving 170 basis points YoY to 33.7% and 90 basis points QoQ.

The bank’s advances crossed the milestone of ₹2.5 lakh crore, with net advances reaching ₹2,50,212 crore, up 6.4% year-on-year and 3.8% quarter-on-quarter, supported by strong disbursements across segments.

YES Bank has opened 43 new branches during FY26 so far out of the target of 80 branches for the full year.

“The Bank delivered strong performance across key operating metrics during Q2FY26. Deposit growth momentum was sustained, with continued outperformance relative to the industry, particularly in CASA deposits. Disbursements recorded healthy sequential growth, supported by broad-based traction across segments, including around 20% Q-o-Q growth in the Retail segment,” said Kumar.

On Friday, YES Bank shares closed at ₹22.34 apiece on NSE, declining 3.37%.