YES Bank Q4 earnings: Net profit rises 45% to ₹1,068 crore, NII advances 16%, asset quality improves

YES Bank, the country's leading private sector lender on Saturday, April 18, reported a net profit of ₹1,068 crore in December-March quarter, marking an increase of 45% from ₹738 crore in the same period last year. The sharp jump in profit came on the back of lower provisioning during the quarter.

For financial year 2025-26, the bank's net profit climbed 45% to ₹3,476 crore.

The bank's provisions for bad loans declined 41% annually to ₹188 crore from ₹318 crore in the year ago period.

YES Bank's net interest income or the difference between interest earned on loans and expended on deposits advanced 16% to ₹2,638 crore as against ₹2,276 crore.

The bank’s net interest margin (NIM) for Q4FY26 came in at 2.7% up 20 basis points (bps) year on year (Y-o-Y) and up 10 bps quarter on quarter (Q-o-Q), aided by lower cost of deposits and reduction in balances of PSL shortfall deposits. For FY26 NIM came in at 2.6% up 20 bps Y-o-Y.

The Mumbai-based lender's asset quality showed an improvement as its gross non-performing assets, as a percentage of total advances, softened to 1.3% from 1.6% a year earlier.

In absolute terms, gross non-performing assets came in at ₹3,605 crore compared with 3,936 crore in the same quarter last year.

Its net NPA stood at 0.2%.

The bank said that its retail slippages dropped to lowest level in last nine quarter at ₹888 crore compared with ₹1,026 crore in the previous quarter.

Strong cost control by the bank enabled restricting operating costs growth at ₹2,750 crore, up only 1.8% Y-o-Y and down 4% Q-o-Q, YES Bank noted.

“YES BANK concluded FY26 on a strong footing, delivering a Q4 RoA of 1.0% in line with our guidance, supported by a 20 bps improvement in NIMs, improvement in cost to Income ratio and the lowest GNPA and NNPA levels since FY20. Business momentum continued to strengthen, with broad-based growth across advances and deposits, underpinned by a robust CASA-led deposit engine that contributed to lower Cost of Deposits,” said Vinay M. Tonse, Managing Director & CEO, YES BANK.

“FY26 also marked an important strategic milestone with SMBC becoming our largest shareholder, reaffirming global institutional confidence in the Bank’s long-term potential. As we move into FY27, our priorities remain firmly anchored in strengthening the franchise, accelerating high-quality growth, and advancing our journey toward building a resilient YES Bank that consistently creates sustainable value for all stakeholders,” Tonse added.

Key earnings highlights:

• Advances rose 6.2% Q-o-Q to ₹2,73,445 crore
• Q4FY26 disbursements were ₹33,224 crore, grew 23.1 % Q-o-Q and 19.8% Y-o-Y
• Commercial banking advances sustained momentum with 6.0% Q-o-Q and 14.5% Y-o-Y growth
• Corporate and institutional banking advances also posted robust 9.7% Q-o-Q growth and 19.7% Y-o-Y

Retail banking advances growth improved to 4.7% annually, reflecting improving traction and renewed momentum in line with the guidance over past few quarters; Retail Assets disbursements showed strong acceleration delivering 41% YoY growth, YES Bank said.

YES Bank shares ended 1.2% higher at ₹20.19 a day ahead of its earnings announcement.