Yes Bank’s first quarter net profit increased by 59% compared to last year
Business Business: Yes Bank’s Q1 FY26 net profit rose 59.4 per cent year-on-year to Rs 801 crore, its highest quarterly profit since its reconstruction, the bank 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 per cent year-on-year to Rs 2,371.5 crore, driven by a reduction in cost of funds. Net interest margin (NIM) stood at 2.5 per cent, up 10 basis points from a year ago and stable sequentially.
Non-interest income grew 46.1 per cent year-on-year to Rs 1,752 crore, supported mainly by treasury gains. Core charges rose 3 per cent to Rs 1,268 crore, with retail charges contributing 56.4 per cent. However, charges on digital banking products declined sharply due to one-time UPI fee adjustments.
Operating profit grew 53.4 per cent year-on-year to Rs 1,358 crore, while provisions (non-tax) rose 34.1 per cent to Rs 284 crore. Cost-to-income ratio declined to 67.1 per cent from 74.3 per cent a year ago.
Asset quality remained stable, with gross non-performing assets (GNPAs) at 1.6 per cent and net NPAs at 0.3 per cent. Provision coverage ratio (PCR) improved to 80.2 per cent. The bank reported total recoveries and upgrades of Rs 1,170 crore for the quarter, including Rs 338 crore from security receipts. However, slippages rose to Rs 1,458 crore from Rs 1,223 crore in the previous quarter.
Advances grew 5 per cent year-on-year to Rs 2.41 lakh crore led by 19 per cent growth in commercial banking and 11.2 per cent growth in micro banking. Retail advances remained stable and grew by a mere 0.3 per cent.
Total deposits grew 4.1 per cent year-on-year to Rs 2.76 lakh crore, led by robust growth in retail and branch banking. The bank’s CASA ratio improved to 32.8 per cent, up 200 basis points from a year ago. Retail and branch-based deposits grew 20 per cent year-on-year.
Yes Bank’s CET-1 ratio improved to 14 per cent from 13.3 per cent a year ago, while overall capital adequacy stood at 16.2 per cent.
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 boosting investor confidence. Long-term ratings were also upgraded by Moody’s, CARE and ICRA during the quarter.
