Yes Bank Q1 FY26 Results: Private Lender's Net Profit Jumps 57% YoY; NII At Rs 7,604 Cr—Check Full Earnings Report

Yes Bank Q1 FY26 Results: Yes Bank reported a year-on-year increase of 58% in net profit for the first quarter of the financial year 2025-26, with profit reaching Rs 801 crore compared to Rs 516 crore in the same quarter last year. 

The results reflect an improvement in operating performance, a rise in other income, and stable asset quality.

Yes Bank Q1 Earnings Highlights

The bank’s Net Interest Income (NII) stood at Rs 7,604.6 crore during the quarter, while total income increased to Rs 9,429.2 crore from Rs 8,896.3 crore in Q1 FY25. Although interest income declined slightly, the rise in non-interest income contributed positively to overall earnings. Other income grew by 44% year-on-year from Rs 1,270.9 crore to Rs 1,824.6 crore.

Operating profit before provisions and contingencies rose to Rs 1,368.7 crore, compared to Rs 902.2 crore in the year-ago period, reflecting an increase of over 51%. Total expenses remained relatively stable at Rs 8,060.8 crore.

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In a statement, YES Bank’s Managing Director & CEO, Prashant Kumar, said the bank began the new financial year with a steady performance across key indicators. He highlighted that return on assets (RoA) stood at 0.8%, net interest margin (NIM) was 2.5%, and pre-provision operating profit (PPoP) reached Rs 1,358 crore. The Common Equity Tier 1 (CET1) ratio also improved to 14.0%, indicating strengthened capital adequacy.

Asset quality remained stable during the quarter. Gross non-performing assets (NPAs) were at 1.6%, slightly better than 1.7% last year. Net NPAs stood at 0.3%, compared to 0.5% in Q1 FY25. The overall capital adequacy ratio under Basel III norms was reported at 15.9%, compared to 16.3% a year ago.

Credit Rating Upgrades From Moody's

The bank also noted credit rating upgrades from Moody’s, ICRA, and CARE, which it attributed to improvements in fundamentals and business traction. 

During the quarter, Sumitomo Mitsui Banking Corporation (SMBC) entered into a definitive agreement to acquire approximately 20% equity stake in YES Bank from SBI and other banks. However, SBI continues to remain a key shareholder.

In terms of segment performance, the bank's retail banking division saw marginal growth of 0.3% year-on-year, while the micro-enterprise banking sub-segment grew by 11.2%. Commercial banking advances grew by 19.0% during the quarter, whereas corporate and institutional banking advances increased by 2.7%. Retail banking’s share in the overall loan mix stood at 49% in Q1 FY26, down from 52% in the same quarter last year.