YES Bank Limited has announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, reporting a sharp improvement in profitability, operating efficiency, and balance sheet strength.

Profitability Sees Robust Growth

For Q3FY26, YES Bank posted a net profit of ₹952 crore, marking a growth of 55.4% year-on-year and 45.4% quarter-on-quarter. Excluding the one-time gratuity impact, profit after tax stood at ₹1,068 crore, reflecting an even stronger 74.4% annual increase. The bank’s return on assets improved to 0.9% from 0.6% a year ago, while adjusted RoA reached 1.0%, highlighting better capital and resource utilisation.

Margin Expansion and Income Growth

The bank reported a healthy expansion in net interest margin, which rose to 2.6% in Q3FY26 from 2.4% in the corresponding quarter last year. This improvement was supported by a 50 basis point reduction in the cost of deposits to 5.6%. Net interest income increased 10.9% year-on-year to ₹2,466 crore, while non-interest income grew 8.0% to ₹1,633 crore.

Operating profit, adjusted for gratuity costs, climbed 28.7% year-on-year to ₹1,389 crore. YES Bank also made notable progress on cost efficiency, with the cost-to-income ratio improving to 66.1% compared with 71.1% in Q3FY25.

Steady Balance Sheet Expansion

YES Bank continued to witness measured balance sheet growth during the quarter. Net advances rose 5.2% year-on-year to ₹2,57,451 crore, while total deposits increased 5.5% to ₹2,92,524 crore. CASA deposits remained a key driver, growing 8.5% year-on-year to ₹99,483 crore.

The CASA ratio improved to 34.0% from 33.1% in the previous year. Retail and branch-led deposits registered a 9.0% annual growth, underscoring the bank’s focus on strengthening its granular deposit base. The credit-to-deposit ratio stood at a balanced 88.0%.

Asset Quality Continues to Improve

Asset quality indicators showed sustained improvement. The gross NPA ratio declined to 1.5%, down 10 basis points sequentially, while net NPAs remained stable at 0.3%. The provision coverage ratio strengthened significantly to 83.3% from 71.2% a year earlier.

Slippages reduced to 1.6% of advances compared with 2.2% in the same quarter last year. Net credit costs remained minimal, with NPA provisions at just 0.5% of average assets, reflecting effective risk management and recovery efforts.

Operational Momentum and Strategic Milestones

Total disbursements during the quarter stood at ₹26,982 crore, representing a 7% year-on-year increase, led by around 15% growth in retail asset disbursements. The bank maintained strong liquidity, with a liquidity coverage ratio of 124.3% as of December 31, 2025. Capital adequacy also remained comfortable, with the CET I ratio at 13.9%.

A key strategic development during the quarter was YES Bank’s inclusion in the NIFTY BANK Index effective December 31, 2025, a move expected to improve market visibility and investor participation.

Summary:
YES Bank delivered a strong performance in Q3FY26, with net profit rising 55% year-on-year, supported by margin expansion, controlled costs, steady balance sheet growth, and significant improvement in asset quality. The bank’s inclusion in the NIFTY BANK Index further marks an important milestone in its ongoing turnaround and growth journey.

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