Yes Bank (YESBANK) investor relations material

Executive summary

• Net profit for Q1FY26 reached INR 801 Cr, up 59.4% year-over-year and 8.5% sequentially, marking the seventh consecutive quarter of profit improvement.

• Operating profit rose 53.4% year-over-year to INR 1,358 Cr, with NIM at 2.5% (up 10bps YoY) and non-interest income up 46.1% year-over-year, aided by treasury gains.

• Asset quality improved: GNPA at 1.6% (down 10bps YoY), NNPA at 0.3% (down 20bps YoY), and provision coverage ratio at 80.2%.

• Advances increased 5% year-over-year to INR 2,41,024 Cr, with commercial banking advances up 19% year-over-year.

• Credit rating upgrades from Moody’s, ICRA, and CARE, and a definitive agreement for SMBC to acquire a 20% equity stake.

Financial highlights

• Net Interest Income for Q1FY26 was INR 2,371 Cr, up 5.7% year-over-year and 4.2% sequentially.

• Non-interest income reached INR 1,752 Cr, up 46.1% year-over-year, driven by treasury gains.

• Cost-to-income ratio improved to 67.1% from 74.3% year-over-year.

• Return on Assets (annualized) increased to 0.8% from 0.5% year-over-year.

• Basic EPS rose 55.4% year-over-year to INR 0.26.

Outlook and guidance

• Management targets 12–15% credit growth for the year, with matching deposit growth and focus on granular, low-cost deposits.

• Confident in achieving 1% ROA by exit FY26 and average 1% for FY27, with a long-term target of 1.5% by FY30.

• NIM expected to face near-term headwinds due to rate cuts, but management aims to maintain and improve margins over the medium term.

• Strong resolution momentum with total recoveries and upgrades at INR 1,170 Cr in Q1FY26.

• No PSL compliance shortfall; deposits in lieu of prior period PSL shortfalls reduced by 16% year-over-year.