Yes Bank (YESBANK) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 marked a breakout quarter with net profit reaching INR 952 crores, up 55.4% YoY, and operating profit at INR 1,234 crores, with strong core operating performance and improved profitability.

• Advances grew 5.2% YoY to INR 2,57,451 crores, and deposits increased 5.5% YoY to INR 2,92,524 crores.

• Asset quality improved with GNPA at 1.5% and NNPA at 0.3%, both lower YoY.

• Retail business achieved breakeven this quarter, expected to contribute significantly to future profitability.

• CASA ratio rose to 34.0%, and CET 1 ratio improved to 13.9%.

Financial highlights

• Net Interest Income for Q3FY26 was INR 2,466 crores, up 10.9% YoY; Non-Interest Income was INR 1,633 crores, up 8.0% YoY.

• NIM for Q3 at 2.6%, up 12 bps QoQ and 24 bps YoY; cost-to-income ratio improved to 66% from 71.1% YoY.

• Pre-provisioning operating profit (adjusted) rose 28.7% YoY and 7.1% QoQ to INR 1,389 crores.

• Provision costs (non-tax) dropped sharply to INR 22 crores, down 91.5% YoY.

• Return on Assets (annualized) at 0.9% for Q3 (0.8% for 9M), with adjusted ROA at 1%.

Outlook and guidance

• Targeting 1% ROA for FY27 and 1.5% in the midterm.

• Loan growth for FY26 expected around 8%, with FY27 growth in line with the market.

• Guidance for further reduction of RIDF balances to below 5% of total assets by FY27.

• On track to ensure NIL shortfall in PSL requirements for the year.

• No material financial impact is expected from ongoing AT-1 bond litigation, pending Supreme Court verdict.