Yes Bank (YESBANK) investor relations material

Executive summary

• Net profit for Q2FY26 was INR 654 crores, up 18.3% year-over-year, with operating profit at INR 1,296 crores, up 32.9% year-over-year.

• Advances reached INR 2.5 lakh crores, up 6.4% year-over-year; deposits grew 6.9% year-over-year to INR 2.96 lakh crores, led by strong CASA performance.

• Asset quality remained stable, with GNPA at 1.6%, NNPA at 0.3%, and provision coverage ratio at 81%.

• SMBC increased its stake to 24.2%, becoming the largest shareholder, and two SMBC nominee directors joined the board.

• Credit ratings were upgraded to AA- by all domestic agencies, reflecting improved capital and business performance.

Financial highlights

• CASA deposits grew 12.5% year-over-year, with the CASA ratio rising to 33.7%.

• Net Interest Income for Q2FY26 was INR 2,301 crores, up 4.6% year-over-year; Non-Interest Income rose 16.9% year-over-year to INR 1,644 crores.

• Operating expenses were INR 2,649 crores, up 0.6% year-over-year and down 4.2% sequentially; cost-to-income ratio at 67.1%.

• Return on Assets (annualized) was 0.6% for Q2FY26, with a target of 1% by FY 2027.

• Capital adequacy ratio (Basel III) stood at 15.0% as of September 30, 2025.

Outlook and guidance

• Targeting 1% ROA for FY 2027, with a focus on NIM expansion, deposit repricing, and increasing retail contribution.

• Double-digit loan growth targeted for the current year, with retail expected to contribute 4-5%.

• Retail profitability expected to improve, with the segment reaching breakeven and set to contribute positively.

• Security receipt recovery guidance maintained at INR 1,200 crores for the year.

• No material financial impact is expected from ongoing AT-1 bond litigation unless the Supreme Court rules otherwise.