Yes Bank (YESBANK) Q1 25/26 earnings summary

Executive summary

• Achieved seventh consecutive quarter of sequential net profit growth, reaching INR 801 crores (₹801 Cr), up 59.4% YoY and 8.5% sequentially, marking the highest quarterly net profit since reconstruction.

• Operating profit rose 53.4% YoY to INR 1,358 crores; NIM improved to 2.5% (up 10bps YoY).

• Deposits grew 4.1% YoY to INR 2.75 lakh crores, with CASA ratio up 200bps YoY to 38.2%.

• Advances increased 5% YoY, with commercial banking advances up 19% YoY.

• Asset quality improved: GNPA at 1.6%, NNPA at 0.3%, and PCR at 80.2%.

Financial highlights

• Net Interest Income (NII) for the quarter was INR 2,371 crores, up 5.7% YoY and 4.2% QoQ.

• Non-interest income at ₹1,752 Cr, up 46.1% YoY, driven by treasury gains.

• Total income rose 19.8% YoY to ₹4,124 Cr.

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

• Provision costs (non-tax) at ₹284 Cr, up 34.1% YoY but down 10.7% QoQ.

Outlook and guidance

• Management targets 12%-15% credit and deposit growth for FY26, focusing on profitable credit growth.

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

• NIM expected to face near-term headwinds due to rate cuts, with improvement anticipated by March as market conditions stabilize.

• No financial impact from the pending SMBC stake acquisition in Q1 FY26; deal subject to regulatory approvals.

• No material financial impact expected from ongoing AT-1 bond litigation; any impact will be recognized post Supreme Court verdict.