Yes Bank Delivers Strong Q1 FY27 Performance: Profit Up 34%, NII Rises, Slippages Hit 10-Quarter Low

Profitability and Margins

The private sector lender's return on assets stood at 0.9% for the quarter, compared with 0.8% in Q1FY26 and 1.0% in the preceding quarter, i.e Q4FY26.

Net interest margin came in at 2.7%, up 20 bps YoY, due to a lower cost of deposits and reduced balances tied to priority sector lending (PSL) shortfalls. Net interest income rose 17.5% YoY to Rs 2,786 crore.

The company in the exchange filing said that the Non-interest income grew a modest 2.6% YoY to Rs 1,798 crore, particularly impacted by sharply lower gains from the bank's Security Receipts portfolio and treasury income.

However, core fee income, which strips out these volatile components, grew a healthier 18.7% YoY, pointing to underlying franchise strength.

Operating profit for the quarter rose 25.5% YoY to Rs 1,704 crore, while the cost-to-income ratio improved by 420 basis points YoY to 62.8%, showing continued cost discipline as operating expenses grew just 4.1% YoY against 11.2% growth in total income.

Yes Bank Asset Quality

Asset quality showed a marked improvement during the quarter. The gross non-performing asset OR GNPA ratio fell to 1.3%, down 30 basis points YoY, while the net NPA (NNPA) ratio eased to 0.2%, down 10 basis points YoY.

Retail banking slippages fell to Rs 843 crore, about 2.7% of retail advances, their lowest level in the past 10 quarters, against Rs 888 crore (2.8%) in Q4FY26.

Gross slippages for the quarter stood at Rs 964 crore, down 33.9% YoY. Net credit costs were 0.3% of average assets, unchanged from a year earlier, even as gains from the Security Receipts book fell sharply to Rs 86 crore from Rs 338 crore in Q1FY26.

Yes Bank Shares

Yes Bank shares closed at Rs 23.53 apiece on the NSE, down by 0.93% at the of trading on Friday.