Yes Bank Q2 Results: Profit Jumps 18%, Deposits Near Rs 3 Lakh Crore; Slippages Down, Ratings Upgraded

Yes Bank released its financial results on Saturday, October 18, for the quarter (Q2) and half-year that ended on September 30, 2025. The bank posted a net profit of Rs 654 Cr, up 18.3% YoY from Rs 553 Cr in the same quarter of the previous fiscal year. The bank's net interest income (NII) increased from Rs 2,200 in Q2FY25 to Rs 2,301 Cr, a 4.6% YoY growth.

Since the impact of asset repricing was fully offset by the reduction in balances of deposits made in lieu of the PSL deficiency and deposit rate cuts/repricing, the NIM for Q2FY26 was 2.5% up 10bps Y-o-Y and flattish Q-o-Q. According to Yes Bank, its non-interest income increased 16.9% YoY to Rs 1,644 Crs. Q2FY26 Non-Interest Income climbed 18.2% Q-o-Q and 11.8% Y-o-Y after normalizing for treasury income.

With net advances of Rs 2,50,212 Crs, the bank had growth of 3.8% Q-o-Q and 6.4% Y-o-Y. According to Yes Bank, its total deposits hit Rs 2,96,276 Crs, growing 6.9% YoY and 7.4% quarter on quarter. The bank also said that its CASA Ratio was 33.7%, up from 32.0% in Q2FY25 and 32.8% in Q1FY26.

Commenting on the results and financial performance, Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, "The Bank delivered strong performance across key operating metrics during Q2FY26. Deposit growth momentum sustained, with continued outperformance relative to the industry, particularly in CASA deposits. Disbursements recorded healthy sequential growth, supported by broad-based traction across segments, including around 20% Q-o-Q growth in the Retail segment."

"Asset quality further strengthened during the quarter, with decline in fresh slippages and overdue balances as well as an improvement in Provision Coverage Ratio. Net Interest Margin was broadly stable, aided by lower RIDF balances and deposit rate actions/ repricing, which largely offset the impact of asset repricing. Core fee income witnessed healthy growth, led by forex, loan processing fees, and third-party distribution, while operating expenses were tightly controlled, resulting in healthy growth in core operating profitability," said Prashant Kumar.

"All these enabled the Bank to deliver an RoA of 0.7% for H1FY26 and we firmly remain on track to achieve the stated objective of 1% RoA by FY27," he further added.

The bank's NNPA Ratio was 0.3% in Q2FY26, down 20 basis points year-on-year and flat Qo-Q, while its GNPA Ratio was 1.6% in Q2FY26, flat both Y-o-Y and Q-o-Q. With a 24.2% stake in YES BANK during the quarter, SMBC became the largest cross-border investment in an Indian private sector bank. SBI remains a significant stakeholder with a holding of more than 10%. India Ratings and CRISIL have upgraded Yes Bank's credit rating to AA-. All domestic credit rating agencies now have the Bank's rating at AA-.

Out of its goal of opening 80 branches for the entire year, Yes Bank has opened 43 new branches in FY26 so far.