Yes Bank Q3 Results Stuns Street! Profit Jumps 55% To Rs 952 Cr; NPAs At Multi-Year Lows

Yes Bank released its financial results today for the third quarter and the nine months that ended on December 31, 2025. With a significant rise in profitability, consistent business momentum, a strong granular CASA, higher margins, and better asset quality, YES BANK produces a good Q3 result.

The bank had a strong 55.4% year-on-year improvement and 45.4% sequential growth with a net profit of Rs 952 crore. Due to an increase in margin and a drop in funding expenses, Net Interest Income (NII) climbed to Rs 2,466 crore, up 10.9% YoY. Thanks to improved balance sheet makeup and lower deposit costs, Net Interest Margin (NIM) increased to 2.6%.

Driven mainly by core fee income, credit card fees, and good traction in third-party product distribution, non-interest income remained robust at Rs 1,633 crore, rising 8% YoY. With operating expenses (adjusted for gratuity impact) increasing by just 2% YoY, operating efficiency continued to improve, and the cost-to-income ratio improved to 66.1% from 71.1% the previous year. Credit costs for the quarter were nil due to a dramatic drop in provisioning to Rs 22 crore. As a result, Return on Equity (RoE) rose to 7.7% and Return on Assets (RoA) improved to 0.9%, demonstrating the bank's ongoing profitability growth.

The balance sheet of YES Bank demonstrated consistent growth with a strong emphasis on granular growth. Commercial banking, corporate banking, and credit cards were the main drivers of the 5.2% YoY and 2.9% QoQ growth in net advances, which reached Rs 2.57 lakh crore. Retail asset disbursements jumped about 15% YoY, suggesting that high-yield categories are gaining popularity. The total amount of deposits was Rs 2.93 lakh crore, up 5.5% YoY, with low-cost deposits continuously outperforming.

The CASA ratio climbed to 34%, indicating sustained strength in granular liabilities in a competitive market environment, while CASA deposits surged to Rs 99,483 crore, growing 8.5% YoY. The drop in total funding costs was supported by a 12.7% YoY increase in savings account holdings. With an average LCR of 123.8%, substantially over regulatory limits, the bank's liquidity situation remained solid. With a CET-1 ratio of 13.9% and a CRAR of 15.5%, capital adequacy also remained robust, offering sufficient space for future expansion.

As a result of careful underwriting and successful recovery operations, asset quality continued to improve dramatically in Q3FY26. While Net NPA was steady at a low 0.3%, the Gross NPA ratio improved to 1.5%, down 10 basis points both sequentially and YoY. Balance sheet resilience was strengthened by the Provision Coverage Ratio (PCR), which improved to 83.3% from 71.2% in Q3FY25.

Slippages fell to the lowest level in the previous eight quarters, at 1.6% of gains. There was a noticeable improvement in both secured and unsecured portfolios, and retail slippages also improved to 3.7%, which was the best performance in seven quarters. During the quarter, recoveries and upgrades totaled Rs 1,224 crore, which included a gain of Rs 555 crore from security receipts and contributed to minimal net credit costs.

Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, "Q3FY26 marks a breakthrough quarter for the Bank powered by a confluence of factors such as acceleration in profitability, sharp improvement in Asset Quality, gathering momentum in business volumes (disbursements) and continued industry-leading performance in CASA."

"The Bank's Quarterly RoA (excluding the gratuity impact) has touched the critical milestone of 1.0% for the first time since reconstruction. At the operating level, this has been driven by expansion in NIMs, buoyancy in Fee income and a tight control over operating costs. In addition to this, the net credit costs for the quarter were negligible, supported by an eight-quarter low slippage at 1.6% of advances and continued redemptions from the Security Receipts portfolio," he added.

"Strengthening CASA ratio despite a challenging industry backdrop is aiding sharper improvement in Cost of Deposits vis-à-vis peers. Moreover, with disbursement momentum gathering pace, particularly in Retail, we expect to see acceleration in growth over the coming quarters. Aided by these tailwinds, we remain firmly on course to deliver on our strategic objectives and build a resilient, high-quality franchise that creates long-term value for the stakeholders," Prashant Kumar further stated.

YES Bank further bolstered its franchise and market position throughout Q3FY26. The bank reached 95% of its full-year growth goal, adding 33 new branches during the quarter and 76 branches in the first nine months. Effective December 31, 2025, YES Bank was included to the NIFTY Bank Index, a noteworthy achievement that demonstrated improved investor trust.