Yes Bank Q2 Results: Earnings improve as profit climbs 18%, asset quality stable

Yes Bank Ltd reported an 18.4% year-on-year rise in net profit for the September quarter, aided by steady interest income and stable asset quality.

The private lender, which has been focusing on improving profitability and maintaining a healthy balance sheet since its restructuring in 2020, said its net profit rose to ₹655 crore in the second quarter ended September 30. This is higher than a profit of ₹553 crore reported a year earlier.

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????Net profit up 18.4% at ₹655 cr vs ₹553 cr (YoY)

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Net interest income (NII) increased 4.6% year-on-year to ₹2,300 crore from ₹2,200 crore, the bank said in an exchange filing.

Yes Bank said its return on assets (RoA) stood at 0.6%, compared with 0.5% in the year-ago quarter, while net interest margin (NIM) remained steady at 2.5%, up 10 basis points year-on-year. Non-interest income rose 16.9% year-on-year to ₹1,644 crore, driven by higher fee income from forex, loan processing, and distribution.

Operating profit increased 32.9% year-on-year to ₹1,296 crore, while the cost-to-income ratio improved to 67.1% from 73% a year earlier. The bank maintained tight control over expenses, with operating costs rising just 0.6% year-on-year and declining 4.2% sequentially.

Deposits rose 6.9% year-on-year to ₹2.96 lakh crore, led by a strong 12.5% growth in CASA deposits, which pushed the CASA ratio to 33.7%. Net advances grew 6.4% from a year earlier to ₹2.5 lakh crore, supported by broad-based growth across retail, corporate, and MSME segments.

Asset quality remained steady, with gross non-performing assets (NPA) at ₹4,055.3 crore versus ₹4,022 crore in the previous quarter. The gross NPA ratio was flat at 1.6%, while net NPA stood at ₹770.8 crore, maintaining a 0.3% ratio. The provision coverage ratio (PCR) improved to 81%, compared with 70% a year earlier.

Yes Bank also said it opened 43 new branches during the first half of FY26, and Sumitomo Mitsui Banking Corporation (SMBC) became its largest shareholder with a 24.2% stake, while SBI continues to hold over 10%.

Also Read: Federal Bank Q2FY26 earnings top estimates; asset quality improves

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