YES Bank has reported a net profit of Rs 801 crore for the quarter ended June 30, 2025 (Q1 FY26), reflecting a year-on-year growth of 59.4 per cent and a quarter-on-quarter rise of 8.5 per cent.
This marks the bank’s seventh consecutive quarter of profit growth. The operating profit for the quarter stood at Rs 1,358 crore, up by 53.4 per cent compared to the same quarter last year, driven by steady expansion in core income and prudent cost control.
The bank’s return on assets (RoA) improved to 0.8 per cent, compared to 0.5 per cent in Q1 FY25. Net interest income rose 5.7 per cent year-on-year to Rs 2,371 crore, while non-interest income surged 46.1 per cent to Rs 1,752 crore, largely on account of treasury gains. Net interest margin (NIM) remained steady at 2.5 per cent.
Total deposits stood at Rs 2,75,843 crore, registering a growth of 4.1 per cent year-on-year, with the CASA ratio improving to 32.8 per cent from 30.8 per cent in Q1 FY25.
Retail and branch banking-led deposits saw a strong year-on-year growth of 20 per cent, contributing to a Retail CASA ratio of 38.2 per cent. Net advances grew by 5 per cent year-on-year to Rs 2,41,024 crore, with significant contributions from the commercial banking segment, which grew by 19 per cent, and micro-enterprise lending, which increased by 11.2 per cent.
Asset quality remained stable with the gross non-performing assets (GNPA) ratio at 1.6 per cent and net NPA (NNPA) at 0.3 per cent. The provision coverage ratio improved to 80.2 per cent. Gross slippages during the quarter were Rs 1,458 crore, while total recoveries and upgrades amounted to Rs 1,170 crore. Restructured advances declined to Rs 378 crore, representing just 0.2 per cent of the total advances, down from 1.6 per cent a year earlier.
YES Bank also witnessed a capital adequacy improvement with its Common Equity Tier I (CET1) ratio rising to 14.0 per cent, compared to 13.3 per cent in Q1 FY25. The bank’s total capital adequacy ratio stood at 16.2 per cent.
Among key developments, Sumitomo Mitsui Banking Corporation (SMBC) entered into a definitive agreement to acquire approximately 20 per cent stake in YES Bank from State Bank of India and other lenders. The bank also received credit rating upgrades from Moody’s (to Ba2 with stable outlook), CARE, and ICRA, who raised their long-term ratings to AA-.
YES Bank continues to maintain a healthy liquidity position with a Liquidity Coverage Ratio (LCR) of 135.8 per cent. The bank has been recognised among India’s Best Workplaces in Banks 2025 and India’s Top 50 Best Workplaces in BFSI 2025. Additionally, it received a special mention from the Finance Ministry for excellence in fraud prevention and grievance management.
Prashant Kumar, Managing Director and CEO, YES Bank highlighted the robust start to the financial year and reiterated the bank’s focus on asset quality, granular deposit growth, and strategic capital partnerships as drivers of sustainable performance.
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