The company reported a net interest income (NII) of Rs 2,466 crore which rose up 11% YoY while the net interest margin (NIM) stood at 2.6% for Q3FY26 versus 2.4% in Q3FY25 and 2.5% in Q2FY26.
The profit after tax (PAT) increased by 45% on a quarter-on-quarter basis compared to Rs 654 crore in Q2FY26.
Yes Bank paid Rs 5,078 crore in interests which was also down 9% YoY versus Rs 5,606 crore in the year ago period while remaining flat on a sequential basis.
Asset quality
Yes Bank’s gross non-performing assets (NPAs) fell by 10 bps on a YoY and QoQ basis to 1.5% while net NPAs dropped by 20 bps YoY to 0.3% while remaining flat QoQ.
Balance sheet
The company in its filing to the exchanges reported a steady sequential expansion in balance sheet with CASA momentum continuing in the quarter gone by. The retail & branch led deposits stood at Rs 1,73,305 crore, growing 9% YoY and was higher at 12% YoY on AQB1 basis. The CASA deposits stood at Rs 99,483 crore growing 8.5% YoY and 13.6% YoY on AQB1 basis.
The net advances stood at Rs 2,57,451 crore, up 5.2% YoY and 2.9% QoQ while total disbursements standing at Rs 26,982 crore, up 7% YoY, led by sustenance of growth momentum across segments.The retail assets disbursements were up 15% Y-o-Y.
Key takeaways
— Adjusted for gratuity impact, the PAT stood at Rs 1,068 crore up 74.4% YoY
— The operating profit (adjusted for gratuity impact) for Q3FY26 was at Rs 1,389 crore up 28.7% YoY and 7.1% QoQ
— RoA stood at 0.9% versus 0.6% in Q3FY25 and Q2FY26 excluding gratuity impact RoA at 1%.
— Cost of deposits were lower by 50 bps YoY and 10 bps QoQ at 5.6%
Management commentary
Commenting on company’s earnings Managing Director & CEO Prashant Kumar called Q3FY26 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,” Kumar said
“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,” he added.
