Yes Bank announced a significant jump in its financial performance for the first quarter of FY26, with net profit surging by 59% year-on-year to reach Rs 801 crore. This compares favorably to the Rs 502 crore profit reported in the same period last year. The bank's operating profit also saw a substantial increase, rising by 53.4% YoY to Rs 1,358 crore.

However, the bank's interest income experienced a slight decrease of 1.6%, amounting to Rs 7,596 crore in Q1FY26, as against Rs 7,719 crore in the corresponding quarter of the previous fiscal year. This dip in interest income was offset by a strong growth in non-interest income, which grew by 44% year-on-year to Rs 1,824.6 crore. The rise in non-interest income contributed positively to the bank's overall earnings.

Net Interest Income (NII), a core income metric for banks, saw a rise of 5.7% to Rs 2,372 crore. Some sources state NII at Rs 7,604.6 crore.

Asset Quality and Key Ratios

Yes Bank demonstrated stable asset quality during the quarter. The gross non-performing assets (NPA) ratio remained flat on a quarter-on-quarter basis at 1.6%, and was down 10 bps year-on-year. The net NPA ratio also remained stable at 0.3%. The bank's provision coverage ratio (PCR) improved to 79.7%.

Several key financial metrics also showed improvement. The return on assets (RoA) stood at 0.8%, and the net interest margin (NIM) was 2.5%. The Common Equity Tier 1 (CET1) ratio, a measure of the bank's capital adequacy, improved to 14.0%.

Other Key Highlights

• Operating Performance: The bank's operating profit before provisions and contingencies increased to Rs 1,368.7 crore, a rise of over 51% compared to the year-ago period.
• Expenses: Total expenses remained relatively stable at Rs 8,060.8 crore.
• Loan and Deposit Growth: Loans and advances reached Rs 2,41,355 crore, a 5.1% increase from the previous year, although down 2.0% from the previous quarter. Total deposits amounted to Rs 2,75,921 crore, a 4.1% increase year-on-year but a 3.0% decrease sequentially.
• CASA Ratio: The CASA (Current Account Savings Account) ratio, a measure of low-cost deposits, decreased to 32.7% from 34.3% in the previous quarter, but remained higher than the 30.8% recorded a year ago.
• Liquidity Coverage Ratio (LCR): The bank's liquidity position improved, with the LCR strengthening to 135.7% from 125.0% in the previous quarter.
• Management Commentary: Prashant Kumar, Managing Director & CEO of YES BANK, stated that the bank began the new financial year with a steady performance across key indicators.
• Analysts Expectations: Some analysts had expected a mixed performance for Yes Bank in Q1FY26. ICICI Securities had projected a 49.3% YoY increase in PAT to Rs 749.90 crore, supported by a 4.8% YoY rise in NII to Rs 2,352.3 crore. Emkay Global Financial Services had estimated a 1.7% YoY decrease in NII to Rs 2,204.8 crore, with PAT rising 7.3% YoY to Rs 539.10 crore.

Overall, Yes Bank's Q1FY26 results indicate a strong recovery and improved financial health, driven by significant growth in net profit and stable asset quality. While there was a slight dip in interest income, the bank's performance was bolstered by a substantial increase in non-interest income and improvements in key financial ratios.