Yes Bank's Q1 profit jumps 59% YoY to over ₹800cr
What's the story
Yes Bank has reported a whopping 59% year-on-year (YoY) jump in its standalone net profit for the first quarter of FY26. The bank's net profit stood at ₹801 crore, compared to ₹502 crore in the same period last year. However, the private lender's interest income for the June quarter declined marginally by 1.6% to ₹7,596 crore from ₹7,719 crore in Q1 FY25.
Financial growth
NII for the quarter stood at ₹2,371 crore
Yes Bank's net interest income (NII) for Q1 FY26 stood at ₹2,371 crore, reflecting a 5.7% YoY and 4.2% quarter-on-quarter (QoQ) growth. This increase was attributed to a reduction in the cost of funds. The bank's net interest margin (NIM) also saw an upward trend at 2.5%, backed by a decrease in deposits made for PSL shortfall and SA rate cut reduction, partially offset by repricing impact.
Revenue details
Interest expenses down, non-interest income up
In the reported quarter, Yes Bank paid ₹5,224.41 crore in interest, down 4.6% from ₹5,475 crore in the same period last year. The bank's non-interest income also saw a massive jump of 46.1% YoY to ₹1,752 crore in Q1F Y26. This was aided by treasury income and was marginally higher than the previous quarter's figure of ₹1,738 crore.
Operational performance
Operating profit for the quarter stood at ₹1,358 crore
Yes Bank's operating profit for Q1 FY26 stood at ₹1,358 crore, reflecting a 53.4% YoY and 3.3% QoQ increase. The bank's operating costs also increased by 8.1% YoY and 2.4% QoQ to ₹2,766 crore in the same quarter. This indicates that while the bank is making more money from its core operations (interest income minus interest expenses), it's also spending more on running those operations (operating costs).
Banking growth
Net advances up by 5% YoY
Yes Bank's net advances for Q1 FY26 stood at ₹2,41,024 crore, reflecting a 5% YoY growth. The bank's total deposits also grew by 4.1% YoY to ₹2,75,843 crore during the same period. This was driven by a focus on granular and low-cost deposits with a healthy CASA ratio. Retail and small business deposits (Gross LCR definition) grew 9% YoY in Q1FY26.
Quality check
GNPA ratio stands at 1.6%
Yes Bank's GNPA ratio stood at 1.6% in Q1FY26, flat QoQ and down 10 bps YoY. The NNPA ratio was reported at 0.3%, flat QoQ and down 20 bps YoY in the same quarter. The bank's resolution momentum remains strong with total recoveries & upgrades for Q1 FY26 at ₹1,170 crore, indicating a robust recovery from bad loans during this period.