Yes Bank's Q2 results: Net profit rises 18% to ₹655cr
What's the story
Yes Bank has reported an 18.3% year-on-year increase in its standalone net profit for the second quarter of FY26. The bank's net profit stood at ₹654.5 crore, up from ₹553 crore a year ago. This growth was driven by lower operating costs and steady interest income, even as the bank faced pressure on its core income due to a competitive lending environment.
Financial performance
NII falls amid margin pressures
Despite the profit growth, Yes Bank's net interest income (NII) fell 3% YoY to ₹2,300.9 crore. The bank attributed this decline to margin pressures in a competitive lending environment. Total income for the quarter also witnessed a marginal decline of 1.2% from last year, standing at ₹9,023.2 crore as per the bank's stock exchange filing.
Asset stability
Asset quality stable with GNPA ratio at 1.6%
Despite the financial challenges, Yes Bank's asset quality remained largely stable in the second quarter. The bank's gross non-performing assets (GNPA) rose 4.3% YoY to ₹4,055.3 crore. However, the GNPA ratio remained unchanged at 1.6%, same as last year, indicating that while there were more bad loans in absolute terms, they didn't account for a larger share of total loans compared to last year.
Provision growth
Provisions jump by 41%
Yes Bank's provisions for the quarter also saw a significant jump of 41% YoY to ₹419 crore. The increase indicates higher provisioning requirements amid the bank's efforts to manage its asset quality. Notably, this comes even as slippages (the rate at which loans turn into bad loans) remained contained during the period under review.