Yes Bank's Q3 profit surges 55% to ₹952cr
What's the story
Yes Bank has reported a massive 55% jump in its standalone net profit for the December quarter. The bank's profit after tax (PAT) stood at ₹952 crore, compared to ₹612 crore in the same period last year. This growth was supported by an increase in net interest income and an improvement in asset quality, among other factors.
Financial stability
Net interest income and asset quality
The bank's net interest income (NII) for Q3 FY26 rose 11% year-on-year to ₹2,466 crore. Meanwhile, asset quality remained steady with gross non-performing assets (NPAs) declining to 1.5% from 1.6% sequentially, and net NPAs remaining flat at 0.3% quarter-on-quarter.
Market performance
Yes Bank's shares rise ahead of earnings announcement
Ahead of the earnings announcement, Yes Bank's shares closed at ₹23.45 on the NSE on Friday, up 2.18%. The bank's recent performance reflects a calibrated strategy focused on profitable and sustainable growth rather than chasing volumes. It reported over 5% year-on-year growth in both advances and deposits during the October-December quarter.
Strategic approach
Focus on retail lending and credit quality
Retail lending continues to be a key focus area for Yes Bank. The bank has taken corrective measures by being more selective across asset classes and strengthening credit quality. Although it doesn't have a significant presence in the fast-growing retail segments such as gold loans, entry into these areas will be evaluated as part of its long-term strategy.