Mumbai, Jan 17, 2026, 15:46 IST
- Yes Bank reports Q3 FY26 standalone profit at 951.6 crore rupees, with net interest income up 10.9%
- Provisions and contingencies fall to roughly 22 crore rupees; gross bad-loan ratio tightens to 1.5%
- CEO announces the bank will unveil a strategic roadmap this quarter; succession planning is already underway
Yes Bank posted a strong jump in quarterly profit on Saturday, driven by a sharp drop in provisions and a modest boost to margins. The CEO announced plans to unveil a strategic roadmap in the next quarter. Reuters
The results come at a sensitive time for the Mumbai-based private lender, still working to stabilise earnings following its 2020 bailout and to restore trust in its balance sheet.
Last year, Japan’s Sumitomo Mitsui Banking Corp snapped up a 24% stake, reigniting attention on the turnaround. Kumar’s current term runs out in April, introducing yet another uncertainty.
Standalone net profit jumped to 9.52 billion rupees ($105 million), or 951.6 crore, for the quarter ending Dec. 31, up from 6.12 billion rupees the previous year, according to a filing. Provisions and contingencies dropped sharply to 219 million rupees (around 22 crore) from 2.59 billion rupees (259 crore) a year ago, and down from 4.19 billion rupees (419 crore) in the September quarter. Nseindia
Net interest income (NII), the difference between interest earned and interest paid, climbed 10.9% to 24.66 billion rupees (2,466 crore), despite a 3.6% drop in interest income to 75.43 billion rupees. The net interest margin, a crucial measure of profitability, ticked up to 2.6% from 2.5% in the previous quarter.
Asset quality remained largely unchanged. Gross non-performing assets, or bad loans, stood at 1.5% of advances at the end of December, down slightly from 1.6% at the end of September, the filing showed. Net bad loans stayed steady at 0.3%.
Loans climbed 5.2% year-on-year, hitting 2.57 trillion rupees (2.57 lakh crore), while deposits edged up 5.5% to roughly 2.93 trillion rupees (2.93 lakh crore). Low-cost CASA deposits — current and savings accounts — jumped 8.5%, pushing the CASA ratio to 34%, according to Upstox. Upstox
Non-interest income climbed 8% to 16.33 billion rupees, driven by stronger fee income from cards, loan processing, and third-party distribution, Moneycontrol reported. Operating profit gained 14.3% to 12.34 billion rupees. Stripping out a one-off gratuity provision linked to new labour codes, profit after tax came in at 10.68 billion rupees (1,068 crore), it added. Moneycontrol
Chief executive Prashant Kumar described it as a “breakthrough quarter,” highlighting that net credit costs were negligible. During a press call, he mentioned the bank has begun succession planning and plans to unveil a strategic roadmap within the quarter.
Brokerages had forecast a broad range for profits, with many estimates landing between 600 and 780 crore rupees, alongside expected NII growth of 9% to 12%, Business Today reported. Analysts noted that investors often favor larger private banks like HDFC Bank, ICICI Bank, and Axis Bank, citing their more resilient deposit bases. Businesstoday
Much of the profit surge stemmed from a sharp drop in provisions, a boost that could vanish if slippages rise or recoveries falter. Seema Srivastava, senior research analyst at SMC Global Securities, said before the results that “asset quality is expected to remain steady,” which should help keep credit costs in check. Livemint
Yes Bank shares closed up 2.2% at 23.45 rupees on Friday, just before the results dropped. The bank joined the Nifty Bank index from Dec. 31, a move likely to attract passive inflows linked to that benchmark.
