YES Bank's strong Q2 performance drives profitability growth

YES Bank recorded a net profit of INR 654 crores for Q2 FY '26, an 18.3% year-on-year increase, with operating profit growing 32.9% to INR 1,296 crores. Total deposits reached INR 2.96 lakh crores, up 7.4% quarter-on-quarter, driven by CASA deposits which saw a 12.5% year-on-year growth. The CASA ratio improved to 33.7%, an increase of 90 basis points quarter-on-quarter.

Advances crossed INR 2.5 lakh crores, reflecting a 3.8% quarter-on-quarter growth, with strong disbursement in retail and commercial segments. Asset quality improved, as fresh slippages decreased to 2% of advances from 2.4% in the previous quarter, and the provision coverage ratio reached 81%. Net Interest Margins (NIM) remained stable, benefiting from reduced high-cost borrowings and deposit rate cuts.

The bank maintained its Cost-to-Income ratio at 67.1% despite lower treasury income. Significant developments included the closing of the SMBC transaction, increasing SMBC’s stake to 24.2%, and credit rating upgrades from two domestic agencies to AA-. YES Bank has opened 43 new branches, aiming for 80 by year-end, and reaffirmed its target of 1% ROA by FY '27.