Private sector lender YES Bank has reported a net profit of ₹654.5 crore for the second quarter ended September 30, 2025. Profit grew 18.4% year-on-year (YoY) from ₹553 crore in the corresponding period last year, YES Bank said in an exchange filing.

Net interest income (NII), the difference between a bank's total interest income and the interest expense incurred, rose 4.6% YoY to ₹2,300.88 crore in Q2FY26, compared to ₹2,200.44 crore in the corresponding period last year.

The interest income was driven by advances and investment income, while other income contributed ₹358.95 lakh. Total income growth was supported by a combination of higher yields and stable fee-based revenue.

However, YES Bank’s total income dropped marginally by 1.24% to ₹9,023.15 crore, against ₹9,137.09 crore in the corresponding quarter of the previous fiscal.

The lender’s asset quality remained steady during the quarter. Gross non-performing assets (NPA) increased slightly to ₹4,055.3 crore from ₹4,022 crore in the previous quarter, keeping the ratio unchanged at 1.6%. Net NPA edged down to ₹770.8 crore from ₹797.3 crore, with the ratio holding steady at 0.3%.

Provisions for the quarter rose to ₹419 crore, compared with ₹284 crore in the preceding quarter and ₹297 crore a year ago.

The bank’s capital and reserves rose to ₹49,271.95 crore, up from ₹46,444.28 crore at the end of September 2024.

During the quarter, Sumitomo Mitsui Banking Corporation (SMBC) received approval from the Reserve Bank of India (RBI) to acquire up to 24.99% of the paid-up share capital and voting rights of YES Bank. SMBC initially acquired a 20% stake in YES Bank through a secondary share purchase from SBI and other investors who had participated in the bank’s March 2020 reconstruction scheme.

The release noted that regulatory approvals from RBI and the Competition Commission of India (CCI) were granted on August 22 and September 2, 2025, respectively. The share purchase agreement was signed on May 9, 2025, and the transaction was completed on September 17, 2025.

Ahead of the Q2 results, shares of YES Bank ended 3.81% lower at ₹22.24 apiece on the BSE on Friday, with a market capitalisation of ₹69,772 crore. The banking stock has delivered a positive return of 6% in the past one year; 19% in six months; and 14% year-to-date (YTD).

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