YES Bank Q4 profit jumps 45% to ₹1,068 crore on lower provisions, better asset quality

YES Bank on Saturday reported a 44.7% year-on-year rise in net profit at ₹1,068 crore for the March quarter, driven by improved operating performance and lower credit costs.

The private sector lender had posted a net profit of ₹738 crore in the corresponding quarter last year.

For the full financial year 2025-26, the bank’s net profit rose to ₹3,476 crore, compared with ₹2,406 crore in the previous fiscal, indicating continued recovery in its core business.

Operating performance

The bank reported a steady improvement in operating performance during the quarter.

Total income rose to ₹9,381 crore in Q4FY26 from ₹9,355 crore a year ago, while operating profit increased to ₹1,618 crore, compared with ₹1,314 crore in the year-ago period.

Net interest income and fee-based income contributed to the growth, even as overall income expansion remained moderate.

Provisions decline, asset quality improves

The earnings growth was majorly drive by a decline in provisions.

Provisions and contingencies stood at ₹188 crore in the March quarter, substantially lower than ₹318 crore reported in the year-ago period.

Lower provisioning reflects easing stress levels and improved recoveries, aiding the bank’s bottom line.

Coming to the asset quality metrics, YES Bank's gross non-performing asset (GNPA) ratio declined to 1.3%, compared with 1.6% a year ago and 1.5% in the previous quarter.

Net NPA ratio also improved to 0.2%.

Full-year performance

For the full year, the bank reported improvement in profitability and balance sheet strength.

Operating profit rose to ₹5,506 crore in FY26 from ₹4,254 crore in FY25, supported by growth in core income and lower credit costs. The bank’s return on assets improved to 0.8%, compared with 0.6% in the previous year, indicating gradual normalisation of profitability.

Commenting on the results and financial performance, Vinay M. Tonse, managing director & CEO, YES BANK said, “YES BANK concluded FY26 on a strong footing, delivering a Q4 RoA of 1.0% in line with our guidance, supported by a 20 bps improvement in NIMs, improvement in Cost to Income ratio and the lowest GNPA and NNPA levels since FY20. Business momentum continued to strengthen, with broad-based growth across advances and deposits, underpinned by a robust CASA-led deposit engine that contributed to lower Cost of Deposits. FY26 also marked an important strategic milestone with SMBC becoming our largest shareholder, reaffirming global institutional confidence in the Bank’s long-term potential."

"As we move into FY27, our priorities remain firmly anchored in strengthening the franchise, accelerating high-quality growth, and advancing our journey toward building a resilient YES BANK that consistently creates sustainable value for all stakeholders”, he added.

Shares of YES Bank ended 2.3% higher at ₹20.41 on the NSE on Friday. The stock has gained over 8% over the past year, outperforming the Bank Nifty, which has risen around 3% during the same period.