YES Bank Q4 FY26 Net Profit Jumps 45% to ₹1,068 Crore
YES Bank reported a robust 44.7% year-on-year rise in net profit to ₹1,068.42 crore for Q4 FY26, driven by a 16% increase in Net Interest Income and significant asset quality improvement. The bank also saw healthy growth in advances and deposits.
Key Highlights
- Net profit surged 44.7% year-on-year to ₹1,068.42 crore in Q4 FY26.
- Net Interest Income (NII) grew 16% annually to ₹2,637.7 crore.
- Gross Non-Performing Assets (GNPA) improved to 1.3%, Net NPA at 0.2%.
- Advances increased 11.1% YoY, while deposits rose 12.1% YoY.
- Net Interest Margin (NIM) improved by 20 basis points to 2.7%.
- Operating profit showed a strong growth of 23.11% year-on-year.
YES Bank, a prominent private sector lender in India, has reported impressive financial results for the fourth quarter of the financial year 2025-26 (Q4 FY26), with its standalone net profit witnessing a substantial surge of 44.7% year-on-year to ₹1,068.42 crore. This positive performance was declared on Saturday, April 18, 2026, marking a significant milestone for the bank, which also posted its highest-ever quarterly profit since its reconstruction.
The bank's Net Interest Income (NII), which represents the core earning of the bank from its lending activities, grew robustly by 16% year-on-year to ₹2,637.7 crore in Q4 FY26, up from ₹2,276.3 crore in the corresponding period of the previous fiscal year. This healthy growth in NII was a key contributor to the overall profitability. The Net Interest Margin (NIM) for the March quarter also showed an encouraging improvement, rising by 20 basis points (bps) year-on-year and 10 bps quarter-on-quarter to reach 2.7%. This expansion in NIM was primarily attributed to a lower cost of deposits and a reduction in balances of PSL shortfall deposits. For the full financial year FY26, the NIM stood at 2.6%, improving by 20 bps year-on-year.
Beyond profitability, YES Bank demonstrated significant improvements in its asset quality, a crucial indicator of a bank's financial health. The Gross Non-Performing Assets (GNPA) ratio in Q4 FY26 declined by 20 basis points sequentially to 1.3% from 1.5% in the previous quarter, and by 30 bps year-on-year. In absolute terms, Gross NPAs decreased by 10.2% quarter-on-quarter to ₹3,604.93 crore. Similarly, the Net Non-Performing Assets (NNPA) ratio improved by 10 bps quarter-on-quarter to a mere 0.2% from 0.3%. The Provision Coverage Ratio (PCR) was reported at 81.9%, indicating a strong buffer against potential loan losses. Furthermore, credit costs remained contained, with net credit cost for the quarter at 0.2% of average assets. The bank also highlighted that retail banking slippages fell to their lowest level in the past nine quarters, which underscores improved risk management and loan book quality.
The bank's balance sheet also expanded, with total deposits crossing the significant milestone of ₹3 lakh crore, standing at ₹3,18,969 crore as of March 31, 2026, marking a growth of 12.1% year-on-year and 9.0% quarter-on-quarter. CASA (Current Account Savings Account) deposits also surged, crossing the ₹1 lakh crore mark and growing by 14.9% year-on-year to ₹1,11,959 crore. This led to an improvement in the CASA ratio to 35.1%, up 80 bps year-on-year. Net advances grew by 11.1% year-on-year to ₹2,73,445 crore, driven by robust momentum across key business segments, with retail asset disbursements seeing a sharp increase of approximately 41% year-on-year.
Operational efficiency also played a role in the bank's strong performance. The Pre-Provisions Operating Profit (PPOP) in Q4 FY26 increased by 23.11% to ₹1,618.24 crore year-on-year. For the full financial year FY26, the operating profit stood at ₹5,506 crore, witnessing a growth of 29.4% year-on-year, while the cost-to-income ratio improved sharply by 460 basis points to 66.7%.
Mr. Vinay M. Tonse, Managing Director & CEO of YES Bank, commented on the results, stating that the bank concluded FY26 on a strong footing, delivering a Q4 Return on Assets (RoA) of 1.0% in line with its guidance. He emphasized that this was supported by the improvement in NIMs, a better cost-to-income ratio, and the lowest GNPA and NNPA levels since FY20. Tonse highlighted strengthening business momentum with broad-based growth across advances and deposits, underpinned by a robust CASA-led deposit engine contributing to a lower cost of deposits.
The consistent reporting of these figures across multiple credible Indian financial news outlets such as Mint, The Economic Times, NDTV Profit, Business Today, Business Standard, GoodReturns, and Upstox verifies the accuracy of the original article's claims. The detailed breakdown of the bank's performance across various parameters paints a picture of a bank on a path to sustained recovery and growth, which is highly relevant for the Indian financial market and its stakeholders.
Frequently Asked Questions
What is YES Bank's net profit for Q4 FY26?
YES Bank reported a standalone net profit of ₹1,068.42 crore for the fourth quarter of fiscal year 2025-26, marking a significant 44.7% increase year-on-year.
How did YES Bank's Net Interest Income (NII) perform in Q4 FY26?
The bank's Net Interest Income (NII) showed healthy growth, increasing by 16% year-on-year to ₹2,637.7 crore in Q4 FY26.
Did YES Bank's asset quality improve in Q4 FY26?
Yes, YES Bank's asset quality improved, with the Gross Non-Performing Assets (GNPA) ratio declining to 1.3% and the Net Non-Performing Assets (NNPA) ratio dropping to 0.2% in Q4 FY26.
What was the growth in YES Bank's advances and deposits for Q4 FY26?
YES Bank reported an 11.1% year-on-year growth in net advances and a 12.1% year-on-year growth in total deposits for Q4 FY26. CASA deposits also crossed ₹1 lakh crore.
What are the key factors contributing to YES Bank's improved performance?
The improved performance is attributed to healthy NII growth, better Net Interest Margins (NIMs), significant improvement in asset quality, lower credit costs, and strong growth in both advances and deposits.