Yes Bank Q1 Results: Net profit rises 59% YoY to ₹801 crore
In the June quarter, the private bank generated an interest income of ₹ 7,596 crore, down 1.6% from ₹ 7,719 crore recorded in the corresponding quarter of the previous financial year.
Net interest income, which represents the difference between interest earned and interest paid, increased by only 5.7% to ₹ 2,371 crore for the June quarter, benefiting from a decrease in the Cost of Funds. Meanwhile, non-interest income rose by 10.9% to ₹ 1,739 crore.
Yes Bank disbursed ₹ 5,224.41 crore in interest during the reported quarter, compared to ₹ 5,475 crore in the same period last year, reflecting a decrease of 4.6%.
For Q1FY26, the net interest margin (NIM) was recorded at 2.5%, showing a year-on-year increase, aided by a reduction in deposits due to PSL shortfall and a decrease in SA rates, though this was somewhat countered by the impact of repricing, according to the private bank's filing with the exchange.
The operating profit increased by 53.4% compared to the previous year, reaching ₹ 1,358 crore, whereas non-tax provisions rose by 34.1% to ₹ 284 crore. The cost-to-income ratio showed improvement at 67.1%, a decrease from 74.3% over the past year.
The quality of assets remained constant, with gross non-performing assets (GNPA) at 1.6% and net NPA standing at 0.3%. The provision coverage ratio (PCR) saw an increase to 80.2 percent.
For the June quarter, the bank recorded total recoveries and upgrades amounting to ₹ 1,170 crore, including ₹ 338 crore from security receipts. However, slippages rose to ₹ 1,458 crore, up from ₹ 1,223 crore in the previous quarter.
Advances increased by 5% year-on-year to ₹ 2.41 lakh crore, propelled by a 19% rise in commercial banking and an 11.2% increase in the micro banking sector. Retail advances saw minimal growth, rising by just 0.3%.
'The bank entered the new financial year on a strong footing and delivered a robust performance with net profit rising to INR 801 crs, marking a 59.4% YoY growth. Key metrics such as RoA (0.8%), PPoP ( ₹ 1,358 crs), and NIM (2.5%) showed notable improvement. Asset quality remained stable, CASA witnessed healthy growth, and CET1 strengthened to 14.0%,' said Prashant Kumar, Managing Director & CEO, Yes Bank.
Further, in a significant strategic move, Sumitomo Mitsui Banking Corporation (SMBC) has entered into a binding agreement to purchase a 20 percent interest in Yes Bank from SBI and various other Indian banks, enhancing investor confidence. Additionally, the quarter witnessed upgrades in long-term ratings from Moody's, CARE, and ICRA.
On Friday, Yes Bank share price closed flat at ₹ 20.17 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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