Yes Bank reported a robust operational performance for the December quarter, with net profit rising 55.4% year-on-year to ₹951.6 crore, compared with ₹612.3
crore in the year-ago period, aided by steady net interest income and improving asset quality.
Net interest income (NII) increased 11% year-on-year to ₹2,465.6 crore for Q3 FY26, up from ₹2,223.5 crore in the corresponding quarter last year, reflecting stable core lending performance.
Asset quality remained steady in the December quarter. Gross non-performing assets (NPAs) declined to 1.5% from 1.6% sequentially, while net NPAs remained flat at 0.3% quarter-on-quarter. In absolute terms, gross NPAs fell to ₹4,014.6 crore from ₹4,055.3 crore, while net NPAs declined to ₹671.2 crore from ₹770.8 crore in the previous quarter.
Ahead of the earnings announcement, shares of Yes Bank closed at ₹23.45 on the NSE on Friday, up 2.18%.
Earlier this month, speaking to CNBC-TV18, Managing Director and Chief Executive Officer Prashant Kumar said deposit growth has emerged as the biggest structural challenge for the banking sector, even as loan demand, profitability and asset quality remain healthy.
Kumar noted that loan growth across the system has been consistently outpacing deposit mobilisation, pushing loan-to-deposit ratios to elevated levels and forcing banks to reassess how future growth is funded.
Against this backdrop, Yes Bank’s recent performance reflects a calibrated strategy focused on profitable and sustainable growth rather than chasing volumes. The bank reported over 5% year-on-year growth in both advances and deposits during the October–December quarter, although deposits declined sequentially.
Kumar said the performance was aligned with the bank’s stated objectives and that the outlook remains supported by India’s economic momentum, government initiatives and regulatory support.
He added that credit growth is becoming increasingly broad-based, with corporate lending — particularly from manufacturing and services companies — showing signs of recovery after a prolonged slowdown. Demand from corporates is expected to strengthen further if private capital expenditure gathers pace.
The bank is also seeing healthy demand from the rural economy, alongside consumption-led borrowing in urban markets. Retail lending, which accounts for nearly half of Yes Bank’s loan book, continues to remain a key focus area.
Kumar said the bank has taken corrective steps by being more selective across asset classes and strengthening credit quality. While Yes Bank does not currently have a meaningful presence in certain fast-growing retail segments such as gold loans, entry into these areas will be evaluated as part of its longer-term three-to-five-year strategy.
