YES Bank Share Price in Focus; Q2 FY26 Profit Rises 18.3% YoY

YES Bank Limited announced its financial results for the quarter ended September 30, 2025, reporting a steady improvement in profitability, operational efficiency, and balance sheet growth. 

The bank’s profit after tax (PAT) for Q2 FY26 stood at ₹654 crore, up 18.3% year-on-year. Adjusted for last year’s tax refunds, PAT growth was approximately 30% YoY. Return on assets (RoA) improved to 0.6% compared to 0.5% in Q2 FY25.

Stable Margins and Improved Profitability

The bank’s net interest income (NII) for Q2 FY26 stood at ₹2,301 crore, reflecting a 4.6% year-on-year rise. Net interest margin (NIM) remained stable at 2.5%, up 10 basis points YoY, supported by a 40 bps decline in the cost of deposits to 5.7%. The cost-to-income ratio improved significantly to 67.1% from 73% in the same period last year, demonstrating better cost control and operating leverage.

Non-Interest Income and Operating Performance

Non-interest income rose 16.9% YoY to ₹1,644 crore, driven by higher fees, commissions, and treasury income. After normalizing for treasury income, non-interest income was up 11.8% YoY and 18.2% sequentially. Operating expenses stood at ₹2,649 crore, almost flat year-on-year and down 4.2% quarter-on-quarter, highlighting disciplined cost management. Consequently, operating profit jumped 32.9% YoY to ₹1,296 crore, reflecting the bank’s improving earnings quality.

Healthy Growth in Advances and Deposits

YES Bank reported net advances of ₹2,50,212 crore, up 6.4% YoY and 3.8% sequentially. Retail disbursements grew 19.8% QoQ, while fresh sanctions and limit setups in commercial and corporate banking nearly doubled. Total deposits rose to ₹2,96,276 crore, registering 6.9% YoY and 7.4% QoQ growth, supported by steady CASA momentum. The credit-to-deposit ratio stood at 84.5%, indicating a balanced growth approach.

Strategic Shareholding Update

During the quarter, Sumitomo Mitsui Banking Corporation (SMBC) became the largest shareholder of YES Bank, acquiring a 24.2% stake. State Bank of India (SBI) continues to hold over 10%.

Commenting on the results, Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, “The Bank delivered strong performance across key operating metrics during Q2FY26. Deposit growth momentum sustained, with continued outperformance relative to the industry, particularly in CASA deposits. Disbursements recorded healthy sequential growth, supported by broad-based traction across segments, including around 20% Q-o-Q growth in the Retail segment.” 

He further added, “Asset quality further strengthened during the quarter, with decline in fresh slippages and overdue balances as well as an improvement in Provision Coverage Ratio. Net Interest Margin was broadly stable, aided by lower RIDF balances and deposit rate actions/ repricing, which largely offset the impact of asset repricing.” 

“Core fee income witnessed healthy growth, led by forex, loan processing fees, and third-party distribution, while operating expenses were tightly controlled, resulting in healthy growth in core operating profitability. All these enabled the Bank to deliver an RoA of 0.7% for H1FY26 and we firmly remain on track to achieve the stated objective of 1% RoA by FY27,” said Managing Director & CEO. 

Yes Bank Share Price Performance

On October 20, 2025, Yes Bank share price opened at ₹22.50, up from its previous close of ₹22.25. At 9:40 AM, the share price of Yes Bank was trading at ₹22.49, up by 1.08% on the NSE.

Also Read: Bandhan Bank Reduces Stake in YES Bank!

Conclusion

YES Bank’s Q2 FY26 results highlight improving profitability, strong deposit growth, and operational efficiency. With stable margins, lower costs, and growing retail disbursements, the bank is strengthening its position for sustained growth in the coming quarters.

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