YES Bank Share Price in Focus; Profit Jumps 55% in Q3FY26 Results

YES Bank Limited has reported its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, showing significant improvement across profitability metrics. 

The bank posted a profit after tax of ₹952 crore for Q3FY26, registering a strong growth of 55.4% year-on-year and 45.4% quarter-on-quarter. Adjusted for gratuity impact, the profit stood higher at ₹1,068 crore, reflecting a rise of 74.4% year-on-year. 

Return on assets improved to 0.9% compared with 0.6% in the same period last year, while adjusted RoA touched 1.0%, indicating better utilisation of resources.

Improvement in Margins and Income

Net interest margin expanded to 2.6% in Q3FY26 from 2.4% in Q3FY25, supported by a 50 basis point reduction in cost of deposits year-on-year to 5.6%. Net interest income grew 10.9% year-on-year to ₹2,466 crore, while non-interest income rose 8.0% to ₹1,633 crore. 

Operating profit adjusted for gratuity impact increased 28.7% year-on-year to ₹1,389 crore. The cost-to-income ratio improved to 66.1% from 71.1% a year ago, reflecting strong cost control measures undertaken by the bank.

Healthy Balance Sheet Growth

The bank witnessed steady expansion in its balance sheet with net advances rising 5.2% year-on-year to ₹2,57,451 crore. Total deposits grew 5.5% to ₹2,92,524 crore, led by continued momentum in CASA deposits which increased 8.5% year-on-year to ₹99,483 crore. 

The CASA ratio improved to 34.0% from 33.1% in the previous year. Retail and branch-led deposits grew 9.0% year-on-year, highlighting the bank’s focus on granular liability franchise. The credit-to-deposit ratio stood at 88.0%, reflecting balanced growth.

Sharp Improvement in Asset Quality

Asset quality indicators showed meaningful progress during the quarter. Gross NPA ratio declined to 1.5%, down 10 basis points sequentially, while net NPA remained stable at 0.3%. 

Provision coverage ratio improved significantly to 83.3% from 71.2% a year ago. Slippages reduced to 1.6% of advances compared with 2.2% in Q3FY25. 

Net credit costs were negligible with provisions for NPAs at only 0.5% of average assets, underlining effective risk management and recovery efforts.

Operational and Strategic Developments

Total disbursements during the quarter reached ₹26,982 crore, up 7% year-on-year, driven by retail assets where disbursements grew around 15%. Liquidity coverage ratio remained comfortable at 124.3% as on December 31, 2025. The CET I ratio stood at 13.9%, providing an adequate capital cushion. 

A key milestone for the bank was its inclusion in the NIFTY BANK Index effective December 31, 2025, which is expected to enhance investor visibility.

YES Bank Share Price Performance

On January 19, 2026, YES Bank share price opened at ₹23.99, up from its previous close of ₹23.46. At 11:06 AM, the share price of YES Bank was trading at ₹22.86, down by 2.56% on the NSE.

Also Read: RBI Grants In-Principle Approval to SMBC for Wholly Owned India Subsidiary!

Conclusion

YES Bank’s Q3FY26 performance demonstrates a clear turnaround with profit growth, improving margins, and better asset quality. 

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