YES Bank Targets 1% ROA by FY-End, Eyes Higher Profitability Next Fiscal

Private sector lender YES Bank expects to exit the current financial year with a return on assets (ROA) of 1%, according to its Chief Financial Officer Niranjan Banodkar. 

He further indicated that on an annual basis, the bank’s ROA is projected to exceed 1% in the next fiscal year, signalling steady improvement in profitability.

ROA is a key profitability metric that measures how efficiently a bank uses its assets to generate earnings. A higher ROA reflects better asset utilisation and stronger bottom-line performance.

Strong Quarterly Performance

For the December quarter, YES Bank reported a net profit of ₹952 crore, marking a 55% year-on-year growth and a 45% increase on a sequential basis. The annualised ROA for the quarter improved to 0.9%, compared to 0.6% in both the previous quarter and the corresponding quarter last year.

For the nine-month period, the annualised ROA rose to 0.8%, up from 0.5% in the same period of the previous financial year, highlighting consistent financial recovery.

SMBC Stake and Strategic Direction

Last year, Sumitomo Mitsui Banking Corporation (SMBC) acquired a 24.9% stake in YES Bank for approximately ₹16,000 crore. Following the investment, SMBC nominated Shinichiro Nishino and Rajeev V Kannan as Non-Executive Non-Independent Directors on the bank’s board.

Banodkar stated that the bank aims to anchor growth around 15%, while balancing expansion and profitability improvement, especially with strategic support from SMBC.

Focus on RIDF and PSL Compliance

A critical driver of improved profitability has been the resolution of legacy priority sector lending (PSL) shortfalls. Since FY24, the bank has maintained 100% compliance across all PSL subcategories, preventing additional burdens on the Rural Infrastructure Development Fund (RIDF).

RIDF balances have declined from a peak of about 11% in FY24 to 6.9% in the third quarter, with a target to reduce them below 5% of total assets by FY27. As these low-yield assets mature, the bank plans to retire high-cost borrowings and redeploy funds into higher-yielding advances.

Yes Bank Share Price Performance

On February 23, 2026, Yes Bank share price (NSE: YESBANK) opened at ₹21.06, touching the day’s low at ₹20.86, as of 11:25 AM on the NSE.

Also Read: Yes Bank Share Price in Focus as RBI Approves Vinay Tonse as MD and CEO for 3 Years!

Conclusion

YES Bank’s improving ROA, disciplined balance sheet management, and strategic backing from SMBC reflect its steady recovery trajectory. With a focus on profitability, asset quality, and calibrated growth, the bank appears well-positioned to strengthen its financial performance in the coming fiscal year.

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