
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.
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.
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.
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.
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!
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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Published on: Feb 23, 2026, 11:35 AM IST

Nikitha Devi
Nikitha is a content creator with 7+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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