Yes Bank delivered its highest quarterly profit since reconstruction—PAT rose 59% to ₹801 Cr, NII up 5.7%, strong treasury income, stable asset quality. Read full breakdown, market impact & what’s next.
📊 Q1 FY26 – Snapshot
- Profit After Tax (PAT): ₹801 Cr, up 59% YoY (vs ₹502 Cr) NDTV Profit+13The Economic Times+13Nifty Trader+13
- Net Interest Income (NII): ₹2,371 Cr, +5.7% YoY The Economic Times+7Business Standard+7The Economic Times+7
- Net Interest Margin (NIM): 2.5%, flat QoQ, +10 bps YoY The Economic Times+9Business Standard+9The Economic Times+9
- Non‑Interest Income: ₹1,752 Cr, +46% YoY, led by treasury gains Capital Market+13Business Standard+13Nifty Trader+13
- Operating Profit (PPOP): ₹1,358 Cr, +53% YoY Capital Market+7Moneycontrol+7Business Today+7
- Provisions: ₹284 Cr, +34% YoY The Economic Times+6Business Standard+6Capital Market+6
🏦 Balance Sheet Health
- Loan Growth: +5% YoY to ₹2.41 L Cr NDTV Profit+13Business Standard+13Nifty Trader+13
- Commercial banking +19%, micro-banking +11.2%, retail flat
- Deposits: +4.1% YoY to ₹2.75 L Cr; CASA ratio up to 32.8% The Economic Times+2Moneycontrol+2mint+2Business Today+7Business Standard+7Capital Market+7
- Asset Quality: GNPA ~1.6%, NNPA ~0.3%; PCR ~80% The Economic Times+8Moneycontrol+8The Economic Times+8
- Slippages: ₹1,458 Cr vs ₹1,223 Cr last quarter; recoveries ₹1,170 Cr Nifty Trader+5Moneycontrol+5The Economic Times+5
- Capital Ratios: CET1 ~14% Capital Market+6Moneycontrol+6Business Standard+6
🧠 Key Drivers Behind the Jump
- Treasury Strength
High treasury and non-interest income drove almost half the PAT growth YouTube+13Business Standard+13The Times of India+13. - Stable Margins
NIM held steady at 2.5% despite rate pressures, supported by lower funding costs Business Today+11Business Standard+11The Economic Times+11. - Asset Quality & Cost Control
Maintained GNPA at 1.6%, improved PCR (80%), and reduced cost-to-income (~67%) highlight improving discipline YouTube+11Moneycontrol+11Capital Market+11.
📈 Market Reaction & Analyst Commentary
- Stock Response: Shares up ~3%, factoring in strong results and expectations of SMBC investment (20% stake) Capital Market+3Moneycontrol+3Capital Market+3.
- Analyst Outlook Pre-Results: Mixed forecasts—PAT expected up 7–49%, NII outlook varied; actual numbers beat all estimates The Economic Times+2The Economic Times+2The Economic Times+2.
- Broader View:
- Positive turnaround signals centered on diversified income and balance sheet health.
- Caution: Must sustain momentum and manage provisioning while scaling core business.
✅ What Should Investors Do?
Short-Term View:
– Monitor treasury income sustainability. A dip could impact PPOP.
– Watch technical breakout levels (~₹26–27); support around ₹24–25. Potential swing play.
Long-Term View:
– Strong improvement in fundamentals post-reconstruction.
– Continued focus: CASA-driven deposits, growth in core lending, and stable asset quality.
– If Yes Bank sustains this performance, it may be viable accumulation zone around ₹20–22.
🔮 What’s Next to Monitor
| Metric | Why It Matters |
|---|---|
| Treasury Income | Volatile — may affect non-interest revenue |
| Core NII & NIM | Key for traditional banking profits |
| Loan-to-Deposit Ratio | Indicates credit growth strength |
| Provision Levels | Watch asset quality trends and slippages |
| SMBC Investment | Impact on capital and strategic support |
❓ FAQs
Q1. Why did PAT surge more than NII?
👉 Strong non-core income — treasury gains contributed ~46% to growth .
Q2. Are margins stable?
👉 Yes, NIM remained ~2.5%, up 10 bps YoY and stable QoQ Nifty Trader+2The Economic Times+2Capital Market+2.
Q3. How is asset quality?
👉 GNPA remained at 1.6%, while NNPA declined to 0.3% and PCR improved to ~80% mint+2Moneycontrol+2The Economic Times+2.
Q4. What is CASA ratio?
👉 Improved to 32.8%, up 200 bps YoY—a healthy sign for low-cost funding Moneycontrol.
Q5. Is this a buy opportunity?
👉 For traders, watch ₹26–27 breakout. Long-term investors can consider entering near ₹20–22 if these results are sustained.
⚠️ Disclaimer
This blog is for informational purposes only and not financial advice. Consult a SEBI‑registered advisor before investing.
🏁 Final Take
Yes Bank posted its strongest quarter since its turnaround journey—driven by 59% PAT growth, stable margins, and healthy asset quality. The surge in non-interest income adds optimism—but consistency in core revenue and disciplined provisioning will be critical. If these play out well, Yes Bank could be back on the radar.
