Yes Bank Q1 Results: Operating Profit Jumps 53%, PAT at….

July 19, 2025: Yes Bank reported a strong performance for the first quarter of FY26, with its standalone net profit surging 59% year-on-year to ₹801 crore, compared to ₹502 crore in Q1FY25. On a sequential basis, the net profit also rose over 8%, up from ₹738 crore recorded in the previous quarter.

Despite a slight decline in interest income, which dipped 1.6% YoY to ₹7,596 crore, the bank saw a 5.7% increase in net interest income (NII), reaching ₹2,371 crore. This improvement was supported by a reduction in the Cost of Funds. Non-interest income also showed solid growth, rising 10.9% to ₹1,739 crore.

Yes Bank operating profit for the quarter jumped by an impressive 53.4% to ₹1,358 crore. The lender’s cost-to-income ratio improved significantly to 67.1%, down from 74.3% a year ago. However, non-tax provisions rose by 34.1% to ₹284 crore.

Yes bank net interest margin (NIM) for Q1FY26 stood at 2.5%, showing a year-on-year increase. This improvement was attributed to a reduction in deposit costs due to priority sector lending (PSL) shortfall and lowered savings account rates, although it was partially offset by the impact of asset repricing.

Asset quality remained stable, with gross non-performing assets (GNPA) at 1.6% and net NPA at 0.3%. The provision coverage ratio improved to 80.2%. Total recoveries and upgrades reached ₹1,170 crore, including ₹338 crore from security receipts. However, slippages rose to ₹1,458 crore from ₹1,223 crore in the previous quarter.

Advances increased by 5% YoY to ₹2.41 lakh crore, driven by a 19% growth in commercial banking and an 11.2% rise in the micro banking segment. Retail loan growth remained flat, increasing just 0.3%.

Yes Bank’s Q1 performance reflects a strong start to FY26, with improvements in profitability, efficiency, and asset quality. The lender’s continued focus on operational resilience and cost control appears to be paying off, even as interest income faces slight pressure.