Mumbai | Saturday, January 17, 2026: Yes Bank on Saturday reported a sharp improvement in its December quarter performance, posting a 55 percent year-on-year jump in standalone net profit at Rs 952 crore, compared with Rs 612 crore in the same period last year, aided by stronger margins, controlled costs and continued improvement in asset quality.
The bank’s profit after tax also rose 45 percent on a sequential basis from Rs 654 crore recorded in the September quarter of FY26, underlining sustained momentum in earnings recovery. Net interest income for the quarter increased 11 percent year-on-year to Rs 2,466 crore, even as interest income declined 3.7 percent to Rs 7,543 crore. Interest expenses fell 9 percent year-on-year to Rs 5,078 crore and remained largely flat on a quarter-on-quarter basis, supporting margin expansion.
Net interest margin improved to 2.6 percent in Q3FY26, compared with 2.4 percent a year earlier and 2.5 percent in the previous quarter. Operating profitability strengthened further, with operating profit, adjusted for gratuity impact, rising sharply year-on-year, reflecting better cost discipline and improving business mix.
On the balance sheet front, net advances stood at Rs 2.57 lakh crore, up 5.2 percent year-on-year and 2.9 percent sequentially, driven by steady growth across segments. Retail asset disbursements rose 15 percent year-on-year, indicating improving traction in consumer lending. Total disbursements during the quarter were reported at Rs 26,982 crore.
Deposit growth also remained stable, led by retail and branch-led deposits which rose 9 percent year-on-year to Rs 1.73 lakh crore. CASA deposits increased 8.5 percent year-on-year to Rs 99,483 crore, with average quarterly balance growth remaining strong, helping to reduce the overall cost of deposits. The cost of deposits declined to 5.6 percent, lower by 50 basis points year-on-year and 10 basis points sequentially.
Asset quality continued to improve, with the gross non-performing asset ratio declining by 10 basis points year-on-year and quarter-on-quarter to 1.5 percent. Net NPAs eased further to 0.3 percent, remaining flat sequentially, supported by low slippages and steady recoveries.
Commenting on the results, the bank’s management described the quarter as a breakthrough phase, highlighting improved profitability, negligible credit costs, an eight-quarter low slippage ratio and continued strengthening of the CASA franchise. The management also indicated confidence in sustaining growth momentum in the coming quarters, particularly in retail lending, while maintaining tight control over operating expenses and asset quality.
The December quarter performance marks another step in Yes Bank’s gradual turnaround, as the lender continues to focus on balance sheet strength, profitability and long-term value creation.
