Yes Bank announced its Q2 FY2026 (July–September 2025) financial results on October 18, 2025, delivering strong year-on-year growth in profitability driven by higher non-interest income, improved operational efficiency, and stable asset quality. While the bank recorded a marginal sequential dip in profit, it continued to demonstrate steady progress in strengthening its balance sheet, expanding its deposit base, and advancing its digital initiatives.
These results highlight Yes Bank’s ongoing turnaround journey as it focuses on sustainable profitability and stable asset growth in a competitive banking environment.
In this article, we’ll break down Yes Bank’s Q2 FY2026 results, covering key financial metrics, business highlights, and the management’s outlook for the upcoming quarters.
Key Highlights
| Metric | Q2 FY26 | Q2 FY25 | YoY Growth |
|---|---|---|---|
| Revenue (Total Income) | ₹9,023 crore | ₹9,132 crore | -1.2% |
| Net Profit | ₹654 crore | ₹553 crore | +18.3% |
| Operating Profit | ₹1,296 crore | ₹1,160 crore (approx.) | +11.7% |
| Net Interest Income (NII) | ₹2,301 crore | ₹2,200 crore | +4.6% |
| EPS (₹) | 0.23 (approx.) | 0.20 (approx.) | +15% |
Highlights:
- Profit rose 18% YoY, led by higher other income and lower interest expenses.
- Asset quality remained stable, with Gross NPA at 1.0% and Net NPA at 0.3%.
- CASA deposits grew 13% YoY, showing strong retail engagement.
Management Commentary
Prashant Kumar, MD & CEO of Yes Bank, commented:
“Our Q2 FY26 performance reinforces the strength of our core business model. With stable margins, healthy deposit inflows, and steady asset quality, we are on track to achieve a 1% RoA by FY27. The strategic investment by SMBC is expected to further enhance our growth and credit profile.”
The management reaffirmed its focus on retail expansion, digital leadership, and enhanced risk management practices to sustain momentum.
Segment Performance
- Retail Banking: Strong disbursement growth across personal loans, home loans, and credit cards (up 20% QoQ).
- Corporate Banking: Moderate growth of 15% YoY, supported by SME and mid-corporate lending.
- Commercial & Rural Banking: 16% YoY increase in lending, reflecting deeper penetration in semi-urban markets.
- Digital Transactions: Accounted for 94%+ of total transactions, reflecting Yes Bank’s strong digital presence.
Balance Sheet Highlights
| Metric | Q2 FY26 | YoY Change | QoQ Change |
|---|---|---|---|
| Advances (Net) | ₹2,50,212 crore | +6.5% | +3.8% |
| Deposits | ₹2,96,831 crore | +7.1% | +7.6% |
| CASA Deposits | ₹1,00,263 crore | +13.2% | +11% |
| Credit-to-Deposit Ratio | ~84% | Stable | Stable |
| Capital Adequacy Ratio (CAR) | 15.3% | Improved | Strong |
The bank’s strong capital position, along with improving liquidity metrics, provides a solid foundation for sustained growth through FY26.
Market Reaction
Following the Q2 results, Yes Bank’s stock gained around 0.4% intraday, reflecting investor confidence in the bank’s improving financials and partnership with SMBC. The market, however, showed mild volatility post-announcement as investors assessed sequential profit softness.
Peer Comparison
Compared to peers such as RBL Bank and Federal Bank, Yes Bank’s YoY profit growth outperformed, though NIMs remain on the lower side at 2.5%. The partnership with Sumitomo Mitsui Banking Corporation (SMBC) positions Yes Bank favorably in terms of capital access and credit ratings, supporting competitive loan pricing and future expansion.
Future Outlook
Yes Bank is focusing on scaling its retail and SME segments, enhancing digital capabilities, and strengthening risk management.
Guidance for FY26–FY27:
- Credit Growth: 12–14% YoY
- NIM Improvement: Gradual recovery expected from H2 FY26
- RoA Target: 1% by FY27
- SMBC Partnership: Expected to drive funding efficiency and loan book diversification
FAQs
Q1. What was Yes Bank’s net profit in Q2 FY26?
Yes Bank reported a net profit of ₹654 crore, up 18.3% YoY from ₹553 crore in Q2 FY25.
Q2. Did Yes Bank beat market expectations?
Yes, the bank’s YoY profit and stable asset quality exceeded expectations, though sequential profit declined slightly.
Q3. How did Yes Bank’s margins perform?
NIM stood at 2.5%, slightly higher than last year (2.4%), supported by lower funding costs and stable yield on advances.
Q4. What are Yes Bank’s growth plans?
The bank plans to expand retail and SME lending, strengthen digital channels, and leverage the SMBC partnership for long-term stability and growth.
Conclusion
Yes Bank’s Q2 FY26 performance underscores a steady recovery trajectory, marked by profit growth, improved asset quality, and strong deposit momentum. The strategic tie-up with SMBC, coupled with operational efficiency and digital innovation, positions the bank well for sustained growth in FY26 and beyond.
Sources: Yes Bank Investor Presentation
