NII growth pushes YES Bank's Q1FY26 net profit 59% higher to ₹801 crore YoY

Private sector lender YES Bank’s net profit rose by 59 per cent on a year-on-year (YoY) basis to ₹801 crore for the quarter ended June 2025 (Q1FY26), aided by robust growth in net interest income (NII), and up from ₹502 crore reported in the same period last year.

Sequentially, the profit of the lender was up 8.5 per cent from ₹738 crore in Q4FY25.

NII, which is the difference between interest earned and interest expended, grew by 5.7 per cent YoY to ₹2,371 crore during the quarter, while non-interest income was up 46.12 per cent to ₹1,752 crore.

The lender’s net interest margin (NIM), a key measure of a bank's profitability, remained steady in Q1FY26 at 2.5 per cent, the same as Q4FY25.

Provisions made by the bank rose 34 per cent YoY to ₹284 crore in Q1FY26, but were down sequentially.

The asset quality of the lender was stable, with Gross Non-Performing Assets Ratio (GNPA) flat at 1.60 per cent as of June 30, 2025, compared to last quarter (Q4FY25). The Net NPA Ratio was also flat at 0.30 per cent as of June 30, 2025, compared to the end of March 2025.

The bank reported a loan growth of 5 per cent YoY to ₹2.41 trillion, while deposits grew by 4.1 per cent YoY to ₹2.75 trillion. The share of current and savings account (CASA) deposits in total deposits was 32.8 per cent at the end of the June quarter, slightly higher than the 30.8 per cent a year ago.

“The bank entered the new financial year on a strong footing and delivered a robust performance with net profit rising to ₹801 crore, marking a 59.4 per cent YoY growth,” said Prashant Kumar, managing director and chief executive officer of Yes Bank.

“Key metrics such as return on assets (0.8 per cent), PPoP (₹1,358 crore), and NIM (2.5 per cent) showed notable improvement. Asset quality remained stable, CASA witnessed healthy growth, and CET1 strengthened to 14 per cent,” he added.