Yes Bank’s Q3 FY26 standalone net profit rose 55% YoY to ₹952 crore.
Sequentially, profit jumped 45% from ₹654 crore in Q2 FY26.
Adjusted for one-time gratuity provisions under new labour codes, PAT stood at ₹1,068 crore, up 74% YoY.
Yes Bank on Saturday reported a sharp rise in its bottom line for Q3 FY26, with standalone net profit jumping 55% year on year (YoY) to ₹952 crore, driven by higher net interest income, improved margins, lower credit costs, and stronger asset quality. Sequentially, profit increased 45% from ₹654 crore in Q2 FY26.
Adjusting for a one-time impact of higher gratuity provisions under the new labour codes, PAT stood at ₹1,068 crore, up 74% YoY, the bank said in a filing with stock exchanges.
1 January 2026
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“Q3 FY26 marks a breakthrough quarter for the bank, powered by a confluence of factors such as acceleration in profitability, sharp improvement in asset quality, gathering momentum in business volumes (disbursements), and continued industry-leading performance in CASA,” said lender MD & CEO Prashant Kumar.
The private bank’s net interest income (NII) grew 11% YoY and 7% QoQ to ₹2,466 crore, supported by margin improvement and lower funding costs. Net interest margin (NIM) rose to 2.6%, compared with 2.4% a year ago and 2.5% in the previous quarter.
Non-interest income increased 8% YoY to ₹1,633 crore, led by core fee income, which rose nearly 10% from a year earlier. Growth came from card fees, loan processing charges, and higher earnings from third-party products such as insurance and investment distribution.
Operating profit for the quarter reached ₹1,234 crore, up 14% YoY. Excluding the gratuity impact of labour codes, it climbed 29% to ₹1,389 crore, reflecting effective cost control despite higher reported expenses. The cost-to-income ratio, adjusted for gratuity, improved to 66.1% from 71.1% a year ago.
Ahead of the results, Yes Bank shares rose 2.2% to close at ₹23.45 on NSE on Friday.
Asset Quality Strengthens
Net advances grew 5.2% YoY and 2.9% QoQ to ₹2.57 lakh crore, driven by commercial banking, corporate and institutional banking, and credit cards. Retail asset disbursements rose about 15% YoY, while total disbursements reached ₹26,982 crore.
Total deposits rose 5.5% YoY to ₹2.93 lakh crore, with strong growth in low-cost deposits. CASA deposits increased 8.5% YoY, raising the CASA ratio to 34%, compared with 33.1% a year ago. Retail and branch-led deposits grew 9% YoY.
Asset quality continued to improve, with the gross NPA ratio declining to 1.5% as of 31 December 2025, from 1.6% in both the previous quarter and a year ago. Net NPA ratio stood at 0.3%, flat sequentially and lower than 0.5% a year ago.
Provisioning during the quarter fell sharply, with non-tax provisions at ₹22 crore, down from ₹259 crore a year ago and ₹419 crore in Q2 FY26. As a result, net credit costs were negligible, the bank said.
Return on assets (RoA) improved to 0.9% from 0.6% a year earlier, while return on equity (RoE) rose to 7.7% from 5.2% in Q3 FY25. Adjusted for the gratuity impact, RoA reached 1.0%, a key milestone since the bank’s reconstruction.
The provision coverage ratio (PCR) rose to 83.3%, up from 71.2% in Q3 FY25 and 81% in Q2 FY26. Gross slippages fell to ₹1,050 crore (1.6% of advances), the lowest in eight quarters, while retail slippages were at a seven-quarter low.
