Yes Bank Q3 FY26 – Breakthrough Quarter with Profit Surging 55%, Asset Quality at Multi-Year Best

Описание: Yes Bank Q3 FY26 – Breakthrough Quarter with Profit Surging 55%, Asset Quality at Multi-Year Best

Private lender Yes Bank delivered its strongest quarter in years, reporting a robust surge in profitability driven by improved margins, sharply lower credit costs, and continued strengthening of its balance sheet and asset quality.

📊 Key Standalone Financial Highlights:

· Net Profit: ₹952 crore, up a sharp 55.4% YoY and 45.4% QoQ.
· Underlying PAT (ex-gratuity impact): ₹1,068 crore, up 74.4% YoY.
· Net Interest Income (NII): ₹2,466 crore, up 10.9% YoY.
· Net Interest Margin (NIM): Improved to 2.6% (from 2.4% YoY and 2.5% QoQ).
· Non-Interest Income: ₹1,633 crore, up 8% YoY, led by core fee growth (+10%).
· Operating Profit (ex-gratuity): ₹1,389 crore, up 28.7% YoY.
· Cost-to-Income Ratio (adjusted): Improved to 66.1% (from 71.1% YoY).

🏦 Credit Growth & Asset Quality (Standout Performance):

· Net Advances: Grew 5.2% YoY to ₹2.57 lakh crore.
· Deposits: Grew 5.5% YoY to ₹2.93 lakh crore.
· CASA Ratio: Improved to 34% (from 33.1% YoY).
· Gross NPA Ratio: Declined to 1.5% (lowest in recent history).
· Net NPA Ratio: Stood at 0.3% (vs. 0.5% YoY).
· Provision Coverage Ratio (PCR): Strengthened to 83.3%.
· Credit Costs: Fell sharply to negligible levels (₹22 crore vs. ₹259 crore YoY).
· Key Profitability Ratios:
· Return on Assets (RoA): Improved to 0.9% (1.0% ex-gratuity), a key milestone.
· Return on Equity (RoE): Rose to 7.7% (from 5.2%).

🗣️ Management Commentary:
MD & CEO Prashant Kumar termed it a "breakthrough quarter," citing acceleration in profitability, sharp improvement in asset quality, gathering business momentum, and industry-leading CASA performance.

📈 Market Reaction & Stock Performance:

· Stock rose 2.2% ahead of results to close at ₹23.45.
· Has gained over 28% in the last year, with market cap crossing ₹73,600 crore.

⚡ Our Insight:
Yes Bank is demonstrating a sustained and impressive turnaround. This quarter validates that the bank has moved beyond stabilization to a clear growth trajectory. The improvement in core profitability metrics (NIM, RoA, RoE) is particularly encouraging. Asset quality is now comparable to its healthier peers, removing a major overhang. The focus on retail, granular deposits (CASA), and fee income is bearing fruit. While the pace of balance sheet growth remains measured, the quality of growth is high. The stock's re-rating reflects this recovery, but given the improving fundamentals and profitability trajectory, there could be further upside as RoE approaches double digits.

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