Yes Bank reported a strong performance for the quarter, with robust growth in profitability and net interest income, while asset quality showed further improvement on a sequential basis.
The bank posted a net profit of ₹1,068.4 crore in Q4FY26, up 44.8% compared to ₹738 crore reported in the corresponding quarter last year, reflecting a sharp improvement in earnings.
Net interest income (NII) increased 16% year-on-year to ₹2,637.7 crore, as against ₹2,276.3 crore in Q4FY25, indicating steady growth in core lending income.
On the asset quality front, the bank reported continued improvement, with gross non-performing assets (GNPA) declining to 1.3% from 1.5% in the previous quarter. Net non-performing assets (NNPA) also improved to 0.2%, compared to 0.3% sequentially, reflecting strengthening balance sheet quality.
Overall, the quarter reflects strong earnings growth supported by healthy NII expansion and improving asset quality, signalling continued operational stability.
Beyond the headline numbers, the bank reported an improvement across key operating and balance sheet metrics during the quarter. Return on assets (RoA) stood at ~1.0% in Q4FY26, compared to 0.7% in Q4FY25 and 0.9% in the previous quarter, indicating better profitability efficiency.
Net interest margin (NIM) improved to 2.7%, up from 2.5% in the year-ago period and 2.6% in Q3FY26. The improvement in margins was supported by a decline in cost of deposits, which came in at 5.5% for Q4FY26, lower by 60 basis points year-on-year and 10 basis points sequentially.
Non-interest income stood at ₹1,730 crore for the quarter, registering a 6.0% sequential growth, while operating profit rose to ₹1,618 crore, up 23.1% year-on-year and 31.2% quarter-on-quarter. The cost-to-income ratio improved further to 63.0%, compared to 67.3% in Q4FY25 and 66.1% in the previous quarter.
On the balance sheet front, the bank reported continued growth momentum, with advances rising 11.1% year-on-year and 6.2% QoQ to ₹2,73,445 crore. Deposits crossed the key milestone of ₹3 lakh crore, standing at ₹3,18,969 crore, up 12.1% YoY and 9.0% QoQ. CASA deposits also crossed the ₹1 lakh crore mark during the quarter, highlighting strong traction in low-cost deposits.
Disbursements during the quarter stood at ₹33,224 crore, growing 19.8% year-on-year and 23.1% QoQ, with retail disbursements witnessing strong momentum, growing approximately 41% YoY. Retail and branch-led deposits stood at ₹1,86,186 crore, rising 13.5% YoY, and accounted for 58.4% of total deposits.
Asset quality saw further improvement, with gross NPAs declining by 20 basis points sequentially to 1.3%, while net NPAs improved by 10 basis points to 0.2%. Retail slippages declined to ₹888 crore, the lowest in the past nine quarters, compared to ₹1,026 crore in Q3FY26.
Credit costs for the quarter stood at 0.17% of average assets, compared to 0.30% in the year-ago period, reflecting improved asset quality trends.