Mumbai-based private lender Yes Bank Ltd. announced its financial results for the quarter ended June 30, 2025, reporting a sharp improvement in profitability and stable asset quality.
For Q1 FY26, the bank’s net profit surged 57% year-on-year (YoY) to ₹808.6 crore, compared to ₹516 crore in the same quarter last year. The rise in profitability was supported by growth in core income and other income.
Net Interest Income (NII), the bank’s core income earned from lending activities, increased by 5.8% YoY to ₹2,370 crore from ₹2,240 crore a year ago. Other income rose significantly to ₹1,824 crore, up from ₹1,270 crore last year, contributing to the improved bottomline.
On the asset quality front, gross NPA ratio remained stable at 1.6%, unchanged from the previous quarter, and improved from 1.7% last year. The net NPA ratio also remained unchanged at 0.3%, reflecting a steady credit performance. Provisions for the quarter fell to ₹284 crore from ₹317 crore in March 2025, further supporting profitability.
However, business growth moderated. Advances grew by just 5.1% YoY to ₹2.41 lakh crore but declined 2% sequentially. Deposits increased by 4% YoY to ₹2.75 lakh crore but also fell 3% compared to the March quarter. The Credit-Deposit Ratio edged up to 87.5% versus 86.5% in March.
Liquidity Coverage Ratio (LCR) stood at 135.7%, improving from 125% in the March quarter.
During the quarter, Yes Bank maintained its annualised slippage ratio at a 10-quarter low while net interest margins remained at an eight-quarter high.
Recently, Yes Bank made headlines after a consortium of lenders led by State Bank of India announced the sale of a 20% stake to Japan’s SMBC for over ₹13,000 crore. This stake sale comes after the consortium rescued Yes Bank from a liquidity crisis in 2020.
The bank remains focused on maintaining asset quality and improving profitability while addressing muted loan and deposit growth.
