Yes Bank , one of India's leading private sector banks, has reported a robust performance for the second quarter of fiscal year 2026, with significant year-on-year growth in profitability and stable asset quality metrics.

Key Financial Highlights

• Net Profit: The bank reported a net profit of ₹654.00 crore for Q2 FY2026, marking an 18.3% increase from ₹553.00 crore in the same quarter last year.
• Operating Profit: Operating profit saw a substantial rise of 32.9% year-on-year, reaching ₹1,296.00 crore.
• Net Interest Income (NII): NII grew by 4.6% year-on-year to ₹2,301.00 crore.
• Non-Interest Income: This segment showed strong growth, increasing by 16.9% year-on-year to ₹1,644.00 crore.
• Asset Quality: The Gross Non-Performing Asset (GNPA) ratio remained stable at 1.6%, while the Net NPA ratio improved to 0.3% from 0.5% in Q2 FY2025.

Business Growth and Operational Efficiency

Yes Bank demonstrated solid growth across key business parameters:

• Advances: Total advances grew by 6.4% year-on-year to ₹2,50,212.00 crore.
• Deposits: Total deposits increased by 6.9% year-on-year to ₹2,96,276.00 crore.
• CASA Ratio: The Current Account Savings Account (CASA) ratio improved to 33.7%, up from 32.0% in Q2 FY2025.

The bank's focus on operational efficiency was evident with the Cost to Income ratio improving to 67.1% in Q2 FY2026 from 73.0% in the same quarter last year.

Capital Adequacy and Liquidity

Yes Bank maintained a strong capital position:

• CET1 Ratio: 13.9% as of September 30, 2025
• Liquidity Coverage Ratio: Healthy at 125.1%

Strategic Developments

A significant development during the quarter was Sumitomo Mitsui Banking Corporation (SMBC) becoming Yes Bank's largest shareholder with a 24.2% stake. This strategic investment is expected to strengthen the bank's position and support its growth plans.

Management Commentary

Prashant Kumar, Managing Director & CEO of Yes Bank, commented on the results: "The Bank delivered strong performance across key operating metrics during Q2FY26. Deposit growth momentum sustained, with continued outperformance relative to the industry, particularly in CASA deposits. Asset quality further strengthened during the quarter, with decline in fresh slippages and overdue balances as well as an improvement in Provision Coverage Ratio."

Kumar added, "All these enabled the Bank to deliver an RoA of 0.7% for H1FY26 and we firmly remain on track to achieve the stated objective of 1% RoA by FY27."

The bank's focus on enhancing its retail and transaction banking capabilities, coupled with strategic partnerships and investments, positions it well for sustained growth in the coming quarters. Investors and analysts will be keenly watching Yes Bank's progress towards its profitability targets and its ability to capitalize on the improving economic environment.

Yes Bank , one of India's prominent private sector banks, has announced its financial results for the second quarter, showcasing significant growth and strategic developments.

Financial Performance

Yes Bank reported a net profit of ₹654.47 crore for Q2, marking an 18.3% increase from ₹553.04 crore in the same quarter last year. This growth in profitability demonstrates the bank's resilience and improving financial health.

For the half-year period, the bank's net profit reached ₹1,455.55 crore, a substantial 37.9% jump from ₹1,055.47 crore in the previous year, indicating a consistent upward trajectory in earnings.

Key Financial Metrics

The bank's total income for Q2 stood at ₹9,023.15 crore. Notably, Yes Bank has maintained strong asset quality, with the Gross NPA ratio remaining stable at 1.6%. The Net NPA ratio improved to 0.3% from 0.5% year-on-year, reflecting effective management of non-performing assets.

Yes Bank's capital position remains robust, with the capital adequacy ratio maintained at 15.0%, well above regulatory requirements.

Provisions

Yes Bank's provisions (excluding tax expenses) and contingencies rose to ₹4.20 billion in Q2, marking an increase from ₹2.80 billion in the previous quarter. This represents a 50% quarter-on-quarter growth in the bank's provisioning requirements.

Strategic Developments

A significant development during the quarter was the completion of Sumitomo Mitsui Banking Corporation's (SMBC) acquisition of a 24.22% stake in Yes Bank. This transaction, finalized on September 17, followed regulatory approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).

The stake acquisition by SMBC, a major Japanese financial institution, is expected to bring strategic benefits to Yes Bank, potentially enhancing its global reach and financial capabilities.

Other Notable Activities

During the quarter, Yes Bank continued to focus on employee retention and motivation, allotting 66.77 lakh equity shares under its employee stock option schemes.

The bank also demonstrated prudent financial management by fully utilizing its non-convertible debt securities proceeds and redeeming ₹315 crore worth of Green Infrastructure Bonds that matured in August.

Conclusion

Yes Bank's Q2 results reflect a positive trend in its financial performance, with improved profitability and stable asset quality. However, the significant increase in provisions highlights potential challenges that the bank may be anticipating. The strategic partnership with SMBC through the stake acquisition positions the bank for potential growth and enhanced market presence. As Yes Bank continues to strengthen its financial position, investors and stakeholders will be watching closely for sustained performance in the coming quarters.