YES BANK Q3FY26 Update: Loans Rise 5.2% YoY, Management Optimistic on FY26 Outlook
Yes Bank's Q3FY26 provisional update shows steady growth with loans advancing 5.2% YoY to ₹257,508 crores and deposits reaching ₹292,484 crores. The bank maintained strong operational metrics with CASA ratio improving to 34.0% and liquidity coverage ratio at 123.8%. Management expressed confidence in FY26 outlook, stating Q3 results align with strategic objectives.
*this image is generated using AI for illustrative purposes only.
Yes Bank has announced its provisional financial update for the third quarter of FY26 ended December 31, 2025, demonstrating steady growth across key banking parameters. The private sector lender released these figures under SEBI LODR Regulations, providing insights into operational performance ahead of official quarterly results. The Co-CEO and MD stated that Q3 results align with their strategic goals and expressed optimism for the FY26 outlook.
Q3FY26 Provisional Business Performance
The bank's core lending business showed positive momentum with Loans & Advances reaching ₹257,508.00 crores as of December 31, 2025. This represents a healthy year-on-year growth of 5.2% compared to ₹244,834.00 crores in the corresponding quarter of the previous fiscal year. On a quarter-on-quarter basis, the lending portfolio expanded by 2.9% from ₹250,212.00 crores in Q2FY26.
| Metric: | Q3FY26 (₹ Cr) | Q2FY26 (₹ Cr) | QoQ Growth | Q3FY25 (₹ Cr) | YoY Growth |
|---|---|---|---|---|---|
| Loans & Advances: | 257,508.00 | 250,212.00 | 2.9% | 244,834.00 | 5.2% |
| Deposits: | 292,484.00 | 296,276.00 | (1.3%) | 277,224.00 | 5.5% |
| Certificate of Deposits: | 990.00 | 987.00 | 0.3% | - | - |
| CASA: | 99,443.00 | 99,708.00 | (0.3%) | 91,650.00 | 8.5% |
Deposit Base and CASA Performance
The bank's deposit base stood at ₹292,484.00 crores, reflecting a 5.5% year-on-year increase from ₹277,224.00 crores in Q3FY25. However, deposits witnessed a marginal decline of 1.3% on a sequential quarter basis from ₹296,276.00 crores in Q2FY26.
The Current Account Savings Account (CASA) portfolio demonstrated strong annual growth of 8.5%, reaching ₹99,443.00 crores compared to ₹91,650.00 crores in the same quarter last year. The CASA ratio, including Certificate of Deposits, improved to 34.0% from 33.1% in Q3FY25, indicating enhanced low-cost funding for the bank.
Operational Ratios and Liquidity Metrics
The Credit to Deposit Ratio stood at 88.0% as of December 31, 2025, compared to 88.3% in the corresponding quarter of the previous year and 84.5% in the immediate preceding quarter. This ratio reflects the bank's lending efficiency relative to its deposit mobilization.
| Ratio: | Q3FY26 | Q2FY26 | Q3FY25 |
|---|---|---|---|
| CASA Ratio (Incl CDs): | 34.0% | 33.7% | 33.1% |
| Credit to Deposit Ratio: | 88.0% | 84.5% | 88.3% |
| Liquidity Coverage Ratio: | 123.8% | 125.1% | 133.2% |
The bank maintained a robust Liquidity Coverage Ratio of 123.8% on a consolidated basis, well above regulatory requirements, though slightly lower than the 133.2% recorded in Q3FY25.
Management Commentary and Strategic Outlook
The Co-CEO and MD expressed satisfaction with the Q3 results, stating that the performance aligns with the bank's strategic goals. The management team conveyed optimism regarding the FY26 outlook, indicating confidence in the bank's growth trajectory and operational improvements.
Q2FY26 Financial Results Highlight Strong Performance
Yes Bank reported impressive financial results for the September quarter, with net profit surging 18.4% year-on-year to ₹655.00 crores from ₹553.00 crores in the previous year. Net interest income increased 4.6% year-on-year to ₹2,300.00 crores from ₹2,200.00 crores.
| Financial Metric: | Q2FY26 | Q2FY25 | YoY Growth |
|---|---|---|---|
| Net Profit: | ₹655 Cr | ₹553 Cr | 18.4% |
| Net Interest Income: | ₹2,300 Cr | ₹2,200 Cr | 4.6% |
| Non-Interest Income: | ₹1,644 Cr | - | 16.9% |
| Operating Profit: | ₹1,296 Cr | - | 32.9% |
| Return on Assets: | 0.6% | 0.5% | +10 bps |
| Net Interest Margin: | 2.5% | - | +10 bps |
| Cost-to-Income Ratio: | 67.1% | 73.0% | -590 bps |
Non-interest income rose 16.9% year-on-year to ₹1,644.00 crores, driven by higher fee income from forex, loan processing, and distribution. Operating profit increased 32.9% year-on-year to ₹1,296.00 crores, while the cost-to-income ratio improved significantly to 67.1% from 73.0% a year earlier.
Regulatory Compliance and Market Update
The bank released this provisional update in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and the Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information.
The bank has clarified that these Q3FY26 figures are provisional and subject to approval by the Audit Committee of the Board, Board of Directors, and limited review by the Statutory Auditors. The provisional nature indicates that final numbers may vary when the bank announces its official quarterly results.
Historical Stock Returns for Yes Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.42% | +6.09% | +0.53% | +12.57% | +16.54% | +26.83% |
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