YES Bank is set to announce its December quarter (Q3FY26) results on Saturday, January 17, 2025, with brokerages presenting mixed but cautiously optimistic projections. The private lender's shares gained momentum recently, rising 2.9% to hit ₹23.62 ahead of the earnings announcement, reflecting investor interest in the bank's recovery trajectory.

Divergent Brokerage Estimates Reflect Cautious Outlook

Analysts expect a patchy recovery with steady but muted growth in core income, largely stable margins, and a broad range of profit estimates. The private lender is expected to deliver high single-digit to low double-digit growth in net interest income (NII), with estimates clustering between 9% and 12% year-on-year.

JM Financial: Strong Recovery Expected

JM Financial presents the most optimistic outlook, forecasting one of YES Bank's strongest quarters in recent periods:

Despite the near-term improvement, JM Financial highlights that NIMs remain structurally low at around 2.60%, with return ratios including RoA of 0.70% and RoE of 6.30% trailing peers.

Kotak Institutional Equities: Modest Growth Trajectory

Kotak projects a more subdued performance with controlled expectations:

Kotak estimates asset quality improvement with slippages declining to 1.90% and credit costs at about 0.70%, while projecting RoA at 1.20% and RoE at 5.40%.

Market Performance Reflects Cautious Optimism

The bank's recent stock performance demonstrates mixed investor sentiment:

Analyst Concerns Over Structural Challenges

Emkay Research continues viewing YES Bank as a laggard among private lenders, citing weaker growth, lower profitability, and inferior return ratios compared to peers like HDFC Bank, ICICI Bank, and Axis Bank. The brokerage notes that loan growth remains "modest and underwhelming" while deposit mobilization shows sequential decline.

IIFL highlights that while loan growth stood below consensus expectations, YES Bank was among the few banks where the CASA ratio did not deteriorate sequentially, indicating relative stability in low-cost deposits. The bank will hold a post-earnings conference call with analysts at 2:45 PM on January 17 following the results announcement.

YES Bank has received approval from the National Securities Depository Limited (NSDL) to transfer its demat business operations from its retail division to its subsidiary, YES Securities (India). The approval was granted on January 5, with the bank making the regulatory disclosure on January 6 under SEBI listing regulations.

Regulatory Approval Details

The NSDL approval relates to the demat undertaking under the retail division, which YES Bank had previously informed the exchanges about on January 1. The bank stated it would notify the exchanges once the depository's approval was received. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Implementation Steps

Following the NSDL approval, YES Bank will take all necessary steps required for the proposed transfer, including the execution of the business transfer agreement. The relevant information has been hosted on the bank's website in line with listing regulations and shared with both the National Stock Exchange of India and BSE.

Strategic Business Restructuring

This approval marks a key regulatory step in the proposed internal restructuring of YES Bank's retail demat operations. The consolidation enables the demat undertaking to be housed within its securities subsidiary, allowing the bank to leverage specialized expertise in managing securities-related services while maintaining regulatory compliance.

Market Performance

YES Bank shares ended higher at ₹22.84 on January 6, up ₹0.01 or 0.04%, reflecting positive market sentiment following the regulatory approval announcement.