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    Yes Bank

    YESBANK
    Financial Services·18 Apr 2026
    Management Summary

    Yes Bank reported a strong Q4 and full-year FY26 performance, marked by robust growth in advances and deposits, significant improvement in asset quality with GNPA/NNPA at multi-quarter lows, and enhanced profitability metrics including a 1% ROA for the quarter. The bank also demonstrated improved efficiency with a lower Cost-to-Income Ratio and outlined clear growth targets across segments for the upcoming fiscal year.

    Highlights

    6

    • Net Profit for Q4 FY26 was INR 1,068 crores, reflecting a strong growth of approximately 44.7% over the Net Profit of INR 738 crores in Q4 FY25.

    • ROA for Q4 FY26 reached 1%, indicating improved operating performance.

    • Total Advances registered a growth of 11.1% year-on-year to INR 2.73 lakh crores, with Retail disbursements growing approximately 41% year-on-year in Q4 FY26.

    • Total Deposits increased 12.1% year-on-year to INR 3.18 lakh crores, and CASA balances grew 14.9% year-on-year to INR 1.12 lakh crores, with CASA ratio improving to 35.1%.

    • Gross NPA and Net NPA ratios stood at 1.3% and 0.2% respectively, the lowest ever in 24 quarters, and Provision Coverage Ratio remained healthy at 81.9%.

    • Cost-to-Income Ratio for FY26 improved significantly to 66.7% versus 71.3% in FY25, with an even lower exit rate of 63% for Q4 FY26.

    Concerns

    1

    • AT1 bonds case adverse judgment

    Key financials

    Metrics

    10

    Periods

    2

    Headline

    9
    • Net Profit
      ₹1,068 Cr
      YoY+44.7%
    • ROA
      1%
    • NII
      ₹2,638 Cr
      YoY+15.9%
    • NIM
      2.7%
      YoY+0.2%QoQ+0.1%
    • Total Advances Growth
      11.1%
      YoY+11.1%

    FY26

    1
    • Cost-to-Income Ratio
      66.7%

    Guidance & targets

    10
    CategoryTargetPriority
    Deposits
    RIDF and other mandated Deposits as % of Total Assets
    below 5%
    		High
    Advances Growth
    Overall Loan Book Growth
    14% to 15%
    		Medium
    Advances Growth
    Retail Loan Book Growth
    10% to 11%
    		Medium
    Advances Growth
    Corporate Book Growth
    20%
    		Medium
    Advances Growth
    Commercial Banking Growth
    18%
    		Medium
    RIDF Reduction
    RIDF Reduction Amount
    INR 6,500 crores to INR 9,000 crores
    		High
    Branch Expansion
    New Branches per annum
    around 80
    		High
    Profitability
    ROA Improvement from core construct
    25 to 30 basis points
    		Medium
    NIM
    NIM Range
    3.25% to 3.5%
    		Medium
    ARC Recoveries
    Recoveries from SRs
    INR 800 crores to INR 1,000 crores
    		High

    Overall Loan Book Growth

    next year (FY27)
    Current11.1% YoY
    Target14-15% range

    Why it matters

    To verify if the bank can achieve its stated growth acceleration in line with industry expectations.

    we should certainly aim to grow in line with the industry, if not more, and that ball broadly anchors around the 14% to 15% range.

    How to verify

    key_financials.metrics[label='Total Advances Growth']

    Risks & concerns

    2
    RiskSeverity

    West Asia war impact on MSME segment

    Manish Jain stated proactive monitoring, clients managing well, no stress signs, but will continue to watch due to potential inflation and second-order impacts. — Analyst acknowledged

    medium

    AT1 bonds case adverse judgment

    Management stated the matter is subjudice and reserved for judgment, refraining from commenting on potential impact until the Supreme Court verdict is out. — Analyst not addressed

    high

    Q&A highlights

    8

    “we should certainly aim to grow in line with the industry, if not more, and that ball broadly anchors around the 14% to 15% range... Retail Book next year is actually should hit the double-digit growth. So, let's say, about 10% to 11%... Corporate Book, that's already growing at about 20%... Commercial Banking... continues to also deliver about 18% growth.”

    Provides specific growth targets for overall loan book and key segments for the upcoming fiscal year.

    asked by Jayant Kharote

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 & FY26 Financial Performance Highlights

    Yes Bank delivered a strong Q4 FY26, with Net Profit growing 44.7% year-on-year to INR 1,068 crores, achieving a Return on Assets (ROA) of 1% for the quarter. For the full year FY26, Net Profit stood at INR 3,476 crores, up 44.5% over FY25, with an ROA of 0.8%. Net Interest Income (NII) for Q4 FY26 was INR 2,638 crores, marking a 15.9% year-on-year increase, while full-year NII grew 9.3% to INR 9,776 crores.

    02

    Asset Quality and Provisioning Strategy

    The bank's asset quality continued to strengthen, with Gross NPA at 1.3% and Net NPA at 0.2% as of March 31, 2026, representing the lowest levels in 24 quarters. The Provision Coverage Ratio (PCR) remained healthy at 81.9%. Gross slippage ratio improved to 1.8% for FY26 from 2.1% in FY25, with Retail Asset Slippages also declining to 3.5% from 4%. The bank made a prudent, proactive contingent provisioning of INR 341 crores in Q4, which management clarified was not due to an underlying credit issue but a conservative policy.

    03

    Deposit Franchise and CASA Growth

    Yes Bank achieved significant milestones in its deposit franchise, with Total Deposits crossing INR 3 lakh crores to reach INR 3.18 lakh crores, a 12.1% year-on-year growth. CASA balances also surpassed INR 1 lakh crores, growing 14.9% year-on-year to INR 1.12 lakh crores. The CASA ratio improved by 80 basis points year-on-year and 110 basis points quarter-on-quarter, reaching 35.1%, driven by strong retail and branch-led contributions.

    04

    Credit Growth and Segment Mix

    Total Advances grew 11.1% year-on-year to INR 2.73 lakh crores. Retail disbursements showed strong momentum, growing approximately 41% year-on-year in Q4 FY26. Management guided for overall loan book growth in the 14-15% range for the next year, with specific targets of 10-11% for Retail, 20% for Corporate, and 18% for Commercial Banking, indicating a balanced growth strategy across segments.

    05

    Efficiency and Cost Management

    The Cost-to-Income Ratio for FY26 saw a significant improvement to 66.7% from 71.3% in FY25. The exit rate for Q4 FY26 was even lower at 63%, compared to 66.1% in Q3 FY26 and 67.3% in Q4 FY25. This improvement was attributed to income growth outpacing expense growth, reflecting sustained expansion in operating jaws and a focus on productivity.

    06

    Outlook on Margins and ROA

    Net Interest Margin (NIM) improved by 10 basis points quarter-on-quarter and 20 basis points year-on-year to 2.7% in Q4 FY26. The bank aims to improve its core ROA by 25-30 basis points from its current construct over the next year or two, driven by higher margins, better cost structure, and increased fees. Management also expects NIM to reach a range of 3.25% to 3.5% over a 2-3 year period, significantly aided by the continued rundown of RIDF and other mandated deposits.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.