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Yes Bank Q3 Results: Net Profit Surges 55.4% YoY To Rs 952 Crore, NII Rises 10.9%

Posted By: Preeti Dabar Posted On: Jan 18, 2026Share Article
Yes Bank Q3 Results
Yes Bank Q3 Results.

Yes Bank Q3 Results: Net Profit Surges 55.4% YoY To Rs 952 Crore, NII Rises 10.9%

Yes Bank Q3 Results: Private sector lender Yes Bank on Saturday reported a 55.4% year-on-year surge in its net profit to Rs 952 crore for the third quarter ended December 31, 2025. Its net interest income (NII), which is the difference between the interest earned and interest expended, rose 10.9% to Rs 2,466 crore.

Its net profit had stood at Rs 612 crore in the corresponding period last year, according to a regulatory filing.

Domestic loans of the Mumbai-based bank, in which Japan's Sumitomo Mitsui Banking Corporation bought a 24% stake last year, grew 5.2%, while deposits rose 5.5% in line with loan growth.

The deal marked one of the major overseas investments by a Japanese financial institution as they look to secure new sources of growth after years of rock-bottom interest rates at home.

The lender's asset quality remained stable with gross non-performing asset ratio at 1.5% at the end of December, compared with 1.6% at the end of September.

Profits jumped as the bank reduced provisions for bad loans and other contingencies by 91% to Rs 220 crore after a few quarters of building buffers on its balance sheet.

Yes Bank's operating profit for the quarter increased to ₹1,234 crore, marking a 14.3% rise year-on-year. After adjusting for the gratuity impact, operating profit climbed a sharper 28.7% to Rs 1,389 crore, indicating strong cost discipline even as headline operating expenses moved higher. On an adjusted basis, the cost-to-income ratio improved significantly to 66.1%, compared with 71.1% in the corresponding quarter last year.

The bank's profitability indicators also strengthened. Return on assets (RoA) improved to 0.9% from 0.6% a year earlier, while return on equity (RoE) rose to 7.7% from 5.2% in Q3 FY25. Excluding the gratuity impact, RoA reached 1.0% during the quarter, which management described as an important milestone since the bank's reconstruction.

Asset quality trends remained positive, with the gross non-performing assets (GNPA) ratio easing to 1.5% as of December 31, 2025, from 1.6% in both the previous quarter and the year-ago period. The net NPA ratio stood at 0.3%, unchanged sequentially and lower than 0.5% a year ago.

Provisioning also strengthened, with the provision coverage ratio (PCR) rising to 83.3%, compared with 71.2% in Q3 FY25 and 81% in the September quarter. Gross slippages declined to Rs 1,050 crore, or 1.6% of advances, the lowest level in eight quarters, while retail slippages dropped to their lowest point in seven quarters, reflecting improved credit quality.

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