Net interest margin (NIM) improved to 2.70 per cent from 2.50 per cent in Q4FY25 | Photo Credit: th-online Administrator

YES Bank reported a 45 per cent year-on-year (y-o-y) jump in fourth quarter (Q4FY26) standalone net profit at ₹1,068 crore against ₹738 crore on the back of healthy growth in net interest income and decline in loan loss provisions even as it showed further improvement in asset quality.

Net interest income (difference between interest earned and interest expended) rose 16 per cent y-o-y to ₹2,638 crore ( ₹2,276 crore in Q4FY25).

Non-Interest Income, including fee-based income, treasury income and recovery in written-off accounts, declined a shade to ₹1,730 crore from ₹1,739 crore in the year ago quarter.

Loan loss provisions declined about 41 per cent y-o-y to ₹188 crore ( ₹318 crore).

In his first media interaction after taking over as MD & CEO on April 6, 2026, Vinay Tonse observed that the bank operates on a stronger base with resilient asset quality, a more granular franchise, a strengthened deposit engine, and renewed stakeholder confidence supported by strong shareholders such as Japan’s Sumitomo Mitsui Banking Corporation (SMBC), continuing support from State Bank of India and Advent International.

“Our ongoing collaboration with SMBC provides helpful strategic support, particularly in corporate and cross-border banking,” he said.

Net interest margin (NIM) improved to 2.70 per cent from 2.50 per cent in Q4FY25.

Tonse said the improvement in NIM was driven by front-loaded repricing of deposits, which benefited the Bank through the year, continued traction in CASA (current account, savings account) deposits, and also reduction in high-cost borrowings and RIDF (Rural Infrastructure Development Fund)-related mandated deposits.

Asset quality continued to strengthen, with gross NPAs (non-performing assets) and net NPAs declining to 1.3 per cent (from 1.5 per cent as on December-end 2025) and 0.2 per cent (0.3 per cent), respectively. Provision CoveragevRatio was at 81.9 per cent.

“These (asset quality ratios) are the best levels in the last 24 quarters, supported by disciplined underwriting, improved collections, and lower slippages across product segments,” Tonse said.

Recoveries and upgrades for FY26 were ₹4,795 crore, including ₹1,547 crore on security receipts (SRs). The Bank remains on track to deliver the SR recoveries of ₹800 to 1,000 crore in FY27.

YES Bank’s new chief said total advances grew 11.1 per cent year-on-year to ₹2.73 lakh crore, supported by strong momentum in retail disbursements, which grew 41 per cent year-on-year in Q4.

Further, total deposits crossed the ₹3 lakh crore milestone, with CASA balances crossing the milestone of ₹1 lakh crore. CASA grew 14.9 per cent year-on-year, and the CASA ratio improved to 35.1 per cent, (34.3 per cent in Q4FY25)

Published on April 18, 2026