Mumbai: YES Bank on Friday posted a robust set of numbers for the third quarter ended December 31, 2025, signalling steady progress in its post-reconstruction recovery. The private sector lender’s net profit rose 55.4% year-on-year to ₹952 crore and 45.4% sequentially, supported by a sharp reduction in provisioning and a continued improvement in operating efficiency.
Net interest income grew 10.9% year-on-year to ₹2,466 crore, while net interest margin expanded to 2.6%, up 20 basis points from a year earlier, helped by a decline in cost of deposits and lower reliance on high-cost borrowings. Non-interest income increased 8% to ₹1,633 crore, driven by steady growth in core fee income and card-related revenues.
Asset quality continued to improve, with the gross NPA ratio declining to 1.5% from 1.6% in the previous quarter, while net NPAs remained stable at 0.3%. Slippages fell to 1.6% of advances, the lowest level in eight quarters, and provision coverage ratio improved to 83.3%. Net credit costs for the quarter were negligible, reflecting recoveries and upgrades, including gains from security receipts.
On the balance sheet front, net advances rose 5.2% year-on-year to ₹2.57 lakh crore, led by commercial banking, corporate loans and credit cards. Total deposits grew 5.5% to ₹2.93 lakh crore, with CASA deposits rising 8.5% year-on-year. The CASA ratio improved to 34%, underscoring the bank’s focus on granular, retail-led funding.
Operating efficiency also improved, with the cost-to-income ratio (adjusted for gratuity impact) declining to 66.1% from 71.1% a year ago. Return on assets stood at 0.9% for the quarter and reached 1% when adjusted for one-off gratuity expenses—marking the first time the bank has hit this level since its reconstruction. Capital adequacy remained comfortable, with CET-1 ratio at 13.9%.
Commenting on the results, managing director and CEO Prashant Kumar said the quarter marked a “breakthrough” for the bank, driven by improving profitability, better asset quality and strong CASA performance. He added that accelerating retail disbursements and tighter control on costs should support growth and returns in the coming quarters.
The bank was also included in the Nifty Bank index effective December 31, 2025, a milestone reflecting improved investor confidence and balance sheet stability.