Yes Bank Q2 net profit rises 18% to ₹654 cr on higher non-interest income

Private sector lender Yes Bank posted 18.3 per cent year-on-year (Y-o-Y) growth in net profit to Rs 654 crore in the July-September quarter of FY26 (Q2FY26), supported by growth in non-interest income. 

However, the net profit was down from Rs 801 crore recorded in Q1FY26. 

The non-interest income of the bank rose by nearly 17 per cent to Rs 1644 crore in Q2FY26. While, the net interest income (NII), the difference between interest earned and interest expended, grew by 4.6 per cent Y-o-Y to Rs 2,301 crore. The operating profit of the lender was up 32.9 per cent Y-o-Y to Rs 1,296 crore.

 

 

The net interest margin of the bank was up 10 basis points (bps) to 2.50 per cent from 2.4 per cent in Q2FY25. Going forward, the bank expects margin to improve. 

 

The provisions of the bank saw 47.5 per cent Y-o-Y rise to Rs 419 crore in the quarter. Sequentially, it was up 41.07 per cent from Rs 284 crore in Q1FY26. According to the management of the bank, the provisions in the quarter have increased because the bank received lesser write-backs than the previous quarter.

 

The net advances of the lender was up 6.4 per cent Y-o-Y and 3.8 per cent Quarter-on-Quarter (QoQ) to Rs 2.50 trillion at the end of September 30, 2025. The retail advances grew by 2.4 per cent Y-o-Y, while corporate advances grew by 16.5 per cent to Rs 1.21 trillion and Rs 62,430 crore respectively.

 

“Our loan growth is impacted because of calibrated calls. Our mid-corporate and the SMEs are growing around 20 per cent, we are seeing a good pipeline on the large corporate and we would be seeing a growth on the large corporate in the range of 7-8 per cent overall. We have started seeing traction in retail as well. Taking into account all these fields in the segment where we are seeing a good traction, we are hopeful of reaching double-digit (credit) growth,” Prashant Kumar, MD & CEO, Yes Bank said in a post earnings media call.

 

On the retail side, the bank has seen nearly 20 per cent growth in advances and expects to see a better performance in the retail segment in the second half of the year.

 

The deposits of the bank were up 6.9 per cent Y-o-Y and 7.4 per cent sequentially to Rs 2.96 trillion as on September 30, 2025. The low cost – Current Account and Savings Account (CASA) deposits was up 12.5 per cent Y-o-Y to Rs 99,708 crore.

 

The CASA ratio improved to 33.7 per cent as against 32 per cent at the end of September 30, 2024.

 

The asset quality of the lender was stable with Gross Non-Performing Assets Ratio (GNPA) flat at 1.60 per cent as of September 30, 2025 compared to June 30, 2025. The Net NPA Ratio was also flat at 0.30 per cent as of September 30, 2025 compared to the end of 0.30 per cent at the end of June 30, 2025.