YES Bank Q3FY26 results: Profit jumps 55% as provisions for bad loans fall

Indian private lender YES Bank reported a sharp jump in its third-quarter profit ‍on Saturday, helped by ​a drop in provisions for bad loans and other contingencies.

The Mumbai-based bank, in which Japan's Sumitomo Mitsui Banking Corporation bought a 24 per cent stake last year, posted a standalone net profit of ₹952 crore ($104.87 million) for the three months ended ​December, a 55 per cent increase compared with ₹612 crore a year earlier.

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.

 

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

YES Bank's net interest income rose 10.8 per cent to ₹2,465 crore compared with ₹2,223 crore, as domestic loans grew 5.2 per cent. ‌Deposits rose 5.5 per cent in line with loan ​growth.

YES Bank's net interest margin, a key measure of a bank's profitability, rose to 2.6 per cent from 2.5 per cent in the previous quarter, as deposit costs started to drop as a ‍result of India's central bank reducing key interest rates by 125 basis points since February 2025.

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