YES Bank posts 32.5% rise in Q1 profit to Rs 1,071 cr
Private lender YES Bank on Saturday reported a 32.54 per cent rise in consolidated net profit to Rs 1,071.80 crore in the June quarter, aided by growth in the core net interest income.
In the year-ago period, net profit of the bank stood at Rs 808.65 crore. However, on a sequential basis, net profit fell 0.96 per cent.
The core net interest income of the bank increased 17.5 per cent year-on-year to Rs 2,786 crore, from Rs 2,371 crore.
Net interest margins of the bank improved to 2.70 per cent in the June 2026 quarter, from 2.5 per cent in the year-ago period. It remained stable on a sequential basis.
Managing Director and Chief Executive Officer Vinay M Tonse said margins are expected to improve over the medium term as Rural Infrastructure Development Fund (RIDF) balances are expected to come down further and retail credit has picked up.
“The RIDF balance is run down, which are currently at about Rs 27,000 crore. As we look to exit March 2027, that’s likely to become more like Rs 21,000 crore of RIDF. So, that will certainly add to margins. With retail growth coming back, we do expect that that should also start supporting margins,” Tonse said during the post-earnings conference call.
In the reporting quarter, total deposits of the bank increased 14.3 per cent year-on-year to Rs 3.15 lakh crore from Rs 2.76 lakh crore in the year-ago period. However, it fell 1.1 per cent on a sequential basis.
Low-cost current and savings account (CASA) deposits ratio of the lender stood at 32.7 per cent, as compared to 32.8 per cent in Q1 FY26 and 35.1 per cent in Q4 FY26.
“On a daily average balance basis, CASA has remained stable with around 15 per cent growth, even though the end-period CASA ratio declined sequentially,” Tonse said.
The bank said it has deployed Rs 6.59 crore of the Rs 7.45 crore raised, towards clean transportation in the 2025-26 financial year.
On the FCNR - B deposits front, the bank said inflows are well above its normal market share, though it declined to disclose figures.
Most demand has come from the Middle East, with some interest from eastern markets, Tonse said.
“Existing limits for the leveraged FCNR offering have been fully utilised and the bank is awaiting higher limits due to industry-wide demand. We have started offering 9x leverage and could review the limit in the coming weeks depending on market demand,” Tonse added.
The central bank had introduced the special FCNR-B window during the June monetary policy committee (MPC) meeting, including bearing the cost of currency hedging, to increase foreign capital inflows and bolster India’s external position.
The net advances of the bank in the reporting quarter rose 18.3 per cent year-on-year to Rs 2.85 lakh crore, driven by acceleration across business segments, release said.
Within net advances, corporate and institutional banking advances surged 41.4 per cent year-on-year to Rs 88,228 crore in Q1, FY27, from Rs 62,390 crore in Q1, FY26. This was followed by 16.9 per cent year-on-year growth in commercial banking advances to Rs 69,743 crore.
“The quarter’s corporate growth was driven mainly by the bank’s own product capabilities rather than its partnership with SMBC,” Tonse said.
In the reporting quarter, the asset quality of the bank also improved, with gross non-performing asset (NPA) ratio at 1.3 per cent in Q1FY27, as compared to 1.6 per cent in Q1FY26 and 1.3 per cent in Q4FY26.
Similarly, net NPA ratio was at 0.2 per cent in the reporting quarter, as compared to 0.3 per cent a year ago and 0.2 per cent a quarter earlier.
The lender’s NPA Provision Coverage Ratio (PCR) was at 81.7 per cent in the June quarter, as against 81.9 per cent in March 2026 quarter, and 80.2 per cent in June 2025 quarter, reflecting healthy provision levels.
Retail slippages stood at 2.7 per cent of retail advances -- the lowest in 10 quarters; with improvement visible across most of the products.
Recoveries & upgrades for Q1, FY27 at Rs 564 crore, including P&L gain from security receipts of Rs 86 crore for Q1, FY27.
