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YES Bank net profit rose 18.4% YoY to ₹654 crore in Q2 FY26.
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Net Interest Income (NII) grew 4.6% YoY to ₹2,300 crore.
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Asset quality improved, with Net NPA falling to 0.3% and Gross NPA stable at 1.6%.
YES Bank Q2 Earnings: Strong Profit Growth in July–September Quarter
YES Bank Q2 earnings reveal a solid performance for the private sector lender for the quarter ending September 30, 2025.
The bank reported a net profit of ₹654 crore, marking an 18.4% increase year-on-year (YoY) from ₹553 crore in Q2 FY25.
This growth demonstrates the bank’s ability to expand core operations while managing risks, highlighting its resilience in a competitive banking environment.
YES Bank Net Profit Supported by Rising NII
YES Bank net profit was underpinned by a steady increase in Net Interest Income (NII), which is a key measure of banking profitability.
NII grew 4.6% YoY, rising to ₹2,300 crore from ₹2,200 crore a year earlier.
The growth in NII shows that YES Bank is successfully earning more from its lending activities despite modest pressure on total interest earned, which slightly dipped to ₹7,378.84 crore from ₹7,730.49 crore YoY.
YES Bank Q2 Earnings: Operating Profit Jumps Significantly
YES Bank Q2 earnings also reflect strong operational efficiency, with operating profit before provisions and contingencies rising to ₹1,296.50 crore, compared to ₹975.27 crore in the previous year’s quarter.
This significant jump of over 32% demonstrates better cost management and higher revenue generation, emphasizing the bank’s focus on improving core profitability.
YES Bank Net Profit Enhanced by Improved Asset Quality
YES Bank net profit was further strengthened by improvements in asset quality.
The bank’s Net NPA ratio fell to 0.3% of net advances, down from 0.5% in the same quarter last year, while the Gross NPA ratio remained stable at 1.6% YoY.
These figures highlight the bank’s disciplined credit risk management and effective recovery processes, reassuring investors of long-term stability.
YES Bank Q2 Earnings: Provisions and Contingencies Rise
YES Bank Q2 earnings saw provisions (excluding tax) and contingencies rise to ₹418.95 crore from ₹297.10 crore in Q2 FY25.
While provisions increased, the bank maintained a healthy buffer against potential loan losses, reflecting a prudent approach to risk management.
Analysts note that maintaining adequate provisions is crucial for ensuring sustainable profitability and financial stability.
YES Bank Net Profit Strengthened by Strategic Investment
YES Bank net profit was also supported by a strategic investment from Sumitomo Mitsui Banking Corporation (SMBC).
SMBC acquired a 20% stake in YES Bank on September 17, 2025, and later increased it by 4.22%, bringing the total holding to 24.22%.
This investment not only boosts capital adequacy but also reinforces investor confidence in YES Bank’s growth trajectory and corporate governance.
YES Bank Q2 Earnings: Focus on Core Growth and Digital Banking
YES Bank Q2 earnings underline the bank’s focus on expanding core business and digital banking initiatives.
The bank continues to strengthen its retail and corporate lending portfolios, improve fee-based income, and enhance digital channels for customer convenience.
These efforts are expected to support sustainable revenue growth while maintaining strong asset quality and profitability.
YES Bank Net Profit Outlook and Market Implications
YES Bank net profit performance is likely to influence market sentiment positively.
With steady NII growth, improved asset quality, and operational efficiency, the bank is well-positioned for long-term earnings stability.
Investors are closely watching how YES Bank leverages strategic partnerships, manages provisions, and expands digital banking, as these factors will drive future profitability and share performance.
Final Takeaway: YES Bank Q2 Earnings Signal Strong Performance
In summary, YES Bank Q2 earnings demonstrate a resilient private sector bank showing solid growth in net profit, NII, and asset quality.
Key highlights include:-
Net profit up 18.4% YoY to ₹654 crore
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Net NPA reduced to 0.3%, Gross NPA stable at 1.6%
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Operating profit before provisions increased over 32%
These results underscore YES Bank’s strong fundamentals, disciplined risk management, and strategic investor support, making it an attractive option for investors seeking stable banking stocks with growth potential.
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