Yes Bank Q3 Results: Profit Jumps 55% to ₹952 Crore
In a significant milestone for its post-reconstruction journey, Yes Bank reported a stellar performance for the third quarter of FY2025-26. On Saturday, January 17, 2026, the private sector lender announced a 55.4% year-on-year (YoY) jump in standalone net profit, reaching ₹951.62 crore.
This surge in profitability, up from ₹612 crore in the same period last year, was driven by a combination of expanding margins, lower provisions, and robust growth in core interest income.
Financial Highlights: NII and Margins on the Rise
The bank’s core earnings engine remained strong during the December quarter. Net Interest Income (NII) grew by 10.8% YoY to ₹2,465 crore, compared to ₹2,223 crore in Q3 FY25.
A standout feature of this quarter was the expansion of Net Interest Margins (NIM). NIMs rose to 2.6%, up 10 basis points sequentially and 20 basis points YoY. CEO Prashant Kumar described the quarter as a “turning point,” noting that the bank’s Return on Assets (RoA) touched the critical 1.0% milestone (excluding one-time gratuity impacts) for the first time since its 2020 rescue.
Asset Quality and Deposit Momentum
Yes Bank continues to clean up its balance sheet with impressive discipline.
- Gross NPA: Edged down to 1.5% from 1.6% in the previous quarter.
- Net NPA: Remained stable at a record low of 0.3%.
- Provisions: Saw a sharp decline to just ₹21.89 crore, a massive drop from the ₹419 crore seen in Q2 FY25, which directly boosted the bottom line.
On the liability side, total deposits grew 5.5% YoY to ₹2.92 lakh crore. More importantly, CASA (Current Account Savings Account) deposits grew by 8.5%, pushing the CASA ratio to 34%. This indicates growing customer trust and provides the bank with a lower cost of funds compared to its mid-cap peers.
Should You Invest in Yes Bank Stock Now?
With the stock trading around ₹23.50, many investors are asking if this is the right time to enter. Here is the breakdown:
The Bull Case (Buy/Hold): The technical charts look promising. Analysts at SMC Global Securities and Kantilal Chaganlal Securities suggest that the stock has strong support at ₹21.40. If the stock breaks the resistance at ₹24.50, it could potentially target ₹28 in the near term. The “breakthrough” RoA of 1% is a major psychological trigger for institutional investors (FIIs), who have already been increasing their stakes.
The Bear Case (Caution): Despite the jump in profit, Yes Bank’s Return on Equity (RoE) remains around 5.4% to 6.7%, which is still lower than larger peers like ICICI or HDFC Bank. Some brokerages, such as Emkay Research, remain cautious, labeling the bank a “laggard” in terms of pure loan growth, which stood at a modest 5.2% YoY.
- For High-Risk Investors: It is a “Buy on Dips” play. The improving asset quality and the upcoming Supreme Court hearing on AT-1 bonds (February 5, 2026) could act as further catalysts.
- For Conservative Investors: Hold. Wait for the bank to show sustained loan growth above 10% before committing large capital.
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