YES Bank Q1FY26: Profit jumps 59% to ₹801 crore

What YES Bank reported for Q1FY26

YES Bank’s Q1FY26 updates put the private lender in focus after it reported a sharp year-on-year rise in profitability, alongside mixed trends in key balance-sheet indicators. The bank reported standalone profit after tax (PAT) of ₹801 crore for the June quarter of FY26, up 59% year-on-year from ₹502 crore. The performance was supported by improvements in both net interest income (NII) and non-interest income, as flagged in multiple reports cited in the update.

Alongside the profit numbers, YES Bank’s operational data on loans, advances, and deposits also drew attention, with some reports indicating stronger growth and others pointing to softer sequential movements. This mix matters for investors because the bank is still being tracked closely for improvements in core profitability, funding profile, and asset-quality stability.

Profit rises on higher core and non-core income

For Q1FY26, YES Bank reported NII of ₹2,371 crore, a 5.7% year-on-year increase, aided by a reduction in the cost of funds. On a sequential basis, NII was reported to have risen 4.2%. The bank’s non-interest income was reported at ₹1,752 crore, up 46.1% year-on-year, with the update highlighting improved treasury income as a key driver.

A separate data point in the provided text also says operating profit increased 53.4% year-on-year to ₹1,358 crore. Another note adds that core income rose 3% over the same period, and that retail banking contributed 56.4% to the bank’s core fee income. Taken together, these figures point to a quarter where the bank’s earnings were not solely driven by interest income, but also by a strong contribution from other income.

Net interest margin improves to 2.5%

YES Bank’s net interest margin (NIM) for Q1FY26 stood at 2.5%. The text also states that NIM grew by 10 basis points year-on-year to 2.5%. A higher NIM typically indicates either better asset yields, a lower funding cost, or a combination of both, and the update explicitly links the improvement to a fall in the cost of funds.

The quarter also saw total interest income reported at ₹7,596 crore, down 1.6% year-on-year from ₹7,719 crore. Interest expenses declined 4.6% year-on-year to ₹5,224.41 crore from ₹5,475 crore, aligning with the commentary around easing funding costs.

Treasury swing supports other income

The update states that treasury income swung to a gain of ₹484 crore from a loss of ₹32 crore in the year-ago period. This swing is also cited as a reason for the sharp rise in other income, which was reported up 46% to ₹1,752 crore.

This is important context because markets often separate sustainable core earnings from more variable treasury and trading gains. In YES Bank’s case, the text links the quarter’s profit rise to a combination of improved NII and higher non-interest income, including treasury performance.

Business update: loans and advances show mixed readings

The provided text includes more than one set of operational numbers for loans and advances.

One exchange update in Hindi states that YES Bank’s loans and advances rose 18.6% year-on-year. It reports total loans and advances at ₹2,85,788 crore as of 30 June 2026, compared with ₹2,41,024 crore as of 30 June 2025. The same section adds that loans and advances were up 4.6% quarter-on-quarter.

However, another snippet in the same input says YES Bank’s loans and advances for the June 2025 quarter (Q1FY26) increased 5.1% year-on-year to ₹2,41,355 crore from ₹2,29,565 crore, but fell 2% quarter-on-quarter from ₹2,46,188 crore.

Given the mixed figures in the supplied text, the clear takeaway is that the bank’s quarterly operational update was read as mixed by the market, even as the profit print was strong.

Deposits: yearly growth, slight sequential dip

On deposits, the Hindi section reports that total deposits rose 11.3% year-on-year to ₹3,08,397 crore as of 30 June 2026, compared with ₹2,75,843 crore in the year-ago period. It also states deposits fell 1.1% quarter-on-quarter.

Another set of figures in the text says total deposits rose 13.5% year-on-year to ₹2,19,369 crore, while net advances were reported at ₹2,00,204 crore with 7.4% year-on-year growth. As with the advances data, the deposit figures appear in multiple forms in the provided input, and the market commentary described the operational update as mixed.

Asset quality and slippages: stable ratios, higher gross slippages

On asset quality, the update states that gross NPA (GNPA) remained stable at 1.6%, flat sequentially and slightly lower than 1.7% in the same quarter last year. Net NPA (NNPA) was reported unchanged sequentially at 0.3%. This aligns with the broader statement in the text that asset quality remained stable, with improvements in GNPA and NNPA ratios on a year-on-year basis.

At the same time, gross slippages were reported at ₹1,458 crore during the quarter, up from ₹1,223 crore in the preceding three months. The same note adds that two business accounts that slipped are likely to return to performing status soon.

Provisions and cost efficiency signals

The supplied text includes two different references on provisions. One line says provisions for the quarter more than doubled year-on-year to ₹360 crore. Another line states provisions in Q1FY26 declined to ₹284 crore from ₹317 crore quarter-on-quarter.

On cost efficiency, one update states that the cost-to-income ratio reduced to 67.1% from 74.3% in Q1 FY25. It also adds that adjusted for PSLC expenses, operating expenses rose 5.7% year-on-year and 1.3% sequentially.

Stock reaction and trading levels cited

Following the results, the stock reaction described in the text was mixed across different references. One note says YES Bank shares edged lower after the operational update showed mixed trends. Another says shares gained over 2% in early trade and rallied as much as 2.13% to ₹20.60 on the BSE. One reference also states that shares closed flat at ₹20.17 on the BSE.

Key numbers at a glance

What investors are likely to track next

The figures in the supplied text indicate that investors are likely to focus on the sustainability of earnings drivers, especially the share of treasury-led gains in other income, alongside core NII momentum. Asset-quality stability remains a key monitorable, particularly with gross slippages rising sequentially even as GNPA and NNPA ratios stayed steady.

Separately, the text notes a brokerage action where Emkay Global revised up FY26E EPS estimates by 5% and increased its YES Bank share price target by 6% to ₹17 from ₹16, after factoring in the Q1 beat.

Conclusion

YES Bank’s Q1FY26 updates show a sharp year-on-year profit rise to ₹801 crore, supported by higher NII and a strong jump in non-interest income led by treasury gains. At the same time, multiple operational data points on advances and deposits were described as mixed, while asset-quality ratios were reported stable. The next set of disclosures on balance-sheet trends, slippages, and provisioning will remain central to how the market interprets the durability of the quarter’s performance.