Yes Bank Q4 FY26: Profit up 45%, NPAs at 1.3%

Results snapshot: profitability strengthens in Q4

Yes Bank reported a year-on-year rise of 44.7% in net profit for the quarter ended March 31, 2026, to ₹1,068 crore, according to an exchange filing after the board meeting on April 18, 2026. The bank said the quarter benefited from stronger core lending income, a lower cost of funds, and reduced credit costs. Net interest income (NII) rose 15.9% year-on-year to ₹2,638 crore in Q4. Net interest margin (NIM) improved to 2.7%, showing a modest expansion alongside a better deposit mix. Operating profit for Q4 came in at ₹1,618 crore, up 23.1% year-on-year.

Full-year FY26: profit growth extends beyond one quarter

For FY26, the bank reported net profit of ₹3,476 crore, up 44.5% over FY25. In its audited results, Yes Bank reported standalone net profit of ₹3,475.59 crore for the year ended March 31, 2026, compared with ₹2,405.86 crore a year earlier. Total income for FY26 was reported at ₹36,928.17 crore. Operating profit for FY26 stood at ₹5,506.39 crore. The bank also reported FY26 net interest income of ₹9,776 crore and non-interest income of ₹6,759 crore.

Margins and the path to a 3% NIM

Management commentary during the earnings call pointed to incremental drivers for margin expansion. The bank’s NIM in Q4 was 2.7%, still below the stated 3% level that investors often track for sustained profitability. On the call, the bank said it expects a reduction in RIDF of about ₹6,500 crore to ₹9,000 crore by end-March 2027, which should support margins. It also said the year-on-year impact of the RIDF rundown is expected to be minimal. Alongside this, deposit mix improvement was visible in the quarter through higher low-cost balances and a steady CASA ratio.

Deposits and CASA: low-cost funding shows traction

Yes Bank reported total deposits of ₹3,18,969 crore, up 12.1% year-on-year. A key operating milestone highlighted in the update was CASA deposits crossing ₹1 lakh crore. CASA balances grew 14.9% year-on-year, and the CASA ratio improved by 80 basis points to 35.1%. The bank’s commentary linked this stability in CASA to support for margins. It also said CASA growth has been around 11% year-on-year, and the bank aims to maintain momentum through balanced growth across retail, commercial, and wholesale segments.

Advances and business mix: retail disbursements lead growth

Total advances rose 11.1% year-on-year to ₹2.73 lakh crore. The bank said growth was supported by momentum across segments, with retail disbursements up 41% year-on-year in Q4 FY26. On the earnings call, the bank indicated it is targeting industry-like growth of 14% to 15% next year. It also said it is aiming for 10% to 11% growth in the retail book next year, while noting corporate book growth of about 20% and commercial banking growth of 18%. The bank added that it plans to maintain a similar mix composition going forward.

Asset quality: best levels in 24 quarters, but watch retail slippages

Asset quality metrics improved further, with gross NPA and net NPA ratios reported at 1.3% and 0.2%, respectively, described as the lowest levels in the last 24 quarters. The bank also reported gross NPA at 1.3% as of March 31, 2026, down from 1.6% in the previous fiscal year, with net NPA at 0.2%. Credit costs were reported at 0.17% for Q4, and 0.2% for FY26 versus 0.3% last year, according to the earnings call remarks. At the same time, the bank flagged that retail slippages, though improving, remain at 2.93%. This keeps retail credit quality as an area investors are likely to track quarter to quarter.

Costs, provisioning and capital position

The bank’s cost-to-income ratio was cited at 66.7% despite improvement, remaining relatively high. In operational actions during the quarter, Yes Bank made a one-time standard asset provision of ₹341 crore, which it said reflected conservative provisioning rather than any underlying credit issue. The audited results also highlighted a capital adequacy ratio of 15.3% under Basel III. In additional commentary from a podcast-style breakdown included in the provided material, Q4 included a reported gain from security receipts of ₹446 crore, described as recoveries from older stressed exposures, while also noting that the operating “jaws” showed income growth outpacing expense growth.

Market reaction: share price up marginally after results

Market data in the provided material showed Yes Bank shares at ₹20.27, up 0.40% on April 20, 2026. The muted move alongside strong profit growth was framed as investor focus on the durability of margin improvement and the pace of balance sheet expansion. Return ratios for the quarter were reported at return on assets (ROA) of 1.0% and return on equity (ROE) of 8.4%. On the earnings call, the bank said it aims to sustain and improve the 1% ROA achieved in FY26, with an expected 25 to 30 basis points improvement in core ROA through better margins, cost structure, and fee income, along with benefits from JC Flower ARC write-backs.

Key risks flagged: ATI 81 bond case and geopolitical uncertainty

The bank noted uncertainty around the outcome of the ATI 81 bonds case, which could impact the balance sheet. It also referenced geopolitical risks, including the West Asia war, as a potential headwind for MSME and larger client segments. These risks sit alongside the execution challenge of pushing NIM closer to 3% while maintaining asset quality gains. For investors, the key near-term watchpoints remain the trajectory of retail slippages, the sustainability of lower credit costs, and the bank’s progress on operating efficiency.

Key numbers table

Conclusion: steady improvement, with execution still in focus

Yes Bank’s FY26 and Q4 FY26 numbers show a continued recovery in profitability, improved asset quality, and stronger deposit traction, especially in CASA. The quarter’s profit growth was supported by higher NII, slightly better margins, and lower credit costs. The main open questions remain how quickly NIM moves higher from 2.7%, whether retail slippages keep moderating from 2.93%, and the eventual outcome of the ATI 81 bonds case. Management has guided to loan growth broadly in line with the industry and highlighted the expected RIDF reduction by March 2027 as a margin support factor. The next few quarters will provide clearer evidence on whether operating efficiency and core ROA expansion remain on track.