YES Bank Q4 FY26 profit jumps 45%, target to Rs 21

What YES Bank reported for the March 2026 quarter

YES Bank Ltd posted a sharp year-on-year improvement in profitability for the quarter ended March 31, 2026 (March 2026 quarter). In its stock exchange filing, the private sector lender reported a 44.7% YoY rise in standalone net profit. Profit after tax came in at Rs 1,068.42 crore, compared with Rs 738.12 crore in the same quarter last year. The numbers were released amid continued investor focus on the pace of the bank’s operational recovery and asset quality trajectory. Beyond the headline profit, brokerages closely tracked funding trends, margin movement, and early-stress indicators in the retail book. The latest quarter also carried a provisioning item that influenced how analysts assessed underlying performance.

ICICI Securities keeps ‘Hold’ after results

Following the earnings announcement, ICICI Securities maintained a ‘Hold’ rating on YES Bank. The brokerage said reported profit was broadly in line with its estimates. However, it added that the quarter looked “significantly ahead” on an adjusted basis when accounting for contingent provisions of Rs 340 crore made during the period. This adjustment matters because it can change how investors interpret the bank’s core earning power versus one-off or prudential buffers. At the same time, ICICI Securities signalled it is still waiting for clearer progress in some underlying operating metrics before turning more constructive.

What stood out positively: NIM, CASA and growth acceleration

ICICI Securities highlighted an “uptick in NIM and CASA, growth acceleration and improved retail slippages / SMA loans” as key positives. The bank’s net interest margin was reported at 2.7%, showing improvement on both a quarterly and annual basis as per the provided data. Funding trends were also supportive, with deposits up 9% QoQ and 12% YoY. The brokerage pointed out that CASA growth outpaced overall deposits, rising 12.5% QoQ. Within CASA, current account (CA) growth was especially strong at 28% QoQ, while savings account (SA) growth was softer at 1.6% QoQ. These details are closely monitored because they influence the bank’s cost of funds and the durability of margin expansion.

RIDF drag and the margin outlook embedded by the brokerage

ICICI Securities also cited “receding RIDF drag” while building in a sharp NIM rise for FY27/28E. Separately, the provided text notes that RIDF is expected to be less than 5% of the bank’s assets by FY27. While the article context does not quantify the quarter-on-quarter RIDF change, the direction of the commentary indicates a lesser drag on earnings from lower-yielding deployment. In bank models, a sustained improvement in NIM typically requires both better asset yields and stable funding costs. A faster expansion in low-cost CASA can support the funding side, but execution across loan mix and credit costs remains critical for translating margin improvement into durable profitability.

Where caution remains: retail slippages and SR recovery tailwinds

Despite the improvements cited, ICICI Securities said retail slippages remain elevated at around 2.8% levels. It also said it sees reduced tailwinds from SR recovery in FY27. These points help explain why the brokerage stayed with a ‘Hold’ despite strong headline profit growth. Elevated slippages can lead to higher credit costs, which can offset operating gains from better margins or stronger deposit traction. Meanwhile, softer tailwinds from SR recovery imply that investors may need to depend more on core banking earnings rather than recoveries to support profit growth. The brokerage framed the near-term stance around the need to see more progress in core profitability and risk metrics.

What ICICI Securities wants to see next

ICICI Securities said it would “await more progress on core PPOP levels and core credit costs.” This is a direct signal that the next re-rating, if any, is linked to operating profit sustainability and the cost of risk. The brokerage also laid out a clear risk framework: upside risk could come from a strong recovery in the SR portfolio, while downside risk could come from a rise in slippages. For investors, this sets the decision lens around whether current profitability is driven more by recurring operating strength or helped by factors that may not repeat.

Target price revisions and how they were valued

ICICI Securities revised its target price down to Rs 21 from Rs 24. It said the target is based on about 1.1x FY28E ABV, compared with about 1.2x earlier. A lower multiple and lower target, even with a ‘Hold’ rating, typically indicates that the brokerage sees limited upside in the current risk-reward, or that it wants more evidence before paying up for future earnings. Meanwhile, JM Financial has a ‘Sell’ rating on YES Bank with a target price of Rs 17 per share, valuing the bank at 0.9x FY28 P/BV. The two targets illustrate a spread in views, but both anchor valuation to FY28 estimates cited in the provided material.

Stock price reaction on the day

On the trading day referenced, YES Bank was quoted as 0.20% higher at Rs 19.89 on the BSE, compared with its previous close of Rs 19.85. The modest move suggests the market may have been weighing the strong profit print against the cautious tone on slippages and the target cut. In such situations, investors often look beyond the reported profit to assess whether margins, funding and credit costs are improving in a way that can be sustained. Brokerage actions, especially target revisions, can also influence near-term sentiment around expected upside.

Key reported metrics at a glance

Why the quarter matters for investors tracking YES Bank

The March 2026 quarter reinforces that YES Bank’s reported profitability has improved sharply on a year-on-year basis. At the same time, analyst commentary shows the market is still focused on the quality of earnings, especially whether credit costs and slippages trend down meaningfully. Funding strength, visible in deposit and CASA growth, is a positive because it can support margins and reduce reliance on costlier sources of funds. But valuation remains sensitive to evidence that the bank’s operating profit and risk costs are stabilising at levels that can deliver consistent returns. For now, the key near-term watchpoints flagged in the provided material remain core PPOP progression, core credit costs, and the direction of retail slippages.

Conclusion

YES Bank’s March 2026 quarter delivered strong YoY profit growth to Rs 1,068.42 crore, supported by positive signals on NIM and CASA traction. Still, ICICI Securities retained a ‘Hold’ and cut its target to Rs 21, citing the need for further improvement in core PPOP and credit costs amid elevated retail slippages. JM Financial remained more cautious with a ‘Sell’ and a Rs 17 target. The next set of updates investors are likely to track will be progress on slippages, the sustainability of margin improvement, and whether operating profit and credit costs move in the direction brokerages are waiting for.