YES Bank Q1 FY27 Results: PAT Rises 34% To ₹1,071 Crore As Asset Quality Improves

YES Bank reported its Q1 FY27 results on 18 July, posting a 33.7% year-on-year increase in net profit to ₹1,071 crore for the quarter ended 30 June 2026. Net interest income (NII) rose 17.5% to ₹2,786 crore, while operating profit grew 25.5% to ₹1,704 crore.

The quarter for the private sector lender also saw higher loan and deposit growth, an improvement in asset quality and multiple credit rating upgrades.

YES Bank share price ended 0.59% lower at ₹23.61 on the National Stock Exchange (NSE) on 17 July.

How Did YES Bank Perform In Q1 FY27?

Net profit for the June quarter came in at ₹1,071 crore, compared with ₹801 crore a year ago. On a sequential basis, profit remained largely unchanged from ₹1,068 crore reported in the March quarter.

Net interest income increased to ₹2,786 crore, up 17.5% year-on-year, supported by a lower cost of deposits and reduced balances of priority sector lending (PSL) shortfall deposits. Net interest margin (NIM) stood at 2.7%, compared with 2.5% in the corresponding quarter last year, while the cost of deposits declined to 5.4%, down 50 basis points year-on-year.

The bank generated ₹1,798 crore in non-interest income during the quarter, while core fee income grew 18.7% from a year earlier. Operating profit rose to ₹1,704 crore as operating expenses increased at a slower pace. The cost-to-income ratio dropped to 62.8% from 67.1% a year ago, reflecting tighter control over operating expenses. Return on assets stood at 0.9%, while return on equity was 8.3%.

What Drove Growth In YES Bank's Balance Sheet?

YES Bank continued to expand its lending book during the quarter. Net advances rose 18.3% year-on-year to ₹2.85 lakh crore, while total deposits increased 14.3% to ₹3.15 lakh crore. Retail asset disbursements maintained their momentum, growing 27.5% over the same period last year.

CASA deposits also increased 14.3% year-on-year to ₹1.03 lakh crore, although the CASA ratio eased marginally to 32.7%. Current account balances grew 23.2%, while savings account balances were up 8.2% from a year ago. Retail and branch-led deposits accounted for 59.2% of the bank's total deposits.

The credit-to-deposit ratio improved to 90.4% from 87.4% a year earlier. Capital and liquidity indicators remained broadly stable during the quarter. The average liquidity coverage ratio was 138.2%, while the CET-1 ratio stood at 14%.

How Did Asset Quality And Ratings Change?

Asset quality strengthened further during the June quarter. Gross non-performing assets (GNPA) declined to 1.3% from 1.6% a year earlier, while net NPA improved to 0.2% from 0.3%. Gross slippages fell to ₹964 crore from ₹1,458 crore in the year-ago period, and retail banking slippages dropped to their lowest level in the past 10 quarters at ₹843 crore. Net credit costs remained steady at 0.3% of average assets.

The bank also received a series of credit rating upgrades during the quarter. Moody's upgraded YES Bank to Ba1 from Ba2, CARE raised its long-term rating to AA+ from AA-, while ICRA upgraded its rating to AA from AA-. S&P Global assigned the bank its inaugural BB+ international rating.

On the sustainability front, YES Bank was included in the FTSE4Good Index for the fourth consecutive year and received the 'Most Sustainable Bank' award at Business Today – India's Most Sustainable Companies 2026.

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