YES Bank Q3 results: Asset Quality And Credit Costs At YES bank
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Negligible net credit costs during the quarter
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Slippage ratio at an eight-quarter low of 1.6% of advances
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Continued redemptions from the security receipts portfolio
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Gross NPA declined 10 bps YoY and QoQ to 1.5%
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Net NPA fell 20 bps YoY and remained flat QoQ at 0.3%
Net Interest Income And Margin Expansion
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NII rose 10.9% YoY and 7.2% QoQ to ₹2,466 crore
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NIM improved to 2.6%, up 20 bps YoY and 10 bps QoQ
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Margin expansion driven by lower high-cost deposits and repricing benefits
Low-Cost Deposits Fuel YES Bank’s Turnaround Momentum
The deposit story of YES Bank is gradually gaining the attention it deserves. The CASA ratio in Q3FY26 reached 34%, up from 33.1% a year ago and 33.7% in the preceding quarter, quite an achievement given tight liquidity and intense competition among banks. Management says the steady build-up of CASA has played a key role in lowering deposit costs, giving the bank an edge over peers. But this raises a crucial question for investors: has YES Bank finally cracked the code to attracting low-cost funds? The improvement in margins alongside strengthening deposits suggests the bank’s recovery may indeed be gaining sustainable momentum, backed by solid numbers rather than hope alone.
YES Bank CEO Signals a Turning Point as Profitability and RoA Hit Key Milestones
Management of YES Bank has a clear picture that the situation has changed for the better. MD & CEO Prashant Kumar described the third quarter of FY26 as a “breakthrough quarter” and attributed the success to an excellent combination of quick profitability, improved asset quality, increasing business volumes, and the bank leading the industry in CASA growth. The striking fact? The bank’s RoA for the quarter (excluding the gratuity effect) reached 1.0%, a level not seen since its restructuring and a long-awaited milestone for investors. Higher NIMs, strong fee income, and strict cost control were the main factors. So, is it just a one-quarter marvel or the beginning of a long-lasting return? Kumar appears confident that the momentum is genuine, and the figures are starting to support this.