Yes Bank Delivers Solid Q2 With 18% Profit Surge And Stable Asset Quality

Image Source: The Financial Express

Yes Bank reported a net profit of ₹654 crore for Q2 FY26, marking an 18% year-on-year growth. The bank’s net interest income rose 4.6% while asset quality remained steady. Strong pre-provision operating profit and lower interest expenses contributed to the improved performance, signaling continued recovery momentum.

Profit climbs despite macro challenges

Yes Bank has posted a robust Q2 FY26 performance, with net profit rising 18.4% YoY to ₹654.5 crore, up from ₹553 crore in the same quarter last year. The growth was driven by higher other income, improved operational efficiency, and lower interest expenses. However, on a sequential basis, profit dipped 18.3% from ₹801 crore in Q1 FY26, reflecting seasonal adjustments and provisioning dynamics.

The bank’s pre-provision operating profit (PPOP) jumped 32.9% YoY to ₹1,296.5 crore, showcasing strong core profitability. Net interest income (NII) grew 4.6% to ₹2,300.88 crore, supported by stable loan yields and disciplined cost management.

Asset quality remains resilient

Yes Bank’s asset quality metrics remained largely stable, reinforcing its post-restructuring recovery. Gross non-performing assets (GNPA) stood at 2.1%, while net NPAs were contained at 0.9%, indicating prudent credit risk practices. The bank continues to focus on retail and MSME lending, with a cautious approach to corporate exposure.

Management reiterated its commitment to maintaining a healthy balance sheet and improving return ratios through digital expansion and operational streamlining.

Key highlights from Q2 FY26 results

- Net profit rose 18.4% YoY to ₹654.5 crore
- Net interest income increased 4.6% to ₹2,300.88 crore
- Pre-provision operating profit surged 32.9% YoY to ₹1,296.5 crore
- Gross NPA at 2.1%, Net NPA at 0.9%
- Sequential profit decline of 18.3% from Q1 FY26
- Focus remains on retail, MSME, and digital lending
- Operating expenses moderated, aiding profitability
- Asset quality stable despite macroeconomic headwinds
- Management optimistic about sustained recovery trajectory

Investor outlook and strategic direction

Yes Bank’s Q2 results reflect its steady progress in rebuilding profitability and trust. With stable asset quality and improving margins, the bank is well-positioned to capitalize on credit demand in the coming quarters. Investors will be watching for further updates on growth strategy and digital initiatives.

Sources: Livemint, Fortune India, CNBC TV18