YES Bank Q3 PAT up 55% on lower provisions, stable NII growth

In August, the Reserve Bank of India (RBI) gave Prashant Kumar a 6-month extension to continue as YES Bank CEO
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AINNIE ARIF

YES Bank announced a quarterly net profit of ₹952 crore for the December quarter, marking a 55% increase compared to the same period last year and a 45% rise from the previous quarter. This performance was supported by reduced provisions and growth in core income.

Provisions plummeted 92% year-over-year to ₹22 crore during the quarter. Net interest income climbed 11% to ₹2,466 crore, while other income rose 8% to ₹1,633 crore. The net interest margin improved to 2.6%, up from 2.5% in Q2.

MD & CEO Prashant Kumar attributed the reduced provisioning needs to a lower slippage ratio of 1.6% in Q3FY26, down from 2.2% a year earlier. “Our recoveries and upgrades have strengthened, resulting in a credit cost of just ₹22 crore after security receipt recoveries,” Kumar stated, noting the bank’s provision coverage ratio now exceeds 83%.

The CEO confirmed discussions with regulators regarding leadership succession plans but declined to comment on his own tenure extension status. The Reserve Bank of India had granted Kumar a six-month extension in August.

Core business

The bank’s loan book grew 5% year-over-year to ₹2.57 lakh crore, with deposits increasing 6% to ₹2.92 lakh crore. Kumar projected 8% credit growth for FY26, expecting deposits to outpace loan expansion.

Asset quality showed improvement as retail loan slippages hit a seven-quarter low of ₹1,026 crore. Collection efficiency strengthened across unsecured products including personal loans and credit cards.

Gross NPAs declined to 1.5% while net NPAs improved to 0.3% as of December 2025.

Published on January 17, 2026