Yes Bank Ltd.1% ROA Achieved, 14-15% Growth Ahead

Yes Bank delivered a strong Q4 FY26, achieving its 1% ROA exit target with net profit surging 44.7% year-on-year to ₹1,068 crore.

For the full year FY26, net profit jumped 44.5% to ₹3,476 crore, supported by robust operating performance and asset quality improvement. The bank reported 24-quarter best asset quality metrics with GNPA at 1.3% and NNPA at 0.2%, placing it in the top quartile among peers. Net interest margin expanded to 2.7% in Q4, up 20 basis points year-on-year despite competitive pressures, while cost-to-income ratio improved to 63% exit rate from 67.3% a year ago.

Management guided for a strategic shift to industry-level loan growth of 14-15% in FY27, marking acceleration from the calibrated approach. The bank outlined a clear roadmap to achieve 3.25-3.5% NIM structurally over the next two to three years through RIDF rundown, deposit cost reduction, and retail mix improvement. Total deposits crossed ₹3 lakh crore, while CASA balances surpassed ₹1 lakh crore with a 35.1% ratio. Management expressed confidence in sustainable core profitability improvement targeting 25-50 basis points ROA expansion.