Yes Bank Q1 Results: Net Profit Jumps 34% to ₹1,071 Crore, NII Rises 17.5%, Asset Quality Improves

Yes Bank Ltd. reported a strong performance for the first quarter of FY27, with standalone net profit rising 33.7% year-on-year (YoY) to ₹1,070.99 crore for the quarter ended June 30, 2026. The private sector lender also posted healthy growth in Net Interest Income (NII), improved Net Interest Margin (NIM), and continued strengthening of its asset quality, reflecting steady progress in its turnaround strategy.

The bank's earnings were supported by higher interest income, lower funding costs, and continued improvement in loan quality. Gross and net non-performing asset (NPA) ratios declined further during the quarter, while operating profit recorded robust double-digit growth.

Key Highlights

Particulars	Q1 FY27	Q1 FY26	YoY Change
Net Profit	₹1,070.99 crore	₹801 crore	+33.7%
Net Interest Income (NII)	₹2,786.46 crore	₹2,371 crore	+17.5%
Operating Profit	₹1,704 crore	₹1,358 crore*	+25.5%
Non-Interest Income	₹1,798 crore	₹1,752 crore*	+2.6%
Net Interest Margin (NIM)	2.7%	2.5%	+20 bps

*Previous-year values are derived from the reported growth percentages.

Profit Growth Driven by Strong Core Banking Performance

Yes Bank reported a standalone net profit of ₹1,070.99 crore, marking a 33.7% increase over ₹801 crore reported in the corresponding quarter last year. The improvement was primarily driven by higher core operating income, better margins, and continued moderation in credit costs.

The results indicate sustained improvement in the bank's profitability as it continues to focus on retail lending, corporate banking, and operational efficiency while maintaining prudent risk management.

Net Interest Income and Margins Improve

The bank's Net Interest Income (NII) increased 17.5% YoY to ₹2,786.46 crore, compared with ₹2,371 crore in Q1 FY26.

Meanwhile, Net Interest Margin (NIM) expanded to 2.7% from 2.5% a year ago. According to the bank, the margin improvement was supported by a lower cost of deposits and a reduction in balances related to Priority Sector Lending (PSL) shortfall deposits.

Core Income Metrics	Q1 FY27	Q1 FY26
Net Interest Income	₹2,786.46 crore	₹2,371 crore
Net Interest Margin	2.7%	2.5%

Asset Quality Continues to Improve

Yes Bank continued to strengthen its balance sheet during the quarter, with both gross and net non-performing asset ratios declining year-on-year.

The Gross NPA (GNPA) ratio improved to 1.3%, down from 1.6% in the year-ago period, while the Net NPA (NNPA) ratio declined to 0.2% from 0.3%.

Asset Quality	Q1 FY27	Q1 FY26
Gross NPA Ratio	1.3%	1.6%
Net NPA Ratio	0.2%	0.3%

The improvement reflects continued recoveries, disciplined underwriting, and effective management of stressed assets.

Operating Performance Remains Strong

Operating profit rose 25.5% YoY to ₹1,704 crore, highlighting stronger business momentum and improved operating efficiency.

The bank also reported non-interest income of ₹1,798 crore, registering a 2.6% YoY increase, supported by fee income and other treasury-related earnings.

Operating Performance	Q1 FY27	YoY Growth
Operating Profit	₹1,704 crore	+25.5%
Non-Interest Income	₹1,798 crore	+2.6%

What Drove Yes Bank's Q1 Performance?

Several factors contributed to the bank's improved quarterly performance:

Growth Driver	Impact
Higher Net Interest Income	Improved core earnings
Better Net Interest Margin	Lower funding costs
Improved Asset Quality	Lower stressed assets
Strong Operating Profit	Better operating efficiency
Stable Fee Income	Supported overall profitability

The combination of improving margins and healthier asset quality indicates continued progress in the bank's long-term transformation.

Market Impact

The strong quarterly performance reinforces investor confidence in Yes Bank's ongoing turnaround. The lender has steadily improved profitability, reduced bad loans, and strengthened its balance sheet over recent quarters.

Shares of Yes Bank ended Friday's trading session at ₹23.61, down 0.59% for the day. However, the stock has gained 9.5% in 2026, outperforming the Nifty 50, which has declined 6.9% during the same period.

Stock Performance	Details
Closing Price (July 17)	₹23.61
Daily Change	-0.59%
2026 Return	+9.5%
Nifty 50 Return (2026)	-6.9%

Outlook

Yes Bank's Q1 FY27 results reflect continued operational improvement, supported by higher core income, improving margins, and better asset quality. Going forward, investors will monitor loan growth, deposit mobilisation, margin sustainability, and further reduction in stressed assets as key indicators of the bank's long-term growth trajectory.

Management's ability to maintain profitability while expanding its retail and corporate lending franchise will remain a crucial factor for future performance.

1. What was Yes Bank's net profit in Q1 FY27?

Yes Bank reported a standalone net profit of ₹1,070.99 crore, up 33.7% year-on-year.

2. How much did Net Interest Income (NII) grow?

Net Interest Income increased 17.5% YoY to ₹2,786.46 crore during Q1 FY27.

3. What was Yes Bank's Net Interest Margin (NIM)?

The bank's Net Interest Margin improved to 2.7%, compared with 2.5% in Q1 FY26.

4. How did Yes Bank's asset quality improve?

The Gross NPA ratio declined to 1.3%, while the Net NPA ratio improved to 0.2%, indicating healthier asset quality.

5. How has Yes Bank's stock performed in 2026?

Yes Bank shares have gained 9.5% in 2026, outperforming the Nifty 50, which has declined 6.9% during the same period.