Mumbai, India – YES Bank Ltd. has announced a significant surge in its first-quarter net profit for the fiscal year 2027, climbing 32.54% year-on-year to Rs 1,071.80 crore. This marks an increase from Rs 808.65 crore reported in the corresponding quarter of the previous year.
The private sector lender also saw its net interest income (NII) rise by 17.5% year-on-year and 5.6% quarter-on-quarter, reaching Rs 2,786 crore. Net interest margin (NIM) improved by 20 basis points year-on-year to 2.7%.
CEO Highlights Robust Performance and Future Focus
Managing Director & CEO Vinay M Tonse commented on the results, stating, "YES Bank began FY27 on a strong footing, delivering higher core earnings despite a sharp decline in gains from security receipts and treasury operations. This reflects the strengthening of the bank's underlying franchise."
Tonse further emphasized the bank's operational improvements:
"Margins held steady at 2.7 per cent, cost-to-income improved further, and asset quality strengthened as slippages eased. We also earned meaningful external validation this quarter through rating upgrades from Moody's, CARE and ICRA, along with our inaugural international rating from S&P Global."
He added that the bank's growth was broad-based, primarily driven by sustained momentum in retail disbursements. Looking ahead, the focus remains on deepening the core franchise, sustaining profitability, and building a resilient institution for long-term stakeholder value.
Asset Quality and Deposit Growth Show Strength
YES Bank's asset quality saw notable improvements. The gross non-performing asset (GNPA) ratio improved by 30 basis points year-on-year to 1.3% in Q1 FY27, remaining flat quarter-on-quarter. The provision coverage ratio (PCR) also increased to 81.7% from 80.2% year-on-year.
Gross slippages declined significantly to Rs 964 crore (1.4% of advances) from Rs 1,458 crore (2.4% of advances) in the same quarter last year. Retail banking slippages reached a 10-quarter low of Rs 843 crore. Recoveries and upgrades for the quarter stood at Rs 564 crore.
In terms of deposit growth, total deposits grew 14.3% year-on-year to Rs 3,15,373 crore. CASA (Current Account Savings Account) deposits also increased by 14.3% year-on-year to Rs 1,03,233 crore, with the CASA average quarterly balance rising 15% year-on-year. The CASA ratio stood at 32.7%.
Return on assets (RoA) improved to 0.9% from 0.8% year-on-year, while return on equity (RoE) rose to 8.3% from 6.6% year-on-year.