Q3 2026 Yes Bank Ltd Earnings Call Transcript
Key Points
- Yes Bank Ltd (BOM:532648) reported a strong net profit of INR952 crore for Q3 FY26, marking a 55% year-over-year growth and a 45% increase quarter-on-quarter.
- The bank's annualized Return on Assets (ROA) improved to 0.9% from 0.6% in the previous quarter, with a target of achieving 1% ROA by the end of FY26.
- Pre-provisioning operating profit, adjusted for gratuity impact, increased by 28.7% year-over-year, driven by a 9.7% growth in total income.
- Yes Bank Ltd (BOM:532648) maintained a strong focus on cost optimization, resulting in one of the lowest operating expense growth rates among peers.
- The bank's asset quality improved significantly, with gross NPAs reducing to 1.5% and a provision coverage ratio increasing to 83.3%.
- The bank's advances growth of 5.2% year-over-year lagged behind the system growth, particularly in the Retail and Corporate & Institutional Banking segments.
- Yes Bank Ltd (BOM:532648) faced challenges in growing its CASA (Current Account Savings Account) balances meaningfully over the past few quarters.
- The bank's retail disbursements were slightly down quarter-on-quarter, despite improvements in asset quality.
- There was a significant impact of INR155 crore on net profit due to incremental gratuity provision under the new labor codes.
- The bank's growth in certain retail segments, such as home loans and new car loans, was deliberately deprioritized due to unattractive risk-adjusted returns.
Ladies and gentlemen, good day, and welcome to Yes Bank's Q3 FY26 earnings conference call. On the management panel, we have with us today Mr. Prashant Kumar, Managing Director and Chief Executive Officer; Dr. Rajan Pental, Executive Director; Mr. Manish Jain, Executive Director; Mr. Niranjan Banodkar, Chief Financial Officer; and Mr. Sunil Parnami, Head of Investor Relations and Sustainability.
Mr. Prashant Kumar will now give you an overview of the results, which will be followed by a question-and-answer session. (Operator Instructions) Please note that this conference is being recorded.
Before we further proceed with this call, please note, while all efforts will be made that no unpublished price-sensitive information would get shared, in case of an inadvertent disclosure, the same would, in any case, form part of the recording of the call. Further, some of the statements made on today's call could be forward-looking in nature. A note to this effect is provided in the Q3 FY26 results presentation itself shared on the bank's website.
I now hand the conference over to Mr.
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