Yes Bank reported a net profit of ₹1,071 crore for the first quarter of fiscal year 2027, marking a 33.7% increase year-on-year, according to the bank's earnings release on Wednesday. This figure also reflects a slight rise of 0.2% from the previous quarter. The bank's net interest margin (NIM) stood at 2.7%, up 20 basis points year-on-year, supported by a reduction in deposit costs and a decrease in Priority Sector Lending shortfall deposits.
Growth Metrics
The bank's advances grew by 18.3% year-on-year and 4.3% quarter-on-quarter, while deposits increased by 14.3% year-on-year. On an average quarterly balance basis, advances and deposits grew by 15.1% and 14.8% year-on-year, respectively. Retail asset disbursements saw a significant increase of 27.5% year-on-year. Vinay M. Tonse, Managing Director and CEO of Yes Bank, stated,
YES BANK has begun FY27 on a strong footing,
highlighting the bank's improved core earnings despite a decline in gains from security receipts and treasury operations.
Asset Quality Improvements
Yes Bank also reported a notable enhancement in asset quality, with the gross non-performing assets (GNPA) ratio decreasing to 1.3%, down 30 basis points year-on-year. The net non-performing assets (NNPA) ratio improved to 0.2%, a decline of 10 basis points year-on-year. The bank received upgrades from several rating agencies, including Moody's and S&P Global, reinforcing its financial stability.
Related coverage: Yes Bank Q1 profit rises 34% to Rs 1,071 crore.
The positive earnings report is likely to bolster investor confidence in Yes Bank, potentially leading to increased trading activity in bank stocks. The improved asset quality and growth metrics could also influence market perceptions of the banking sector as a whole. Investors will watch for further developments in the bank's strategy and performance in the upcoming quarters, particularly in retail lending and asset management.