Yes Bank managing director and CEO Prashant Kumar said the worst is over for the lender’s squeeze on net interest margins even as it posted a 18.3% rise in net profit to Rs 654.5 crore in the September quarter.

The expansion from the year-ago period’s net profit of Rs 553.04 crore was aided by higher other income, which climbed 16.9% year-on-year to Rs 1,644 crore during the quarter ended September 2025.

NII and NIM

The private sector lender’s net interest income (NII) grew 4.5% to Rs 2,300.88 crore in the fiscal second-quarter, compared with Rs 2,200.44 crore a year ago.

Net Interest Margin (NIM) stood at 2.5%, up 10 basis points (bps) year-on-year but flattish quarter-on-quarter.

Asset quality

The bank’s asset quality remained stable, with gross non-performing assets (NPA) staying unchanged sequentially at 1.6% and net NPA at 0.3%.

Provisions during Q2FY26 were at Rs 419 crore, up 41% YoY, largely due to the impact of a corporate account's resolution.

Fresh slippages stood at Rs 1,248 crore in the September quarter, down from Rs 1,458 crore in the quarter-ago period.

Loan growth

The bank’s loan book crossed the milestone of Rs 2.5 lakh crore, growing 6.4% YoY and 3.8% QoQ. Retail disbursement was up 19.8% QoQ.

Deposits

Total Deposits stood at Rs 2.96 lakh crore as of 30 September 2025, up 6.9% YoY and 7.4% QoQ.

The low-cost CASA (current account savings account) ratio improved by 170 bps YoY and 90 bps QoQ to 33.7% as of 30 September 2025.