Yes Bank, which posted a 63.3% year-on-year rise in net profit to Rs 738.12 crore in the quarter ended March 2025, is looking to grow its loan book by 12-15% for FY26, depending on the macroeconomic conditions. Retail business loans are projected to grow 10–12%. 

The private sector lender is expecting deposits to grow slightly higher than loans while the credit-to-deposit (CD) ratio should fall to 85% from the current 86%.

In a bid to boost profitability, the bank has decided to reduce interest rates on savings accounts by up to 4% depending on balances. The call was taken during the Liability Committee Meeting (LCO) held on 17 April a week after the Reserve Bank of India cut the benchmark repo rate by 25 basis points to 6%. The change will be effective 21 April. 

Yes Bank will offer 3% interest rate on savings accounts with balances up to Rs 10 lakh; 3.5% on balances between Rs 10 lakh and Rs 25 lakh; 4% for accounts between Rs 25 lakh and Rs 50 lakh; and 5% for balances above Rs 50 lakh. The bank was earlier offering an interest rate of 7% on savings balances above Rs 10 lakh. 

The bank will shift towards higher-yielding retail products such as loans against property, affordable home loans and used car loans. Lower-yield segments like prime home and new car loans will be scaled back.

The bank’s focus on retail assets have made it grow from 36% of the portfolio in FY20 to 60% today even as 270 new branches have opened over the last four years. The plan is to add another 400 branches in the next five years.

Financial Results

Yes Bank posted fiscal fourth-quarter net profit of Rs 738.12 crore, up 63.3% from the year-ago period, amid higher interest income and lower provisions.

The private sector bank's net interest income rose 5.7% year-on-year to Rs 2,276.3 crore in the quarter ended March 2025, while non-interest income was up 10.9% to Rs 1,739 crore.

Net interest margin (NIM) for the March quarter was 2.5% compared to 2.4% in the same period a year ago. NIM for FY25 was at 2.4%.

Provisions dropped 32.5% YoY to Rs 318.07 crore in the quarter ended 31 March 2025, from Rs 471 crore a year ago.

The lender's non-performing assets (NPAs) ratio stayed flat sequentially at 1.60%. But in the same period a year ago, it stood higher by 10 basis pints at 1.70%.

The net NPA ratio was down by 30 basis points to 0.30% as of 31 March 2025, from 0.50% in the preceding quarter. In the year-ago quarter, net NPA was at 0.60%.

 “Gross Slippages for Q4FY25 was at Rs 1,223 crore (2.0% of advances) compared to Rs 1,348 crore (2.2% of advances) in Q3FY25,” the bank said.

Fresh fresh slippages in retail stood at Rs 1,115 crore, out of which Rs 780 crore came from retail assets, Rs 56 crore from rural, Rs 93 crore from MSME and Rs 184 crore from the credit card portfolio. 

The bank’s loan book grew 8.1% YoY to Rs 2.46 lakh crore.  The retail portfolio shrank 3.4% to Rs 1.01 lakh crore, even as SME and mid-corporate lending grew more than 20%.

Deposits rose 6.8% to Rs 2.84 lakh crore. The share of current and savings account deposits in total deposit was 34.3% as on 31 March 2025, compared to 30.9% a year ago.

For the full financial year FY25, the bank posted a net profit of Rs 24,058.6 crore, leaping from Rs 12,510.8 crore a year ago.