What Led to Yes Bank's Q2 Net Profit Decline of 18%?
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Synopsis
In a surprising turn of events, Yes Bank reported a significant decline in its net profit for Q2 FY26, dropping 18% from the previous quarter. However, when compared year-on-year, the bank showed promising growth. What factors contributed to this mixed performance? Explore the detailed insights within.
Key Takeaways
- Net profit for Q2 FY26 decreased by 18% QoQ.
- Total income fell by 3% to Rs 9,023.15 crore.
- Year-on-year profit growth stood at 18%.
- 43 new branches opened in FY26.
- SMBC now holds a 24.2% stake.
Mumbai, Oct 18 (NationPress) Yes Bank's net profit for the second quarter of the financial year 2025-26 (Q2 FY26) was reported at Rs 654.47 crore, reflecting a decrease of 18 percent quarter-on-quarter (QoQ) from Rs 801.07 crore during the April-June period (Q1 FY26), according to an announcement made on Saturday.
The private lender also noted a 3 percent decline in total income QoQ, which amounted to Rs 9,023.15 crore, compared to Rs 9,348.11 crore in the preceding quarter.
In contrast, the bank's net profit for the July-September timeframe showed an impressive 18 percent increase year-on-year (YoY), rising from Rs 553.04 crore in Q2 FY25.
Additionally, the total expenditure for this quarter reached Rs 7,726.6 crore, down over 3 percent from Rs 7,990.07 crore in Q1 FY26.
According to Yes Bank's exchange filing, non-interest income (NII) for the quarter was Rs 1,644 crore, reflecting a 16.9 percent increase (YoY), while operating profit was reported at Rs 1,296 crore.
As of September 30, total deposits were at Rs 2.96 lakh crore, with advances surpassing Rs 2.5 lakh crore.
The bank highlighted that India Ratings and CRISIL upgraded its long-term rating to AA- from A in August, revising the outlook to 'Stable.'
So far in FY26, Yes Bank has launched 43 new branches. The bank also reported that SMBC has become the largest shareholder with a 24.2 percent stake, while SBI retains a significant shareholding of over 10 percent.
“The Bank delivered robust performance across crucial operational metrics during Q2FY26. The momentum in deposit growth has been sustained, outpacing industry averages, particularly in CASA deposits. Disbursements have seen healthy sequential growth, notably around 20 percent QoQ growth in the Retail segment,” stated Prashant Kumar, Managing Director and CEO of Yes Bank.
Asset quality has also improved during the quarter, witnessing a reduction in fresh slippages and overdue balances alongside an enhancement in the provision coverage ratio, he added.
Point of View
Yes Bank's mixed financial results reflect both challenges and opportunities. The decline in quarterly profits raises concerns about the bank's current operational efficiency. However, the year-on-year growth and improved asset quality suggest a resilient strategy in a fluctuating market. Such dynamics underscore the importance of continuous monitoring in the banking sector.
NationPress
18/10/2025
Frequently Asked Questions
What was Yes Bank's net profit for Q2 FY26?
Yes Bank's net profit for Q2 FY26 was reported at Rs 654.47 crore, down 18% QoQ.
How did Yes Bank's total income change in Q2 FY26?
The total income for Q2 FY26 saw a 3% decline, totaling Rs 9,023.15 crore.
What year-on-year growth did Yes Bank experience?
Yes Bank's net profit increased by 18% YoY compared to Q2 FY25.
What improvements did Yes Bank report in asset quality?
Yes Bank reported a decline in fresh slippages and overdue balances, along with an improved provision coverage ratio.
Who is the largest shareholder of Yes Bank?
SMBC has become the largest shareholder of Yes Bank with a 24.2% stake.
