In August, the Reserve Bank of India (RBI) gave Prashant Kumar a 6-month extension to continue as YES Bank CEO
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AINNIE ARIF
Private sector lender YES Bank on Saturday reported 55 per cent year-on-year (y-o-y) and 45 per cent quarter-on-quarter (q-o-q) rise in net profit for the quarter ended December at ₹952 crore, largely led by lower provisions and growth in net interest income (NII).
The bank made provisions amounting to ₹22 crore in Q3FY26, 92 per cent lower than same period last year and 95 per cent lower than previous quarter.Net interest income (NII) grew 11 per cent y-o-y to ₹2,466 crore, while other income was up 8 per cent at ₹1,633 crore in the reporting quarter. Other income includes fees from third party services, recoveries, treasury gains, among others. Net interest margin (NIM), meanwhile, improved to 2.6 per cent in Q3 from 2.5 per cent last quarter.
Prashant Kumar, MD & CEO, YES Bank, said the bank’s slippage ratio has moderated sharply to 1.6 per cent in Q3FY26 from 2.2 per cent a year ago, lowering the need for fastened provisions.
“Whatever has been the fresh additions (slippages), we have able to upgrade and recover. After taking into account the recoveries which have come from security receipts, the credit cost is only ₹22 crore…Our provision coverage ratio (PCR) is more than 83 per cent versus 71 per cent last year. There has been a huge increase and if you compare with other banks, it would be at par or better than peers. We believe this level of PCR will help us migrate to ECL without any issue,” he said.
He added that the bank is engaging with the regulator on succession plans for the CEO position, without divulging details on whether Kumar will continue as the bank chief. In August, the Reserve Bank of India (RBI) gave Kumar a 6-month extension to continue as YES Bank CEO.
Core business
YES Bank’s overall advances rose 5 per cent y-o-y to ₹2.57 lakh crore as on December end, while deposits grew 6 per cent on-year to ₹2.92 lakh crore. The bank plans to grow advances by 8 per cent in current fiscal, and deposits will grow at a faster pace than credit, Kumar said.
Asset quality improved, with retail loan fresh slippages falling to 7-quarter low of ₹1,026 crore in Q3. The bank is seeing improved collection trends in unsecured loan segments including personal loans and credit cards, Kumar said.
Overall, gross and net non-performing asset ratio of the bank improved to 1.5 per cent and 0.3 per cent in Q3FY26, respectively, from 1.6 per cent and 0.5 per cent in Q3FY25.
Published on January 17, 2026
