Yes Bank Q3: Profits show sharp jump, asset quality improves, margins improve

News Topical, Digital Desk : Yes Bank has announced its December quarter results. The bank reported a sharp increase in profits, driven by an increase in NPAs and improved margins. A decrease in the provision burden also supported profits. Furthermore, asset quality improved. The bank's net NPA ratio remained stable at low levels, while gross NPAs declined. Both net and gross NPAs decreased in value. The bank's credit costs also declined sharply during the quarter. Ahead of the results, Yes Bank shares closed with gains of over 2% on Friday. Yes Bank's net profit increased 55.4% year-on-year to ₹951.6 crore, compared to ₹612.3 crore in the same period last year. The bank's net interest income (NII) also increased by 11% to ₹2,465.6 crore, compared to ₹2,223.5 crore a year ago. Net interest income is the difference between the interest paid by a bank on deposits and the interest earned on loans disbursed. Asset quality has improved. The bank's net NPAs remained stable at 0.3% on a quarter-on-quarter basis. Gross NPAs declined to 1.5%, down from 1.6% in the previous quarter. Gross NPAs, when measured in value, stood at ₹4,014.6 crore, down from ₹4,055.3 crore in the previous quarter. Net NPAs also declined to ₹671.2 crore from ₹770.8 crore previously. 

Business performance: According to the bank, non-interest income increased 8% year-on-year to ₹1,633 crore. This increase was primarily driven by strong core fee income, which grew nearly 10% compared to a year ago. Operating profit for the quarter was ₹1,234 crore, representing a 14.3% year-on-year increase. The quarter also saw a sharp decline in provisions, with non-tax provisions falling to ₹22 crore, compared to ₹259 crore in the same period a year ago and ₹419 crore in Q2 FY26. According to the bank, net credit costs remained significantly lower during the quarter. The provision coverage ratio increased to 83.3% in the quarter, compared to 71.2% last year. 

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