Yes Bank Share: Does Its 45% Profit Growth in Q4 Signal a ‘Buy’ for Investors?

Synopsis:- Strong quarterly momentum with 16% NII growth and improving margins contrasts with slight asset quality pressure, as GNPA improved to 1.3% and PCR stood at 81.8%. Despite stable advances, growth and deposits rising nearly 19%, cautious brokerage outlook signals limited upside.

The shares of the prominent Indian private sector bank will be in focus following its strong Q4FY26 performance, where robust business momentum and growth in advances contributed to improving asset quality.

With a market capitalisation of Rs 63,230.21 crore, the shares of Yes Bank Ltd were trading at Rs 20.06 per share, decreasing around 0.69 percent as compared to the previous closing price of Rs 20.20 apiece

Q4FY26 Highlights

Yes Bank Ltd delivered a steady improvement in its core earnings during Q4FY26, as Net Interest Income rose 16% YoY from Rs 2,276 crore to Rs 2,638 crore. Sequentially, NII grew 7% from Rs 2,466 crore, indicating stable loan growth and better margins. This consistent rise reflects improving operating momentum and strengthening core banking performance.

Moreover, profitability saw a sharper expansion, with net profit jumping 45% YoY from Rs 745 crore to Rs 1,082 crore, while rising 13% QoQ from Rs 957 crore. For FY26, NII increased 9% to Rs 9,776 crore, and profit surged 43% to Rs 3,512 crore, highlighting improved efficiency, lower stress, and stronger overall financial health.

Moreover, Asset quality remained broadly stable, with GNPA improved slightly to 1.3% in Q4FY26 vs 1.5% in Q3FY26, while NNPA stood at 0.2% vs 0.3% QoQ. Meanwhile, PCR moderated to 81.8% (vs 79.7% YoY and 83.3% QoQ), indicating lower provisioning buffers. Credit cost remained stable at 0.2% QoQ, though higher than 0.3% YoY, reflecting controlled risk recognition.

Furthermore, Net advances rose to ₹2,73,445 crore, up 11.1% YoY and 6.2% QoQ, led by retail growth of 44.7%. C/D ratio improved to 88.0%. Total deposits increased 18.6% YoY to ₹3,18,969 crore, with CASA at ₹1,11,959 crore (14.9% YoY). CASA ratio stood at 34.0%. Asset quality strengthened, with GNPA at 1.19% and credit costs at 0.26%.

Brokerage Views

Morgan Stanley maintains an underweight stance on Yes Bank with a ₹15 target, despite stable core performance. While NIM and balance sheet growth showed improvement, profitability was impacted by one-off provisions. Moreover, valuation concerns persist, suggesting limited upside, even as operational metrics indicate gradual strengthening in the bank’s overall financial position.

Yes Bank Ltd is a prominent private sector bank in India, offering a wide range of banking and financial services across retail, MSME, and corporate segments. The bank has undergone a significant turnaround in recent years, focusing on improving asset quality, strengthening governance, and driving sustainable growth through digital and customer-centric initiatives.

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