Yes Bank Share Price Posts Best Weekly Gain in 2 Years; Should You Buy?

YES Bank share price gained over 2 per cent on Thursday, extending its weekly rally to more than 13 per cent. With this up-move, the stock touched a fresh four-month high and recorded its strongest weekly gain in over two years.

The stock has been in focus after YES Bank announced its Q4FY26 and FY26 results, which showed a steady improvement in profitability, margins, balance sheet growth and asset quality. The stock has witnessed a positive crossover as the 20-DMA has crossed over the 50-DMA. 

Here are the key reasons why YES Bank share price is in focus:

YES Bank reported a strong performance for the quarter and year ended March 31, 2026, supported by higher profitability, improved margins, steady balance sheet growth, stronger CASA deposits and better asset quality.

For Q4FY26, the bank’s net profit crossed the Rs 1,000 crore mark and stood at Rs 1,068 crore, rising 44.7 per cent YoY and 12.3 per cent QoQ. For FY26, net profit came in at Rs 3,476 crore, up 44.5 per cent from Rs 2,406 crore in FY25.

YES Bank Q4FY26 Profitability Improves

The bank’s net interest income for Q4FY26 stood at Rs 2,638 crore, increasing 15.9 per cent YoY and 7.0 per cent QoQ. For the full year FY26, net interest income rose 9.3 per cent to Rs 9,776 crore from Rs 8,944 crore in FY25.

Net interest margin (NIM) also improved during the period. In Q4FY26, NIM stood at 2.7 per cent compared with 2.5 per cent in Q4FY25 and 2.6 per cent in Q3FY26. For FY26, NIM improved to 2.6 per cent from 2.4 per cent in FY25. The bank said this was aided by lower cost of deposits and a reduction in balances of PSL shortfall deposits. Cost of deposits for Q4FY26 stood at 5.5 per cent, lower by 60 basis points YoY and 10 basis points QoQ.

Operating Profit and Cost Efficiency Support Earnings

YES Bank’s operating profit for Q4FY26 stood at Rs 1,618 crore, up 23.1 per cent YoY and 31.2 per cent QoQ. For FY26, operating profit increased 29.4 per cent to Rs 5,506 crore from Rs 4,254 crore in FY25.

The bank also reported better operating efficiency. Its cost-to-income ratio improved to 63 per cent in Q4FY26 compared with 67.3 per cent in Q4FY25 and 66.1 per cent in Q3FY26. For FY26, the cost-to-income ratio improved to 66.7 per cent from 71.3 per cent in FY25. Operating expenses for Q4FY26 stood at Rs 2,750 crore, up only 1.8 per cent YoY and down 4 per cent QoQ. For FY26, operating expenses rose 4.6 per cent to Rs 11,029 crore.

Non-Interest Income Shows Sequential Growth

Non-interest income for Q4FY26 stood at Rs 1,730 crore, up 6 per cent QoQ, though it was marginally lower by 0.5 per cent YoY. For FY26, non-interest income grew 15.4 per cent to Rs 6,759 crore from Rs 5,857 crore in FY25.

Total net income for Q4FY26 was Rs 4,368 crore, registering growth of 8.8 per cent YoY and 6.6 per cent quarter-on-quarter. For FY26, total net income increased 11.7 per cent to Rs 16,535 crore.

Balance Sheet Growth Led by Advances and Deposits

YES Bank’s advances stood at Rs 2,73,445 crore as of March 31, 2026, growing 11.1 per cent YoY and 6.2 per cent QoQ. Growth was broad-based across segments, with Corporate and Institutional Banking advances rising 19.7 per cent YoY, Commercial Banking advances growing 14.5 per cent and Retail Banking advances increasing 4.7 per cent.

Deposits crossed the Rs 3 lakh crore milestone and stood at Rs 3,18,969 crore, up 12.1 per cent YoY and 9 per cent QoQ. CASA deposits also crossed Rs 1 lakh crore during the quarter and stood at Rs 1,11,959 crore, growing 14.9 per cent YoY. The CASA ratio improved to 35.1 per cent from 34.3 per cent in Q4FY25 and 34.0 per cent in Q3FY26.

Asset Quality Improves Further

Asset quality showed a clear improvement during the quarter. Gross NPA ratio stood at 1.3 per cent in Q4FY26, down 30 basis points year-on-year and 20 basis points quarter-on-quarter. Net NPA ratio improved to 0.2 per cent, down 10 basis points both YoY and QoQ.

Gross slippages for Q4FY26 stood at Rs 1,102 crore, or 1.6 per cent of advances, compared with Rs 1,050 crore, or 1.6 per cent of advances, in Q3FY26 and Rs 1,223 crore, or 2 per cent of advances, in Q4FY25. Retail banking slippages were at their lowest level in the past nine quarters at Rs 888 crore, or 2.8 per cent of advances, compared with Rs 1,026 crore, or 3.4 per cent of advances, in Q3FY26.

Net credit costs for the quarter stood at 0.17 per cent of average assets compared with 0.30 per cent in Q4FY25. For FY26, credit costs were restricted to 0.2 per cent compared with 0.3 per cent in FY25. Recoveries and upgrades stood at Rs 1,547 crore for Q4FY26 and Rs 4,795 crore for FY26, including P&L gain from security receipts of Rs 446 crore in Q4FY26 and Rs 1,559 crore for FY26.

Capital Position and Key Developments

The bank’s CET I ratio stood at 13.8 per cent compared with 13.5 per cent in Q4FY25 and 13.9 per cent in Q3FY26. Average quarterly LCR remained healthy at 119.0 per cent.

During Q4FY26, YES Bank opened six new branches, taking the FY26 addition to 82 branches. The bank was also awarded the Silver Shield for Excellence in Financial Reporting 2024-25 by ICAI among private sector banks. Its S&P Global ESG score improved from 73 to 79 in 2025, which the bank stated was the highest score among Indian banks for the fourth consecutive year.

YES Bank’s Managing Director and CEO Vinay M. Tonse said the bank concluded FY26 on a strong footing, with Q4 RoA of 1 per cent in line with guidance, supported by improvement in NIM, cost-to-income ratio and the lowest GNPA and NNPA levels since FY20. He also highlighted FY26 as an important strategic year, with SMBC becoming the bank’s largest shareholder.

Disclaimer: The article is for informational purposes only and not investment advice.