Yes Bank shares in focus after 55% YoY spike in Q3 profit

Yes Bank is likely to draw investor attention in Monday’s trading session, January 19, after reporting a robust 55% year-on-year (YoY) rise in its December quarter standalone net profit to Rs 952 crore, up from Rs 612 crore in the year-ago period.

The bank recorded interest income of Rs 7,543 crore in Q3FY26, slightly down 3.7% from Rs 7,829 crore in the corresponding quarter last year. Its net interest income (NII) rose 11% year-on-year to Rs 2,466 crore, while the net interest margin (NIM) improved to 2.6%, compared with 2.4% in Q3FY25 and 2.5% in Q2FY26.

Profit after tax (PAT) also showed strong sequential growth, rising 45% from Rs 654 crore in Q2FY26. Yes Bank’s interest expenses fell 9% year-on-year to Rs 5,078 crore while remaining stable on a quarterly basis.


The bank’s asset quality continued to improve, with gross non-performing assets (NPAs) falling 10 basis points year-on-year and quarter-on-quarter to 1.5%, and net NPAs declining 20 basis points YoY to 0.3%, remaining flat sequentially.

Key Highlights

• Operating profit (adjusted) reached Rs 1,389 crore, up 28.7% YoY and 7.1% QoQ.
• Return on Assets (RoA) was 0.9% versus 0.6% in Q3FY25 and Q2FY26; excluding gratuity impact, RoA was 1%.
• Cost of deposits fell 50 bps YoY and 10 bps QoQ to 5.6%.
  

Commenting on the results, Managing Director & CEO Prashant Kumar described Q3FY26 as a “breakthrough quarter,” driven by accelerated profitability, strong improvement in asset quality, rising business volumes, and continued leadership in CASA growth.

On Friday, Yes Bank shares gained 2.23%, closing at Rs 23.46 on the NSE. The stock currently trades at a P/E of 25.94, a Price-to-Sales (P/S) ratio of 1.71, and a Price-to-Book (P/B) ratio of 1.54.

Technical Outlook: Trend indicators show a 14-day RSI of 64.2, suggesting the stock is approaching overbought territory. From a trend perspective, Yes Bank is trading above all eight key simple moving averages (SMAs), indicating strong bullish momentum.

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