YESBANK Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
Pending
verified against source
Revenue YoY
9.7%
reported change
EBITDA
₹1,389 Cr
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Yes Bank delivered a breakout Q3 FY26 with ₹952 crore net profit (55% YoY), driven by 28.7% YoY growth in pre-provisioning operating profit to ₹1,389 crore. The bank's adjusted PAT (excluding ₹155 crore one-time graduity provision) stood at ₹1,107 crore, with annualized ROA improving to 1.0% on an adjusted basis. NIM expanded 24bps YoY to 2.6%, supported by declining RWA density (6.9% vs 11% peak), improved advances mix, and 60bps reduction in cost of funds. Asset quality showed marked improvement with gross NPA at 1.5%, fresh slippages at an 8-quarter low of ₹850 crore, and provision coverage at 83.3%. Retail business reached breakeven this quarter with credit card spends up 26% YoY and entry rates in cards declining from 20% to 12%. Management targets ~8% credit growth for FY26 and market-aligned growth for FY27, with full-year ROA guidance of 1% and 1.5% in the medium term. Risks include NIM pressure from rate cuts, competitive deposit pricing, and legacy SR book normalization as only ₹1,800 crore remains outstanding.
Colored figures show movement against the previous available record.
Guidance to track
- Sequential advances growth of 2.9% in Q3 provides confidence in achieving ~8% annual credit growth, with management targeting market-aligned growth for FY27.
- Bank targets 1% ROA for full-year FY27 (currently at 0.8% for 9M) with medium-term aspiration of 1.5% ROA, supported by margin expansion and operating leverage.
- PSL-related RWA balances have declined from peak of 11% in FY24 to 6.9% currently, with bank targeting sub-5% by FY27 as high-cost borrowings are retired.
- With ₹1,800 crore SR book remaining and cumulative recoveries of ₹1,113 crore achieved in 9M FY26 (against ₹1,200 crore guidance), management expects lower but sustained recoveries going forward.
Risks flagged
- SR provisioning remains unpredictable as it depends on ARC actions rather than bank control. Q3 saw negligible credit costs due to ₹555 crore SR recovery, but remaining book of ₹1,800 crore may create volatility.
- Management acknowledges multiple rate cuts create margin pressure, though proactive deposit rate actions (among highest in peers) have partially offset asset-side impact. Further RBI cuts could compress NIM.
- Despite improvement (entry rates down from 20% to 12% in cards), unsecured portfolio remains susceptible to economic stress. Analyst questioned whether ₹500 crore quarterly SR redemptions can sustain current low credit costs.
- One-time ₹155 crore graduity charge under new labor codes (wage definition changed from 30% to 50% of fixed pay) exceeded peer banks. Future quarters may see continued negative impact pending regulatory clarity.
Key quotes
- Our retail businesses have break even this quarter, and going forward we would see a significant contribution in the profitability of the bank from retail.
- We are very confident that we would be sequentially able to grow more than 3% in the current quarter, which will take our credit growth to around 8%. But definitely next year, we would be definitely targeting a loan growth which would be more or less in line with the market.
- The bank's commercial banking segment growth continues to be robust and amongst the best in the industry. In corporate and institutional banking segment despite disadvantage of the cost of funds versus government banks as well as bigger private banking peers, we are picking up decent traction especially aided by our comprehensive product suite.
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