This article first appeared on GuruFocus .
Release Date: April 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Yes Bank Ltd ( BOM:532648 ) reported a net profit of Rs. 3,476 crore for FY26, marking a 44.5% increase over FY25.
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The bank's net interest income (NII) for Q4 was Rs. 2,638 crore, up 15.9% year-on-year, with a net interest margin (NIM) improvement of 20 basis points year-on-year.
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Asset quality improved significantly, with gross NPA and net NPA ratios at 1.3% and 0.2%, respectively, the lowest in the last 24 quarters.
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Retail disbursements showed strong momentum, registering a 41% year-on-year growth in Q4 FY26.
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The bank's CASA balances grew 14.9% year-on-year, with the CASA ratio improving by 80 basis points to 35.1%.
Negative Points
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Retail slippages, although improving, remain at 2.93%, indicating ongoing challenges in this segment.
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The bank's cost-to-income ratio, while improved, still stands at 66.7%, which is relatively high.
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There is uncertainty surrounding the outcome of the ATI 81 bonds case, which could impact the bank's balance sheet.
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The geopolitical situation, such as the West Asia War, poses potential risks to the bank's MSME and larger client segments.
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Despite improvements, the bank's net interest margin (NIM) is still below the desired 3% target, currently at 2.7%.
Q & A Highlights
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Q: How are you looking at growth in the bank for the next year, and how do you plan to grow CASA in line with loan growth? A: The bank aims to deliver growth in line with the industry, targeting a 14-15% growth rate. CASA growth has been around 11% year-on-year, and the bank plans to maintain this momentum by focusing on balanced growth across retail, commercial, and wholesale segments. (Unidentified_4)
Q: What is the outlook for margin expansion given the RIDF rundown? A: The bank expects a reduction of RIDF by about 6,500 to 9,000 crores by the end of March 2027, which should aid in margin expansion. The impact of the rundown is expected to be minimal on a year-on-year basis. (Unidentified_4)
Q: Are there any changes expected in the loan mix between retail, wholesale, and commercial segments? A: The bank is focusing on retail disbursement growth, aiming for a 10-11% growth in the retail book next year. The corporate book is growing at about 20%, and commercial banking is delivering 18% growth. The bank plans to maintain a similar mix composition as it moves forward. (Unidentified_4)
Q: Can you provide more details on the 340 crores of one-time standard assets provisioning? A: The provisioning is part of a conservative policy and does not reflect any underlying credit issue. It is a proactive measure to ensure prudent provisioning policies. (Unidentified_4)
Q: What is the target for ROA in the coming years, and how do you plan to achieve it? A: The bank aims to sustain and improve the 1% ROA achieved in FY26. The focus will be on improving core ROA by enhancing margins, cost structure, and fee income, while also benefiting from JC Flower ARC write-backs. The goal is to achieve a 25-30 basis points improvement in core ROA. (Unidentified_4)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
