Yes Bank of India posted a sharp rise in third-quarter profits, helped by reduced provisions
The company announced a sharp increase in its Q3 profit on Saturday, supported by reduced allocations for bad loans and contingencies.
The company announced a sharp increase in its Q3 profit on Saturday, supported by lower allocations for bad loans and contingencies.
The SMBC deal was a major investment by a Japanese financial institution abroad, as they seek new sources of growth after years of ultra-low interest rates in their home country.
After building up buffers on its balance sheet for several quarters, the bank reduced provisions for bad loans and other contingencies by 91% to 2.2 billion rupees, boosting profits.
Yes Bank’s net interest income rose 10.8% to 24.65 billion rupees, compared to 22.23 billion rupees in the same period last year, while domestic loans grew by 5.2%.
Deposits grew by 5.5%, outpacing loan growth. Yes Bank’s net interest margin, a key measure of a bank’s profitability, improved to 2.6% from 2.5% in the previous quarter, as the Reserve Bank of India’s 125 basis point reduction in key interest rates since February 2025 began to lower deposit costs.
The bank’s asset quality remained stable, with the gross non-performing asset ratio at 1.5% at the end of December, compared to 1.6% at the end of September.
Commenting on the bank’s growth strategy following the SMBC investment, Chief Executive Officer Prashant Kumar said the lender would release a strategic roadmap this quarter.
Kumar also said in a press call that the bank has initiated a succession planning process for his role.
Kumar, who has headed the bank since 2020, will see his current term end in April.
