YES Bank Q1 FY27 results showed a strong start to the financial year, with the private sector lender reporting a 33.7% year-on-year rise in net profit to ₹1,071 crore, supported by higher core earnings, stable margins, improved asset quality and multiple credit rating upgrades.
The bank said YES Bank Q1 FY27 performance reflected broad-based growth across business segments, including retail disbursements, while cost efficiency and asset quality metrics continued to strengthen.
Net profit rises 33.7% year-on-year
According to the YES Bank Q1 FY27 results, net profit stood at ₹1,071 crore compared with ₹801 crore in Q1FY26 and ₹1,068 crore in Q4FY26. Operating profit increased 25.5% year-on-year to ₹1,704 crore from ₹1,358 crore in the corresponding quarter last year.
Net interest income (NII) for YES Bank Q1 FY27 rose 17.5% year-on-year and 5.6% sequentially to ₹2,786 crore, while total net income increased 11.2% year-on-year to ₹4,584 crore.
Margins remain stable, cost efficiency improves
A key highlight of YES Bank Q1 FY27 was the improvement in profitability ratios. Net interest margin (NIM) remained at 2.7%, up 20 basis points from 2.5% in Q1FY26.
The bank attributed the improvement to a lower cost of deposits and a reduction in balances of PSL shortfall deposits.
The cost-to-income ratio improved to 62.8% in YES Bank Q1 FY27, compared with 67.1% a year ago and 63.0% in Q4FY26. Operating expenses were contained at ₹2,880 crore, rising only 4.1% year-on-year.
Return on Assets for YES Bank Q1 FY27 was 0.9%, compared with 0.8% in Q1FY26 and 1.0% in Q4FY26, while Return on Equity stood at 8.3%.
Advances and deposits record double-digit growth
The balance sheet showed acceleration in growth during YES Bank Q1 FY27. Net advances increased 18.3% year-on-year and 4.3% quarter-on-quarter to ₹2,85,118 crore.
Retail asset disbursements maintained strong momentum, growing 27.5% year-on-year in YES Bank Q1 FY27.
Total deposits stood at ₹3,15,373 crore, up 14.3% year-on-year. CASA deposits also grew 14.3% year-on-year to ₹1,03,233 crore, while CASA average quarterly balance growth was stronger at 15.0%.
The CASA ratio in YES Bank Q1 FY27 was 32.7%, compared with 32.8% in Q1FY26 and 35.1% in Q4FY26. Current account balances grew 23.2% year-on-year, while savings account balances increased 8.2% year-on-year.
Also Read: IDBI Bank Q1 FY27: Net Profit Rises 5% YoY to ₹2,115 Crore; Advances Jump 22%
Asset quality strengthens further
YES Bank Q1 FY27 results also reflected a significant improvement in asset quality. Gross NPA ratio declined to 1.3% from 1.6% a year earlier, while Net NPA ratio improved to 0.2% from 0.3%.
Gross slippages during YES Bank Q1 FY27 were ₹964 crore, or 1.4% of advances, compared with ₹1,458 crore, or 2.4% of advances, in Q1FY26.
Retail banking slippages fell to their lowest level in the past 10 quarters at ₹843 crore, or 2.7% of advances, in YES Bank Q1 FY27, compared with ₹1,280 crore, or 4.3% of advances, a year ago.
The Provision Coverage Ratio remained strong at 81.7%, while net credit costs stayed at 0.3% of average assets.
Credit rating upgrades during the quarter
A major development during YES Bank Q1 FY27 was the series of rating upgrades received from domestic and international agencies.
- Moody’s upgraded the bank to Ba1 from Ba2 with a Stable outlook.
- CARE upgraded the long-term rating to CARE AA+ (Stable) from CARE AA- (Stable).
- ICRA upgraded Infrastructure and Basel III Tier II Bonds to AA (Stable) from AA- (Stable).
- S&P Global assigned an inaugural international rating of BB+ / Stable.
The bank said these upgrades provided meaningful external validation of the strengthening franchise.
ESG and workplace recognition
During YES Bank Q1 FY27, the bank was included in the FTSE4Good Index Series for the fourth consecutive year — 2023, 2024, 2025 and 2026.
It also won the “Most Sustainable Bank” award at Business Today – India’s Most Sustainable Companies 2026 and was recognised among the Top 25 India’s Best Workplaces in BFSI 2026 by Great Place to Work India.
CEO comments on YES Bank Q1 FY27
Commenting on the YES Bank Q1 FY27 results, Vinay M. Tonse, Managing Director & CEO, YES BANK, said: “YES BANK has begun FY27 on a strong footing, with Q1 Net Profit growing ~34% Y-o-Y to INR 1,071 Crs. We delivered higher core earnings even as gains from Security Receipts and treasury fell sharply – clear evidence that the underlying franchise is strengthening.
Margins held steady at 2.7%, cost-to-income improved further, and asset quality strengthened as slippage eased. We also earned meaningful external validation this quarter — rating upgrades from Moody’s, CARE and ICRA, and our inaugural international rating from S&P Global. Growth was broad-based, including sustained momentum in Retail disbursements.
Looking ahead, our focus is clear: deepen the core, sustain profitability, and create a resilient franchise that delivers lasting value for every stakeholder.”
Capital and liquidity remain strong
As part of YES Bank Q1 FY27 disclosures, the bank reported a CET I ratio of 14.0% and a total CRAR of 15.1%. The average Liquidity Coverage Ratio during the quarter remained healthy at 138.2%.
Book value per share increased to ₹16.7 in YES Bank Q1 FY27, compared with ₹15.5 in the year-ago period.
YES BANK is headquartered in Mumbai and operates more than 1,300 branches, over 200 BCBOs and more than 1,350 ATMs across 300 districts in India, along with an International Banking Unit at GIFT City and a representative office in Abu Dhabi.
