Net interest income stood at Rs 2,466 crore, up 10.9% YoY and 7.2% QoQ, aided by a reduction in the cost of funds. Non-interest income came in at Rs 1,633 crore, rising 8% YoY, though 0.7% lower on a sequential basis. As a result, total income increased 9.7% YoY to Rs 4,098 crore, and was up 3.9% QoQ.

On the cost side, operating expenses rose 7.8% YoY to Rs 2,865 crore, partly reflecting Rs 155 crore of gratuity provision linked to the statutory impact of the new labour codes. Excluding this one-off, cost growth remained well controlled. Consequently, operating profit stood at Rs 1,234 crore, up 14.3% YoY, though down 4.9% QoQ. Adjusted for the gratuity impact, operating profit rose 28.7% YoY to Rs 1,389 crore.

Provisioning remained benign, with provisions falling sharply to Rs 22 crore, keeping net credit costs negligible for the quarter. Profit before tax jumped 47.7% YoY and 38.1% QoQ to Rs 1,212 crore, while tax expense rose to Rs 260 crore. This translated into the strong bottom-line growth.

Margins also improved. Net interest margin expanded to 2.6%, up 20 bps YoY and 10 bps QoQ, while the cost-to-income ratio improved to 66.1% from 71.1% a year ago.

On the balance sheet, CASA deposits rose 8.5% YoY to Rs 99,483 crore, with average quarterly balance growth of 13.6% YoY. Net advances stood at Rs 2,57,451 crore, up 5.2% YoY and 2.9% QoQ, supported by steady momentum across segments. Total disbursements increased 7% YoY to Rs 26,982 crore, led by nearly 15% YoY growth in retail asset disbursements.

Asset quality continued to strengthen. The gross NPA ratio declined to 1.5%, down 10 bps YoY and QoQ, while the net NPA ratio improved to 0.3%, down 20 bps YoY. The provision coverage ratio rose to 83.3%, compared with 71.2% in Q3 FY25. Gross slippages reduced to Rs 1,050 crore, or 1.6% of advances, with retail slippages (3.7%) at their lowest level in seven quarters. Recoveries and upgrades totaled Rs 1,224 crore, including a Rs 555 crore gain from security receipts.

Operationally, the bank continued to expand its footprint, opening 33 new branches during Q3 FY26, taking the total to 76 branches added in the first nine months, achieving 95% of its full-year branch expansion target.

Yes Bank, a full-service commercial bank headquartered in Mumbai, offers a wide array of products, services, and digital solutions, catering to Retail, MSME, and Corporate clients. The bank operates its brokerage business through Yes Securities, a subsidiary of the bank. The bank has a pan-India presence including an International Banking Unit (IBU) at GIFT City, and a representative office in Abu Dhabi.

Shares of Yes Bank rose 2.22% to settle at Rs 23.46 on 16 January 2026.