Yes Bank (532648) Feb 2026 Filing Analysis

Non-interest income as a percentage of average assets has meaningfully increased from 1.1% in FY23 to 1.4% in FY25, driven by granular fee income streams. (5 expanding across 1 engine)

The bank further strengthened its financial safety net, with the Provision Coverage Ratio (PCR) increasing to 79.7% (excluding technical write-offs) and 87.6% including them, marking a significant improvement from the previous year. (5 expanding)

RoA reached a milestone of 1.0% in Q3FY26, a significant jump from 0.6% in the same quarter last year, reflecting the success of the turnaround strategy. (1 expanding)

The technological moat is being augmented by SMBC's global governance and credit rating standards. While the bank maintains its digital leadership, the partnership aims to unlock new business opportunities through cross-border expertise and access to global corporate clients. (3 expanding, 1 stable)

Net Interest Income (NII) grew 10.5% for the full year FY25, reaching INR 8,944 crores. The Net Interest Margin (NIM) showed a sequential uptick to 2.5% in Q4, supported by lower costs of deposits and reduced high-cost borrowings. (5 expanding across 1 engine)

Credit card spending is accelerating sharply, with Q4FY24 showing the highest ever spends for the bank. (5 accelerating across 5 signals, 1 leading indicator)

Capital levels saw a significant boost this quarter due to warrant exercises by major private equity investors, providing a strong runway for growth. (5 accelerating across 5 signals, 2 leading indicators)

Digital adoption via the IRIS app is accelerating, with registered users growing 14% quarter-on-quarter to reach 26.6 lakh. (3 accelerating, 2 new trend across 5 signals)

The bank is successfully shifting its loan mix toward granular segments, with Retail and SME now making up 62% of the book compared to 59% a year ago. (2 accelerating, 1 new trend, 2 steady across 5 signals)

RoA has shown significant improvement, more than doubling year-over-year, though it remains below the 1% milestone mentioned in previous targets. (5 accelerating across 5 signals)

NIM is showing signs of stabilization and sequential improvement, rising to 2.5% in Q4 from a full-year average of 2.4%, supported by a rising CASA ratio of 34.3%. (5 easing, 1 high-severity)

The risk is easing as the balance of mandated low-yield deposits has reduced from a peak of INR 44,087 Crs (10.9% of assets) in FY24 to INR 29,225 Crs (6.9% of assets) in Q3FY26. Management expects this to drop below 5% over the next 2 years. (2 easing, 1 high-severity)

The CD ratio remains high at 87.4%, which is an increase from 86.6% in the same quarter last year, indicating continued reliance on a stretched deposit base. (1 intensifying, 2 easing, 2 stable)

The entry of a global banking giant like SMBC (part of the 2nd largest banking group in Japan) is expected to 'Leverage Strong Parentage For Higher Trust,' which directly addresses the competitive disadvantage in deposit mobilization by improving brand reputation. (1 easing, 1 intensifying)

The bank's retail loan book has a high concentration of unsecured or high-risk segments like Credit Cards and Personal Loans, which are more sensitive to economic downturns. [CONCENTRATION]