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Informist, Thursday, Jul. 16, 2026

By J. Navya Sruthi

MUMBAI – YES Bank Ltd. is expected to report a robust on-year rise in net profit for the June quarter, supported by healthy growth in net interest income, according to brokerages tracking the lender. The bank's net interest income is also likely to rise on year due to strong growth in loans.

The lender's net profit is estimated to rise over 28% on year to INR 10.29 billion for the June quarter, according to the average of estimates from five brokerages. The highest estimate for net profit is INR 11.44 billion from Nuvama Wealth Management Ltd. The lowest estimate is INR 8.40 billion from Nomura Financial Advisory and Securities (India) Pvt. Ltd. The net profit will be down nearly 4% on a sequential basis. 

The bank's net interest income--the difference between interest earned and interest expended--for the quarter is estimated to be INR 27.57 billion, up over 16% on year and nearly 5% on quarter, according to the average of five estimates. The highest estimate for net interest income is INR 27.93 billion from Nuvama and the lowest is INR 27.12 billion from Kotak Securities Ltd. The company had reported a net profit of INR 10.68 billion on revenue of INR 26.38 billion for the March quarter.  

The rise in YES Bank's net interest income is seen in line with the credit growth. "We expect 15% yoy (year-on-year) NII growth with healthy loan growth," Kotak Securities said. Loans and advances rose over 18% on year to INR 2.85 trillion as on Jun. 30, while deposits rose over 14% on year to INR 3.15 trillion. The bank's credit-to-deposit ratio was nearly 91%, up from 86% in the March quarter and 87.4% in the year-ago quarter.      

Brokerages expect YES Bank's net interest margin to rise to 2.70-2.90% for the June quarter from 2.7% in the March quarter. Kotak Securities expects a flat to marginal decline in the bank's net interest margin. "But there is likely to be a lot of volatility given the nature of income booked when security receipts mature and impact of Rural Infrastructure Development Fund investments," the brokerage said. Nomura expects the bank's credit cost to remain controlled at 0.5% in the June quarter, but still well above 0.2% a quarter ago.

YES Bank's earnings estimate is in line with the expected growth in the banking industry for the June quarter. Analysts expect credit growth of 18.6% in the June quarter, a two-year-high, to support the bank's net interest income. Expected inflows into foreign currency non-resident deposits (banks) are likely to aid deposit growth from the September quarter, according to brokerages.   

The lender will detail its June quarter earnings on Saturday. Investors are likely to focus on the management's commentary on FCNR (B) deposits and their potential to narrow the funding gap this earnings season. Apart from commentary on the bank's earnings guidance, investors will also focus on the likely impact of the delayed monsoon on the bank's asset quality. 

Thursday, the bank's shares closed at INR 23.75 apiece on the National Stock Exchange, marginally up from Wednesday. Shares of the company have risen nearly 20% since Apr. 18, when it detailed its March quarter earnings. Of the four brokerage reports on the bank available with Informist, two each have a "hold" and a "sell" recommendation. The average target price for "hold" is INR 21 and that for "sell" is INR 19. 

Following are earnings estimates for the June quarter, in INR billion, for YES Bank, in descending order of net profit estimates:

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Edited by Shubhayan Bhattacharya

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