Analyst Concall
Not pursuing home, car loan segments aggressively, says YES Bank MD
This story was originally published at 17:41 IST on 17 January 2026
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--YES Bank: Retail loan segment will support profitability going forward
--CONTEXT: Comments by YES Bank mgmt at post-earnings concall with analysts
--YES Bank: Not pursuing home, car loan segment aggressively
By Sagar Sen and Vaishali Tyagi
NEW DELHI – YES Bank is strategically avoiding aggressive growth in its home and car loan segment within the retail book, Prashant Kumar, managing director and chief executive officer of the bank said in a conference call with analysts. "In the retail segment, it is important to note that the bank has strategically chosen not to pursue aggressive growth in two major product categories--home loans and new car loans. These product sub-segments currently do not generate attractive risk-adjusted returns, given our cost of fund position and the elevated competitive intensity in the market," he said after the bank announced its December quarter earnings Saturday.
"Although gold loans have been one of the fastest growing segments in the recent quarters, the bank has deliberately de-prioritised this product for the time being," he added. Excluding these three segments, retail growth momentum has been strengthening over the past two quarters and this improving trajectory is expected to translate into higher loan book growth over the coming quarters, he said.
During the December quarter, net advances of the bank grew 5.2% on year to INR 2.57 trillion. Of this, retail advances, which include loans to micro enterprises, grew 2.3% on year to INR 1.21 trillion. The bank's retail loan mix fell to 47% from 48% in the year-ago quarter. Commercial loans saw robust growth of nearly 14% on year to INR 659.62 billion. According to an investor presentation of the bank, during the reporting quarter, auto loans grew by 10% over last year while home loan book grew by 6%.
Earlier in the day, the bank posted a net profit well above the Street's estimates for the December quarter on the back of a sharp fall in provisions, even as revenue slipped year-on-year. The bank reported a net profit of INR 9.52 billion in the quarter ended December, up 55% on year, and 45% sequentially. The bank's total income fell nearly 2% on year to INR 91.76 billion in Oct-Dec, though it was up nearly 2% sequentially.
"The bank's profitability is being driven by margin expansion through Rural Infrastructure Development Fund rundown, current account and savings account mix improvement and deposit price action. Going forward, we expect to see benefit from retail mix improvement on the asset side, sustained growth in fee income, leveraging digital platforms and cross-sell opportunities," Kumar said.
On Friday, shares of the bank ended over 2% higher at INR 23.46 on the National Stock Exchange. End
Edited by Vandana Hingorani
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