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Informist, Thursday, Apr. 16, 2026

 

By Shubham Rana

 

NEW DELHI – YES Bank Ltd. is expected to report a year-on-year rise in net profit for the March quarter driven by a low base, according to brokerages tracking the lender. Steady loan growth and higher margins are also seen supporting the private-sector lender's bottom line.

 

The mid-sized bank is expected to report a net profit of INR 8.85 billion for the quarter, up 20% on year, according to the average of estimates from six brokerages. Sequentially, the net profit is seen falling 20%. In the nine months to December, the bank has posted a net profit of INR 24.07 billion, up 44% on year.

 

The lowest estimate for net profit is INR 7.65 billion by Kotak Securities and the highest INR 10.66 billion by ICICI Securities. YES Bank will release its financial results for the quarter and year ended March on Saturday.

 

YES Bank's net interest income--the difference between interest earned and expended--is seen at INR 25.19 billion for the quarter ended March, according to the average of estimates from six brokerages. This is up 11% on year and 2% on quarter.

 

The rise in YES Bank's net interest income is seen in line with the credit growth. YES Bank's loans and advances rose 10.7% on year to INR 2.72 trillion as of Mar. 31, according to provisional data released Apr. 6. "We expect the bank to be a bit more positive on loan growth," Kotak Securities said in a pre-earnings report. Deposits rose 12.1% on year to INR 3.19 trillion as of Mar. 31.

 

Brokerages expect YES Bank's net interest margin to rise to 2.7-2.8% in the March quarter from 2.6% in the December quarter. Kotak Securities said, "There is likely to be a lot of volatility (in margins) given the nature of income booked when security receipts mature and impact of RIDF (Rural Infrastructure Development Fund) investments."

 

YES Bank's asset quality is seen improving in the reporting quarter with ICICI Securities expecting a reasonable improvement in overall slippages. According to Kotak Securities, there should be "steady traction on recovery and upgrades this quarter from the retail portfolio".

 

Nomura expects the bank's credit cost to remain controlled at 0.5% during the March quarter, but still well above 0.04% a quarter ago.

 

Brokerages will look for commentary on the bank's growth strategy under Sumitomo Mitsui Banking Corp., which now holds a 24.9% stake in the Indian lender, and with Vinay Tonse as the managing director and chief executive officer.

 

Of the three brokerage reports on YES Bank available with Informist, two have a "hold" call with an average target price of INR 23. The third brokerage recommends selling the stock at INR 20.

 

YES Bank's shares Thursday closed at INR 19.95 on the National Stock Exchange, up 3%. The share price has declined 15% since the bank released the December quarter financial results on Jan. 17.

 

The following are the March quarter earnings estimates, in INR billion, from six brokerages for YES Bank, in descending order of the estimate of net profit: 

 

Brokerage	Net Interest Income	Net Profit
ICICI Securities Ltd.	25.58	10.66
JM Financial Institutional Securities Pvt. Ltd.	24.99	9.47
Anand Rathi Share and Stock Brokers Ltd.	25.44	8.72
Emkay Global Financial Services Ltd.	25.05	8.52
Nomura Equity Research	25.30	8.10
Kotak Securities Ltd.	24.78	7.65
Average	25.19	8.85

 

End

 

Edited by Rajeev Pai

 

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