More Stories

Informist, Saturday, Apr. 18, 2026

 

Please click here to read all liners published on this story

--YES Bank Tonse: Closely monitoring evolving global situation, AI growth 
--YES Bank MD: Q4 NIM improved on sustained reduction in high cost borrowing 
--YES Bank Tonse:Capital adequacy levels comfortable to support bank's goals 
--YES Bank: Have levers to grow corporate book at 20% 
--YES Bank: Aim to open 400 new branches in next 4-5 years 
--YES Bank: Expect to grow loan book by 13-15% in FY27 
--YES Bank: Want NIM to be around 3.25-3.50% in over 3 years
 

 

By Pratiksha and Nandini Sinha

 

NEW DELHI – YES Bank wants its net interest margin to be in the range of 3.25-3.50% in over three years, the private-sector bank's management said in a post-earnings conference call with analysts Saturday. "RIDF (Rural Infrastructure Development Fund) is going to be an important contributor to getting the net interest margin higher as well. So, that's really one big driver," it said. "Second, we have to make sure that our loan spreads are quite disciplined."

 

YES Bank's net interest margin rose 10 basis points on quarter to 2.7% in the March quarter. It was up 20 bps on year. Priority sector lending shortfall-led deposits, including Rural Infrastructure Development Fund, reduced by 24.5% on year to INR 279.31 billion, that is, at 6.0% of total assets in the March quarter.

 

"Our margin improvement was supported by multiple factors, namely, front loading of our deposit, repricing that happened last April, continued outperformance in CASA (current account savings account) and the sustained reduction in high cost borrowings, mirroring continued rundown of the RIDF and PSL (priority sector lending) related mandated deposits," Managing Director and Chief Executive Officer Vinay M. Tonse said.

 

A comprehensive strategy has been adopted and is currently under execution to substantially reduce the quantum of Rural Infrastructure Development Fund balances over a two-year timeframe, the bank said in its investor presentation.

 

Going forward, the bank remains well on track to reduce its deposit balances to below 5% by 2026-27 (Apr-Mar), which will aid its margin and profitability, Tonse said.

 

The private-sector lender wants its loan book to grow in line with the industry, if not better, and expects it to grow by 13-15% in FY27. It expects the retail segment to post a double-digit growth in FY27. The management added that the bank has levers to grow its corporate disbursement book at 20%.

 

YES Bank reported an 11% rise in net advances to INR 2.73 trillion as on Mar. 31. Of this, retail banking advances were up 4.7% on year at INR 1.26 trillion, driven by strong pickup in disbursements. Commercial banking advances rose 14.5% on year to INR 699.47 billion as of Mar. 31.

 

The lender plans to open 400 new branches with an average of around 80 branches per annum in the next four to five years. In FY26, YES Bank had opened 82 branches.

 

Further, the management said there has been no material mark-to-market losses because of the sharp rise in government bond yields and the Reserve Bank of India's latest regulatory measures in the foreign exchange segment.

 

"It (FX norms) has not had any material bearing on our mark-to-market. Because there's a philosophy, we don't run quite large trading positions on markets," the bank said. "However, yes, we do acknowledge that the yields did go up and that has had a bearing on our SLR (Statutory Liquidity Ratio) book, which is largely parked in the (Held to Maturity)."

 

The RBI recently rolled out regulatory measures to curb volatility in the exchange rate, including putting a cap of $100 million on onshore net open positions of banks. In March, the 10-year bond yield rose almost 37 bps after Israel and the US launched an aerial attack on Iran on Feb. 28.

 

The management said it is closely monitoring the evolving developments related to the war in West Asia, as well as the growth in artificial intelligence. "Our capital adequacy and liquidity levels remain comfortable to support the growth aspirations of the bank going forward," it added.

 

YES Bank reported a net profit of INR 10.68 billion for the March quarter, up nearly 45% on year, on the back of a sharp fall in provisions. On Friday, shares of the bank ended over 1% higher at INR 20.19 on the National Stock Exchange. End

 

US$1 = INR 92.93

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.