Yes Bank shares rebound from today's low after announcement of Q1FY26 business update

Shares of private scetor lender Yes Bank bounced back from early losses on Friday, July 4, following the release of its Q1FY26 business update. The stock, which initially slipped over half a percent, rebounded nearly 1 percent intraday after investors digested the numbers. While the private sector lender’s performance showed some strain on the asset and deposit front, certain metrics indicated a degree of resilience and balance sheet stability.

Q1FY26 Business Update: Muted Loan and Deposit Growth

In its provisional business update for the quarter ended June 2025, Yes Bank reported a sequential decline in both loans and deposits. The lender's advances dropped by 2 percent to ₹2.41 lakh crore, compared to ₹2.46 lakh crore at the end of the March quarter. Deposits also fell by 3 percent quarter-on-quarter, reaching ₹2.75 lakh crore versus ₹2.84 lakh crore in Q4FY25.

Despite the decline in key growth metrics, the bank saw an improvement in its Current Account Savings Account (CASA) ratio. CASA stood at 32.7 percent as of June 2025, up from 30.8 percent in the same period last year. However, this figure was slightly lower than the 34.3 percent CASA ratio recorded in March 2025, indicating a minor deterioration in low-cost deposit mobilisation.

Meanwhile, the Credit-to-Deposit (CD) ratio—a key indicator of a bank’s lending capacity—rose to 87.5 percent, compared to 86.5 percent in the year-ago period. This increase suggests that the bank continues to deploy its deposit base efficiently, even as deposit growth remains under pressure.

Q4FY25 Snapshot: Profit Growth and Stable Asset Quality

In the March quarter (Q4FY25), Yes Bank reported strong bottom-line growth with a 63.3 percent year-on-year (YoY) jump in net profit to ₹738.1 crore, compared to ₹451.9 crore in the same quarter last year. The positive earnings were underpinned by modest improvement in net interest income (NII), which rose 5.7 percent YoY to ₹2,276.3 crore from ₹2,153 crore.

Asset quality remained steady during the quarter, with Gross Non-Performing Assets (GNPA) holding at 1.6 percent, unchanged from the December quarter. Net NPA improved slightly to 0.3 percent from 0.5 percent on a sequential basis, suggesting better recoveries or improved provisioning discipline.

The bank’s Net Interest Margin (NIM) for Q4FY25 stood at 2.5 percent, up marginally from 2.4 percent a year ago. On a full-year basis, NIM held steady at 2.4 percent. Non-interest income, which includes fee-based and treasury income, rose sharply by 10.9 percent YoY and 15 percent quarter-on-quarter to ₹1,739 crore. Meanwhile, operating costs for the quarter declined 4.2 percent YoY to ₹2,701 crore, providing some support to profitability.

Stock Price Trend: Volatile but Recovering

Yes Bank’s stock performance reflected mixed investor sentiment on the back of the Q1FY26 update. The stock hit a low of ₹20 early in the session but recovered to a high of ₹20.19 later in the day—representing a near 1 percent recovery. Despite this uptick, the stock remains 26 percent below its 52-week high of ₹27.41, reached in July 2024. It had earlier touched a 52-week low of ₹16.02 in March 2025.

On a 12-month basis, Yes Bank shares have dropped almost 16 percent. However, the stock showed signs of revival in recent months. It gained 21.2 percent in May, 5 percent in April, and 1 percent in March. These gains followed declines of 13 percent in February and 2 percent in January. In June, the stock fell 5.3 percent, indicating that recovery remains fragile and closely tied to fundamental developments.

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