YES Bank Stock Today, January 20: Q3 profit +55% with NIM at 2.6%
Yes Bank Q3 results put the yes bank share price back in focus today, January 20. The lender posted Q3 FY26 net profit of ₹952 crore, up 55% year on year. Net interest margin stood at 2.6%, while asset quality GNPA 1.5% and CASA ratio 34% signal stability. Recoveries and controlled provisions supported earnings as the bank balanced growth with deposit costs. We break down what these numbers mean for valuation and the next moves investors should watch.
Q3 FY26 snapshot: profitability and margins
Yes Bank reported Q3 FY26 net profit of ₹952 crore, up 55% year on year, aided by recoveries and prudent provisioning. Net interest margin held at 2.6%, showing gradual improvement but still below large-bank peers. As per reporting, bad loan recoveries were a key driver of profit growth, supporting capital and confidence source. These trends frame near-term support for the yes bank share price.
Asset quality GNPA 1.5% indicates a cleaner book than in prior cycles. Lower slippages and ongoing recoveries reduce credit costs, which helps stabilise earnings momentum. While the book looks steadier, provisions must stay adequate to guard against any stress from unsecured or SME pockets. Sustained control of fresh stress will be crucial to keep the profit trend intact and support valuation re-rating.
Deposits, CASA and growth outlook
A CASA ratio 34% supports funding costs and NIM resilience. However, deposit competition in India remains intense, and term deposit rates have stayed high. The bank needs to deepen granular CASA and improve digital-led acquisition to keep costs in check. If CASA inches up steadily, margins can move higher from 2.6% over time, which would be positive for the yes bank share price.
Growth should remain measured, with focus on risk-adjusted returns over headline expansion. Management emphasis on profitable segments and better pricing can protect margins while avoiding outsized risk. A steady loan mix, backed by stable liability growth, will matter more than chasing volume. Investors should track lending spreads, fee income traction, and deposit momentum through FY26 to gauge sustainability.
What it means for valuation and yes bank share price
Despite post-result volatility, coverage is turning constructive. ICICI Securities raised its target even as the stock fell about 3% on the day of the print, citing improving metrics and medium-term potential source. This mix of better profitability, 2.6% NIM, and 34% CASA supports a base case for gradual re-rating, which could aid the yes bank share price.
Key supports include sustained recoveries, GNPA at 1.5%, and incremental CASA gains. Watch for margin progression, fee income growth, and stable slippages. Risks include deposit pricing pressure that caps NIM, and any uptick in retail or SME stress. Clear guidance on FY26 exit margins and capital buffers would strengthen confidence and help the yes bank share price build momentum.
Final Thoughts
India-focused investors should read Yes Bank’s Q3 FY26 print as a step forward on profitability and balance-sheet quality. A 55% profit rise to ₹952 crore, NIM at 2.6%, GNPA at 1.5%, and CASA at 34% together point to a steadier core. We think the next leg depends on two things: keeping funding costs in check and sustaining low slippages. Monitor CASA growth, margin commentary, and recoveries in the Q4 update. If margins inch up and asset quality holds, valuation can improve gradually. For traders, volatility may continue around news flow. For long-term investors, consistent execution across FY26 will matter more for the yes bank share price than any single quarter.
FAQs
Why did Yes Bank’s profit rise 55% in Q3 FY26?
Profit improved mainly due to recoveries from earlier stressed assets and controlled provisions, which lowered credit costs. Better operating efficiency and steady net interest margin at 2.6% also helped. These factors, along with stable asset quality, supported earnings and sentiment for the yes bank share price after the results.
How do NIM at 2.6% and CASA ratio 34% impact the outlook?
A 2.6% NIM shows stable spreads, while a 34% CASA ratio supports lower funding costs. If CASA rises further, margins could improve. The combination gives earnings visibility, but competition for deposits remains a risk. Sustained CASA gains would likely be positive for the yes bank share price over time.
Is asset quality stable with GNPA at 1.5%?
GNPA at 1.5% suggests improved asset quality versus past cycles. Recoveries and controlled slippages are key supports. The bank still needs adequate provisions and cautious growth to maintain this level. If fresh stress stays low, the cleaner book should continue to back earnings and valuation stability in coming quarters.
What should investors watch next after Yes Bank Q3 results?
Track CASA momentum, margin guidance, and trends in recoveries and slippages. Also watch fee income growth and any commentary on deposit pricing. These inputs will shape earnings quality through FY26. Clear progress on these lines can support confidence and help the yes bank share price hold gains despite near-term volatility.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
