What does the YES Bank ROA FY26 guidance mean for investors?

Management aims to reach a 1% return on assets run-rate by the end of FY26. It signals improving profitability from margins, fees, and stable credit costs. It is not a guarantee. We should watch quarterly trends in NIM, RIDF reduction, and asset quality to judge if the plan stays on track.

How can the RIDF reduction strategy support margins?

As PSL compliance improves, low-yield RIDF balances can be lowered and redeployed into higher-yield retail and MSME loans. This lift in asset yields, combined with disciplined funding costs, can raise net interest margins. Execution quality and risk controls are vital, since a fast shift without underwriting discipline can add credit risk.

What is the impact of the SMBC stake in YES Bank?

SMBC holds 24.9% in the bank, which adds credibility and capital comfort. This backing can support growth funding, partnerships, and investor confidence. It does not replace the need for steady execution. Investors should still track margins, asset quality, and cost control to confirm the turnaround stays durable.

Is YESBANK.NS attractive at current valuation levels?

At ₹20.80, the stock trades near 21x TTM earnings and 1.31x book. If the YES Bank ROA FY26 goal is met with consistent NIM and low credit costs, upside may follow. If margins stall or stress rises, valuation could compress. A staggered entry with stop-loss discipline is prudent.

Global Market Insights

YESBANK.NS Stock Today: February 23 — CFO Guides FY26 ROA to 1%

ByHuzaifa Zahoor February 23, 2026February 23, 2026

YES Bank ROA FY26 guidance moved into focus as management signalled a 1% exit ROA by FY26. Q3 FY26 net profit rose 55% year on year to ₹952 crore, helped by PSL compliance and capital support. The YESBANK.NS stock closed at ₹20.80 on 20 February. Investors are tracking the RIDF reduction strategy that shifts low‑yield balances into higher‑yield assets. If margins hold and credit costs stay low, the YES Bank 1% ROA target could improve sentiment in India’s private banking space.