Yes Bank

“So, our outlook when we think through H2, December might still be closer to a stable margin structure, but as we look through March, we should have a positively improving bias.”

“So Q3, our expectation is that we should be in the similar range on margins that we've seen compared to Q2, maybe there might be some bias of pulling it back because of the full effect of the FCNR. However, the tailwinds we expect should neutralize. But as we move to Q4, our expectation is that we should have a positive bias on the margins.”

“We said Q3 in our assessment should be similar to Q2, maybe a very marginal negative bias. But as we kind of go into Q4, we certainly believe we should have an upward bias on the margins.”

“Retail asset disbursement increased by 35% Y-o-Y, with the Retail book growth inching up to nearly 9%. Commercial Banking Advances grew 20.2%, while Corporate and Institutional Banking Advances grew by 31.4% year-on-year.”

“But we do believe that it is a quantum that will certainly be an upside to our current revenue streams.”

“We are now actually clocking, even adjusted for the FCTL, a growth in excess of the industry as well.”

“Net Interest Margin for the quarter stood at 2.6%. The sequential moderation of approximately 12 to 14 basis points was largely attributable to the FCNR(B) mobilization and the associated liquidity and deployment profile.”

“Operating expenses increased by 14.2% Y-o-Y and 5.1% sequentially to INR 3,026 crores.”

“The rise in standard asset provision was primarily driven by increase in loan balances, including the FCTL portion.”

“So about two years back, the Cost-to-Income was in the range of 74%. It is already down to 64% as we reported this quarter.”

“We've seen margins dip this quarter, and it is, I would say, almost entirely attributable to the FCNR scale that came in.”

“The Bank mobilized INR 18,575 crores of FCNR(B) Deposits and extended Foreign Currency Term Loans of INR 15,215 crores through the IBU at GIFT City.”

“the CET-1 ratio stood at 13.7%, and the liquidity coverage ratio stood at 131.4%.”

“CET-1 in the range of, on a pro forma basis, again, this is not conclusive, is at about 11.4%.”

“On that it is actually more tactical, not so much a change in our fundamental funding strategy and the reason was also because we've had rating upgrades as well.”

“For us, when we were at 14% CET-1, it was our comfortable level where we were operating between, let's say, 13.5% to 14% level.”

“Capital planning is an ongoing Board-level process. Any capital decisions will be based on a careful assessment of regulatory requirements, the cost and availability of capital, shareholder interests, and the bank's medium-term growth objectives.”

“We do believe that we will continue to evaluate areas of capital actions to make sure that the bank remains well-capitalized in order to fulfill its growth objectives.”

“So, I think there is no gun to our head to solve for capital.”

“but I think the simple point I want to leave with you is that it is not that I have to solve for capital tomorrow. We do believe we have buffers.”

“Now, again, we're not kind of saying we will necessarily take an action, but there are such stored levers also available to unlock capital that allows us to continue to pursue our growth and scale objectives.”

“The quarter included INR 51 crores of commissions on foreign currency borrowings linked to the FCNR(B) mobilization, INR 20 crores of marketing expenditure relating to the Asian Games sponsorship, and INR 31 crores arising from changes in central and state wage codes.”

“The Bank also recognized P&L gains of INR 395 crores from the Security Receipts portfolio during the quarter.”

“I would like to address the Honorable Supreme Court's judgment of 15th October 2026 concerning the INR 8,415 crores of Additional Tier 1 bonds written down in March 2020.”

“The Honorable Supreme Court has upheld the Bombay High Court's judgment setting aside the AT-1 write-down, and dismissed the appeals filed by YES Bank, the Administrator, the Reserve Bank of India, and the Union of India.”

“In substance, if you think about the restatement, it is actually a Balance Sheet structure where, you know, the core reserves are being used to reinstate the liability, and that is from the perspective of accounting.”

“The principal restatement of the AT-1 bonds, as I said earlier, is in substance a Balance Sheet change from the reserves to the borrowings, which is Tier 1 classification, , no cash outflow on the borrowing.”

“So as we look through a combination of these two circulars, we do believe that the opening CET-1 impact should not be a material hit to the CET-1.”

“The Bank reported Net Profit of INR 1,080 crores, an increase of 65% year-on-year.”

“Operating Profit increased by 29.4% year-on-year to INR 1,678 crores.”

“Return on Assets for the quarter stood at 0.9%, compared with 0.6% in Q2 FY26 and 0.9% in Q1 FY27. The cost-to-income ratio stood at 64.3%, compared with 67.1% in the corresponding quarter of the previous year.”

“The Total Assets crossed INR 5 lakh crores, Deposits crossed INR 3.5 lakh crores, and Advances exceeded INR 3 lakh crores.”

“Reported Advances grew by 23.7% year-on-year. Excluding the FCTL linked to the FCNR mobilization, Advances grew 17.6% year-on-year. The corresponding normalized Credit-to-Deposit Ratio, stood at 83.1%.”