Are Yes Bank latest results good or bad?

Yes Bank's latest financial results for the quarter ending September 2025 reflect a mixed performance characterized by stable asset quality but challenges in profitability. The bank maintained a gross non-performing asset (GNPA) ratio of 1.60% and net NPAs at 0.30%, indicating a solid position in terms of credit quality. However, the sequential decline in interest income and net profit raises concerns about the sustainability of its recovery.
In terms of financial metrics, Yes Bank reported a net profit of ₹664.43 crore, which represents an 18.34% year-on-year growth, though this is a decline from the previous quarter. Interest earned decreased by 4.55% year-on-year, marking a notable shift from the previous year's growth. The net interest income also saw a decline of 3.11% quarter-on-quarter, reflecting challenges in maintaining profitability amidst a competitive environment.

The capital adequacy ratio stood at 15.00%, slightly lower than the previous quarter but still above regulatory requirements. This indicates that while the bank has adequate capital to absorb potential shocks, there may be limited capacity for aggressive growth without further capital infusion.

Additionally, the shareholding dynamics show a reduction in foreign institutional investor (FII) stakes, which may indicate some caution regarding the bank's near-term prospects, while domestic mutual fund interest has increased, suggesting a divergence in institutional sentiment.

Overall, Yes Bank's results underscore a critical juncture in its turnaround journey, with stable asset quality providing a foundation, but the recent declines in profitability and interest income highlight the need for careful monitoring of future performance. The company saw an adjustment in its evaluation, reflecting the complexities of its current operational landscape.