YES Bank Q3 results preview: Strong NIIs, PPOP growth likely; margins to stay steady

YES Bank Q3 results preview: Private sector lender YES Bank Ltd is set to announce its earnings for the quarter and nine-months ended on December 31, 2025 on Saturday, January 17. The private lender will also host a conference call with analysts, investors and participants on the same day from 2.45 pm onwards to discuss the earnings.

Brokerage firms tracking the lender expect a healthy net interest income (NII) growth of 9-12 per cent on a year-on-year (YoY) basis driven by steady loan traction, though deposit growth remains modest and net interest margins (NIMs) are seen broadly stable to slightly higher. However, on a quarter-on-quarter (QoQ) basis, NIIs may rise in single digits.

Pre-provisioning operating profit (PPOP) is projected to grow strongly on a yearly comparison, reflecting operating leverage. Profit is largely seen to jump sharply on a yearly basis, while some analysts expect a fall in the bottomline. Analysts have mixed views on YES Bank stock.

Kotak Institutional Equities is pegging YES Banks' NIIs at Rs 2,425.4 crore, up 9.1 per cent YoY and 5.4 per cent QoQ, with NIMs rising slightly to 2.9 per cent PPoP is seen at Rs 1,687.5 crore, up 11.6 per cent YoY and 2.6 per cent QoQ. Net profit may come in at Rs 601 crore. down 1.8 per cent YoY and 8.1 per cent QoQ.

"YES Bank is a bit more cautious in select segments of the retail portfolio. Deposit growth is slower as well at 5 per cent yoy. We expect NIM at 2.9 per cent but there is likely to be a lot of volatility, given the nature of income booked when security receipts mature and impact of RIDF investments. We should see steady traction on recovery and upgrades this quarter from the retail portfolio," it added.

YES Bank shares settled at Rs 23.46 on Friday, rising 2.22 per cent for the day. The lender commanded a total market capitalization of more than Rs 73,500 crore. The stock is 10 per cent in 2026 so far. The stock has jumped over 46 per cent from its 52-week low hit around 10 months ago.

On the other hand, ICICI Securities is expecting YES Bank's NIIs to come at Rs 2,429.7 crore, up 9.3 per cent YoY and 5.6 per cent QoQ in December 2025 quarter, with NIMs inching marginally higher at 2.54 per cent Its PPOP is seen at Rs 1,345.5crore, up 24.3 per cent YoY and 3.8 per cent QoQ. Net profit is seen at Rs 776.6 crore, up 26.8 per cent YoY and 18.7 per cent QoQ.

It envisages a relatively soft performance from YES Bank in Q3FY26 and it does not feature in its top picks from mid and small private banks. YES Bank has cut its savings rate and ICICI Securities is estimating NIM to be broadly stable QoQ, with some support from CRR cut, but may see a marginal uptick in credit cost. ICICI Securities has a 'hold' rating on YES Bank.

JM Financial pencils YES Bank's NIIs Rs 2,486.4 crore, up 11.8 per cent YoY and 8.1 per cent QoQ. PPoP is seen at Rs 1,403.1 crore, up 30 per cent YoY and 8.2 per cent QoQ. It pencils net profit at Rs 775 crore, up 26.6 per cent YoY and 18.4 per cent QoQ for the lender. JM has a 'sell' rating on YES Bank with a target price of Rs 19.