YES Bank shares: 2 reasons why the lender will be in focus today

Shares of YES Bank shall remain in focus during the trading session on Monday on the back of two reasons including the earnings for the period ended on September 30, 2025 and SMBC's decision to not increase its stake in the private lender. YES Bank announced its results for the quarter and half year ended on September 30 on Saturday, October 18.

YES Bank reported a 18.3 per cent growth on a year-on-year (YoY) basis in net profit at Rs 654.5 crore for the September 2025 quarter, supported by higher non-interest income, improved cost efficiency and steady balance sheet growth. It was the first quarterly earnings after Japan's SMBC acquired a significant stake in the lender.

YES Bank's net interest income (NIIs) rose 4.5 per cent YoY to Rs 2,300.88 crore, while pre-provisioning operating profit (PPOP) saw a 32.93 per cent YoY surge to Rs 1,296.50 crore for the reported quarter. Net interest margins (NIM) came in up 10 bps YoY to 2.5 per cent for Q2FY26.

Provisions during the reported quarter zoomed 41 per cent to Rs 419 crore. However, asset quality remained broadly stable during the quarter ended September 2025. Gross non-performing assets (NPAs) remained flat sequentially at 1.6 per cent, while net NPA also remained largely unchanged at 0.3 per cent on sequential (QoQ) basis.

Ahead of its Q2 earnings, shares of YES Bank settled at Rs 22.24 on Friday, falling nearly 3.81 per cent for the day. The total market capitalization of YES Bank slipped below Rs 70,000 crore. The stock has tumbled more than 8.4 per cent from its 52-week high at Rs 24.30, hit on October 10, 2025.

According to a report from Reuters, Japanese financial conglomerate Sumitomo Mitsui Banking Corporation (SMBC) has no immediate plans to raise its stake in YES Bank beyond 24.99 per cent, citing a senior executive at the bank. SMBC currently holds a 24.2 per cent stake in the Mumbai-based lender.

SMBC is moving cautiously with its biggest investment in India, in contrast with expectations of seeking quick approval for stake hikes and open offers. SMBC's initial purchase, announced in May, marked the latest major overseas investment by a Japanese financial institution as they look to secure new sources of growth after years of rock bottom interest rates at home.