YES Bank reported that its standalone net profit rose 34 per cent year-on-year to ₹1,071 crore in the June quarter, compared to ₹801 crore in the corresponding period last year, driven by strong deposit growth and pick up in lending.The private lender’s net interest income (NII), which is the difference between interest earned and interest expenses, increased to 17 per cent to ₹2,786 crore from ₹2,371.47 crore a year ago.The net interest margin improved to 2.7 per cent from 2.5 per cent year-on-year due to lower cost of deposits and a reduction in balances related to PSL (priority sector lending) shortfall deposit.The banks gross non-performing asset (GNPAs) declined to ₹3,705 crore in Q1 from ₹4,022 crore a year ago. However, on sequential basis they were higher than ₹3,605 crore reported in Q4 FY26.The provisions made by the bank jumped 39 per cent year-on-year to ₹394 crore in the quarter under review. Debt-equity ratio stood at 0.66 compared with 0.69 in the year-ago period.Vinay M. Tonse, Managing Director and CEO of YES Bank, said that stronger core earnings growth, despite a sharp decline in gains from Security Receipts and treasury operations, reflects the strengthening of the bank’s underlying franchise. He said corporate credit growth was robust across sectors, led by the oil and metals industries. Margins remained steady at 2.7 per cent, the cost-to-income ratio improved further, and asset quality strengthened as slippages moderated.The bank has also received external validation of its business through rating upgrades from Moody’s, CARE Ratings and ICRA, apart from securing its inaugural international rating from S&P Global. These developments are expected to lower its cost of funds over the long term, he added.Advances registered 18 per cent year-on-year growth, while deposits grew 14 per cent. Retail asset disbursements were up 27 per cent, while CASA deposits also registered 14 per cent growth. Retail and branch-led deposits increased 11 per cent and accounted for 59 per cent of total deposits.Retail slippages were at their lowest level in the past 10 quarters, at ₹843 crore (2.7 per cent of advances) compared with ₹888 crore (2.8 per cent of advances) in Q4 FY26, the bank said.Published on July 18, 2026