Yes Bank Q2 FY27 Results (NSE: YESBANK)
Signal: Earnings grew
The read
The operating trajectory improved on a 22.7% YoY rise in NII and 29.4% growth in operating profit, but momentum has flattened sequentially as PAT rose only 0.8% QoQ despite provisions increasing 121.5% QoQ; the decisive risk is the qualified review and unrecognised ₹8,415 crore AT1 liability following the Supreme Court judgment.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹10,521.35 Cr | +16.6% | +6.9% |
| EBIT | ₹1,677.83 Cr | +29.4% | |
| Net profit | ₹1,080 Cr | +65.0% | |
| EPS | ₹0.34 | +61.9% | |
| EBIT margin | 0% |
P&L walk
Standalone income accelerated to ₹1,052,135 lakh, up 16.6% YoY and 6.9% QoQ, with operating profit up 29.4% YoY but broadly flat QoQ; PAT rose 65.0% YoY despite provisions increasing 78.7% YoY.
Segments
Treasury was the main earnings lift, with segment result rising to ₹71,526 lakh from ₹37,978 lakh, while Retail Banking remained loss-making at ₹1,462 lakh despite improving sharply from a ₹35,813 lakh loss; Corporate Banking dragged with result falling to ₹57,298 lakh from ₹79,000 lakh.
Key positives
- Net interest income rose 22.7% YoY to ₹282,234 lakh, ahead of total income growth of 16.6%.
- Gross NPA improved to 1.2% from 1.6% a year ago and 1.3% in the prior quarter, while net NPA remained at 0.2%.
- Advances grew 23.7% YoY to ₹3,095,098 lakh and deposits grew 19.5% to ₹3,540,040 lakh.
- Treasury segment result increased 88.3% YoY to ₹71,526 lakh, supporting consolidated-equivalent standalone pre-tax earnings.
Key concerns
- PAT was nearly flat sequentially at ₹108,000 lakh versus ₹107,099 lakh despite 16.6% YoY total-income growth, as provisions rose 121.5% QoQ to ₹70,295 lakh.
- Retail Banking remained loss-making at ₹1,462 lakh in Q2FY27, although the loss narrowed from ₹35,813 lakh a year ago.
- H1 operating cash flow fell 95.5% YoY to ₹56,211 lakh while advances absorbed ₹3,730,835 lakh of cash.
Research and educational content only. Not investment advice.