MACROECONOMIC AND INDUSTRY OVERVIEW
Global Macroeconomic Backdrop
The global economy remained resilient during FY 2025-26 despite a challenging operating environment marked by geopolitical tensions, policy uncertainty and volatility across international financial and commodity markets. Supply-side disruptions, including those affecting global energy corridors, added to uncertainty during the year. More recent diplomatic developments in West Asia contributed to some moderation in oil prices; however, the global growth outlook remains subject to risks from elevated public debt, persistent inflationary pressures and the evolving monetary policy stance of major central banks.
The global financial system also continued to undergo structural change. High asset valuations, rising sovereign debt levels and the growing role of non-bank financial institutions remained important areas of focus. At the same time, closer interaction between traditional banks and non-bank financial institutions, the expansion of private credit and rapid technological innovation continued to reshape financial intermediation. These developments present opportunities for efficiency and market deepening, while also underscoring the need for proactive supervision, risk monitoring and adaptive regulatory frameworks.
Indias Economic Performance in FY 2025-26
Against this global backdrop, the Indian economy demonstrated strong domestic momentum during FY 2025-26. High-frequency indicators through the final quarter pointed to resilient activity, supported by urban and rural demand, tax measures, GST rationalisation and healthy agricultural cash flows.
Under the revised GDP series with base year 2022-23, real GDP grew by 7.7% Y-O-Y, driven primarily by a recovery in private consumption and an 8.1% expansion in gross fixed capital formation. On the supply side, real GVA increased by 7.9%, supported by services activity and a manufacturing sector that gained momentum towards the end of the year, particularly in motor vehicle production.
Domestic demand remained a key driver of growth even as externalconditionswereweak.Totalexportgrowthwasmodest at 0.9%, reflecting global headwinds. However, domestic activity remained supported by continued formalisation and a 30% increase in digital transaction volumes.
Inflation, Monetary Policy and Liquidity Conditions
Domestic inflation moderated significantly during FY 2025-26 under the new CPI series with base year 2024. Headline inflation declined from 3.3% in April 2025 to near-zero levels by October, supported by a correction in food and beverages inflation, favourable agricultural arrivals, comfortable buffer stocks and a supportive base effect. As these factors normalised, headline inflation reverted to 3.4% by March 2026.
For the full year, headline inflation averaged 2.1%, compared with 4.6% in FY 2024-25. Looking ahead to FY 2026-27, inflation risks are expected to be more balanced but with potential upside from weather-related food supply disruptions and energy-price volatility. The RBI projects headline inflation at 5.1%, with Q3 inflation expected at 5.9%. Core inflation, which averaged 3.4% in the final quarter of FY 2025-26, is projected at 4.7% for FY 2026-27, indicating that underlying demand-side pressures remain contained.
The Monetary Policy Committee responded to the changing inflation-growth dynamics with a calibrated easing cycle during FY 2025-26. The cycle began in February 2025 with a 25 bps reduction in the repo rate and a shift in stance from accommodative to neutral. In June, the MPC front-loaded easing through a 50 bps repo rate cut and a phased 100 bps reduction in the Cash Reserve Ratio. Following cumulative repo rate reductions of 100 bps, the stance returned to neutral to preserve policy flexibility. A further 25 bps repo rate cut in December brought the repo rate to 5.25%, where it remained until the April 2026 meeting.
Liquidity management during the year moved from deficit conditions to a structural surplus. The phased 100 bps CRR reduction infused approximately Rs. 2.5 trillion into the system by December 2025. The RBI also supported liquidity conditions through Rs. 7.39 lakh crore of open market purchases, Rs. 2.26 lakh crore of USD/INR buy-sell swaps and
1.62 lakh crore of term repo operations. While liquidity was ample in the first half of the year, averaging Rs. 2.29 lakh crore in net absorption, conditions tightened marginally in the second half to an average of Rs. 1.43 lakh crore, reflecting a seasonal increase in currency in circulation and volatile capital flows. Fine-tuning Variable Rate Repo and Variable Rate Reverse Repo auctions helped manage short-term frictions and kept the weighted average call rate closely aligned with the policy repo rate.
Banking Sector Stability and Credit Dynamics
The Indian banking system remained resilient, supported by profitability, adequate capitalisation and strong asset quality. According to the Reserve Bank of Indias Financial Stability Report of December 2025, Scheduled Commercial Banks maintained a comfortable capital position, with the Capital to Risk-Weighted Assets Ratio at 17.2%. Asset quality improved further, with the Gross Non-performing Asset ratio at a multi-decadal low of 2.2% and the Net Non-performing Asset ratio at 0.5%. The Provisioning Coverage Ratio stood at 76.0%. RBI macro-stress tests indicated that Scheduled Commercial Banks remained well capitalised and capable of absorbing adverse shocks.
Credit growth continued to support economic momentum. As at end-March 2026, bank credit of Scheduled Commercial Banks stood at Rs. 213.6 trillion, up 16.1% Y-O-Y, while aggregate deposits stood at Rs. 262.3 trillion, up 13.5% Y-O-Y.
Deposit and Credit Positions (March 31, 2026)
| Item | Outstanding | Y-O-Y Growth |
| Aggregate deposits of SCBs | 262.3 trillion | Up by 13.5% |
| Bank Credit of SCBs | 213.6 trillion | Up by 16.1% |
Source: RBI Weekly Statistics Supplement
Policy priorities for FY 2026-27 are expected to remain focussed on targeted credit delivery, including measures to support Micro and Small Enterprises. The doubling of the collateral-free loan limit for MSEs to Rs. 20 lakh and macroprudential measures expected to support system capital ratios should help sustain credit momentum.
External Sector and Currency Movement
FY 2026-27 Outlook: Resilience Amid External Uncertainty
Indias external sector presented a mixed picture in FY 2025-26. Merchandise exports remained subdued, growing by 0.9%, reflecting weak global demand and geopolitical uncertainty. Services exports provided a counterbalance, with receipts rising 13.3% Y-O-Y to a net of USD 214 billion. This helped contain the Current Account Deficit at approximately 1.0% of GDP for much of the year, despite the merchandise trade gap widening to USD 333 billion.
Capital flows were more volatile. Gross FDI inflows remained strong at USD 88.3 billion, although repatriation flows reduced net inflows. Foreign Portfolio Investors recorded net outflows of USD 16.5 billion as global risk appetite weakened, including a USD 13.1 billion outflow in March 2026.
The Indian Rupee came under pressure during the year, reflecting global risk aversion, trade uncertainty and portfolio outflows. The INR touched a closing low of 94.83 on March 30, with intraday levels reaching 95 per USD. In response, regulatory measures – including a cap on banks Net Open Positions at USD 100 million and restrictions on certain non-deliverable derivative contracts involving the Rupee – sought to support orderly market conditions and reduce speculative volatility.
Indias external buffers remained comfortable, with foreign exchange reserves at USD 697.1 billion as of April 2026. However, the economy remains sensitive to energy-price movements; every USD 10 per barrel increase in oil prices is estimated to widen the Current Account Deficit by 0.3% of GDP.
FY 2026-27 Outlook: Resilience Amid External Uncertainty
India enters FY 2026-27 with a resilient domestic growth base, even as the external environment remains uncertain. Growth is expected to be supported by domestic demand, services-sector momentum, healthy corporate and banking balance sheets, policy support and ample system liquidity. At the same time, global trade fragmentation, commodity-price volatility, capital-flow uncertainty and potential weather-related disruptions remain key risks.
Consensus growth projections continue to place India among the faster-growing major economies, with the RBI projecting 6.6% growth and the IMF estimating 6.4% growth for FY 2026-27. Inflation is expected to rise from the low levels seen in FY 2025-26, but is anticipated to remain within the RBIs target corridor, supported by contained core inflation and active policy management.
Overall, Indias macroeconomic position remains supported by strong domestic demand, a resilient banking system, comfortable external buffers and a proactive policy framework. These factors should help the economy navigate external headwinds while sustaining medium-term growth momentum.
YES BANK PERFORMANCE
RETAIL BANKING
In FY 2025-26, YES BANK had sustained growth performance in Retail deposits and Credit Cards portfolio, steady growth in Micro SME advances, calibrated growth in Retail Asset advances, while continuing to offer a full suite of personalised and business banking solutions.
As of March 31, 2026, the share of YES BANKs Retail and Branch banking deposits stood at 58.4% of total bank deposits, while the share of Retail Advances stood at the level of 46.1% of total advances, reflecting the Banks sustained emphasis on building a profitable and high-quality retail franchise. In perspective, while deposits growth on Y-O-Y basis [FY 2025-26 vs FY 2024-25] for the industry* stood at 11.3% and for private banks* at 13.0%; the Bank registered growth of 12.1% and Retail Branch Banking 13.5%. Over the last two years, Retail and Branch Banking led deposits registered growth of 16.1% CAGR [FY 2023-24 vs FY 2025-26] versus 10.9% for Industry* and 12.5% for Private Banks*, underscoring the Banks strengthening retail liability franchise. During the same period, the Banks Retail and Branch Banking led CASA deposit growth share in incremental growth registered by Private Banks* stood at 4.5% and in Industry* growth at 1.8%, and at higher run rate Y-O-Y, leading to further increase in market share.
Average yearly Retail and Branch Banking deposits grew 14.7% Y-O-Y, with stronger growth in Current Account deposits at 15.4% and Savings Account deposits at 21.0%. Micro SME advances also registered steady growth in fund-based book of 11% on Y-O-Y basis.
Retail Asset advances continued with calibrated growth approach for FY 2025-26 across product and sourcing mix, with the objective of profitability enhancement and thus registered a Y-O-Y book growth of 2.0%. However, sustained and strong growth in Cards Book Size of 22.9% was registered along with Card Spends increasing 23.4% Y-O-Y.
*Data Source: RBI (BSR)-2 – Deposits with SCBs and CAGR based on Total Bank Deposits.
Branch Banking
YES BANK offers a comprehensive suite of liability and asset solutions to its customers under Branch Banking. The strategic focus of Branch Banking vertical remained on the affluent, emerging affluent, and mass affluent segments, along with SMEs across metro and urban markets.
Overall, growth in liability deposits for the Bank was primarily driven by a robust 13.5% Y-O-Y growth in Retail and Branch Banking led deposits.
Focussed segmented strategy on acquiring current accounts to improve CASA mix, especially around small merchants helped deliver higher volume growth of 14.1% Y-O-Y, with improved customer retention and cross sell outcomes, and scale up in retail current account business. Moreover, the focus on acquiring high-quality New-to-Bank (NTB) retail customers led to a 20% Y-O-Y [normalised for comparability] growth in CASA average ticket size (ATS). Over the last two years, 52% of incremental deposit growth in Retail and Branch Banking led deposits came from CASA balances.
During FY 2025-26, the Bank opened 82 new branches (including 1 Digital Banking Unit DBU) and expanded its geographical footprint to 1,334 branches and 249 Business Correspondent Banking Outlets (BCBOs) spread across 300+ districts, with 1,364 ATMs and Bunch Note Acceptor/Recycler. Maximising branch distribution as Fulcrum of Business, greater use of the branch network for distribution supported an increase in internal sourcing of Retail asset disbursements to 46% and Credit Cards to 40% in Q4 FY 2025-26.
Spectrum Banking
Spectrum Banking, envisioned as a "Bank within the Bank", is the institutions new age, integrated engagement team that manages the end-to-end customer lifecycle across the full spectrum of retail banking products. Powered by advanced virtual platforms, including telephony, chat, and email, it delivers personalised, efficient, and scalable interactions across diverse customer segments.
During the year, Spectrum Banking engaged with over ~49 lakh customers and prospects, reinforcing its pivotal contribution to digitally-enabled client engagement. Further, the Virtual Relationship Management (VRM) programme actively managed relationships for 12 lakh+ customers, with strong 28% Y-O-Y growth in portfolio book – a testament to the teams strength in relationship deepening, cross sell effectiveness, and portfolio expansion.
Spectrum Banking oversees the complete customer lifecycle, spanning acquisition, onboarding, relationship management, customer value management, activation, retention, and servicing. It also manages a comprehensive portfolio of retail products, including liabilities, retail assets, business banking solutions, credit cards, merchant services, and third party products.
Digital Banking
Digital Payment System
YES BANK continues to invest in new-age digital technologies to offer superior customer experience. The Bank has digital journeys for seamless customer acquisition, servicing, and cross-sell in place for retail customers. Today, 96% of all eligible savings accounts (with 73% accounts instantly activated) and 95% of eligible current accounts (with 55% accounts activated within 4 hours) are onboarded through the digital mode. The Bank has implemented comprehensive digital onboarding journey for Individuals, Sole Proprietors, Companies, LLPs and partnership constitution for current accounts with an industry first, data backed product recommender to Auto fetch profile information from GST for KYC validation and right product recommendation in real time for current & saving accounts.
Further, digital co-origination has been enabled across Current and Savings account onboarding, such as co-sourcing of 3-in-1 (demat and trading) account, along with savings account, co-origination of Savings Account with Current Account for individual & sole proprietors in a single journey.
Over 351 unique service journeys / features are available across several Digital Channels y 202 on ‘IRIS by YES BANK – the Banks mobile banking app y 222 on YES Online – Internet Banking Platform y 101 on YES Robot y 73 on WhatsApp Banking y 96% of service request & 99.8% of retail transactions processed via retail digital channels
To augment its offerings, the Bank continues to partner with various FinTechs and corporates. The Bank continues to be a leading player in new-age digital payments, including UPI (Payer PSP), UPI (Payee PSP), AePS, NEFT, IMPS and NACH at 38.69%, 57.52%, 28.27%, 21.6%, 8.2%, and 15.2% market share in FY 2025-26, respectively. YES BANK processes every 3rd digital payment transaction in the country (around 19 billion on a monthly basis). To grow its digital volumes further and build resilience, the Bank has implemented cloud-native UPI, IMPS processors and alternate AePS processors.
Over the decade-long journey of YES Money, the Bank has onboarded over 6.8 lakh outlets which have been aiding customers with simple banking transactions, including domestic money transfer and Aadhaar and Micro ATM-based cash withdrawals.
During the year, the Bank launched new solutions in payments domain such as Internet of Things (IoT) payments, corporate UPI payment solution & Biometric Authentication for UPI Payments. The Bank has enabled Credit line over UPI which works as pre-approved credit facility enabling users to "Scan and Pay" at merchants. The Bank has successfully launched a new version of Central Bank Digital Currency (CBDC) wallet through YES Pay Next Application.
The Bank has also scaled up its merchant collection offerings via YES Pay Biz App. The Bank has enabled a total of 4.5+ lakh merchants. A total of 210 mn transactions worth Rs. 16,000 crore were processed via the application during FY 2025-26.
As part of its focus on products that support Indias climate objectives, the Bank introduced the YES BANK Green Fixed Deposit on YES Online and the IRIS application. It is a deposit product designed for sustainability-focussed investors. Green Fixed Deposits offer interest-bearing savings while enabling customers to support environmentally positive projects. The Bank will utilise proceeds from Green FDs to finance green projects such as renewable energy, clean transportation, green buildings, and other climate positive activities.
The Bank is LIVE on "Banking Connect" platform unveiled by NBBL on IRIS & YES Online application. This initiative enables customers of YES BANK to carry out secure online merchant payments through mobile banking application, eliminating the need for multiple payment gateway integrations.
Programmes YES Private
YES Private is the Banks flagship by-invite programme designed for High and Ultra High Net Worth Individuals (HNIs/ UHNIs). The programme is thoughtfully curated, bringing together a blend of bespoke wealth expertise, full-stack banking & enterprise solutions and unmatched global lifestyle experiences, backed by a team of relationship and product specialists along with a robust service architecture.
The programme offers curated client engagements across diverse lifestyles and interests to enhance customer delight and provide a truly bespoke experience.
YES First and YES First Business
YES First and YES First Business are the Banks flagship wealth management and business banking programmes, curated for affluent customers for their personal and business banking needs. These specialised programmes are imbibed with a comprehensive customer-centric approach and offer curated product offerings and services, coupled with a host of lifestyle benefits, to provide a delightful experience to the customers. The portfolio makes significant contribution to our Retail and Branch Banking Liabilities and fees franchise. The programme propositions have been further enriched by adding relevant benefits for eligible customers through the lifecycle across multiple consumption categories. In 2025, a segmented YES First Business offering for IT/ITeS was introduced, offering customised solutions for business banking customers in this rapidly expanding customer segment.
Key Offerings y Exquisite lifestyle benefits for new relationships y Comprehensive personal and business banking solutions y Wealth Management y 4X Accelerated YES Rewardz y Dedicated YES First Direct service desk and YES Assist concierge service
YES Grandeur
Launched in April 2024, YES Grandeur caters to the emerging affluent segment, offering milestone-led rewards, enhanced banking privileges, and premium debit card features, designed to leverage on the growing demand of this niche demographic customer segment. The programme was expanded in December 2025 with the introduction of YES Grandeur Business, providing differentiated business banking solutions to customers in this segment.
Key Offerings y Majestic milestone benefits for new relationships y Seamless banking with simplified digital solutions y Diverse product suite y 3X Accelerated YES Rewardz y Dedicated YES Grandeur Priority Service Desk
YES Premia
YES Premia offers segmented solutions to the mass affluent segment with an emphasis on making banking seamless and enjoyable for the customers. The programme, which includes individual and business banking offerings, has been curated to provide banking solutions and lifestyle benefits, complementing the requirements of this segment.
Key Offerings y Special joining benefits for new relationships y Preferential pricing on selects banking products y Powerful Digital banking platforms and solutions y 2X Accelerated YES Rewardz
YES Prosperity
YES Prosperity is the Banks mass retail programme, offering services for customers individual and business banking needs.
This offers feature-packed exclusive segmented savings account proposition to garner granular deposits from segments like salaried, senior citizens, women and regular customers of the Bank. During FY 2025-26, the Bank also revamped its Savings Account proposition for Senior Citizens with newly-added features.
For the business clients, it offers current account variants such as Freedom Flexi - a first-of-its-kind five-tier product suite with an auto-upgrade and auto-downgrade facility to ensure the right product fit for every stage of the business lifecycle, along with other curated segmental offerings for diverse business profiles. During FY 2025-26, the Bank introduced Merchant Elite Current Account Proposition focussed on medium to large retail outlets, leading to overall Y-O-Y acquisition growth in merchant account segment of more than 50%.
NRI Banking
The NRI Banking programme offers a power-packed offering designed to meet the diverse financial needs for Non-Resident Indians (NRIs). It helps the NRIs curate and manage wealth across product categories through in-person and digital fulfilment models. This product offering is complemented by a multi-channel servicing capability that delivers convenience, agility and benefits that extend beyond banking.
Comprehensive and superior experiential banking services for NRIs and Persons of Indian Origin (PIOs): y Banking services: Deposits, Portfolio Investment Scheme (PIS), remittances and wealth management products along with best-in class NRI FX rates y Liability product suite: Savings, Fixed and Recurring Deposit offerings denominated in INR, and Fixed deposits in eight (8) foreign currencies y International Financial Services Centre (IFSC) Banking Unit (IBU): Offers Savings and Term Deposits to NRIs in select global currencies
Debit Cards
YES BANK offers a complete suite of Debit Card variants across all three networks viz. Mastercard, Visa and RuPay. The Bank has card variants across all segments of its customers including Mass & Emerging Affluent, Affluent, Private as well as for segmented offerings such as Salaried Individuals, Women and NRIs among others. These Debit Cards are designed and customised to meet the specific needs of its customers in YES Private, YES First, YES Grandeur, YES Premia and YES Prosperity programmes.
Unique benefits across categories: y Reward points on domestic and international spends y Complimentary airport lounge access and golf lessons (on select Debit Cards) y Exciting offers on retail categories such as entertainment, dining, utility payments, groceries etc. across leading merchants y Insurance cover across purchase protection, accidental insurance and lost card liability with limits basis card variant
The Bank has launched an online platform for its customers to seamlessly tokenise cards across multiple merchants in a single platform.
The Bank also revamped its business card offering as well as launched an exclusive health debit card "Healthfit", focussing on health-related benefits as the underlying fulcrum of the offering.
Micro Enterprises Banking
Micro Enterprises Banking offers comprehensive financing solutions tailored to the diverse needs of the MSME ecosystem, delivered through a network of 1,250+ branches and robust digital stack, and a dedicated team of Relationship Managers and Product Specialists.
Strategic Focus Areas:
YES BANK Loan Hub: Significantly transformed onboarding process for SME Customers powered by information available via extant Digital Public Infrastructure (DPI) including GST, Udhyam, Banking, ITR, Bureau API sets Launch of YES GST FinFast: New cashflow-based lending programme launched leveraging GST and Banking data, with defined TATs to enhance agility in credit assessment and enable faster, data-driven decision-making
IRIS Biz by YES BANK and YES Business: Enhanced Customer Experience, through smart and intuitive user interface providing seamless experience for integrated financial management of personal and Business Banking accounts, Digital Current Account opening and Overdraft facility SME Service Desk: Unified Service Desk, which addresses 60+ non-financial customer requests has now been upgraded to include key financial service requests Implementation of E-Sign and E-Stamping enabling faster, paperless loan execution
Pre-Approved Enhancements: Enhancing Client Loyalty by Offering Pre-Approved Credit enhancements to good-performing Borrowers
Portfolio Quality & Risk Management: Proactive initiatives focussed on early identification and proactive management of potential stressed accounts, ensuring portfolio health and maintain control over credit cost
Growth-Focussed Initiatives:
To accelerate future growth, Micro Enterprises Banking has identified high-potential segments and launched targeted initiatives such as: Government Schemes: Strong focus on loans backed by Government Guarantee Schemes (CGTMSE, CGSS etc.)
Digi OD (Unsecured Product): An end-to-end digitally-enabled unsecured overdraft facility; a high yielding product aimed toward driving profitability SmartFin LOS & LMS: Complete digital solution for Supply Chain Financing encompassing complete Customer lifecycle management from onboarding to drawdown management
Project Orion: A data-driven lead generation engine that leverages the Banks internal customer base to empower sales teams with qualified leads
Credit Cards
YES BANKs Credit Card Offerings are well established for prioritising customer satisfaction, offering a diverse range of products to cater to customer expectations, a robust distribution approach and exceptional customer service, well supported by strong risk management systems. The Banks current credit card portfolio consists of 30+ products tailored for consumers, small and medium-sized enterprise (SME) and commercial segments.
During the year, the Bank has further scaled its UPI facility offered on RuPay Credit Cards, which now contributes to 35% of the Consumer Credit Card spends. This offers an engaging proposition to its customers to conduct UPI transactions on their Credit Cards. The Bank issued more than 5 lakh UPI-enabled Credit Cards in FY 2025-26.
The Bank remains focussed on acquiring its customers from the existing liability/asset base. In this regard, the Bank has launched end-to-end digital journey for pre-qualified customers applying through "IRIS by YES BANK" mobile application which allows the Card to be issued in real time at the end of the journey. The Bank also continues to leverage other Co-brand partners who have large and engaged customer franchisee, that are digital savvy and have high propensity for Card purchases, for acquiring new customers. This strategy helps acquire new customers outside of its existing customer base (location wise and profile wise).
End-to-end digital journeys in Credit Cards: a. The Banks entire digital customer onboarding platform, coupled with a real-time credit card approval process (for eligible applicants), ensures that eligible customers receive their Credit Card details digitally in its mobile application. Over 98% of new credit card approvals in FY 2025-26 were processed digitally. b. The digital onboarding platform supports multiple formats such as DIY, Assisted, Bio-metric and Video KYC. c. All Credit Card related services made available digitally in
DIY mode for 24*7 servicing to customers.
The Bank has launched Credit Line On UPI (CLoU) on November 24, 2025 in partnership with BharatPe. The business line is intended to further strengthen the Banks market leadership in UPI driven credit by building a scalable, fully digital, low opex model that acquires New-to-Bank customers through fintech partnerships. It is expected to help the Bank drive profitable cross-sell, and operate within robust risk, security, and governance frameworks aligned with RBI and internal policies. As of March 31, 2026, the Bank has created 6,970 credit lines with limit setup of more than Rs. 12 crore and outstanding balances of ~ Rs. 4 crore.
Retail Banking Assets
Under Retail Banking Assets, the Bank offers a bouquet of well-diversified retail asset products to its customers. The share of Retail & Rural Banking assets book across all products stands at 35% in FY 2025-26. Retail Banking Assets products are offered across 660+ locations through branches and channel partners.
The Bank made good progress on delivering sustained profitable growth led by business-mix optimisation. The Bank has adopted a strategic approach to increase share of internal sourcing by positioning branches as the fulcrum of growth. Sourcing contribution through internal channels is at ~51% across retail and rural assets in FY 2025-26 as against 50% in FY 2024-25. Partnership and co-lending business made substantial progress during FY 2025-26.
Enhancing digital capabilities: The Bank has been enhancing its digital capabilities with additional products/ offerings such as ‘Loan in Seconds platform as well as front-end automation initiatives using YES Robot, to provide customers with shorter response time and drive higher productivity
Investment in Salesforce: With an eye on future retail led growth ambitions backed with strong technology, the Bank invested in Salesforce over the past 2 years to build a next-generation cloud-based loan origination system. This facilitates concurrent processing, integrated with Business Rule Engine that enabled real-time credit decisioning and industry-best turnaround time. During the year, digital loan onboarding was made live for Mortgage Loans and Personal Loans for PAN India users. All the processing functions of the Bank (Sales, Credit, Ops, & RCU) are managed within Salesforce
Enhanced digital journey for Wheels: The Bank has built the new Pegasus journey on Finnone for Wheels which is now live for Commercial Assets across PAN India. The enhanced journey strengthens TAT, accuracy, and efficiency by increasing automation and minimising manual dependencies
These capabilities have created the foundation for growth in the coming years while ensuring customer delight, improved productivity & enhanced operational efficiencies.
The Bank has a diversified retail asset book built around analytics-based collection scorecards, which augments performance of the field force and enhances collection cost efficiencies. The Bank has also invested in collections infrastructure such as New Collection System and additional Scorecards to further augment its collection efficiency. All these initiatives resulted in significant improvement across all collection metrices.
Rural Banking Assets
This unit addresses the financial requirements of Indian farmers for crop production and ancillary activities through Kisan Credit Card loans and Farm Mechanisation loans.
Key Offerings:
Catering to specific needs of farmers across specialised Agri-clusters through flagship crop loan products under different variants Handling farm mechanisation needs of progressive farmers by financing the purchase of tractors, harvesters and agri implements
PSL and Microfinance
In line with its commitment towards sustainable ‘inclusive growth in the rural and semi urban segment, YES BANK has always focussed on catalytic innovations and key partnerships to create and promote viable business models, apart from providing ‘access to finance to its bottom-of-the-pyramid customers. It has a two-pronged strategy involving Inclusive
& Social Banking (ISB) and Microfinance Institutions for the implementation of various financial inclusion initiatives, albeit in a profitable manner. While the women microfinance borrowers are served for loan and other insurance requirement through ISB division, the Bank, through its FI business unit provides term loans to Micro-Finance Institutions for lending to similar segments.
Parameters defining the Banks reach to the bottom of the pyramid customers
Agri-business Product Management
Agri-business Product Management (APM) is the Banks specialised unit, which houses industry and banking professionals with relevant domain knowledge and skill sets. The team closely interacts with Food and Agri clients to create customised lending propositions for the agri value chain participants, including farmers, SMEs and corporates. It facilitates in building of banking opportunities in the agri value chain through suitable financial products, while also mitigating the credit risk. The team is also responsible for ensuring that the Bank meets the regulatory Priority Sector Lending (PSL) norms, in collaboration with the Business Units that generate PSL assets. Financing against pledge of agri commodities in warehouses (warehouse receipt financing) is one of its key offerings.
The Bank has created a granular portfolio against the pledging of agri commodities, while ensuring adequate risk mitigation A specialised team closely monitors commodity pledge financing portfolio and mitigates inherent risks through mark-to-market of commodity prices and in-depth data analysis using various tools and techniques
The end-to-end process is carried out on digital platforms to ensure faster customer service and superior experience
Merchant Acquiring Services
YES BANK stands among Indias leading providers of Merchant Acquiring Services, offering a best-in-class product suite supported by strong service standards and a robust technological backbone. Merchant Acquisition plays a pivotal role in enabling seamless payment solutions for the Banks Current Account clients.
The business currently serves over 3.8 lakh merchant establishments with about 5.5 lakh payment acceptance touchpoints across the country. During FY 2025-26, the segment delivered strong momentum, recording a 45% expansion in its merchant base and a 38% increase in spends processed through payment acceptance devices.
YES BANK has further strengthened its digital capabilities through enhancements to its merchant onboarding platform. Today, more than 95% of merchants are onboard digitally, reflecting the Banks commitment to a frictionless and efficient experience.
The Merchant Acquiring portfolio offers a comprehensive set of solutions, including state-of-the-art Android POS terminals, same day and holiday settlements, and a wide range of value-added services such as SMS Pay, EMI options, Dynamic Currency Conversion (DCC), and advanced QR/UPI solutions like QR Standees and QR Soundboxes.
Aligned with its digital-first approach, the Bank continues to invest in innovative products, enhanced services, and advanced process improvements to deliver superior value to its merchant ecosystem.
In line with RBIs Payment Aggregator guidelines, the Bank has strategically partnered with ecosystem players that possess a strong and diversified merchant footprint to expand scale and serve merchant segments across different geographies and business categories.
Fintech Partnerships
YES BANK in its pursuit to leverage the fintech partnerships to go beyond payments and collections has created a platform that helps to leverage fintech partners advanced UI/UX capabilities and integrate with a resilient API first technology stack and made significant progress on distribution of credit products – Cobranded Credit Cards and Credit Line on Fintech Apps. This platform enables seamless digital onboarding, robust lifecycle management within necessary guardrails to ensure consumer data is accessed in a secured way. The Bank is further working towards strengthening this platform to introduce more fee and liability products and create a sustainable and scalable digital engine that positions the Bank strongly for future growth through partnerships.
Large Corporates
YES BANKs Large Corporates segment remains an important component of our wholesale banking strategy, delivering tailored solutions to Indias most prominent companies. Anchored by our philosophy of Ecosystem Banking, the segment adopts a holistic approach, extending beyond traditional banking relationships to serve the broader ecosystem of our clients – including their dealers, vendors, and customers. This interconnected strategy ensures that we address the diverse needs of large corporates, while fostering sustainable growth and deepening client relationships.
In FY 2025-26, Large Corporates business unit led the growth at YES BANK and strengthened its market position through client centricity, strategic partnerships and robust risk management.
Our commitment to being a one-stop financial partner is reflected in our comprehensive offerings, which include:
Corporate Lending: Financing solutions to support capital expenditure, expansion and strategic initiatives
Working Capital Solutions: Customised financing solutions to optimise cash flows and support operational efficiency
Trade Finance and Supply Chain Solutions: Facilitating seamless transactions across the value chain for clients and their ecosystem partners
Treasury and Forex Services: Providing hedging solutions and market insights to manage currency and interest rate risks
Transaction Banking: Enabling efficient cash management, payments, and collections through digital platforms
Wealth Management and Retail Banking Services:
Catering to the personal banking needs of promoters and employees offering them a bouquet of services including savings accounts, credit cards, salary accounts and personal loans through partnership with Retail Banking team
Looking ahead, Large Corporates team is well poised to capitalise on emerging opportunities in Indias evolving economic landscape, while actively managing the risks emanating from global uncertainty. It remains committed to driving value for our clients and stakeholders, reinforcing YES BANKs position as a leader in corporate banking while contributing to Indias economic growth.
Commercial Banking
The Commercial Banking segment caters to small to mid-size corporates with turnover up to Rs. 1,500 crore, providing a seamless banking experience across growth stages. The segment is anchored on a relationship-led approach, combining deep local insights with tailored financial solutions to support evolving business needs.
The segment is driving growth through a dual strategy of acquiring New-to-Bank (NTB) clients while deepening existing relationships through increased share of wallet.
With an extensive on-ground network at 62 locations pan-India, Commercial Banking continues to build its portfolio by leveraging cross-sell synergies across Transaction Banking, Financial Markets, and Retail Banking, offering a comprehensive suite of solutions.
Financial Institutions
The Financial Institutions Segment caters to the financial custodians and intermediaries like Domestic and International Banks, Co-operative Banks, NBFCs, Mutual Funds, Insurance Companies, Stock Brokers and Cross-Border Money Transfer Operators. The unit offers lending to NBFCs and has built a sustainable Advances book with retail focussed NBFCs combined with strategic Priority Sector Lending (PSL) book. The unit also facilitates Co-lending/ Direct Assignment (DA) partnerships with NBFCs to further augment the retail book of the Bank.
The Financial Institutions Segment provides correspondent banking solutions to Domestic as well as International banks and commands a dominant position in the Co-operative Banks space through its sub-membership solutions. The unit utilises its strong correspondent-banking network to create wider access for its corporate customers and builds bridges to the international markets for availing financing and international banking services. The unit leverages the Banks market-leading API banking stack to integrate with Banks and Exchange Houses to offer real-time instant settlement services for its cross-border remittance business as well as offering digital solutions for NBFCs, Mutual Funds and Capital Market intermediaries like Stock Brokers and Exchanges.
The unit fulfils the borrowing requirements of the Bank by engaging with Domestic as well as International Financial & Development Institutions and Banks through raising loans, refinance and trade borrowings.
Multinational & New Economy Corporates
This business unit caters to two client segments namely Multinational Corporates (MNCs) New Economy clients including Start-ups, Fintechs, E-commerce platforms, Payment Aggregators, Agritech, Insurtech, Financial Sponsors, etc.
The Bank has built strong, long-term relationships across both segments and is well-positioned to support their end-to-end banking needs through a comprehensive 360? solutions approach. Leveraging its deep industry expertise, the unit partners with MNCs and New Economy companies to deliver integrated current account and transaction banking solutions. In addition, the unit actively collaborates with strategic influencers and financial sponsors to originate new current
259 account opportunities. By combining thought leadership with the Banks robust digital and transaction banking capabilities, the team consistently drives solution-led liability growth across its target client segments.
Key focus areas: a) Be the preferred local bank for global clients operating in India b) Deliver lifecycle banking to MNCs - supporting their India entry, growth stages, and marquee global corporates c) Strengthen positioning as the Bank of choice for Unicorns, Soonicorns, and regulated entities (Payment Aggregators, Prepaid Instrument issuers, etc.) d) Originate solution-led current account relationships through integrated working capital, payments, and collections solutions e) Capital Account Transactions advisory (FDI, ODI etc.), Transaction handling and Regulatory Reporting f) Ecosystem Banking through Supply Chain Financing Solutions
Government Banking
The Government Banking unit provides a comprehensive suite of banking services, including technology-enabled solutions and strategic advisory, to the Government of India, State Governments, and Administered institutions. The unit engages across the entire lifecycle of government relationships, from identification of opportunities to the design and implementation of innovative, structured, and integrated solutions. It has successfully executed several transactions with Public Sector Undertakings, Apex institutions and other government affiliates.
The unit caters to a diverse set of institutions beyond the Central and State Governments, with a focussed approach towards State development authorities and boards, educational and research institutions, religious and sports bodies, urban local bodies, citizen service entities amongst others. Through its differentiated Transaction Banking offerings, the Bank delivers curated digital solutions aimed at enhancing operational efficiency and optimising working capital across the Government ecosystem.
The Bank has further strengthened its value proposition by offering Agency Banking services across GST, Customs, and Direct Taxes, thereby providing a comprehensive suite of tax-related services. Additionally, the expansion of Agency
Banking services across select states is expected to deepen engagement and broaden service capabilities. The Bank continues to collaborate closely with State Governments to integrate with public digital infrastructure, driving greater efficiency and transparency. With a strong focus on innovation and seamless execution, Government Banking is emerging as a preferred digital banking partner to governments and their affiliated institutions by delivering cutting-edge technology solutions that ensure ease of implementation and enhanced operational effectiveness.
Product Expertise Transaction Banking
The Transaction Banking is a specialised product group providing Trade Finance, Cash Management and Supply Chain Financing services to Corporates, Governments and Financial Institutions.
The product suite includes:
Cash Management Services
Cash Management Services for managing receivables and payables Customised and innovative digital solutions, including market-leading API banking solutions Digital solutions for domestic/international correspondent banking and NBFCs Specialised products and solutions for government entities, including Central and State bodies Fiduciary services, e.g., escrow, nodal and RERA Capital market-related products, including settlement and custodian services Curated solutions for Trusts, Associations, Societies and Clubs (TASC) Trade and Supply Chain Finance Trade finance, e.g., Letters of Credit, bank guarantees, export and import credit, and remittances Structured trade and supply chain solutions including digitisation initiatives FEMA and Capital Account advisory services Fintech engagements, providing its market leading API Banking stack, or to leverage its connected banking approach and generate acquisition leads Foreign exchange services including cross-border business solutions for Payment Aggregators (PA-CB) Bullion Sales and Gold Metal Loans
• Remittances
Inward remittances for Exchange house partners under Rupee Drawing Arrangement Outward remittances under LRS for AD2 & MTO partners
The Transaction Banking leverages its product and technology expertise to offer innovative digital solutions by designing, developing and co-creating products with corporate clients, fintech/technology partners, banks and exchange houses. The Group effectively drives digitisation in the entire financial supply chain of businesses across sectors, and leverages its flagship API banking, fintech partnerships and product knowledge base through its product and sales teams.
As the pioneers of API Banking for a decade, the API Banking stack today provides 1,500+ API-related products and services. It also offers the ‘YES Connect platform, an API marketplace that brings together banking (products and services offered by the Bank) and beyond banking (solutions from third-party partners) solutions in a simplified manner.
Transaction Bankings supply chain unit works with corporate anchor clients, using technology to harness anchors supply chain linkages and provide critical liquidity solutions to their MSME/ SME partners.
IRIS Biz – a Super App for Corporates is an omni-channel platform and provides services via both web and mobile application. The application has 100+ banking and beyond banking features for corporates. The application allows customers to seamlessly collect funds, make payments and manage their trade finance and remittance requirements. The next-generation platform is revolutionising Banking for MSMEs and Corporates.
The Bank also announced the launch of its Agency Business Mandate, enabling it to act as an agent for various state and central government and regulatory bodies. Through direct integration with the various tax portals, this empanelment enables businesses and individuals to meet their tax obligations swiftly and securely using YES BANKs Retail and Corporate Internet Banking platforms, as well as any of its extensive branch network.
External Awards received by the Unit during the year:
‘Innovative Bank Gold Business - Year 2024-25- India Gold Conferences Excellence Awards 2025 "Digital Innovation by the Bank – MSME/SCF"- Bharat Fintech Summit 2026 Awards
Project Finance, Real Estate & Loan Syndication
The unit facilitates underwriting of Project Finance exposures across business segments and has built sectoral expertise over the years, across sectors such as energy, ports and logistics, transport, real estate, metals and mining, cement, healthcare, warehousing and data centres, amongst others. It has demonstrated its distribution capabilities across Banks, NBFCs and Financial Institutions. The unit provides knowledge inputs to key stakeholders to deepen their understanding of these sectors, market conditions and industry developments, and help devise sector-specific strategies. This distinctive approach also helps in improving our mindshare and deepen client relationships. The unit further extends support to the Banks ESG initiatives by lending to sustainability sectors.
Financial Markets
The Financial Markets unit offers comprehensive services across Foreign Exchange, Interest rates, Debt Capital Markets and Bullion to Corporates, Financial Institutions, Government entities, SMEs and Retail clients. With a 110+ member team across India, the FM business combines deep market expertise with robust execution capabilities.
FM Sales: The Financial Markets Sales team drives the Banks FX and Derivatives business. The Banks customers such as large and mid-sized corporates, PSUs, MNCs, private equity funds, banks, and institutions are offered customised hedging solutions for managing currency and interest rate risks. The Bank also has a well-developed retail franchise for FX business catering to HNIs and NRIs, among others. The unit handles FX trade flows as well as capital flows including FDIs, ECBs, Foreign Currency Bonds and hedging solutions on the same. The unit also offers electronic trade execution to clients through its proprietary platform as well as CCILs retail platform. Each customer has a dedicated FM Sales Manager providing key personal services such as timely market insights and sectoral expertise. The Bank also provides hedging solutions to clients outside India through IFSC Business Unit in GIFT City, Gujarat.
Primary Dealership: YES BANK is one of the 21 Primary Dealers (PDs) designated by the RBI to actively trade, underwrite and bid for Government Securities, T-Bills and State Government Bonds in auctions, providing a complete suite of sovereign debt. The Bank has dedicated sales personnel for dealing with mutual funds, insurance companies, Foreign Portfolio Investors (FPIs), cooperative banks, provident funds and retail customers.
Debt Capital Market (DCM): This business is responsible for origination of onshore rupee debt mandates including Non-Convertible Debentures (NCDs), Commercial Papers, Pass Through Certificates (PTCs) and execution and distribution of these mandates. The Banks clientele in this segment comprises large and mid-market corporates, PSUs, central and state government entities and NBFCs.
On the distribution front, the DCM desk has developed deeply entrenched relationships across various investor segments, including mutual funds, insurance companies, provident and pension funds, FPIs, banks, private wealth managers and NBFCs. It has successfully executed deals ranging from vanilla transactions to highly structured debt solutions, including a renewable asset pooling structure, securitisation of infrastructure assets, lease rental discounting and NCDs issued by InvITs (Infrastructure Investment Trusts). The Banks DCM team has consistently been ranked in the prestigious league table rankings and has also received several awards and accolades over the years.
Balance Sheet Management Group (BSMG): The Banks BSMG team is the custodian of its cash, liquid assets and government securities portfolio. It manages day-to-day liquidity within the centralised treasury framework, under the governance and strategic oversight of the Asset Liability Management Committee (ALCO). The team is responsible for managing the Banks investments portfolio, ensuring compliance with statutory reserve requirements like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Liquidity Coverage Ratio (LCR) and Net Stable Funding Ration (NSFR). In addition, the BSMG team is responsible for management of liquidity risk and interest rate risk exposures within the Banks Balance Sheet.
Bullion: YES BANK imports bullion on a consignment basis to meet outright purchase and gold loan requirements of bullion dealers and jewellery manufacturers (both domestic and export purpose). The Bank has emerged as a dominant player in the Indian bullion market and established itself among the top three bullion importing banks in India. Today, it is one of the leading banks that successfully meets the demands of large, small and medium-sized manufacturers.
IFSC Banking Unit – GIFT City (IBU)
YES BANK was the first Bank in India to commence operations at the IFSC in GIFT City, Gujarat, in October 2015. IBU provides comprehensive solutions to the Banks corporate and retail clients to meet their foreign currency banking requirements across liability and investments, cross-border trade offerings, external commercial borrowings and foreign currency loan syndications.
Knowledge Banking
Business Economics Banking
Business Economics Banking is the research and knowledge arm providing critical analytical perspectives on domestic and global financial markets. The team produces cutting-edge reports on macro issues and public policy perspectives with an aim towards enabling clients with requisite knowledge base required for their business, backed by adequate research.
Food and Agri Business Strategic Advisory Research (FASAR)
The specialised Food and Agri Business Strategic Advisory and Research (FASAR) unit houses industry specialists with sectoral knowledge and experience in the food and agri business domain. FASAR rolls out strategic initiatives and generates innovative banking opportunities from existing and prospective clients on the back of its knowledge-led banking services.
The unit works closely with corporates, SMEs, multinationals, industry chambers, as well as Central and State Governments operating in the food and agri ecosystem. They focus on executing knowledge backed advisory engagements, ranging from strategic advisory, policy advisory and project advisory, that have high potential for generating banking outcomes. The FASAR unit also publishes regular strategic reports and research papers on key trends and developments in the food and agriculture sector.
Corporate and Government Advisory
The Corporate and Government Advisory unit works across the emerging sectors of Indias economy by executing knowledge and advisory mandates to further the Banks commitment towards Indias holistic, inclusive and sustainable growth.
The unit leverages its in-depth sectoral expertise, research skills and apex-level relationship capital across government and industry ecosystems to assist clients, including Central and State governments, multi-lateral bodies, industry chambers and private sector players, in their development and growth agenda, apart from facilitating emerging opportunities within identified sectors for the Banks teams. The team has a focussed approach across sectors such as Urban Sustainability, E-mobility, Electronics and New Energy with the objective of creating new banking opportunities and deepening of relationships with key customer segments.
Resolution & Recoveries
YES BANKs Resolution and Recoveries (‘R&R) team leads management (including resolution, early exit, sustaining operations & recovery) of stressed loans (including Standard, at times), non-performing (NPAs) and written-off assets originating from the Banks various Corporate, including SME and Retail business segments. The Group provides effective solutions for resolution of these assets by leveraging its understanding in rehabilitation, restructuring, regulatory, legal, and recovery subjects. Over years, since the team has been independently managing the allocated portfolio, the team has added significant domain expertise and has successfully applied the same in the resolution of the allocated portfolio, involving varying degrees of nuance and complexity and geographies, involving both onshore and offshore. During the financial year, the R&R team continues to be ISO 9001:2015 compliant, reiterating its consistency while delivering quality outcomes, for both internal and external stakeholders.
Depending on nature of cases, the R&R team pursues multi-pronged resolution strategies, some of which are detailed under: Engaging with strategic investors for either co-participation or complete takeover of Identified stressed asset or sale itself Resolution of account through various available legal forums, like Insolvency and Bankruptcy (IBC), Debt Recovery Tribunal (DRT) / Debt Recovery Appellate Tribunal (DRAT), SARFAESI, Arbitration Determining the right cashflows and value of the asset/ Corporate Debtor, thus determining and enabling negotiation with borrowers for one-time settlements or undertaking operational and financial restructuring or pursuing Debt Assignment activity Depending on case requirement, engagement with the Borrowers principals / counterparties is also undertaken to better understand the subject and pursue Banks mandate Enlisting services of third-party Collection and Enforcement agencies, continuously monitoring their deliveries, training them (if required), largely for collection in Retail products
SUPPORT FUNCTIONS Human Capital Management
A "people-first" culture truly works towards the sustainable competitive advantage for the Bank. It has enabled us to attract and retain the best talent while driving more equitable outcomes. At YES BANK, we enjoy a culture that promotes meritocracy and career enhancement. The Bank has a total of 29,577 employees as at March 31, 2026 of which a net number of 887 employees were added in FY 2025-26. YES BANKs 5C engagement model (Culture, Communication, Connect, Career and Care) provides a consistent and enhanced employee experience.
The Bank implements various talent management and developmental learning initiatives tailored to the needs of the employees, business units as well as the organisation.
The Bank launched MAESTRO, a strategic talent management initiative for senior leaders in critical roles. The journey comprises Assessment Centre and 360-degree feedback followed by 1:1 debrief and feedback session. Developmental inputs are provided to build leadership capabilities and strengthen internal talent pipeline. To reinforce the Banks commitment to Risk & Compliance Culture, a learning initiative aiming to equip employees with the knowledge to ensure regulatory adherence was launched.
To bolster the Banks focus on Diversity, Equity & Inclusion, structured interventions were introduced to cultivate awareness, to sensitise employees on recognising & reducing the impact of unconscious biases. The aim was to promote more equitable & inclusive behaviours at the workplace. In addition to this, select women executives were identified who underwent a developmental journey that helped them evolve in their current and prepare them to take up larger assignments in future.
The Banks dedication to fostering a positive workplace culture has been recognised with its certification as a Great Place to Work? by the Great Place to Work? Institute for the fourth consecutive year. YES BANK was also recognized by Great Place to Work? for consistently being ranked among the Top 50 Indias Best Workplaces™ in BFSI over the last three years and further securing a place among the Top 25 Indias Best Workplaces™ in BFSI 2026. These recognitions by Great Place to Work? not only reaffirms our commitment to excellence in ‘people practices, but it also highlights our dedication to nurture a high-trust culture.
Women participation in the Banks workforce increased from 23.2% in FY 2024-25 to 24.4% in FY 2025-26. The Banks attrition rate in FY 2025-26 stood at 33.3%, compared with 35.5% in FY 2024-25.
Risk Management
The Banks long-term financial security and success is built on its risk management architecture. The Banks risk management is based on three lines of defence: (a) business units, (b) independent control functions, and (c) internal audit.
Further, the Banks Board has the overall responsibility of risk management, with the risk management architecture being overseen by the Risk Management Committee (RMC) of the Board. Additionally, risk management is undertaken by other Board-level committees for respective risks as per the Banks Board-approved risk architecture.
The Bank is exposed to three Pillars. Pillar 1 includes risks in the course of its business such as credit risk, market risk, and operational risk. With the evolving banking landscape, the Bank is also exposed to Pillar 2, which includes risks such as liquidity risk, interest rate risk in banking book, and reputation risk etc. These risks are also critical as they have a bearing on the Banks financial strength and operations. A detailed description of various risks faced by the Bank, their respective governance framework, management and mitigation strategies, and their implication to the Bank is presented in Annexure 1.
The Bank has Board-approved risk policies that define its risk framework. The RMC and the Board monitor the compliance of various risk parameters and risk exposures on a periodic basis. The RMC also ensures that frameworks are established for assessing and managing various risks faced by the Bank. It ensures that the Banks framework is adequate and appropriate for changing business and economic conditions, structure and needs of the Bank and is well within its risk appetite.
Further, the Bank has a structured strategy assessment and management framework as part of Internal Capital Adequacy Assessment Process (ICAAP) to identify, assess and manage the risks that may have a material adverse impact on its business strategy, financial position and capital adequacy. It also has in place a Board-approved risk appetite statement for key risks identified under ICAAP. There are internal policies and processes to ensure that the Bank operates within its risk appetite thresholds.
The Bank has also implemented a Board-approved stress testing framework that forms an integral part of ICAAP and risk assessment. Stress testing involves the use of various techniques to assess the Banks potential vulnerability to extreme, but plausible, stressed business conditions. The Bank evaluates the impact of various stress testing scenarios on account of various Pillar I and Pillar II risks.
Internal Audit
The Banks Internal Audit Department (IAD), which is ISO 9001:2015 certified (Quality Management System), provides an independent and objective assurance and consulting services to add value and improve its risk and control environment. The IAD monitors the adequacy, effectiveness and adherence to internal controls, processes and procedures instituted by the Banks management and extant regulations.
The Internal Audit team reports to the Audit Committee of the Board (‘ACB) for audit planning, reporting and review, and the Head of the IAD reports directly to the ACB Chairperson. The IAD has unlimited and unrestricted access to all relevant data, systems, personnel and information to achieve its objectives. It is staffed with qualified team members with relevant certifications, and its training programme ensures that all team members are upskilled at frequent intervals. The IAD has adopted a risk-based approach towards internal auditing as per regulatory guidelines and internationally established best practices. A risk-based audit plan (‘RBAP) is prepared annually and is duly approved by the ACB which also monitors its progress on a quarterly basis. The IAD audits various businesses, operations, information security (IS), information technology (IT) systems, and support units as per the RBAP. The IAD prepares a report for each audit, recommends mitigation plans for the risks identified and ensures compliance with all the recommendations. IAD has implemented an Audit Lifecycle Management application to to support collaboration between auditors and auditees, with greater visibility and standardisation across all stages of the audit process.
The Bank also subjects its operations to concurrent auditing by reputed audit firms to complement its internal auditing function. Concurrent auditing covers core activities, operations (including credit), financial markets, data centres (including IT & IS systems) and branches in compliance with regulatory guidelines. All audit reports are circulated to the relevant management teams and the ACB.
Compliance
Ensuring compliance with regulatory requirements, promoting a robust culture of compliance among YES BANKers and building trust among all the stakeholders is an overarching consideration at the Bank. The dedicated Compliance Department strives to be at the forefront of regulatory changes and continues to work closely with all the Banks businesses and operations to be compliant with existing and new requirements. To further this objective, the Chief Compliance Officer at the Bank reports directly to the ACB.
The key functions of the Compliance Department align with various RBI guidelines, which includes identifying effective procedures, corresponding controls to support the Banks business divisions and the dissemination of key regulatory updates affecting the Banks various businesses. The Compliance Department also reviews new products and processes from a regulatory compliance perspective, provides guidance on compliance-related matters, conducts compliance reviews and delivers training to employees on different aspects on compliance. In addition, the Bank has also put in place the KYC and Anti-Money Laundering policy approved by the Board and transaction monitoring procedures, as per the regulatory guidelines.
Company Secretarial (CS)
The Banks Company Secretarial Function is ISO 9001:2015 certified for its functions and processes based on the key attributes which includes risk-based approach, ability to consistently meet customer and regulatory requirements, standard operating procedures across the business process, monitoring and control mechanism and continual improvement framework.
The Bank is committed to achieving highest standards of Corporate Governance and the dedicated Company Secretarial (CS) Function of the Bank, endeavours to follow the best secretarial practices in order to uphold the governance standards of the Bank. The CS Function is responsible for the Regulatory Compliances under various Laws/Acts/ Regulations/Guidelines/Standards prescribed by SEBI, RBI, MCA and other stakeholders of the Bank.
Being the Board Governance facilitator, the CS Function plays a critical role in organising and implementing the Boards decisions, its Committees and General Meetings. It handles the regulatory correspondence and ensures the fair, prompt, uniform and transparent dissemination of information to the stakeholders through stock exchanges. The designated Company Secretary is the KMP under the Companies Act and reports directly to the MD&CEO, and the Chairman of the Board.
Sustainable Finance
The Sustainable Finance (SF) function is responsible for integrating environmental, social and governance (ESG) considerations into the Banks business activities. The team works to align the Banks practices with national and global sustainability frameworks, including the National Guidelines for Responsible Business Conduct (NGRBC), the Sustainable Development Goals (SDGs), the Paris Climate Agreement and the Principles for Responsible Banking (PRB). In coordination with Sustainability SPOCs across various functions, SF supports the implementation of the Banks sustainability strategy and the achievement of ESG related goals as guided by the Sustainability Council, chaired by the MD & CEO. The function also steers and provides periodic updates on the Banks ESG performance to the Board-level CSR & ESG Committee.
SF function also acts as the custodian of the Banks Environment and Social Policy (ESP), which forms part of the broader Environment and Social Risk Management System (ESMS) of the Bank. This framework helps identify and assess environmental and social risks associated with lending operations and enables their integration into the Banks overall credit risk assessment process. The team also oversees the Environmental Management Policy, which guides the Bank wide Environmental Management System (EMS). The EMS focusses on minimising environmental impacts from the Banks operations. In FY 2025-26, the Bank successfully completed its 13th year of EMS certification maintaining the distinction of possessing the highest number of ISO 14001-2015 certified facilities amongst the Banking & Financial Services and the Insurance (BFSI) sector, globally. As result of concerted efforts across improvements in data collection and tracking; reduced dependence on DG set usage; and upgradation to energy-efficient equipment, the Bank in FY 2025-26, reduced its total energy consumption by 4.19%, achieved 14.48% lower Scope 1 and Scope 2 emissions compared to the previous year; and dropped its emission intensity per Full Time Employee by 17.04% to 0.98
tCO2e.
As of March 31, 2026, 83 of the Banks facilities have been transitioned to renewable energy, representing 21.57% of its electricity mix in FY 2025-26 and resulting in avoided emissions of around 7,493 tCO e.
The SF function supports the Banks commitment to aligning its business with the objectives of the Paris Climate Agreement. YES BANK remains the only Indian banking signatory to the UNEP FI Principles for Responsible Banking. In FY 2021-22, YES BANK had emerged as the first Indian Bank to measure and report financed emissions of its fund-based electricity generation portfolio. In FY 2022-23, the Sustainability Council had approved decarbonisation targets to reduce the financed emissions intensity of the Banks fund-based electricity generation portfolio, in line with the well below 2 degrees, striving for 1.5-degree scenario. In FY 2025-26, the Bank has expanded the scope of its financed emission measurement and disclosure to a total of 11 sectors including electricity generation,iron&steelmanufacturing,cementmanufacturing, nonferrous metals manufacturing, coal mining, mining (other than coal), drugs & pharmaceutical manufacturing, tyre manufacturing, automobile manufacturing, aviation, and petroleum (upstream, midstream and downstream).
To support the mobilisation of capital toward climate-aligned sectors, the Bank implemented a Board-approved Green Deposit Policy and Financing Framework in line with the RBIs 2025 guidelines on Climate Finance and Climate Risk Management. The Green Deposit product was introduced during FY 2025-26 to help direct funding towards eligible green activities. As of March 31, 2026, the Bank raised Rs. 7.45 crore through Green Deposits, of which Rs. 6.59 crore has been allocated toward electric vehicle auto loans under the "Clean Transportation" category. Pending allocation, the remaining amount has been temporarily invested in high quality liquid assets, in accordance with regulatory requirements. The Bank continues to explore opportunities to expand green finance offerings across renewable energy, clean mobility, green buildings and related sectors. As one of the few accredited entities of the Green Climate Fund in India, the Bank is beginning to selectively assess potential project pipelines in areas such as e mobility, water and waste management, green real estate and climate smart agriculture.
The SF function works with teams across the Bank to enhance ESG and climate-related disclosures. In FY 2025-26, for the fourth year in a row, YES BANK achieved the highest S&P Global ESG score amongst Indian banks based on the S&P Global Corporate Sustainability Assessment (CSA) 2025 and is the only Indian Bank to be included in S&P Global Sustainability Yearbook 2026. The Banks S&P Global ESG score stood at 79 (out of 100) and S&P Global CSA Score stood at 79 (out of 100) as of November 7, 2025. The S&P Global CSA is considered one of the most comprehensive and granular assessments of an organisations ESG performance, taking into account up to 1,000 data points across key topics such as Climate Strategy, Operational Eco-Efficiency, Financial Inclusion, Human Capital Development, Human Rights, Corporate Governance, Risk Management, amongst others. In 2026, YES BANK was included as a constituent in the FTSE4Good Index Series for the fourth consecutive year. The Bank also continues to feature in the MSCI ACWI Low Carbon Leaders Index and ACWI Climate Change CTB Index, among others.
Overall, the Sustainable Finance function continued to play an important role in advancing the Banks ESG integration efforts, strengthening risk management practices related to environmental and social factors, expanding climate-aligned financing initiatives and supporting transparent, high quality sustainability disclosures.
Corporate Social Responsibility (CSR)
The Bank implements various programmes to create and enhance shared value through its unique, scalable and sustainable models to achieve its Corporate Social Responsibility (CSR). The Bank delivers positive socio-environmental impacts, both internally and externally, by following a distinctive approach that focusses on: Promoting principles of social responsibility and inclusive growth through awareness and support; Investing in socially and environmentally responsible activities to create a positive impact; Engaging with stakeholders to further the sustainability agenda of the Bank and empower them with knowledge; and Collaborating with like-minded institutions and forging partnerships to address the needs of the stakeholders
This unique, multi-pronged approach has enabled the Bank to forge meaningful associations with its stakeholders, including community groups, non-profit organisations, governments, corporate peers and civil society, while delivering an exponential impact and concentrating on the Sustainable Development Goals (SDGs).
In FY 2025-26, the Bank realised its five-year CSR strategy, which aimed to inspire Indias youth to lead economic and social development by skilling themselves for market-oriented jobs and by taking to enterprise. This strategy implemented through YES Foundation, the Banks social development arm, aimed to catalyse employment and entrepreneurship opportunities for 1 lakh individuals by 2026, while retaining its focus on environment sustainability. While the Foundation continued to support ongoing projects across its 3Es focus, the Bank allocated CSR funds of Rs. 31.03 crore to YES Foundation for expanding the scale of its projects and to add a financial literacy component for rural women. A summary of the impact achieved is given below:
Employability: The Bank aims to capitalise on the demographic advantage India has in its younger generations. In FY 2025-26, through YES Foundation, over 8,000 young people were trained for different sectors, of which over 50% were female candidates. At least 70% of these trainees received gainful employment. Skills training provided to the trainees included work-readiness and soft skills, which were often delivered by employee volunteers through scheduled and structured sessions.
Entrepreneurship: To strengthen the local economies, YES Foundation promotes nano-enterprises with a distinct focus on enhancing income of farmers and empowering women and artisans in the rural areas. In FY 2025-26, over 21,000 people enhanced their income through training and capacity building, market linkages and productivity enhancement initiatives for multiple crops, including watershed management and micro irrigation systems, wherever needed.
Environmental Sustainability: Through YES Foundation, the Bank works on enhancing energy efficiency of the MSME sector and reducing their overall carbon footprint. As a result of this, 100 MSMEs benefited from the walk-through energy audits conducted in FY 2025-26. Further, the Bank, through the Foundation, planted 2 lakh trees across 10 states and geotagged the same. The plantations were carried out on farmers lands with a dual objective of enhancing the green cover as well as enabling an additional income for the farmers.
Financial Literacy: With an objective to strengthen the financial awareness and decision-making abilities of rural women across multiple districts, the Bank, in FY 2025-26, undertook an initiative to promote financial literacy among rural women. The initiative reached over 50,000 women, enabling them to better understand savings, credit, insurance, and day-to-day financial management.
In addition, the Bank incurred excess CSR spends of Rs. 7 crore a nationwide financial literacy campaign aimed at simplifying and democratising understanding of credit scores for all Indians, called Score Kya Hua. For the same, the Bank created a microsite, ScoreKyaHua.bank.in, in partnership with CRIF High Mark, one of the authorised credit bureaus in India. To spread awareness about the same, films which humanised credit education through slice of life storytelling, regional localisation, and relatable humour, were made, ensuring broad resonance across India. The campaign delivered over 100 million+ cumulative reach, 287 million+ digital impressions, 151 million+ Video views, 600K+ microsite visitors, and 20K+ credit score check intents.
Central Data Analytics Group (CDAG)
The Banks central analytics function is one of core pillars which focusses on driving value through data-driven decisions. The Bank continues to invest in this function to leverage the latest technology and skills to provide deeper insights and better customer experience. During the year, CDAG advanced the Banks data-driven agenda by scaling enterprise data platforms, embedding Artificial Intelligence ("AI") across its business processes, and strengthening analytics governance and also undertook the following: Enterprise Data Platform: Expanded the data warehouse to more domains, improved data quality and governance, and accelerated migration of legacy reporting to a unified platform Customer Analytics: Enhanced real-time personalisation, improved marketing conversions, and new propensity models to guide targeted acquisition and cross sell Risk & Compliance: Upgraded Early Warning Signals, behaviour and fraud models with advanced analytics and deployed refreshed scorecards across acquisition, portfolio, and collections Operational Efficiency: Rolled out Machine Learning Ops, introduced AI driven automation initiatives, enhanced collections prioritisation engines, and standardised insights delivery across business units Data Culture: Increased self service analytics adoption, strengthened model governance, and operationalised a federated analytics model for faster delivery
Business and Digital Technology Solutions (BDTS)
FY 2025-26: Transitioning to an AI-Led, Platform- Driven Enterprise
In FY 2025-26, the Technology unit significantly advanced the Banks transformation agenda evolving from a digital enablement engine into a strategic driver of revenue growth, operational efficiency, delivering risk intelligence, and infusing AI-led capabilities.
Against a backdrop of rapid industry evolution and increasing regulatory expectations, BDTS delivered measurable business outcomes on a scale, anchored in platform consolidation, intelligent automation, and enterprise-wide adoption of Artificial Intelligence. The year marked a pivotal upgrading from digitisation to data-led intelligence.
Strategic Focus Areas
1. Accelerating Business Growth through Platform Scale and Ecosystem Integration A key area of focus was enabling business growth through improved platform scalability and deeper ecosystem integration. BDTS supported an increase YES BANKs share in government related tax collection volumes and facilitated ongoing participation in government integration programmes. Digital payment volumes across UPI, NEFT and AePS continued to grow, supported by enhancements in payment infrastructure. The co-lending framework was strengthened to allow for portfolio expansion and the onboarding of new digital partners. The Credit Line on UPI (CLOU) platform was operationalised to improve access to credit in digital payment journeys. Corporate channel transaction values recorded year-on-year strong growth, supported by enhancements in digital interfaces. A unified payment collection architecture was also established to provide a common framework for multiple customer facing service channels.
BDTS has now enabled digital-led capabilities to deliver growth multipliers, directly contributing to revenue expansion.
2. Transforming Customer Journeys and Frontline Productivity BDTS contributed to improvements in customer journeys across products and segments by simplifying onboarding and service processes. BDTS completed end-to-end digital onboarding for personal loans and mortgage products, resulting in efficiency gains in frontline productivity and higher average disbursement levels per relationship manager. Customer onboarding for current accounts saw a reduction in average processing time, and digital adoption levels for both savings and current accounts increased further. Digital journeys in the SME, Wheels and KCC segments were enhanced to improve turnaround times and customer experience. CKYC integration was implemented across relevant platforms to support compliance and streamline the user experience.
These initiatives significantly improved throughput, turnaround time, and customer satisfaction.
3. Embedding AI Across the Enterprise – From Use Cases to Platforms FY 2025-26 marked a foundational shift toward AI-first banking, with BDTS establishing both platform capabilities and scaled use case adoption.
The year also marked progress in establishing an organisational foundation for wider AI adoption. BDTS put in place platform components for document intelligence, speech to text processing and related automation capabilities. A structured AI Register and Book of Work was introduced to monitor ongoing initiatives, with several use cases moving into production and others progressing through testing and development stages. The Board approved AI policy provided a governance framework for responsible adoption. AI-enabled tools, such as conversational assistants and chatbots across customer service and internal functions, began contributing to the reduction of manual queries and routine interventions. Additional applications included credit memo automation, contract summarisation, invoice reading, sentiment analysis and predictive models supporting account level insights.
4. Strengthening Risk, Credit, and Fraud Intelligence
BDTS significantly enhanced the Banks risk and governance capabilities through advanced platforms and AI-led decisioning.
Risk management and decisioning capabilities were strengthened through technology upgrades, including the implementation of a FICO based decisioning platform for lending products and the deployment of a new fraud risk management system. The roll out of the MuleHunter platform and the integration of enterprise-wide de duplication and customer view systems further supported risk governance. AI based support for credit assessment, including enhanced internal rating capabilities, was also introduced.
5. Building a Resilient, Scalable, and Future-Ready Technology Backbone BDTS continued to focus on building a stable and scalable technology environment. System uptime remained consistently high across critical applications, and the number of high severity incidents reduced over the year. Business continuity preparedness was enhanced through multiple disaster recovery drills, and regulatory compliance requirements for critical applications were completed as scheduled. Automation initiatives across infrastructure and IT operations contributed to improved service consistency and operational control.
This ensures a highly available, secure, and scalable technology environment ready for future growth.
Overall, FY 2025-26 represented a year of steady transition for BDTS as it moved from a project-driven approach toward a platform and intelligence-based operating model. The function continued to support business growth, operational efficiency and risk management through systematic enhancements to digital capabilities, AI adoption and technology resilience. As the Bank progresses into the next phase, BDTS will remain focussed on strengthening platform architecture, expanding AI-enabled operating models, improving cost and efficiency frameworks and building capabilities aligned to future digital requirements
YES Securities (India) Limited (Subsidiary of YES BANK)
YES Securities (India) Limited (‘YSIL), a subsidiary of the Bank has reported revenue growth of 9.3% Y-O-Y.
YSIL is on course to strengthen its four chosen fields of growth namely: (a) Client acquisition, (b) distribution of wealth solutions, (c) funds management and (d) institutional broking.
Business segment-wise update:
1) Wealth Broking Overview:
YSILs Wealth Broking business continues to strengthen its value proposition by offering a comprehensive suite of broking services, investment products, and value-added solutions to its customers
Aligned with YES BANKs strategy, the Company has adopted a ‘Digital-First approach. The state-of-the-art web and mobile trading platforms launched in FY 2024-25 have significantly enhanced client engagement and experience. These platforms provide an integrated investment journey, combining seamless functionality, robust security, and improved UI/UX within a unified ecosystem.
During FY 2025-26, YSIL further strengthened its digital offering, leading to an approximate 18% increase in average daily mobile app logins and a 33% increase in average daily active traders compared to April 2025 levels. The platform has also been enhanced to include additional investment avenues such as fixed income solutions, expanding the range of offerings available to customers.
Designed as an all-in-one investment solution, the platform reflects YSILs continued focus on innovation and user-centric design. YSIL remains committed to further enhancing platform capabilities and broadening investment offerings in the coming years.
The active client base of YSIL has increased to ~ 115,000.
Customer Focus:
During FY 2025-26, YSIL reported a 33% growth in its client base, adding ~2.19 lakh new accounts.
Keeping evolving customer expectations in mind, YSIL continues to offer a customised suite of solutions alongside a wide range of standard products and services. It serves diverse customer segments through a hybrid model combining digital platforms and RM assisted investment solutions.
A strong product expertise and a ‘customer-first philosophy continue to drive product innovation and client engagement. YSIL caters to a wide spectrum of investors, including market novices, active traders, HNIs, family offices, and corporates, supporting them across their wealth creation journey.
Revenue Growth:
During FY 2025-26, revenue for the Wealth Broking business grew from Rs. 317.4 crore to Rs. 346.1 crore, which represents growth of 9.0% Y-O-Y.
Capability Building for Future:
YSILs strategy remains focussed on building operational efficiencies and investing in technology and systems to scale key business drivers – Acquisition, Activation, and ARPU.
During the year, YSIL achieved significant progress in expanding its capabilities and regulatory footprint. It has received the IRDAI licence to act as a corporate agent for distribution of insurance products. Additionally, it has obtained approval from the RBI for undertaking FME (non-retail) activities in GIFT City (IFSC), regulated by IFSCA.
The Company is also in the process of expanding its offerings in Portfolio Management, with an application for Portfolio Management Services (PMS) to be filed shortly with SEBI.
Supported by an experienced leadership team, robust processes, and strong risk management practices, the Wealth Broking business is well-positioned to sustain its growth momentum and achieve new milestones.
2) Institutional Broking Overview:
The Institutional Broking division continues to strengthen its market presence by delivering high-quality research, strong execution capabilities, and differentiated investment insights. The business caters to a diversified institutional client base including asset management companies, insurance companies, PMS, AIFs, Banks, NRI Accounts, Corporates, and Foreign Portfolio Investors (FPIs). During the year, YSIL further deepened its engagement with existing clients while expanding relationships across new institutions.
With a strong foundation in research, corporate access, and long-standing institutional relationships, the Company is well-positioned to scale its institutional equities franchise. YSIL added 23 new institutional clients during the year and is currently empanelled with around 144 institutions.
YSILs research team, with extensive cumulative experience, continues to provide in-depth coverage across sectors and companies, offering actionable insights and high-conviction investment ideas. The team remains focussed on identifying emerging opportunities, particularly in mid-cap and under-researched segments, supported by rigorous fundamental analysis and industry interactions. Regular sector reports, thematic studies, and company updates help clients make informed investment decisions. The Institutional desk continues to provide efficient execution supported by strong dealing capabilities, technology-enabled trading infrastructure, and robust risk management practices.
Focus remains on delivering best-in-class execution, minimising market impact, and ensuring seamless trade lifecycle management for all Institutional clients.
Corporate Access & Events:
YSIL combines deep channel check capabilities with YES BANKs Knowledge Banking platform to deliver high conviction Research. Through access to senior leadership, corporate managements, and specialists, we curate impactful investor engagement. As part of this effort, we will host our inaugural flagship conference, "INDIA MANTHAN 26", in May 2026, connecting leading Corporate and Institutional investors.
Financial Performance:
The revenue from Institutional Broking business increased by 12.3% Y-O-Y from Rs. 24.5 crore during FY 2024-25 to Rs. 27.5 crore during FY 2025-26, driven by improved client activity, higher institutional participation, and new client onboarding.
Other updates
1) Update on new registrations / approvals
During the year under review, YSIL has obtained the license from Insurance Regulatory and Development Authority of India (IRDAI) for distribution of insurance products as a Corporate Agent.
During the year, approval of RBI was accorded to YSIL for distributing/providing referral of liability and loan products of YES BANK Limited only on non-risk participation basis.
Further, approval of the Reserve Bank of India (RBI) was accorded to the YES BANK Limited, Holding Company, for undertaking Fund Management Activity (FMA) at Gujarat
International Finance Tech-City – International Financial Services Centre (GIFT-IFSC) and starting operations at Abu Dhabi Global Market (ADGM) by YSIL. Pursuant to RBIs approval, YSIL has filed an application with the regulatory authorities in order to register and commence operations at GIFT-IFSC. The Letter of Authority (LOA) has been received from SEZ Authority in this regard.
Additionally, post-facto approval was also granted by RBI to the YES BANK Limited for undertaking business viz. Research Analyst, Mutual Funds Distribution, PMS Distribution, Sponsor and Investment Manager to YSL Alternates (Cat III AIF), Depository Participant, Distribution/Referral of Third-Party Financial Products and Investment Advisory, through YSIL.
2) Update on transfer of Demat undertaking under the Retail Division from YES BANK Limited to YES Securities (India) Limited
During the year, as a part of groups strategic objectives and with a view to enhance customer service, YES BANK Limited, Holding Company, initiated the process of transfer of its Demat Undertaking under the Retail Division to YSIL, which is currently under process.
3) Update on Surrender of Licenses
During the year under review, the National Commodity
& Derivatives Exchange Limited (NCDEX) and National Commodity Clearing Limited (NCCL) has approved YSILs application for surrender of its membership. Accordingly, YSIL ceased to be member of NCDEX and NCCL with effect from January 20, 2026.
Overview of Financial Performance
Key Ratios:
| Particulars | FY 2025-26 | FY 2024-25 |
| Return on average equity (%) | 7.0% | 5.2% |
| Return on average assets (%) | 0.8% | 0.6% |
| EPS - Basic (FV Rs. 2) | 1.11 | 0.77 |
| EPS - Diluted (FV Rs. 2) | 1.11 | 0.77 |
| Net interest Margin (%) | 2.6% | 2.4% |
| Book value per share (FV Rs. 2) | 16.27 | 15.24 |
| Cost to income | 66.7% | 71.3% |
| Yield on advances | 9.5% | 10.1% |
| Cost of funds | 6.0% | 6.5% |
| Capital Adequacy | ||
| Ratio Basel III | ||
| CET 1 | 13.8% | 13.5% |
| Tier - I | 13.8% | 13.5% |
| Tier - II | 1.5% | 2.1% |
| Gross non performing advances (NPA) % to Total Advances | 1.3% | 1.6% |
| Net NPA % to Total Advances | 0.2% | 0.3% |
| CASA ratio to % of total deposits | 35.1% | 34.3% |
Operating Performance:
| Particulars | FY 2025-26 | FY 2024-25 | % change |
| Interest income | 301,688.31 | 308,949.10 | -2.4% |
| Interest expense | 203,931.91 | 219,505.64 | -7.1% |
| Net Interest Income | 97,756.40 | 89,443.46 | 9.3% |
| Non interest Income | 67,593.39 | 58,568.63 | 15.4% |
| Operating Revenue | 165,349.79 | 148,012.09 | 11.7% |
| Operating expenses | 110,285.92 | 105,472.58 | 4.6% |
| Operating Profit | 55,063.87 | 42,539.52 | 29.4% |
| Provisions and contingencies | 9,123.92 | 10,856.06 | -16.0% |
| Profit before tax | 45,939.96 | 31,683.46 | 45.0% |
| Provision for tax | 11,184.09 | 7,624.86 | 46.7% |
| Net Profit/ (Loss) | 34,755.86 | 24,058.59 | 44.5% |
The Bank has CASA ratio of 35.1%. The Banks shareholder returns for FY 2025-26 in terms of basic and diluted EPS both are at Rs. 1.11. The book value per share was Rs. 16.27.
Highlights for FY 2025-26:
Net Profit for the year is Rs. 34,755.86 million This has been the fifth year of full year profitability post moratorium on the Bank Balance Sheet grew 10.8% Y-O-Y
CET-I ratio is at 13.8%
NNPA ratio significantly improved to 0.2%
Net Profit for FY 2025-26 is Rs. 34,755.86 million as compared to profit of Rs. 24,058.59 million for FY 2024-25 higher by 44.5%, supported by continued improvement in our operating performance. Return on Assets (ROA) for the full year was at 0.8% versus 0.6% in FY 2024-25. The Banks operating profit increased by 29.4% Y-O-Y on the back of NII and higher Non-Interest Income.
Net Interest income (NII) of the Bank increased by 9.3% to
97,756.40 million during FY 2025-26 as compared to
89,443.46 million during FY 2024-25. Despite an adverse interest rate environment and elevated competitive intensity in deposits, our Net Interest Margin (NIM) improved 20 basis points year-on-year to 2.6% in FY 2025-26, in line with our guidance. The improvement was supported by several factors: the front-loading of our savings deposit repricing in April, continued outperformance in CASA, and a sustained reduction in high-cost borrowings, mirroring the continued rundown of RIDF and PSL-related mandated deposits.
Non-interest income consists of commission and fee income, trade income, derivative and foreign exchange income, gain/loss on sale of securities and other income. Non-interest income increased by 15.4% from Rs. 58,568.63 million in FY 2024-25 to Rs. 67,593.39 million in FY 2025-26. Over the last three years, the Bank has seen a meaningful increase in its Non-interest Income to Average Assets Ratio, which has increased from 1.1% in FY 2022-23 to 1.5% this year in FY 2025-26.
Operating expenses increased by 4.6% vis-?-vis 7.4% from Rs. 105,472.58 million in FY 2024-25 to Rs. 110,285.92 million in FY 2025-26. The employee cost increased from Rs. 40,084.04 million in FY 2024-25 to Rs. 42,368.35 million in FY 2025-26. Other operating cost increased by 3.9% from Rs. 65,388.54 million in FY 2024-25 to Rs. 67,917.56 million in FY 2025-26.
Provisions and contingencies (excluding provision for taxes) decreased by 16.0% from Rs. 10,856.06 million in FY 2024-25 to Rs. 9,123.92 million in FY 2025-26.
Net interest income:
The following table sets forth, for the periods indicated, the net interest income and margin:
| Particulars | FY 2025-26 | FY 2024-25 | % change |
| Interest income | 301,688.31 | 308,949.10 | -2.4% |
| Interest expense | 203,931.91 | 219,505.64 | -7.1% |
| Net Interest Income | 97,756.40 | 89,443.46 | 9.3% |
| Net interest margin | 2.6% | 2.4% |
Net Interest income (NII) of the Bank increased by 9.3% Y-O-Y to Rs. 97,756.40 million during FY 2025-26 as compared to Rs. 89,443.46 million during FY 2024-25. The NIM was 2.6% in FY 2025-26.
Non-Interest income:
| Particulars | FY 2025-26 | FY 2024-25 | % change |
| Commission, exchange and brokerage | 39,726.76 | 37,132.13 | 7.0% |
| Profit on the sale of investments (net) | 7,486.24 | 4,111.27 | 82.1% |
| Profit/(Loss) on the revaluation of investments (net) | (397.22) | 325.23 | -222.1% |
| Profit/(Loss) on sale of land, building and other assets | (51.15) | (152.79) | -66.5% |
| Profit on exchange transactions (net) | 8,524.96 | 6,567.45 | 29.8% |
| Income earned by way of dividends etc. from subsidiaries, companies and/ or joint ventures abroad/in India | - | - | 0.0% |
| Miscellaneous income | 12,303.79 | 10,585.34 | 16.2% |
| Total | 67,593.39 | 58,568.63 | 15.4% |
Non-interest income consists of commission and fee income, trade income, derivative and foreign exchange income, gain/loss on sale of securities and other income. Non-interest income of the Bank increased by 15.4% to
67,593.39 million during FY 2025-26 as compared to
58,568.63 million during FY 2024-25, driven by healthy traction in Retail fees, SME and Commercial Banking fees and also on the back of strong Transaction Banking performance. The Bank continues to strengthen our fee momentum by deepening client engagement, improving the cross-sell intensity in Wholesale Banking and scaling our digital fee engines. This includes driving higher penetration of forex, trade and CMS flows within our Corporate relationships, while broadening Retail fee contributions through pre-approved programmes, cards, payments and wealth offerings.
| Year Ended | Growth | ||
| Particulars | FY 2025-26 | FY 2024-25 | Y-O-Y |
| Non-Interest Income | 67,593 | 58,569 | 15.4% |
| Of which Treasury gains / Interest on | 8,132 | 2,763 | 194.3% |
| Tax Refunds | |||
| Core Fees | 59,461 | 55,806 | 6.5% |
| FX Income | 8,782 | 8,652 | 1.5% |
| Trade & CMS | 11,593 | 11,938 | -2.9% |
| Third-party Product (INS/INV) | 9,403 | 8,109 | 16.0% |
| Loan Processing | |||
| Fee & Prepayment | 9,652 | 9,418 | 2.5% |
| Charges | |||
| Card Product fees | 10,424 | 8,900 | 17.1% |
| General Banking & Others | 9,607 | 8,788 | 9.3% |
| Proportion of Retail in Core Fees | 56.1% | 56.6% | |
| Break-up of | Year Ended | Growth | |
| Operating Expenses | FY 2025-26 | FY 2024-25 | Y-O-Y |
| Manpower Cost | 48,132.05 | 45,679.57 | 5.4% |
| Of which On Roll Staff Cost | 42,368.35 | 40,084.03 | 5.7% |
| Statutory Impact of New Labour Code | 1,554.34 | 0.00 | NM |
| Business Volume Linked | 29,464.12 | 29,935.15 | -1.6% |
| IT | 13,236.44 | 12,274.40 | 7.8% |
| Premises | 10,360.36 | 10,295.63 | 0.6% |
| Professional Fees | 1,833.98 | 1,911.63 | -4.1% |
| Others | 2,141.32 | 2,137.93 | 0.2% |
| PSLC | 5,117.66 | 3,238.26 | 58.0% |
| Total Opex | 110,285.92 | 105,472.58 | 4.6% |
| Total Opex excl. impact of gratuity | 108,731.58 | 105,472.58 | 3.1% |
Operating expenses:
The following table sets forth, for the periods indicated, the principal components of Operating expenses:
| Year Ended | Growth | ||
| Particulars | FY 2025-26 | FY 2024-25 | Y-O-Y |
| Non-Interest Income | 67,593 | 58,569 | 15.4% |
| Payments to and provisions for employees (A) | 42,368.35 | 40,084.04 | 5.7% |
| Other operating expense (B) | 67,917.56 | 65,388.54 | 3.9% |
| Depreciation on own property | 5,718.53 | 4,869.20 | 17.4% |
| Other administrative expenses | 62,199.03 | 60,519.34 | 2.8% |
| Operating expenses (A)+(B) | 110,285.92 | 105,472.58 | 4.6% |
| Cost to income ratio | 66.7% | 71.3% | |
Non-interest expenses primarily include employee expenses, depreciation on assets and other administrative expenses. Operating expenses increased by 4.6% from Rs. 105,472.58 million in FY 2024-25 to Rs. 110,285.92 million in FY 2025-26.
Employee costs increased by 5.7% from Rs. 40,084.04 million in FY 2024-25 to Rs. 42,368.35 million in FY 2025-26. The number of employees have increased from 28,690 at March 31, 2025 to 29,577 at March 31, 2026. Employee costs accounted for 38.4% of operating expenses of the Bank for FY 2025-26 compared to 38.0% for FY 2024-25. Cost-to-Income Ratio for FY 2025-26 saw a big improvement to 66.7% versus 71.3% in FY 2024-25.
Other operating expenses increased by 3.9% to Rs. 67,917.56 million in FY 2025-26 primarily driven by business volumes, premises costs higher driven by rentals, higher IT spends due to escalated annual maintenance charges and support resources. Number of branches also increased to 1,334 as on March 31, 2026 from 1,255 as on March 31, 2025. The Bank remained disciplined on overall cost with cost to income improving from 71.3% to 66.7%.
(Note: The Government of India has notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "Labour Codes"), subsuming various existing labour laws. The Ministry of Labour & Employment has issued draft rules, clarifications and FAQs to facilitate implementation of the Labour Codes. Pending finalisation and full implementation of the Labour Codes and issuance of detailed rules/clarifications, the Bank has evaluated the potential impact on employee benefit obligations, particularly with respect to the definition of wages and its impact on retiral benefits. Based on its assessment, the Bank had considered the impact of the Labour Codes on employee benefit liabilities in December 2025 of ~ Rs. 1,554.34 million. Subsequently, the Bank has revised salary structure, and will continue to monitor developments, finalisation of rules and clarifications and give effect as may be required.)
| Year Ended | Growth | ||
| Break-up of Provisions | FY 2025-26 | FY 2024-25 | Y-O-Y |
| Operating Profit/(Loss) | 55,064 | 42,540 | 29.4% |
| Provision for Taxation | 11,184 | 7,625 | 46.7% |
| Provision for Investments | (15,894) | (17,374) | -8.5% |
| Provision for Standard Advances | 3,697 | (1,790) | NM |
| Provision for Non-Performing Advances | 19,930 | 28,787 | -30.8% |
| Other Provisions | 1,391 | 1,233 | 12.7% |
| Total Provisions | 20,308 | 18,481 | 9.9% |
| Net Profit / (Loss) | 34,756 | 24,059 | |
| Return on Assets (annualised) | 0.8% | 0.6% | |
| Return on Equity (annualised) | 7.0% | 5.2% | |
| EPS-basic (non-annualised) | 1.11 | 0.77 | |
Subsidiary Performance
During FY 2025-26, YSIL reported a net profit of Rs. 364.71 million. Total revenue from operations of YSIL increased by 9.3% to Rs. 3,733.79 million in FY 2025-26 from Rs. 3,416.93 million in FY 2024-25.
Implementation of IFRS converged Indian Accounting Standards (Ind AS)
The Indian Accounting Standards (‘Ind AS), as notified under section 133 of the Companies Act 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, have been formulated keeping the Indian economic and legal environment in view and with a view to converge with IFRS Standards. The RBI through Reserve Bank of India (Commercial Banks – Financial Statements: Presentation & Disclosures) Directions, 2025 and amendments thereto on "Deferral of Implementation of Indian Accounting Standards (Ind AS)" notified to all the scheduled commercial banks that legislative amendments recommended by the RBI are under consideration of the Government of India. Accordingly, RBI has decided to defer the implementation of Ind AS till further notice.
As per RBI directions, the Bank has taken following steps so far: The Bank is submitting half yearly Proforma Ind AS financial statements to the RBI
Formed Steering Committee for Ind AS implementation (‘the IFRS (Ind AS) Management Committee). The IFRS (Ind AS) Management Committee (Committee) comprises Chief Financial Officer (CFO) (Chairman), Chief Risk Officer (CRO),
Chief Operating Officer (COO), Chief Information Officer (CIO) as members and Executive Director (Commercial Banking, Project Finance and Large Corporate), Chief Credit Risk Officer (CCRO) and senior management from Financial Management, Risk Management and Treasury Operations as invitees. The Committee oversees the progress of Ind AS implementation in the Bank and provides guidance on critical aspects of the implementation such as Ind AS technical requirements, systems and processes, business impact, people and project management. The Committee closely reviews progress of the implementation and related matters The Committee gives updates to the Audit Committee of the Board and to the Board on preparedness for migration to Ind AS on a periodic basis During the year, the Reserve Bank of India notified the RBI (Commercial Banks – Asset Classification, Provisioning and Income Recognition) Directions, 2026, introducing a revised prudential framework based on the Expected Credit Loss (ECL) approach. The Bank has commenced a comprehensive assessment of the regulatory, operational, and system-level implications of the Directions. As part of this transition, the Bank will undertake the development and calibration of ECL models, review data architecture requirements, upgrade relevant IT systems, and align internal policies and processes to ensure full compliance within the timelines prescribed by the RBI
The Bank will continue to liaise with RBI and industry bodies on various aspects pertaining to Ind AS implementation
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