Yes Bank: NII in-line, PAT beat on higher non-interest income; RoA trajectory positive but priced-in

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

05 August 2026

Yes Bank

Underweight

NII in-line, PAT beat on higher non-interest income; RoA

trajectory positive but priced-in

YESB.NS, YES IN

Price (04 Aug 26):Rs23.00

▲Price Target (Sep-27):Rs21.00

Prior (Sep-27):Rs20.00

We are updating our model following 1QFY27 results. PAT beat JPMe by 11%,

however NII was in-line and the PAT beat was driven by Non-II, which tends to be

volatile. Deposit growth continued to lag loan growth.

Yes Bank’s 1Q NII at Rs 27.9bn (+17% y/y, +6% q/q) came in in-line with

JPMe. NIM (on IEAs) improved 3bps q/q and 3bps higher vs JPMe. PPOP at

Rs 17.04bn (+25% y/y, +5% q/q) was 13% higher vs JPMe, supported by higher

non-interest income (+15% vs JPMe). The PPOP beat more than offet the miss

in loan loss provisions, which at Rs 3.9bn (+39% y/y, +110% qoq) came in

higher vs JPMe, due to significantly lower P&L Gains from Security Receipts

portfolio, with PAT of Rs 10.7bn (+34% y/y, flat q/q) coming in 11% above

JPMe.

Overall, AQ trends were positive with retail slippages declining to a 10-quarter

low of 2.7% of Advances (vs 2.8% of Advances in Q4FY26) and GNPA stable

q/q at 1.3%). Opex growth of 4% y/y was well-controlled, with 62.8% CIR. The

18.3% growth in advances was healthy and beat JPMe, while deposit growth

lagged loan growth and JPMe.

Funding and franchise updates included improving granularity (retail and

branch-led deposits near 60% of total deposits) and momentum in FCNR

where demand is strong; on FCNR leverage, management said it is currently

capped at 9x and growth depends on counterparty limits from partner banks.

Yes Bank is moving in the right direction on RoA trajectory (FY RoA guidance

of 1%), but valuation at 1.2x FY28E P/B already prices in much of the

improvement hereon, in our view.

We are revising our FY27/28/29 PAT estimates by +10%/+3%/-1%,

respectively, driven by higher loan growth forecasts. We also change our GGM

assumptions – with a COE of 12.9% (vs 12.7% previously), and stage 1/2 ROE

of 9.9%/11.7% (vs. 9.6%/12.2%). We increase our Sep-27 PT to Rs 21

(previously Rs 20) as a result of these changes. Maintain UW.

India Financials

Anuj Singla AC

(91-22) 6157-3590

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