Synopsis: Yes Bank reported a 17.5 percent rise in net interest income and 33.7 percent growth in net profit in Q1 FY27, while Morgan Stanley maintained an ‘Underweight’ rating with a Rs. 15 target price.
This Private Bank Stock, engaged in providing retail, corporate, MSME, digital, and investment banking services, along with loans, deposits, payments, wealth management, and treasury solutions across India, down 2.67 percent after the company reported June quarterly results with a 33.7 percent YoY increase in net profit and Morgan Stanley has initiated an “Underweight” rating with a target price of Rs. 15 per share.
With a market capitalization of Rs. 72,723.13 crore, the shares of Yes Bank Limited were currently trading at Rs. 23 per equity share, down nearly 2.67 percent from its previous day’s close price of Rs. 23.63.
Q1 FY27 Result Walkthrough
Coming into the quarterly results of Yes Bank Limited, the company’s consolidated Net Interest Income increased by 17.5 percent YOY, from Rs. 2,371 crore in Q1 FY26 to Rs. 2,786 crore in Q1 FY27, and grew by 5.6 percent QoQ from Rs. 2,638 crore in Q4 FY26.
In Q1 FY27, Yes Bank Limited’s consolidated net profit increased by 33.7 percent YOY, reaching Rs. 1,071 crore compared to Rs. 801 crore during the same period last year. As compared to Q4 FY26, the net profit has increased by 0.2 percent, from Rs. 1,068 crore. The basic earnings per share increased by 30.77 percent and stood at Rs. 0.34 as against Rs. 0.26 recorded in the same quarter in the previous year, FY2026.
Financial Performance
Yes Bank Limited’s asset quality remained healthy in Q1FY27, with the Gross NPA (GNPA) ratio at 1.3%, down 30 basis points year-on-year and unchanged on a quarter-on-quarter basis. The Net NPA (NNPA) ratio stood at 0.2%, improving by 10 basis points year-on-year while remaining flat sequentially. The lower year-on-year NPA ratios reflect improved credit quality, while the stable quarter-on-quarter performance indicates effective management of stressed assets.
The bank also reported an improvement in its Net Interest Margin (NIM), which rose to 2.7 percent in Q1FY27 from 2.5 percent in Q1FY26. The year-on-year increase highlights stronger core lending profitability, supported by improved interest income, a healthier loan mix, and efficient management of funding costs.
Brokerage Viewpoint
Morgan Stanley, a prominent brokerage firm, has recommended a “Underweight” call on Yes Bank Limited with a target price of Rs. 15 per share, indicating a downside potential of 36.52 percent from its previous day’s close price of Rs. 23.63.
Morgan Stanley has maintained its Underweight rating on Yes Bank despite the bank reporting good quarterly results. The brokerage noted that profitability is improving gradually, reflecting steady progress in the bank’s turnaround. However, it believes sustained growth in both loans and deposits will be crucial to support earnings and strengthen the bank’s long-term performance. Until stronger and consistent business growth is visible, Morgan Stanley remains cautious on the stock.
Network Presence
Yes Bank Limited continued to strengthen its network presence in Q1FY27, operating 1,335 branches and 249 BCBO outlets across India. The bank’s branch network grew 6.5% year-on-year, taking its total physical touchpoints to 1,584. This expanding presence supports wider customer reach and enhances access to banking services across the country.
Company Overview
YES Bank Limited is an Indian private sector bank that provides a broad range of financial services to individuals, businesses, MSMEs, and large corporate clients. Founded in 2003 and headquartered in Mumbai, it has grown into one of India’s leading new-generation private banks, with an extensive nationwide branch and ATM network and a focus on digital banking alongside traditional banking services.
Annual Performance of FY26
YES Bank Limited’s Net Interest Income has increased from Rs. 8,944 crore in FY25 to Rs. 9,776 crore in FY26, which has grown by 9.3 percent. The net profit has also grown by 44.5 percent from Rs. 2,406 crore in FY25 to Rs. 3,476 crore in FY26.
YES Bank Limited’s Net Interest Income and net profit have grown at a CAGR of 7.35 percent and 67.79 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 5.98 percent and 7.10 percent, respectively. YES Bank Limited’s debt-to-equity ratio is 7.32x.
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