Yes Bank Jumps 59% in Q1 FY26 to Rs.801 Cr – Highest Profit Since Reconstruction

Private lender’s strong non-interest income, stable asset quality, and margin stability boost investor sentiment

Yes Bank reported a 59.4% YoY surge in net profit to ₹801 crore for Q1 FY26, marking its highest quarterly profit since its reconstruction in 2020. The robust results, declared on July 18, were driven by a sharp rise in non-interest income, steady net interest margin (NIM) at 2.5%, and strong cost controls. The performance beat market expectations and is seen as a key indicator of the bank’s turnaround momentum.

The lender’s net interest income (NII) grew 5.7% YoY to ₹2,371.5 crore, while non-interest income jumped 46.1% to ₹1,752 crore, largely due to treasury gains. The steady performance comes amid moderate loan growth and a cautious credit environment.

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Market Reaction & Technical View

Yes Bank shares opened higher following the results but traded flat near ₹25.60 amid broader market volatility. On the F&O front, the stock saw a spike in open interest, indicating long build-up, with PCR holding firm near 0.92. Technically, the stock is hovering above its 200-DMA (₹24.75) with near-term resistance at ₹26.40 and support at ₹24.

“A decisive close above ₹26.50 could open room for ₹28+ targets in the short term,” said technical analyst Suresh Parmar from KR Choksi.

Delivery volumes spiked post-results, with over 58% of trades marked for delivery on NSE, signaling institutional interest. Analysts expect re-rating if earnings consistency continues and retail deposit growth sustains.

Sectoral Impact & Broader Indices

Bank Nifty remained rangebound despite the upbeat result, closing mildly negative at 55,380, as heavyweight financials like Axis Bank and ICICI Bank dragged. However, private sector lenders with improving balance sheets like Yes Bank, IDFC First Bank, and Federal Bank remained on traders’ radar.

FII flows turned marginally positive in the banking space for the session, with DII support sustaining overall momentum. Broader market participation was muted, with mixed trends across the Nifty 50 and Nifty Midcap indices.

Trading View & What to Watch Next

Traders will monitor follow-up buying in Yes Bank and broader private banks. Sustained gains above ₹26.50 may indicate a short-term breakout. Investors will also watch macro triggers like the upcoming RBI policy review, US inflation data, and FII activity in financials.

Watchlist:

• Yes Bank (₹26.50 breakout zone)

• Federal Bank (ahead of Q1 FY26 results)

• Bandhan Bank (turnaround bets)

Check This:

• Yes Bank Stock Price
• Federal Bank Stock Price
• ICICI Bank Stock Price
• IDFC First Bank Stock Price