Yes Bank & RBL Bank: Q3FY26 Result
Want Are Numbers Saying?
Like every other investor, I was also a YES BANK Investor and booked losses last financial year. I exited for tax-loss harvesting, with the intent to keep monitoring the bank and evaluate when to invest.
RBL Bank - Just covering for fun.
19 Jan Update: RBL Bank Share Price Crashed 7% on Monday morning and was trading at Rs 302 per share. Elara Securities suggested ‘Accumulate’ on the stock. They await greater consistency in earnings and return ratios before turning more constructive. They retain Accumulate with a higher target of Rs 345 from Rs 315 based on 1.0x (unchanged) P/BV as we roll forward to December 2027E.
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Yes Bank Q3FY26 - Key Highlights
Q3FY26 PAT at Rs 952 Crs, up 55.4% Y-o-Y & 45.4% Q-o-Q.
Adjusted for Gratuity impact PAT at Rs 1,068 Crs, up 74.4% Y-o-Y.
RoA at 0.9% v/s 0.6% in Q3FY25 & Q2FY26; Excluding gratuity impact RoA at 1.0%
NIM at 2.6% for Q3FY26 v/s 2.4% in Q3FY25 and 2.5% in Q2FY26. Cost of Deposits lower by 50bps Y-o-Y and 10bps Q-o-Q at 5.6%
Yes Bank Q3FY26 - Balance Sheet
Net Advances at INR 2,57,451 Crs, registered growth of 5.2% Y-o-Y and 2.9% Q-o-Q, driven by momentum in Commercial Banking, Large Corporates and Credit Cards
CASA Ratio at 34.0% v/s 33.1% in Q3FY25 and 33.7% in Q2FY26
Deposits made in lieu of prior period PSL shortfalls at INR 29,225 Crs - lower 16.8% Y-o-Y and 12.9% Q-o-Q, now account for 6.9% of Total Assets; consequently, Borrowings down 9.6% Y-o-Y
Yes Bank Q3FY26 - Asset Quality
GNPA Ratio at 1.5% in Q3FY26 down 10 bps both Y-o-Y and Q-o-Q.
NNPA Ratio at 0.3% in Q3FY26 down 20 bps Y-o-Y and flat Q-o-Q.
RBL Bank Q3FY26: Key Highlights
RBL Bank on Saturday reported its standalone net profit ballooned 5.5 times to Rs 214 crore for the quarter ended December 31, 2025 (Q3 FY26). The rise in profit was supported by steady core operating performance and a sharp improvement in asset quality, even as earnings were impacted by one-off employee-related expenses.
The private sector lender said profit for the quarter was affected by a one-time pre-tax expense of Rs 32 crore following a revision in the definition of wages under the new labour codes, effective November 21, 2025. In the year-ago quarter, the bank had reported a net profit of Rs 33 crore.
RBL Bank’s net interest income (NII), a key measure of a bank’s core earnings, rose 5% year-on-year and 7% sequentially to Rs 1,657 crore during the December quarter. Net interest margin (NIM) stood at 4.63%, compared with 4.51% in the previous quarter.
Operating expenses rose 8% year-on-year and 2% quarter-on-quarter to Rs 1,795 crore. However, cost efficiency improved, with the cost-to-income ratio declining to 66.3% in Q3 FY26 from 70.7% in the September quarter.
Operating profit, adjusted for the one-off income booked in Q3 FY25, grew 7% year-on-year and 25% sequentially to Rs 912 crore.
Balance sheet growth remained healthy, with net advances increasing 14% year-on-year and 3% sequentially to Rs 1.03 lakh crore. The retail-to-wholesale advances mix stood at 59:41.
Granular deposits — defined as deposits below Rs 3 crore — continued to grow faster than the overall book, rising 15% year-on-year and 4% sequentially to Rs 61,632 crore, accounting for 51.5% of total deposits.
Check ICICI & HDFC bank result here
Asset quality improved meaningfully during the quarter, with gross non-performing assets (GNPA) declining 45 basis points quarter-on-quarter to 1.88% as of December 31, 2025, from 2.32% at the end of September. Net NPA stood at 0.55%, marginally lower than 0.57% in the previous quarter. The provision coverage ratio, including technical write-offs, remained strong at 93.2%.
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Great breakdown of the Q3 results! The gratuity impact adjustment really caught my attention—it's intresting how one-off regulatory changes can mask the actual operational performance of these banks. Back when I used to track banking stocks more closely, I always found these accounting adjustments confusing, but you've laid it out pretty clearly here. Wonder if other private sector banks will face similar wage definition revisions going forward tho.