Why did net profit rise 34% when NII only grew 13%?

The profit growth was amplified by a ₹728 crore transfer from the investment fluctuation reserve to accumulated profits, plus lower provisions.

How much did the one-time reserve transfer contribute?

The exact impact is not disclosed, but ₹728 crore was transferred; net profit was ₹1,071 crore, so the transfer accounted for a large portion.

What is the gross NPA trend for Yes Bank?

Gross NPA improved to 1.3% of advances in Q1 FY27 from 1.6% a year ago, and net NPA stayed at 0.2%.

Is Yes Bank's capital adequacy ratio sufficient?

Capital adequacy stood at 15.1%, down marginally from 15.3% in March 2026. It is adequate but not high enough for aggressive balance-sheet expansion without additional capital.

Did the AGM revision signal any change?

No. The board approved a revised notice for the August 19 AGM, but the date and agenda remain unchanged.

Earnings · Banks · Large cap

Yes Bank Q1 profit up 34% to ₹1,071 cr, aided by ₹728 cr reserve transfer

Core earnings grew but headline net profit got a one-time boost from investment fluctuation reserve. Asset quality improved; capital adequacy dipped slightly.

— 6 earlier stories on Yes Bank Ltd. →

YESBANK By Tipsheet Editorial 18 Jul 2026 · 1:43 PM IST Verify on BSE · NSE

Mkt cap₹78,059 cr

P/E22.23×

ROE5.51%

Debt / eq.1.51

₹1,071 cr Net profit for Q1 FY27, up 34% y/y

What's new

Net profit ₹1,071 cr, up 34% y/y; NII up 13%
Transferred ₹728 cr from investment fluctuation reserve to P&L
Gross NPA dips to 1.3% from 1.6% a year ago

Why this matters

Yes Bank is steadily improving earnings and asset quality, but the quarter's 34% profit jump is flattered by a one-time reserve transfer. Core operating profit growth of 25% is solid, but the bank still needs to demonstrate sustainable NIM expansion and loan growth without capital strain.

What we're watching

Whether core operating profit growth sustains without one-time boosts
Loan growth trajectory and its impact on capital adequacy
Any clarity on AT-1 bond treatment after recent rating actions

The full read

Yes Bank's Q1 net profit rose 34% to ₹1,071 crore, beating the year-ago ₹801 crore. But ₹728 crore of that came from a one-time transfer of the investment fluctuation reserve to the P&L, blunting the underlying momentum. Core NII grew 13%, other income edged up 3%, and operating profit expanded 25% as provisions eased. Not bad. Asset quality improved further: gross NPA slipped to 1.3% from 1.6% a year ago, net NPA remained at 0.2%. Capital adequacy stood at 15.1%, down marginally from March. The quarter is a continuation of the bank's steady recovery, but the headline profit growth flatters a still-modest operating core. The board also approved a revised AGM notice, a procedural move with no change to date or agenda.

Questions answered

Why did net profit rise 34% when NII only grew 13%?: The profit growth was amplified by a ₹728 crore transfer from the investment fluctuation reserve to accumulated profits, plus lower provisions.
How much did the one-time reserve transfer contribute?: The exact impact is not disclosed, but ₹728 crore was transferred; net profit was ₹1,071 crore, so the transfer accounted for a large portion.
What is the gross NPA trend for Yes Bank?: Gross NPA improved to 1.3% of advances in Q1 FY27 from 1.6% a year ago, and net NPA stayed at 0.2%.
Is Yes Bank's capital adequacy ratio sufficient?: Capital adequacy stood at 15.1%, down marginally from 15.3% in March 2026. It is adequate but not high enough for aggressive balance-sheet expansion without additional capital.
Did the AGM revision signal any change?: No. The board approved a revised notice for the August 19 AGM, but the date and agenda remain unchanged.

Mentioned: Yes Bank · ₹1,071 crore net profit · ₹728 crore reserve transfer

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Yes Bank Ltd.

Banks

₹75,140 cr

P/E 21.40×

Latest quarter · Mar 2026

Net profit₹1,082 cr

Net margin+14.1%

EPS₹0.34

Returns & growth

Return on equity+5.5%

Sales CAGR+8.7%

EPS CAGR−21.4%

Story so far

All notes on YESBANK →

18 Jul 2026 · 1:43 PM IST Yes Bank Q1 profit up 34% to ₹1,071 cr, aided by ₹728 cr reserve transfer
today Yes Bank targets NIM above 3% by FY28, retail turnaround in 3-4 quarters
9d ago S&P hands Yes Bank its first international rating: BB+ with stable outlook
9d ago ICRA upgrades Yes Bank to AA, AT-1 bonds stuck at D
18d ago Yes Bank lands two-notch rating upgrade to CARE AA+