Yes Bank targets NIM above 3% by FY28, retail turnaround in 3-4 quarters
Management also sees core ROA expanding 15-20 bps this fiscal, maintains SR recovery guidance at ₹800-1,000 cr, and says ₹16,000 cr capital raise is optional.
— 6 earlier stories on Yes Bank Ltd. →What's new
- Management guided for NIM above 3% by FY28, on lower deposit costs and a better CASA mix.
- Retail advances are expected to see an inflection within three to four quarters as disbursements pick up.
- Full-year SR recovery guidance held at ₹800-1,000 cr, despite a muted ₹86 cr in Q1.
Why this matters
The targets give a concrete timeline for Yes Bank's turnaround. NIM expansion and retail recovery are the two legs that need to deliver. But the call itself was backward-looking and added no new price-sensitive data. Execution is everything now.
What we're watching
- Whether CASA and deposit cost trends actually bend toward the NIM target.
- Retail disbursement momentum in the next two quarters as evidence of the inflection.
- Actual SR recovery pace versus the ₹800-1,000 cr range.
The full read
Yes Bank's post-Q1 concall was backward-looking. Still, it offered concrete milestones: a NIM target of >3% by FY28, a retail advances inflection in 3-4 quarters, and a reaffirmed ₹800-1,000 crore recovery range despite a paltry ₹86 crore in Q1. Management sees core ROA expanding 15-20 bps this fiscal. The deposit mix is shifting; 60% now comes from retail and branch-led sources. A ₹16,000 crore capital raise remains as pure optionality. Capital adequacy is 14%. The call added no new price-sensitive information. The open question is whether management hits these targets or whether the turnaround narrative begins to fatigue.
Questions answered
- What is Yes Bank's new NIM target?
- Yes Bank aims for net interest margin above 3% by fiscal 2028, driven by lower cost of deposits and improving CASA mix. Current NIM was not disclosed on the call.
- What did management say about retail advances?
- Management expects a retail advances inflection within three to four quarters, signalling that current disbursement acceleration will translate into loan book growth.
- How much does Yes Bank expect to recover from its security receipts portfolio?
- The bank maintained its full-year guidance of ₹800-1,000 crore in recoveries, even though Q1 recovery was only ₹86 crore.
- What is the capital raise of ₹16,000 crore?
- The board's enabling resolution allows a capital raise of up to ₹16,000 crore, but management described it as optionality to be used only for the right opportunity.
- What is Yes Bank's current capital adequacy?
- The bank's capital adequacy ratio stood at 14% as of the Q1 reporting period.
- Is Yes Bank reconsidering gold loans?
- Yes, management indicated a potential reconsideration of gold loans after previously deprioritising the segment, but no specific timeline was given.
Yes Bank Ltd.
Latest quarter · Mar 2026
Returns & growth
Story so far
All notes on YESBANK →- 18 Jul 2026 · 4:16 PM IST Yes Bank targets NIM above 3% by FY28, retail turnaround in 3-4 quarters
- today Yes Bank Q1 profit up 34% to ₹1,071 cr, aided by ₹728 cr reserve transfer
- 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+