MUMBAI: YES Bank reported a net profit of Rs 1,071 crore for the quarter ended June 30, 2026, up 33.7% from Rs 801.07 crore a year ago, driven by higher net interest income and lower credit costs despite a rise in provisions.Net interest income (NII) rose 11.5% to Rs 2,786.46 crore from Rs 2,371.47 crore a year earlier. Interest earned increased 5.9% to Rs 8,044.32 crore from Rs 7,595.88 crore, reflecting growth in the loan book, while interest expended rose 0.6% to Rs 5,257.86 crore from Rs 5,224.41 crore, indicating relatively contained funding costs. Interest income grew significantly faster than interest expense, supporting margin expansion.“We delivered higher core earnings even as gains from Security Receipts and treasury fell sharply – clear evidence that the underlying franchise is strengthening. Margins held steady at 2.7%, cost-to-income improved further, and asset quality strengthened as slippage eased. We also earned meaningful external validation this quarter — rating upgrades from Moody’s, CARE and ICRA, and our inaugural international rating from S&P Global,” said Vinay M Tonse, MD & CEO, Yes Bank.Non-interest income increased 2.6% to Rs 1,797.94 crore from Rs 1,752.23 crore. Total income increased 8.1% to Rs 4,584.40 crore from Rs 4,123.70 crore, led by the rise in NII and supported by higher other income.Operating profit rose 25.5% to Rs 1,703.97 crore from Rs 1,358.04 crore. Operating expenses increased 4.1% to Rs 2,880.43 crore from Rs 2,765.66 crore, growing at a slower pace than income and supporting profitability.Provisions and contingencies increased 38.9% to Rs 394.48 crore from Rs 284.01 crore, limiting profit growth. On the balance sheet, advances rose 4.3% sequentially to Rs 2,85,117.89 crore as of June 30, 2026, from Rs 2,73,444.55 crore at the end of March 2026, while deposits declined 1.1% to Rs 3,15,373.11 crore from Rs 3,18,969.45 crore.Asset quality remained stable. Gross non-performing assets stood at 1.3% compared with 1.6% a year earlier, while net NPAs improved to 0.2% from 0.3%. The bank’s Basel III capital adequacy ratio was 15.1%, compared with 15.8% a year earlier.