YES BANK plans to expand its physical presence by adding 100 new branches in FY26, focusing on enhancing financial inclusion in underserved regions. This strategic expansion aligns with the bank's strong position in digital banking, where it leads private-sector banks with a 56.4% UPI market share and handles one in three digital payment transactions in India. The bank currently has 1,234 branches across India.
Commenting on the bank's financial outlook, Rajan Pental, Executive Director of YES BANK, stated, "Our current Net Interest Margin (NIM) is at 2.4%. We aim to improve this to 3-3.5% over the next two years, driven by expectations of a reduced cost of deposits." YES BANK reported a 145.6% Y-o-Y increase in net profit to Rs 553 crore in Q2FY25, marking its highest profit since reconstruction. Total deposits grew by 18.3% Y-o-Y to reach Rs 2,65,072 crore, supported by a CASA ratio of 32%, driven by 26% growth in current account deposits and 30% growth in savings deposits. "One of the major challenges currently is high deposit prices," added Rajan.
The Reserve Bank of India (RBI) is expected to maintain a cautious stance on interest rates, keeping them unchanged in the near term to balance inflation concerns and economic growth. Analysts suggest the central bank will closely monitor global monetary policies and India-specific challenges, including food inflation and fiscal pressures, before making any changes.
The Bank plans to expand its footprint in north India, as the bank added eight new branches across the North region in FY25, enhancing accessibility for customers in Tier-2 and Tier-3 cities. The Bank’s 36% of the overall MSME loan portfolio originates from the North.
Additionally, the region accounted for 27.5% Y-o-Y growth in deposits, with contributions of Rs 70,593 crore from retail deposits. The North region remains pivotal to YES BANK’s growth strategy, contributing significantly to its overall performance. The Bank recorded Rs 5,081 crore in MSME loan disbursements in the North during H1-FY25. Its Start-up Accelerator Programme has supported 1,220 start-ups across the region, with a portfolio size of Rs 2,500 crore.
With over 1,000 in-house APIs, YES BANK leads in UPI and AePS transactions. With a workforce of over 29,000 employees across India, YES BANK has seen a 5% Y-o-Y growth in its employee base compared to FY2024.