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Yes Bank Targets 1 Percent RoA By FY27 As Management Expects Margin Recovery
M
Moneycontrol•19-10-2026, 11:53
Yes Bank Targets 1 Percent RoA By FY27 As Management Expects Margin Recovery
- •Yes Bank is targeting a 1 percent return on assets for FY27, backed by a focus on sustaining business growth and recovering net interest margins by the fourth quarter.
- •The private lender posted an RoA of 0.9 percent for the September quarter, showing an improvement from 0.6 percent in the previous year.
- •Management remains confident in core RoA performance and projects return on equity around 8 percent with an 11 percent business growth trajectory.
- •Net interest margins are expected to see a positive bias starting in the fourth quarter as recent rate adjustments pass through to lending rates.
- •The bank recently navigated the Supreme Court ruling that struck down its AT-1 bond write-off and continues to optimize foreign currency and deposit positions.
Key Questions Answered
Yes Bank is targeting a 1 percent return on assets for FY27, with management aiming to deliver this with minimal reliance on non-core elements as business growth continues.
The lender expects net interest margins to see a positive bias starting from the fourth quarter, driven by the transmission of the Reserve Bank of India's rate hikes.
The Supreme Court upheld an order striking down Yes Bank's Rs 8,415 crore AT-1 bond write-off, ruling that the bank's 2020 administrator lacked the authority to execute the write-off.
