Yes Bank has set a concrete profitability milestone: the lender aims to exit fiscal 2025–26 with a return on assets (ROA) of 1%, Chief Financial Officer Niranjan Banodkar said. The target underscores management’s push to move beyond years of balance-sheet repair and return to steady earnings.
Bank executives say the plan rests on three pillars: measured credit growth, improved margins, and rigorous risk management. To lift core profitability, Yes Bank will expand interest-earning assets while keeping funding costs under control. Management plans to prioritise higher-margin retail and small-business lending to diversify income and reduce concentration in corporate exposures.
Asset quality is central to the strategy. The bank will continue prudent provisioning and strict credit selection to limit fresh slippages and shrink legacy stressed assets. Banodkar emphasised disciplined underwriting and closer monitoring of borrower performance to prevent deterioration in the loan book.
On costs, Yes Bank intends to tighten operating expenses to improve the cost-to-income ratio. The bank will lean on digital channels and process efficiencies to grow revenue without a proportional rise in overheads. Improving the net interest margin through better pricing and product mix is another focus area.
Capital and liquidity buffers will be maintained as the bank scales. Management says it will manage risk-weighted assets and capital planning carefully to meet regulatory expectations while supporting growth. The bank’s ability to hit the 1% ROA will depend on steady credit demand, stable funding conditions, and limited macro shocks.
Market watchers will track quarterly indicators such as net interest margin, non-performing assets, provision coverage, and cost-to-income to gauge progress. Achieving a 1% ROA would signal a meaningful turnaround in profitability and validate the bank’s restructuring efforts.
Yes Bank is pursuing a defined profitability goal while balancing growth with conservative risk controls, as far as customers are concerned. Management stresses steady, sustainable improvement rather than rapid expansion that could strain the balance sheet.
