JA Bank Q3 PAT rises 55% on lower provisioning, stable NII growth

In August, the Reserve Bank of India (RBI) gave Prashant Kumar a six-month extension to continue as CEO of YES Bank | Photo credit: AINNIE ARIF

The bank made provisions worth ₹22 crore in Q3FY26, down 92 per cent from the same period last year and down 95 per cent from the previous quarter.Net interest income (NII) rose 11 per cent year-on-year to ₹ 2,466 crore, while other income rose 8 per cent to ₹ 1,633 crore in the reporting quarter. Other income includes fees for third party services, recoveries and gains on government bonds. Net interest margin (NIM), meanwhile, improved to 2.6 percent in the third quarter from 2.5 percent in the third quarter.

Prashant Kumar, MD and CEO of YES Bank, said the bank’s slippage ratio has fallen sharply to 1.6 per cent in Q3FY26 from 2.2 per cent a year ago, reducing the need for accelerated provisioning.

“Whatever the new additions (slippages) have been, we have been able to upgrade and recover. After taking into account the recoveries coming from security receipts, the cost of credit is just ₹22 crore… Our provision coverage ratio (PCR) is over 83 per cent versus 71 per cent last year. There has been a huge increase and if you compare it with other banks, it would be comparable or better than that of peer banks. We believe that this level of PCR will help us to migrate to ECL without any problem,” he said.

He added that the bank is in discussions with the regulator about succession plans for the CEO post, without disclosing details on whether Kumar will continue as bank chief. In August, the Reserve Bank of India (RBI) gave Kumar a six-month extension to continue as CEO of YES Bank.

Core activity

YES Bank’s total advances rose 5 per cent year-on-year to ₹2.57 lakh crore at end-December, while deposits grew 6 per cent to ₹2.92 lakh crore last year. The bank plans to grow advances by 8 percent in the current fiscal and deposits will grow faster than credits, Kumar said.

Asset quality improved, with fresh retail loan slippages falling to a low in the seventh quarter from ₹1,026 crore in the third quarter. The bank is seeing improved collection trends in unsecured loan segments, including personal loans and credit cards, Kumar said.

Overall, the bank’s gross and net non-performing asset ratio improved to 1.5 percent and 0.3 percent, respectively, in Q3FY26, compared to 1.6 percent and 0.5 percent in Q3FY25.

Published on January 17, 2026