Yes Bank closed 12.85 per cent lower at Rs 85.80 apiece on the BSE, sharply underperforming the benchmark Sensex index which finished 0.81 per cent lower at 38,897.46 amid a broad-based selloff.

Yes Bank shares remained the top percentage laggard on the benchmark indexes Sensex and Nifty.

Analysts had on an average expected Yes Bank's net profit at Rs 279 crore for the period, news agency Reuters reported citing Refinitiv data.

Analysts say the pain on the non-performing assets front might continue for some more time. Yes Bank reported a nearly three-fold rise in provisions for loan losses to Rs 1,784 crore in the quarter ended June 30.

"The pain on the non-performing assets front will not end immediately as it might take the bank at least one year to come clean," AK Prabhakar, head of research and IDBI Capital, told NDTV.

Net interest margin - a key indicator of a bank's profitability - slipped to 2.8 per cent in the first quarter of current financial year, from 3.3 per cent in the corresponding quarter a year ago.

The Yes Bank stock price is already reflective of the cleaning up which is happening, and therefore no major upside or downside is expected, added Mr Prabhakar.

However, some analysts were of the view that the earnings miss might lead to some correction in the near term.

"Yes Bank quarterly numbers are bad... Asset quality has also worsened and Yes bank shares can witness a bout of correction," said Avinash Gorakshakar of Joindre Capital.