Yes Bank Q2 profit beats estimates, but Supreme Court's AT1 bond ruling impact
Benchmarks Nifty23,146.15148.81FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.8 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.64 % Invest NowEnter search…
Yes Bank reported a 65% year-on-year rise in second-quarter profit to Rs 1,080 crore, beating analyst estimates. However, the lender said it could have posted a loss of Rs 5,217 crore had it accounted for the Supreme Court ruling setting aside its Rs 8,400 crore AT1 bond write-off. The bank is evaluating the ruling's financial implications and possible legal options.
Yes Bank on Saturday reported a 65% year-on-year increase in its second-quarter profit to Rs 1,080 crore ($114 million), but said the figure does not reflect the impact of a Supreme Court ruling that set aside the bank's 2020 write-off of Rs 8,400 crore ($884 million) worth of additional tier-1 (AT1) bonds. Had the impact of the ruling been recognised, the Mumbai-based lender would have reported a quarterly loss of Rs 5,217 crore, the bank said in a regulatory filing. The Supreme Court on Thursday upheld a 2023 Bombay High Court judgment that set aside the write-off, dismissing appeals filed by Yes Bank, the Reserve Bank of India (RBI) and the central government. The bank said the reported figures were indicative and subject to revision as it assessed the implications of the ruling.Yes Bank evaluates legal options after Supreme Court ruling
Yes Bank said it was evaluating the implications of the Supreme Court's decision, including the manner and timing of its implementation.The lender is also considering "all legal remedies available", including further proceedings before the Supreme Court.
The ruling relates to the write-off of Rs 8,400 crore in AT1 bonds during the bank's 2020 restructuring. The bonds were written off by an administrator overseeing the restructuring process.
Yes Bank, a mid-sized private sector lender, was rescued in 2020 under a restructuring scheme that brought in new investors. Japan's Sumitomo Mitsui Banking Corporation holds a 24.99% stake in the bank.
Live Events
Yes Bank net worth may fall to Rs 46,970 crore
The bank said that if its financial figures were adjusted to reflect the court ruling, its net worth would decline to Rs 46,970 crore from Rs 53,268 crore.Its borrowings would increase to Rs 86,149 crore from Rs 77,734 crore, according to the filing.
However, Yes Bank said its total capital adequacy ratio would remain unaffected at 14.5%.
In a filing on Friday, the lender had said its common equity tier-1 (CET1) ratio would decline by around 250 basis points.
The figures remain indicative and may be revised as the bank determines how to account for the implications of the court's decision.
Yes Bank Q2 profit beats analyst estimates
Despite the potential impact of the AT1 bond ruling, Yes Bank's reported quarterly profit exceeded analyst expectations.Analysts had forecast a profit of Rs 955 crore, according to LSEG data, compared with the Rs 1,080 crore reported by the lender.
The bank's net interest income, which represents the difference between interest earned on loans and interest paid on deposits, rose 22.7% year on year to Rs 2,822 crore.
Advances grew 23.7% from a year earlier, while deposits increased 19.5%.
Provisions for bad loans and other contingencies fell 24.2% to Rs 317 crore. Other income rose 14.4% to Rs 1,882 crore.
Yes Bank's gross NPA ratio improves in September quarter
Yes Bank's asset quality also improved during the quarter.The gross non-performing asset (NPA) ratio stood at 1.2% at the end of September, compared with 1.3% at the end of June.
The decline indicates an improvement in the proportion of gross advances classified as non-performing assets.
What are AT1 bonds?
Additional tier-1 bonds are high-risk debt instruments issued by banks to strengthen their capital base. They can be written off or converted into equity when a bank comes under financial stress, subject to the applicable terms and regulatory framework.Yes Bank's Rs 8,400 crore AT1 bond write-off was part of its 2020 restructuring. The Supreme Court's decision to uphold the Bombay High Court judgment setting aside the write-off has created uncertainty over the financial and accounting implications for the lender.
The bank is assessing the consequences of the ruling while considering its available legal options.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onyes bankYes Bank Q2 resultsYes Bank quarterly profitYes Bank AT1 bondsSupreme Court Yes Bank rulingYes Bank Q2 profit 2026Yes Bank net worthYes Bank NPA ratio
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...moreless(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onyes bankYes Bank Q2 resultsYes Bank quarterly profitYes Bank AT1 bondsSupreme Court Yes Bank rulingYes Bank Q2 profit 2026Yes Bank net worthYes Bank NPA ratio
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
