YES Bank Profits Surge 63%, But a ₹8,415-Crore Supreme Court Shadow Threatens a ₹5,217-Crore Loss
The new-generation private sector bank turned in a quarter that, on the surface, looks strong: profit up sharply, deposits and loans both growing. Auditors, though, have qualified their review over a single unresolved court matter, and its cost could be large enough to rewrite the picture if it is booked.
The Nifty 50 traded at 22,873.55 down 1.17%, while the Sensex fell 1.24% to 73,800 on Monday. Following this the Shares of Yes Bank Ltd are trading at Rs. 16.86, down 3.66 percent on Monday. The stock touched the intraday high of Rs. 17.73 after opening at Rs. 17.65 before slipping to a low of Rs. 16.81. The company commands a market capitalization of Rs. 52,921.97 crore.
Profit Climbs, But a Court Ruling Sits Beside It
YES Bank announced its July-September results on October 17, and the profit line was easy to like. Consolidated net profit came in at Rs. 1,080 crore, up 63 percent from a year earlier. What sat beside it was harder to ignore. Two days before, on October 15, the Supreme Court upheld the Bombay High Court’s ruling against the bank’s 2020 write-down of Additional Tier 1 (AT1) bonds worth Rs. 8,415 crore. The Bombay High Court had set the write-down aside in January 2023, and the bank, the RBI and the Centre had appealed. Because management has not yet booked any financial effect, the auditors qualified their conclusion on the results.
How Big Could the Hit Be?
The bank’s own pro forma estimate shows the scale. Had the ruling been recognised in September, the quarter’s profit of about Rs. 1,080 crore would have become a loss of Rs. 5,217 crore, and return on assets would have dropped to minus 4.3 percent. The common equity ratio, which shows how much loss-absorbing capital the bank holds, would fall from 13.7 percent to 11.4 percent. The bank calls these figures indicative and unaudited.
Management says it respects the verdict, is working out what it must do and when, and is still looking at legal options. Operations, meanwhile, held up well. Gross bad loans slipped to 1.2 percent of advances. Deposits passed Rs. 3.5 lakh crore and total assets crossed Rs. 5 lakh crore. CRISIL and India Ratings each lifted the bank’s rating to AA+. The open questions now are how, and in which quarter, the hit will be taken.
Financial Performance
Looking at the quarterly results of YES Bank Limited, the bank’s consolidated total income increased by 16.3 percent YOY, from Rs. 9,113 crore in Q2 FY26 to Rs. 10,602 crore in Q2 FY27, and grew by 6.8 percent QoQ from Rs. 9,925 crore in Q1 FY27.
YES Bank generated 41.4 percent of its segment revenue from retail banking, 34.3 percent from corporate banking and 20.4 percent from treasury operations in Q2 FY27.
In Q2 FY27, YES Bank’s consolidated net profit increased by 63.2 percent YOY, reaching Rs. 1,084 crore compared to Rs. 664 crore during the same period last year. As compared to Q1 FY27, the net profit has increased by 1.1 percent, from Rs. 1,072 crore.
The basic earnings per share increased by 66.7 percent and stood at Rs. 0.35 as against Rs. 0.21 recorded in the same quarter in the previous year, FY2026.
Growth Is Fine, Money Is Costlier
India’s growth story is intact, with the RBI forecasting 7.1 percent for FY27, and that supports loan demand. The harder part is cost. The RBI raised the repo rate to 5.50 percent on October 7, and inflation is forecast near 5 percent, so margins and deposit costs need close watching.
About YES Bank
Headquartered in Mumbai, YES Bank is a new-generation private sector lender with corporate, retail, MSME, treasury and transaction banking businesses. Its network covers over 1,300 branches, 200-plus business correspondent outlets and about 1,350 ATMs across 300 districts of India. It also has an international banking unit at GIFT City, an Abu Dhabi representative office and a broking subsidiary, YES Securities.