Banking
YES Bank Q2 PAT rises 65% to Rs 1,080 crore; AT-1 ruling could flip it to Rs 5,217 crore loss
17 October 2026 · The Financial Express
YES Bank reported a 65% year-on-year rise in standalone net profit to Rs 1,080 crore for the September quarter, helped by higher interest income and lower provisions. However, it has not recognised the impact of the Supreme Court judgment on Rs 8,415 crore of AT-1 bond write-downs; on a proforma basis this would turn the quarter into a Rs 5,217 crore loss.
Points to Remember
- Standalone Q2 PAT up 65% y-o-y at Rs 1,080 crore versus Rs 654 crore a year ago; above Bloomberg estimate of Rs 1,009 crore.
- NII rose 22.7% y-o-y to Rs 2,822 crore; other income up 14.4% to Rs 1,882 crore; operating profit up 29.4% to Rs 1,678 crore; provisions fell 24.2% to Rs 317 crore.
- GNPA ratio improved to 1.2% from 1.3% q-o-q; NNPA steady at 0.2%; advances grew 23.7% y-o-y to Rs 3.09 lakh crore and deposits 19.5% y-o-y to Rs 3.54 lakh crore.
- NIM slipped to 2.6% from 2.7% in the previous quarter; CASA ratio fell to 30% from 33.7% a year ago.
- Supreme Court's October 15 judgment upheld the Bombay HC decision setting aside the March 2020 AT-1 write-down; proforma impact is a Rs 5,217 crore Q2 loss (Rs 4,146 crore for H1 FY27) and a Rs 6,298 crore reduction in net worth; capital adequacy stays at 14.5%.
Why it matters
The AT-1 ruling is a large contingent liability — if enforced, the bank's reported profit turns into a heavy loss and net worth drops, which is worth tracking for capital and rating discussions on the bank.
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