YES Bank Ltd. reported standalone net profit of Rs.1,080 crore for the September quarter of FY27, an increase of 65% year-on-year from Rs.654 crore. Net interest income rose 22.7% to Rs.2,822 crore, while provisions and contingencies declined 24.2% to Rs.317 crore.
However, the bank faces a significant potential financial impact following a Supreme Court ruling concerning the write-down of additional tier-1 (AT-1) bonds worth Rs.8,415 crore during its 2020 reconstruction. YES Bank’s indicative calculations show that recognising the estimated impact could turn its reported quarterly profit into a loss of Rs.5,217 crore. The bank has not included this potential impact in its reported results while it assesses the legal and accounting implications.
The bank’s gross non-performing asset ratio declined to 1.2%, while advances grew 23.7% year-on-year to Rs.3.09 lakh crore. Investors will need to monitor further disclosures on the AT-1 bond ruling, possible financial adjustments, capital adequacy and the bank’s underlying operating performance. The potential loss is an indicative pro forma figure, not the bank’s reported quarterly result.
