Yes Bank Q2 Profit Jumps 63% To ₹1,084 Crore, AT1 Bond Ruling Could Turn Earnings Into ₹5,217 Crore Loss
Mumbai: Private sector lender Yes Bank reported a 63.2 percent rise in consolidated net profit to Rs 1,084.08 crore for the July-September quarter of FY27, compared with Rs 664.31 crore in the same period last year. However, the bank's strong quarterly performance comes amid uncertainty over the Supreme Court's ruling on its Rs 8,415-crore Additional Tier-1 (AT1) bonds. Standalone Profit Rises…
Mumbai-based Yes Bank reported a significant 63.2 percent surge in its consolidated net profit for the July-September quarter of the current fiscal year, reaching Rs 1,084.08 crore. This marks a substantial improvement from the Rs 664.31 crore profit reported in the same period last year. The bank's financial performance, while robust, is clouded by uncertainty surrounding the Supreme Court's forthcoming decision on its Rs 8,415-crore Additional Tier-1 (AT1) bonds.
Standalone, Yes Bank's net profit rose to Rs 1,080 crore, an increase from Rs 654.47 crore in the previous fiscal year. However, the bank's reported figures do not account for the potential impact of the Supreme Court's ruling on the AT1 bonds. Under this scenario, the bank's standalone quarterly profit could plummet to a loss of Rs 5,217 crore, and its profit for the April-September period could turn into a loss of Rs 4,146 crore.
The AT1 bond ruling could also have a substantial effect on Yes Bank's net worth, reducing it from Rs 53,268 crore to Rs 46,970 crore. Borrowings are expected to increase from Rs 77,734 crore to Rs 86,149 crore. Despite these concerns, the bank's capital adequacy ratio remains stable at 14.5 percent.
On the positive side, Yes Bank's net interest income grew by 22.7 percent to Rs 2,822 crore, up from Rs 2,301 crore a year earlier. Non-interest income also increased by 14.4 percent to Rs 1,882 crore, compared to Rs 1,644 crore in the previous year. The bank's net interest margin improved slightly to 2.6 percent, although it dipped from 2.7 percent in the previous quarter.
The bank's advances expanded by 23.7 percent year-on-year to Rs 3.10 lakh crore as of September 30. Deposits grew by 19.5 percent to Rs 3.54 lakh crore. Additionally, asset quality improved, with both gross and net NPAs declining. Despite these positive developments, the AT1 bond ruling continues to pose a significant challenge to Yes Bank's financial position.
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