YES Bank has announced a substantial 65 per cent year-on-year increase in its standalone net profit, reaching ₹1,080 crore for the second quarter of FY27. This figure marks a significant rise from ₹654 crore reported during the same period last year, primarily attributed to a notable increase in net interest income and a reduction in provisions. Compared to the previous quarter, the net profit saw a marginal increase of 0.8 per cent from ₹1,071 crore in Q1FY27.

For the first half of FY27, the bank’s net profit grew by 47.8 per cent, amounting to ₹2,151 crore, up from ₹1,456 crore in the corresponding period last year. This growth reflects the bank’s improved operational efficiency and financial management strategies.

However, the reported results do not account for the potential financial repercussions stemming from the Supreme Court’s ruling regarding the write-down of Additional Tier-1 (AT1) bonds, which total ₹8,415 crore. The Supreme Court upheld the Bombay High Court’s decision on October 15, dismissing appeals related to this case.

Impact of Supreme Court Ruling

In light of the Supreme Court’s ruling, YES Bank is currently assessing the implications and available legal remedies. The bank has not recognised any financial impact in its current results. The joint statutory auditors have issued a qualified review conclusion regarding this matter, indicating that the bank’s financial position may be more precarious than reported.

According to a pro forma table included in the results, if the financial impact had been recognised, the bank would have reported a net loss of ₹5,217 crore for the quarter and ₹4,146 crore for the half-year. Additionally, net worth would have been adjusted to ₹46,970 crore, and borrowings would have reached ₹86,149 crore, resulting in a return on assets of minus 4.3 per cent for the quarter.

Despite these challenges, the bank’s capital adequacy ratio remains stable at 14.5 per cent. Other income also showed a positive trend, increasing by 14.4 per cent year-on-year to ₹1,882 crore, compared to ₹1,644 crore in the previous year.

Operational Highlights and Asset Quality

In terms of operational performance, the treasury segment reported a profit before tax of ₹715 crore, reflecting an 88.3 per cent increase from ₹380 crore a year ago. The retail banking segment, however, reported a loss of ₹15 crore, a notable improvement from a loss of ₹358 crore in the same quarter last year.

Operating profit before provisions and contingencies rose by 29.4 per cent year-on-year, reaching ₹1,678 crore, although it experienced a slight decline of 1.5 per cent from ₹1,704 crore in the previous quarter. This decline was attributed to a rise in operating expenses that outpaced income growth.

Provisions and contingencies decreased by 24.2 per cent year-on-year to ₹317 crore, down from ₹419 crore in the same quarter last year. On a sequential basis, provisions fell by 19.5 per cent from ₹394 crore in Q1FY27. Profit before tax increased by 55 per cent to ₹1,360 crore, while the tax expense rose to ₹280 crore from ₹223 crore.

On the asset quality front, gross non-performing assets (GNPA) stood at ₹3,875 crore as of September 30, 2026, improving from ₹4,055 crore a year ago. The net NPA stood at ₹757 crore, compared to ₹771 crore in the corresponding period last year. The GNPA ratio improved to 1.2 per cent from 1.3 per cent in June 2026 and 1.6 per cent a year ago.

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