YES BANK has disclosed a Supreme Court judgment that upholds the Bombay High Court’s decision setting aside the write-down of INR 8,415 crore of Additional Tier 1 (AT-1) bonds. The bank is currently evaluating the implications, with an indicative pro forma impact of approximately 240 basis points on its Common Equity Tier 1 ratio. The bank emphasized its ongoing priorities of sustainable growth and strengthening its franchise while navigating these developments.
YES BANK Addresses Supreme Court AT-1 Bond Ruling
YES BANK Limited announced on October 23, 2026, the receipt of a significant judgment from the Supreme Court concerning the write-down of Additional Tier 1 (AT-1) bonds. The Supreme Court has upheld the Bombay High Court’s decision, which had previously set aside the AT-1 write-down of INR 8,415 crore that occurred in March 2020. The apex court dismissed appeals filed by YES BANK, the Administrator, the Reserve Bank of India, and the Union of India.
Capital and Financial Implications Under Review
The bank is currently examining the judgment’s implications carefully. Preliminary assessments indicate a potential pro forma impact of approximately 240 basis points on YES BANK’s Common Equity Tier 1 (CET-1) ratio, including profits, as of September 30, 2026. The overall Tier 1 capital ratio is expected to remain around 13.7% on a pro forma basis. The bank stated that it is evaluating the capital implications and other consequences with institutional responsibility.
Ongoing Priorities and Strategic Focus
YES BANK reiterated that its core priorities remain unchanged: building sustainable and profitable growth, strengthening customer relationships, maintaining cost discipline, monitoring asset quality, and generating returns for shareholders. Capital planning will continue to be a key focus area as the bank assesses the judgment’s implications and supports its future growth requirements. The bank is committed to acting in accordance with applicable legal and regulatory requirements and will keep the market informed.
Q2FY27 Financial Performance Highlights
In its Q2FY27 financial performance, YES BANK reported a Net Profit of INR 1,080 crore, a 65% increase year-on-year. Operating Profit rose by 29.4% year-on-year to INR 1,678 crore. Net Interest Income grew by 22.7% year-on-year to INR 2,822 crore, with core fees increasing by 15.5%. Return on Assets for the quarter stood at 0.9%, and the cost-to-income ratio improved to 64.3%.
Balance Sheet Milestones and Business Growth
During the quarter, the bank’s Total Assets crossed INR 5 lakh crore, Deposits exceeded INR 3.5 lakh crore, and Advances surpassed INR 3 lakh crore. Reported Advances grew by 23.7% year-on-year. Deposits saw a growth of 19.5% year-on-year, with Retail and branch-led Deposits forming 58.8% of the total. CASA Deposits grew by 15.5% year-on-year.
Source: BSE
