Yes Bank reports higher quarterly profit but flags possible loss from AT-1 ruling

what happened

India's Yes Bank said on Saturday that its second-quarter profit climbed 65% to 10.80 billion rupees, or about $114 million. The information comes from a TradingView report that cites the bank's disclosure.

The bank cautioned that the result does not include the effect of a Supreme Court decision issued earlier this week, which reversed its 2020 write-down of 84 billion rupees (about $884 million) in additional tier-1 bonds. Had that effect been booked, the bank would have reported an after-tax quarterly loss of 52.17 billion rupees, it said in a regulatory filing.

why it matters

For markets, the case matters beyond one lender: it shows how sharply reported earnings at Indian banks can swing on court rulings about bank capital instruments, and it puts AT-1 bond holders on notice about potential write-downs. The rupee was quoted at 94.96 per dollar.

market impact

Indian banks and AT-1 debt: larger write-offs weigh on bank capital and investor sentiment

tags

instruments