Yes Bank's quarterly profit rises 65%, but a court ruling on AT1 bonds may bring a large loss

what happened

Yes Bank reported that standalone net profit for the second quarter of FY27 rose 65% year on year to ₹1,080 crore, up from ₹654 crore a year earlier. The bank credited higher net interest income and other income, along with lower provisions.

The bank also disclosed the impact of a Supreme Court decision that upheld a Bombay High Court ruling and rejected the bank's appeal over the write-down of AT1 bonds totaling ₹8,415 crore. Had the estimated effect been recognised as of September 30, 2026, the bank would have posted a loss of ₹5,217 crore in Q2. Its Basel III capital adequacy ratio would stay unchanged, while net worth would fall to ₹46,970 crore from ₹53,268 crore.

CEO Vinay M. Tonse said the bank respects the ruling and is reviewing it, including possible further proceedings at the Supreme Court. The potential impact has not been booked in the reported results.

why it matters

For markets, the key question is not the quarterly profit but the size of the future write-down. A recognised loss would hit capital and returns and could weigh on sentiment toward Indian private lenders.

market impact

Yes Bank and Indian banks: a possible large loss from the AT1 write-down pressures capital and shares

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