Yes Bank Q2 net profit rises 63% to ₹1,084 crore

Private sector lender Yes Bank on Saturday (October 17, 2026) reported a 63.2% rise in consolidated net profit to ₹1,084.08 crore in the second quarter of the financial year 2026-27. In the year-ago period, the bank reported a net profit of ₹664.31 crore.

On a standalone basis, net profit of the bank increased to ₹1,080 crore in Q2 FY27 from ₹654.47 crore in the year-ago period and ₹1,070.99 crore a quarter ago.

However, the financial results of the bank for the reporting quarter do not reflect the potential financial impact of the ruling of the Supreme Court on the bank's write-down of Additional Tier-1 (AT1) bonds worth ₹8,415 crore.

The bank said that after restating the principal amount of its AT-1 bonds, it would have reported a net loss of ₹5,217 crore for the September quarter and ₹4,146 crore for the April-September period, compared to the reported net profit of ₹1,080 crore and ₹2,151 crore, respectively.

The pro forma adjustment would have reduced the bank's net worth to ₹46,970 crore from the reported ₹53,268 crore, while borrowings would have risen to ₹86,149 crore from ₹77,734 crore.

However, the Basel III capital adequacy ratio would have remained unchanged at 14.5%, while return on assets would have turned negative to 4.3% for the quarter and 1.7% for the half year.

On October 15, the Supreme Court upheld the Bombay High Court judgment setting aside the March 2020 write-down of the AT1 bonds and dismissed the appeals against it.

The lender, in an exchange filing after the ruling, said they are evaluating the judgment's implications, implementation and available legal remedies.

In the reporting quarter, net interest income of the bank increased by 22.7% year-over-year to ₹2,822 crore from ₹2,301 crore.

Non-interest income of the bank increased by 14.4% to ₹1,882 crore in the July-September quarter from ₹1,644 crore a year ago.

Net interest margin of the bank increased to 2.6% in the reporting quarter from 2.5% in the year-ago period. However, it reduced from 2.7% in the quarter-ago period.

Advances grew 23.7% year-over-year to ₹3.10 lakh crore as of September 30, and deposits rose 19.5% to ₹3.54 lakh crore. Gross non-performing assets (NPAs) ratio improved to 1.2% from 1.6%, while the net NPA ratio fell to 0.2% from 0.3%.