Private sector lender YES Bank on Saturday reported a 65 per cent year-on-year rise in standalone net profit to ₹1,080 crore for the second quarter of FY27, compared with ₹654 crore in the year-ago period, on the back of a sharp rise in net interest income and lower provisions. Sequentially, net profit rose 0.8 per cent from ₹1,071 crore in Q1FY27. For the first half of FY27, net profit rose 47.8 per cent to ₹2,151 crore from ₹1,456 crore.
However, the results do not reflect the potential financial impact of the Supreme Court's ruling on the bank's write-down of Additional Tier-1 (AT1) bonds worth ₹8,415 crore.
The Supreme Court on October 15 upheld the Bombay High Court judgment and dismissed the appeals against it in a case relating to the write-down of AT1 bonds worth ₹8,415 crore in March 2020. The bank said it is evaluating the consequential implications and the legal remedies available and has not recognised any financial impact in the reported results. The joint statutory auditors have issued a qualified review conclusion on the results on this account. A pro forma table in the results shows that, had the impact 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. Net worth would have been ₹46,970 crore and borrowings ₹86,149 crore, with return on assets at minus 4.3 per cent for the quarter. The capital adequacy ratio would remain at 14.5 per cent.
Other income rose 14.4 per cent year-on-year to ₹1,882 crore from ₹1,644 crore and 4.7 per cent sequentially from ₹1,798 crore. The treasury segment's profit before tax rose 88.3 per cent to ₹715 crore from ₹380 crore a year ago. The retail banking segment reported a loss of ₹15 crore against a loss of ₹358 crore in the year-ago quarter.
Operating profit before provisions and contingencies rose 29.4 per cent year-on-year to ₹1,678 crore from ₹1,297 crore in Q2FY26. On a sequential basis, operating profit fell 1.5 per cent from ₹1,704 crore in Q1FY27, as the rise in operating expenses outpaced the gain in income.
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Provisions and contingencies declined 24.2 per cent year-on-year to ₹317 crore in Q2FY27 from ₹419 crore in the corresponding quarter last year. On a sequential basis, they were down 19.5 per cent from ₹394 crore in Q1FY27. Profit before tax rose 55 per cent to ₹1,360 crore from ₹878 crore, while the tax expense rose to ₹280 crore from ₹223 crore.
Net interest income (NII) rose 22.7 per cent year-on-year to ₹2,822 crore in Q2FY27 from ₹2,301 crore a year ago. Sequentially, NII increased 1.3 per cent from ₹2,786 crore in the previous quarter. Interest income rose 17.1 per cent year-on-year to ₹8,640 crore, led by a 17.2 per cent rise in interest on advances to ₹6,600 crore, while interest expenses increased 14.6 per cent to ₹5,817 crore.
Operating expenses increased 14.2 per cent year-on-year to ₹3,026 crore during the quarter and 5.1 per cent sequentially. Staff costs rose 15.6 per cent to ₹1,164 crore, while other operating expenses rose 13.4 per cent to ₹1,862 crore.
On the asset quality front, gross non-performing assets (GNPA) stood at ₹3,875 crore as of September 30, 2026, against ₹4,055 crore a year ago and ₹3,705 crore in June. Net NPAs stood at ₹757 crore compared with ₹771 crore in the corresponding period last year and ₹677 crore in June.
In percentage terms, 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, while the net NPA ratio stood at 0.2 per cent against 0.2 per cent in June and 0.3 per cent a year ago. Return on assets (annualised) was 0.9 per cent, unchanged from the previous quarter and up from 0.6 per cent a year ago.
On the business front, advances grew 23.7 per cent year-on-year to ₹3.10 trillion, while deposits rose 19.5 per cent to ₹3.54 trillion. The bank's net worth rose to ₹53,268 crore from ₹49,197 crore a year ago.
The bank's capital adequacy ratio under Basel III stood at 14.5 per cent at the end of September 2026, compared with 15.0 per cent a year earlier and 15.1 per cent in June.