- Yes Bank reported a 65% rise in net profit to Rs 1,080 crore for Q2 FY27 as per filings
- Supreme Court upheld Bombay HC order quashing write-down of Rs 8,415 crore AT-1 bonds
- Including SC impact, Yes Bank estimates a Q2 loss of Rs 5,217 crore and negative 4.3% ROA
Yes Bank Ltd. posted a strong set of numbers for the quarter ended Sept 20, 2026. However, the results do not include the consequential impact of the Supreme Court's judgement on AT-1 bonds on the, the lender highlighted in a regulatory filing.
The bank's net profit surged 65% year-on-year to Rs 1,080 crore from Rs 654 crore, according to the same filing.
The Supreme Court on Thursday upheld the Bombay High Court's January 2023 judgment quashing the write-down and dismissed appeals filed by Yes Bank, the Reserve Bank of India (RBI) and the Centre. The bonds amounted up to a whopping Rs 8,415 crore.
Had the impact been assessed and included in the Q2 financial fine print, the bank would have slipped into a steep loss of Rs 5,217 crore for the quarter under review, and Rs 4,416 crore for half-year ended Sept 30, 2026, Yes Bank estimated it the exchange filing.
The Bank's return on Assets, which came in at 0.9%, would have also crossed into the negative territory to -4.3% for the second quarter, and -1.7% for first six months of fiscal 2027.
On the other hand, borrowings would have risen to 86,149 crore from 77,734 reported on Saturday. Apart from this, the bank did not see any major material impact of SC's judgement on its financials.
| Particulars | Q2 FY27 Ended Sep 30, 2026 (As Reported) | H1 FY27 Ended Sep 30, 2026 (As Reported) | Q2 FY27 Ended Sep 30, 2026 (Proforma) | H1 FY27 Ended Sep 30, 2026 (Proforma) |
|---|---|---|---|---|
| Net Profit (Rs crore) | 1,080 | 2,151 | (5,217) | (4,146) |
| Capital Adequacy Ratio (Basel III) | 14.5% | 14.5% | 14.5% | 14.5% |
| Return on Assets (annualised) | 0.9% | 0.9% | (4.3%) | (1.7%) |
| Net Worth (Rs crore) | 53,268 | 53,268 | 46,970 | 46,970 |
| Borrowings (Rs crore) | 77,734 | 77,734 | 86,149 | 86,149 |
What Is The Yes Bank AT-1 Bond Case?
The dispute dates back to March 2020, when Yes Bank was facing a severe financial crisis marked by rising bad loans and weakening depositor confidence. The RBI superseded the bank's board and imposed a moratorium, following which the government approved a reconstruction scheme backed by a capital infusion from an SBI-led consortium.
As part of the rescue, the bank's administrator wrote down AT-1 bonds worth Rs 8,415 crore to zero. AT-1 bonds are perpetual debt instruments that form part of a bank's regulatory capital and can absorb losses under specified contractual and regulatory conditions.
Supreme Court's recent ruling provides relief to institutional and retail investors whose AT-1 bond holdings were written down to zero during the bank's rescue in March 2020.
ALSO READ: Yes Bank Q2 Results: Net Profit Surges 65% To Rs 1,080 Crore, NII Up 23% YoY; Asset Quality Stable
What Can Yes Bank Do?
The bank is currently examining the Supreme Court's October 15, 2026 judgment in detail and evaluating all available legal options and suitable actions going forward after the court set aside the write-down of its Additional Tier-1 (AT-1) bonds worth Rs 8,415 crore undertaken in March 2020.
In an exchange filing, the lender said it respects the judgment, which upheld the Bombay High Court's January 20, 2023 order and dismissed appeals filed by the bank, the Reserve Bank of India (RBI) and the Union government.
The bank also said it has access to appropriate capital-management levers and retains the flexibility to undertake additional capital actions, as considered appropriate, to pursue its growth objectives.
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