YES Bank Q2 profit rises 65% to Rs 1,080 cr; proforma impact of restatement of AT-I bonds revealed

YES Bank on Saturday reported a 65 per cent year-on-year (YoY) rise in net profit at Rs 1,080 crore for the September quarter, compared with Rs 654.47 crore in the corresponding quarter last year. The private lender said it had not considered the Supreme Court ruling on additional tier-I (AT-I) bonds amounting to Rs 8,415 crore in its quarterly results, for now.

"The statement does not reflect the resultant financial impact of the aforesaid judgement. Had such impact been recognised, the reported financial position and financial performance of the bank may have been materially different," YES Bank said.

Considering the proforma impact of the restatement of the AT-I bonds' principal amount, the bank would have reported a net loss of Rs 5,217 crore for the September quarter and a loss of Rs 4,146 crore for the first half of FY27.

YES Bank's net worth would have declined to Rs 46,970 crore from the reported Rs 53,268 crore. Capital Adeouacy ratio - Basel III would have remained at 14.5 per cent. Net borrowing would have risen to Rs 86,149 crore for the quarter from the reported Rs 77,734 crore. Average return on assets would haveturned negative at 4.3 per cent on an annualised basis against the report 0.9 per cent, YES Bank said.

YES Bank insisted it is still evaluating the consequential implications of the judgment, including the decisions and actions required to give effect to it, the manner and timing of implementation, and the resulting financial and accounting implications.

YES Bank said it is also evaluating, in consultation with its legal advisers, all legal remedies available to it, including such further proceedings as may be maintainable before the Hon'ble Supreme Court.

Earlier, YES Bank said its initial estimates suggest 250 basis points impact on Common Equity Tier 1 (CET1) ratio.

YES Bank shares were in news recently after the SC dismissed appeals filed by YES Bank, the Reserve Bank of India and the Union government against the Bombay High Court's January 20, 2023, judgment.

While the bank will remain above regulatory requirements, management may need to accelerate capital strengthening efforts, Kotak Institutional Equities said earlier this week as it maintained 'Sell' on the stock. The brokerage said it would revisit its fair value after management commentary and earnings.