YES Bank receives Rs 244-cr tax demand notice, check stock reaction

Shares of YES Bank were trading higher in the afternoon session on Wednesday even as the lender received an additional demand notice of Rs 244.20 crore from the income tax department. The lender said it would contest the tax demand. 

YES Bank stock rose 3.02% to Rs 18.05 on Wednesday against the previous close of Rs 17.52 on BSE. Market cap of the bank climbed to Rs 56,155 crore. Total 85.24 lakh shares of the bank changed hands amounting to a turnover of Rs 15.23 crore on BSE.

"The Bank had received assessment order in December 2018 for AY 2016-17 wherein certain additions / disallowances were made. Thereafter, the Bank was in receipt of reassessment order in March 2022. However, the said reassessment order considered the income reported in the return of income instead of assessed income, for computing the reassessed income. The JAO therefore passed the rectification order to correct the mistake in the reassessment order and recomputed the tax demand, which was received on April 15, 2025. The said rectification order read with Computation Sheet and Notice of Demand has however resulted into additional tax demand of Rs. 244.20 crores, wherein interest u/s 234A and 234B of the Act has been recomputed significantly upwards, without any cogent reasons," said the lender. 

"Against the same, the Bank shall file rectification application with Jurisdictional Assessing Officer (JAO) on an immediate basis as the said demand appears to be unsubstantiated, and further, the Bank shall pursue all other available remedies, including filing of appeal before the first level appellate authority. The aforesaid income-tax demand has arisen in accordance with Section 154 read with Section 147 of the Act," added the lender. 

YES Bank stock has a one-year beta of 1.1, indicating high volatility during the period.

In terms of technicals, the relative strength index (RSI) of the YES Bank stock stands at 54.1, signaling the stock is neither overbought nor oversold on charts. 

YES Bank stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day but lower than the 100 day, 150 day and 200 day moving averages.

YES Bank reported a stellar 164.25% rise in net profit to Rs 612 crore for the December 2024 quarter, driven primarily by a significant reduction in provisions. Provisions and contingencies dropped by over 50% compared to the previous year, standing at Rs 259 crore in Q3, a clear sign of improving asset quality and operational efficiency.

Net interest income saw a year-on-year growth of 10%, amounting to Rs 2,223 crore. However, net interest margins remained unchanged.