Yes Bank Q2 FY27 Earnings Call Transcript Released; Supreme Court Judgment on AT-1 Bonds Under Review
Yes Bank's Q2 FY27 Net Profit surged 65% YoY to ₹1,080 crore. Operating Profit increased 29.4% to ₹1,678 crore, with Net Interest Income up 22.7% to ₹2,822 crore. Total Assets exceeded ₹5 lakh crore. The bank is reviewing the Supreme Court's judgment on ₹8,415 crore AT-1 bonds, which may impact CET1 by 240 bps pro forma.
The Supreme Court's judgment on the ₹8,415 crore AT-1 bonds has significant implications for the bank's capital structure and regulatory ratios, necessitating careful review and potential strategic adjustments. This could affect future capital planning and growth strategies.
The announcement reports positive financial results for Q2 FY27, including significant profit growth. However, the ongoing review of the Supreme Court's judgment on AT-1 bonds introduces a degree of uncertainty regarding capital implications, balancing the positive financial performance.
Yes Bank Limited has released the transcript of its earnings call for the un-audited Financial Results for the Quarter (Q2) and Half Year ended September 30, 2026. The call, hosted on October 19, 2026, featured insights from MD & CEO Mr. Vinay M. Tonse, Executive Director Mr. Manish Jain, CFO Mr. Niranjan Banodkar, and Head of Investor Relations Mr. Sunil Parnami.
Mr. Tonse addressed the significant Supreme Court judgment dated October 15, 2026, concerning the ₹8,415 crore of Additional Tier 1 (AT-1) bonds written down in March 2020. The court upheld the Bombay High Court's decision, setting aside the AT-1 write-down and dismissing appeals from Yes Bank, the Administrator, RBI, and the Union of India. The bank is carefully examining the judgment and its implications, including available options. Pro forma, the reinstatement of AT-1 principal is expected to impact the Common Equity Tier 1 (CET1) ratio by approximately 240 basis points, with the overall Tier 1 capital ratio remaining around 13.7%.
Financially, for Q2 FY27, the bank reported a Net Profit of ₹1,080 crore, a 65% year-on-year increase. Operating Profit rose by 29.4% to ₹1,678 crore. Net Interest Income grew by 22.7% to ₹2,822 crore, and core fees increased by 15.5%. Return on Assets stood at 0.9%, and the cost-to-income ratio improved to 64.3%. Total Assets crossed ₹5 lakh crore, Deposits surpassed ₹3.5 lakh crore, and Advances exceeded ₹3 lakh crore.
Net Interest Margin (NIM) for the quarter was 2.6%, with a sequential moderation attributed to FCNR(B) deposit mobilization. Non-interest income increased by 14.4%, driven by core fees growth. Operating expenses rose by 14.2% year-on-year, partly due to commissions on foreign currency borrowings and marketing expenses. Asset quality indicators remained stable, with gross and net NPA ratios at 1.2% and 0.2% respectively. The bank is focused on sustainable profitable growth, strengthening customer relationships, cost discipline, asset quality, and generating shareholder returns.
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