YES Bank Q2 earnings: Net profit rises 65% to ₹1,080 crore; NII advances 23%

YES Bank, the country's leading private sector lender on Saturday, October 17, said that its net profit in September quarter rose 65% over the last year on the back of lower provisions and contingencies.

YES Bank reported a net profit of ₹1,080 crore in the second quarter of the current financial year, marking an increase of 65% from ₹654 crore in the same period last year. The boost in profit was helped by lower provisions during the quarter as its provisions and contingencies dropped by 24% to ₹317 crore at the end of September quarter from ₹419 crore.

The bank's net interest income or the difference between interest earned on loans and expended on deposits rose 23% to ₹2,822 crore compared with ₹2,301 crore in the corresponding period last year.

YES Bank's asset quality showed an improvement during the quarter as its gross non-performing assets (NPAs), as a percentage of total advances, came in at 1.2% compared with 1.6% in the year-ago period.

Its net NPA stood at 0.2%.

In absolute terms, gross NPAs were ₹3,875 crore as against ₹4,055 crore.

The bank clarified that it is presently evaluating the consequential implications of the Supreme Court judgment on Additional Tier-1 Bonds (AT-1) bonds aggregating to ₹8,415 crore, undertaken in March 2020 in connection with the reconstruction of YES Bank.

YES Bank said that is also evaluating legal remedies to the matter.

"The Bank 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," YES Bank said in an exchange filing.

"Pending completion of this evaluation and determination of the consequential actions and appropriate accounting treatment, the potential financial impact arising from the judgment has not been recognised in the books of account or incorporated in the reported financial results for the quarter and half year ended September 30, 2026," the bank added.

YES Bank shares fell 3.2% to close at ₹17.57 a day ahead of its earnings announcement.