Yes Bank532648Earnings call transcript

Q2 FY27 call: Supreme Court AT-1 ruling seen cutting CET-1 by ~240 bps pro forma; net profit up 65%

Transcript of YES Bank's Q2 FY27 earnings call held on October 19, 2026.

By ScoutQuest · Fri 23 Oct 2026, 9:40 PM IST · 3 min read

Q2 FY27 Net Profit: INR 1,080 crores, up 65% YoY
Q2 FY27 Net Interest Income: INR 2,822 crores, up 22.7% YoY
AT-1 Reinstatement Pro Forma Capital Impact: about 240 basis points on CET-1 ratio; overall Tier 1 ratio seen around 13.7% pro forma

The Supreme Court's judgment of October 15, 2026 upheld the Bombay High Court's judgment setting aside the AT-1 write-down.
It dismissed the appeals shared by YES Bank, the Administrator, the Reserve Bank of India and the Union of India.
The bonds involved are the INR 8,415 crores of Additional Tier 1 bonds written down in March 2020.
The MD and CEO said the Bank respects the judgment and is examining it carefully, including the options available to it.

On the Bank's current assessment, described as indicative, and as of September 30, 2026, reinstating the AT-1 principal is expected to have a pro forma impact of approximately 240 basis points on the Common Equity Tier 1 ratio, including profits.
The overall Tier 1 capital ratio is expected to remain around 13.7% on a pro forma basis.
Management stressed the difference between CET-1 and overall Tier 1 capital, and said it will continue to assess the implications for capital structure, regulatory buffers, balance sheet strength and future growth plans.

Net Profit of INR 1,080 crores, an increase of 65% year-on-year.
Operating Profit of INR 1,678 crores, up 29.4% year-on-year.
Net Interest Income of INR 2,822 crores, up 22.7% year-on-year; core fees grew 15.5% year-on-year.
Return on Assets 0.9%, against 0.6% in Q2 FY26 and 0.9% in Q1 FY27.
Cost-to-income ratio 64.3%, against 67.1% in the same quarter a year earlier.

Total Assets crossed INR 5 lakh crores, Deposits crossed INR 3.5 lakh crores and Advances exceeded INR 3 lakh crores during the quarter.
The Bank mobilised INR 18,575 crores of FCNR(B) deposits and extended Foreign Currency Term Loans of INR 15,215 crores through the IBU at GIFT City; management said these transactions affected reported growth rates and certain income and expense lines.
Reported Advances grew 23.7% year-on-year; excluding the FCTL linked to the FCNR mobilisation, advances grew 17.6% year-on-year, with a normalised Credit-to-Deposit Ratio of 83.1%.
Deposits grew 19.5% year-on-year on an end-of-period basis and 22.1% on an average quarterly balance basis. Retail and branch-led deposits rose 20.9% and made up 58.8% of total deposits.
CASA deposits grew 15.5% year-on-year on average quarterly balances, with Current Account up 21.8% and Savings Account up 11.6%.

Net Interest Margin was 2.6%; the sequential moderation of about 12 to 14 basis points was largely attributed to the FCNR(B) mobilisation and the associated liquidity and deployment profile.
Non-interest income increased 14.4% year-on-year and 4.7% sequentially.
Operating expenses were INR 3,026 crores, up 14.2% year-on-year and 5.1% sequentially. This included INR 51 crores of commissions on foreign currency borrowings, INR 20 crores of Asian Games sponsorship marketing spend and INR 31 crores from changes in central and state wage codes; excluding these, operating expenses were broadly stable sequentially.

Priorities are unchanged: sustainable and profitable growth, stronger customer relationships, cost discipline, asset quality and durable shareholder returns.
Capital planning is described as an ongoing Board-level process; any capital decision will rest on regulatory requirements, the cost and availability of capital, shareholder interests and the Bank's medium-term growth objectives. Management said it would not pre-empt those decisions.
On the judgment, the Bank said it is examining it in detail, including available legal options, and will make disclosures as positions become clear; it did not wish to speculate on implementation details or timelines.
On margins, the Bank said it will continue to focus on calibrated deployment of available liquidity and on the composition and cost of incremental deposits.

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