Yes Bank Profit Jumps 65% to Rs1,080 Crore, but the AT-1 Ruling Would Swing It to a Rs5,217 Crore Loss

Yes Bank's strongest-looking quarter in years arrived with an asterisk the size of the quarter itself: the profit beat is real on the page, and the bank's own pro-forma table says the court ruling it has not yet booked would more than erase it.

Yes Bank (NSE: YESBANK) reported standalone net profit of Rs1,080 crore (Rs10.80 billion, about $114 million) for the quarter ended September 30, 2026, up 65% from Rs654 crore a year earlier, in results approved by the board in Mumbai on Saturday, October 17, 2026. The profit beat the Rs955 crore analyst estimate compiled by LSEG by 13.1%. But the reported figures recognise no impact from the Supreme Court's October 15 judgment upholding the quashing of the bank's 2020 write-off of Rs8,415 crore (about $884 million) of additional Tier-1 bonds: the bank said it is yet to complete its assessment of the judgment's implications, so nothing has been booked.

The pro-forma: a Rs5,217 crore loss, CET-1 at 11.4%

Yes Bank's own pro-forma table, published with the results for transparency, shows what recognising the estimated impact at September 30 would do: net profit would have swung to a loss of Rs5,217 crore, return on assets would have contracted from 0.9% to -4.3%, and the common equity Tier-1 ratio would stand at 11.4% instead of the reported 13.7%. On the fuller filing figures, net worth would fall to Rs46,970 crore from Rs53,268 crore, while borrowings would rise to Rs86,149 crore from Rs77,734 crore as the Rs8,415 crore of AT-1 bonds returns to the balance sheet as debt. Total capital adequacy would stay at 14.5%, the bank said, because the restored bonds count toward total capital even as they dilute its highest-quality equity tier. A filing on Friday had estimated the CET-1 decline at about 250 basis points on June-quarter figures; Saturday's September pro-forma puts the decline at 230 basis points.

The bank stressed the pro-forma figures are indicative and subject to revision. It said it is evaluating the implications, including the manner and timing of implementation, and is weighing all legal remedies available, including further proceedings before the Supreme Court. The results also carry a mark from the auditors: the joint statutory auditors issued a modified review report over the non-recognition of the judgment's impact, according to a summary of the results filing.

Underneath the asterisk, a genuinely strong quarter

The operating business did its part. Net interest income rose 22.7% to Rs2,822 crore, non-interest income rose 14.4% to Rs1,882 crore with core fees up 15.5%, and operating profit rose 29.4% to Rs1,678 crore. Provisions for bad loans and other contingencies fell 24.2% to Rs317 crore. The net interest margin was 2.6%, against 2.5% a year earlier and 2.7% in the June quarter. Asset quality kept improving: the gross non-performing asset ratio eased to 1.2% from 1.3% in June and 1.6% a year earlier, and the net NPA ratio was 0.2%.

The balance sheet crossed its milestones: advances rose 23.7% to Rs3,09,510 crore — 17.6% once growth is normalised for the foreign-currency term loans tied to the FCNR(B) concessional swap window — deposits rose 19.5% to Rs3,54,004 crore, and total assets passed Rs5 lakh crore. Managing Director and CEO Vinay M. Tonse called it another quarter of steady performance, and on the judgment said the bank is examining it in detail and will take appropriate steps in accordance with legal and regulatory requirements. Japan's Sumitomo Mitsui Banking Corporation holds a 24.99% stake in the lender.

What to watch when markets reopen

Indian markets were closed on Saturday, so the first share reaction to the quantified hit comes with Monday's open in Mumbai; the stock had already fallen sharply on Thursday, when the ruling itself landed. Yes Bank presents to investors and analysts on Monday, October 19, and the questions are now precise: whether the bank books the impact in the December quarter or keeps it pro-forma while it pursues further proceedings, how the Reserve Bank of India treats the restored bonds and their coupons, and whether CET-1 lands at the pro-forma 11.4% or is cushioned by capital actions first. TickerGrove covered the Supreme Court ruling itself on October 15; Saturday's filing is the first time the bank has put its own numbers on what the ruling costs.