Yes bank q2fy27 net profit up 65 pct awaiting at 1 impact

YES Bank Limited reported a Q2FY27 net profit of INR 1,080 crores, marking a 65.0% Y-o-Y increase driven by a 22.7% growth in Net Interest Income and improved asset quality, with Gross NPA down to 1.2%. The milestone performance demonstrates solid operational turnaround, but near-term clarity is clouded by the Supreme Court upholding the write-down of INR 8,415 crores in AT-1 bonds. Operationally, the bank achieved major balance sheet milestones, surpassing INR 5 lakh crores in total assets, INR 3.5 lakh crores in deposits, and INR 3 lakh crores in net advances. Core fee income grew 15.5% Y-o-Y, and annualized Return on Assets (RoA) reached 0.9%. However, pending the bank's final assessment of the AT-1 bond judgment—which carries a pro-forma capital impact reducing CET-1 to 11.4% and net profit into negative territory—financial adjustments remain unquantified in current reported numbers. Timing of the capital impact realization is expected over the next few quarters. Key risks include potential capital erosion and provisioning volatility from the litigation outcome. The stance is HOLD, balancing robust core business momentum against pending capital adjustments.