YES Bank Ltd. in Focus as Q2 Profit Jumps 65%

YES Bank reported a 65% year-on-year increase in its second-quarter FY27 net profit to ₹1,080 crore, compared with ₹664 crore in the corresponding quarter last year. Net interest income (NII) rose 22.7% to ₹2,822 crore, supported by loan growth and lower provisions for bad loans. Advances increased 23.7% year-on-year, while deposits grew 19.5%. However, investor sentiment remains under pressure following the Supreme Court’s decision to overturn the 2020 write-off of ₹8,415 crore in Additional Tier-1 (AT-1) bonds. YES Bank indicated that, had the financial impact been recognised in its reported Q2 results, it would have posted a loss of approximately ₹5,217 crore instead of a profit. The bank is evaluating the ruling’s implications and considering further legal remedies. Going forward, investors will closely monitor the bank’s capital adequacy, potential fundraising measures and the legal developments surrounding the AT-1 bonds. Although strong operating performance and improving asset quality provide some support, the possible financial impact of the court ruling remains a major risk for the stock.