YES BANK Secures ₹879 Crore Tax Refund for AY 2018-19

YES BANK has received a significant tax refund of ₹879 Crores following favorable rulings from the first-level appellate authority regarding its tax assessments for Assessment Year (AY) 2018-19. Key Highlights: Refund Quantum: The consolidated refund amounts to ₹879 Crores, comprising interest income (under Section 244A of the Income-tax Act) and a tax benefit related to a previously claimed expense. Materiality: The cumulative financial benefit significantly exceeds the regulatory materiality threshold of ₹120 Crores. Background & Resolution: Initial Tax Demands: The bank was originally issued an assessment order in March 2020 with certain additions. A subsequent reassessment order in March 2024 had resulted in an additional tax demand of ₹112.81 Crores (including interest), which was disclosed to stakeholders at the time. Appellate Victory: YES BANK challenged these demands by filing appeals. The first-level appellate authority ruled in the bank's favor in October and December 2025, prompting the Jurisdictional Assessing Officer (JAO) in Mumbai to issue the final Consolidated Order Giving Effect (OGE) for the refund. Strategic & Financial Impact: This substantial tax refund provides a significant boost to the bank's liquidity and bottom line. It successfully resolves long-standing tax litigations for AY 2018-19, eliminating the previously disclosed contingent liability and resulting in a positive, one-time impact on the bank's financial statements. $YESBANK