Yes Bank Q2 Results October 17, 2026: Profit Up 65%, but the AT1 Ruling Hangs Over It

On paper, the Yes Bank Q2 results October 17 filing is the bank’s best quarter in a while. Standalone net profit rose 65% year on year to ₹1,080 crore for July to September 2026, from ₹654 crore. The same filing, though, carries a second set of numbers showing a ₹5,217 crore loss. The gap is the Additional Tier 1 (AT1) bond case, and you can’t read one without the other.

What Yes Bank Q2 results October 17 actually reported

The board approved the results on Saturday, and the bank filed its press release and investor presentation with the exchanges the same day. All figures below are standalone, for Q2 FY27, compared with Q2 FY26 unless we say otherwise.

• Net interest income: ₹2,822 crore, up 22.7%, and up 1.3% from the June quarter.
• Net interest margin: 2.6%, against 2.5% a year ago and 2.7% in Q1 FY27.
• Non-interest income: ₹1,882 crore, up 14.4%, with core fees up 15.5%.
• Operating profit: ₹1,678 crore, up 29.4%, but 1.5% lower than the ₹1,704 crore of the June quarter.
• Non-tax provisions: ₹317 crore, down from ₹419 crore a year ago and ₹394 crore in Q1.
• Net profit: ₹1,080 crore, almost flat against ₹1,071 crore in Q1.

Two things did a lot of the lifting here. Provisions fell by about a quarter, and the bank booked ₹395 crore of gains from security receipts in the quarter. The cost-to-income ratio improved to 64.3% from 67.1%.

The ₹8,415 crore question

On October 15, the Supreme Court upheld the Bombay High Court judgment on the write-down of Yes Bank’s AT1 bonds worth ₹8,415 crore and dismissed the appeals. The write-down happened in March 2020. We explained the case in our earlier piece on the Yes Bank AT1 bonds Supreme Court ruling.

The bank is still assessing the implications and its legal remedies, so no impact is recognised in the Q2 numbers. It published an indicative pro forma table instead. Had the estimated impact been booked as of September 30:

• the quarter would show a net loss of ₹5,217 crore instead of a ₹1,080 crore profit;
• the CET-1 ratio, the core capital measure, would fall to 11.4% from 13.7%;
• annualised return on assets would be minus 4.3% instead of 0.9%.

Business Standard reports that the joint statutory auditors gave a qualified review conclusion because of this. On the same basis, the half-year would show a ₹4,146 crore loss and net worth would drop to ₹46,970 crore from the reported ₹53,268 crore. The overall capital adequacy ratio would stay at 14.5%. The bank itself calls the pro forma estimates subject to revision.

Balance sheet: big growth, with a currency assist

Advances crossed the ₹3 lakh crore mark at ₹3,09,510 crore, up 23.7%. Strip out foreign currency term loans linked to FCNR(B) deposits, though, and loan growth is 17.6%. Deposits rose 19.5% to ₹3,54,004 crore, helped by ₹18,575 crore of FCNR(B) money mobilised during the RBI’s concessional swap window.

The CASA ratio slipped to 30.0%, from 32.7% in June and 33.7% a year ago. CASA deposits still grew 6.5%; the FCNR inflow just swelled the total. FCNR deposits also shaped the Axis Bank Q2 results the same day.

Asset quality is the cleanest part of the report. Gross NPA fell to 1.2% from 1.6% a year ago and 1.3% in June. Net NPA was 0.2%, and provision coverage was 80.5%, slightly lower than 81.7% in the previous quarter.

What to watch next

Operationally, this is a steady quarter. Our guess is the stock will trade on the AT1 matter more than on the profit line. The analyst call is on Monday, October 19, and the thing to listen for is how management plans to account for the judgment.

New to bank results? Our guide on how to analyse quarterly results of a company covers NII, margins and NPAs in plain terms.

This article is a news summary for information only and is not investment advice. Please consult a SEBI-registered adviser before making investment decisions.