YES Bank Q2 profit rises 65%; AT1 hit may risk 5,217 cr loss
YES Bank's net profit increased by 65% to 1,080 crore in the second quarter, driven by higher income. However, factoring in a Supreme Court judgment could lead to a post-tax loss of 5,217 crore. The court upheld a ruling concerning the bank's AT1 bonds, impacting its financial reporting. The bank's auditors noted that the financial outcomes might have been significantly different without this recognition.
Mumbai: YES Bank’s net profit rose 65% in the second quarter ended September to 1,080 crore, but if the estimated impact of the 8,415-crore Additional Tier-1 bond judgment were factored in, the bank would report a post-tax loss of 5,217 crore, according to its pro-forma calculations.YES Bank’s auditors said the results do not reflect the financial impact of the Supreme Court judgment, adding that had such impact been recognised, the reported financial performance of the Bank may have been “materially different.”The Supreme Court on October 15 upheld the Bombay High Court’s judgment setting aside the bank’s 2020 decision to write down the AT1 bonds and dismissed appeals filed by the bank, its former administrator, the RBI and the Union government.
