Yes Bank received ₹258 crore from a trust within its Security Receipts (SR) portfolio. This inflow relates to the non-performing asset (NPA) loan portfolio previously sold to J. C. Flower Asset Reconstruction Private Limited (JC Flower ARC).

The bank disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was triggered because the funds received in the trust exceeded the underlying carrying value of the trust, surpassing the materiality threshold prescribed under amended listing regulations.

Context of the transaction

This receipt follows an earlier disclosure made on December 17, 2022, regarding the sale of an NPA portfolio to JC Flower ARC. Security Receipts are instruments issued by Asset Reconstruction Companies (ARCs) to investors who purchase stressed assets. When the ARC recovers funds from these assets, it distributes them to SR holders, such as banks.

Disclosure details

The event is significant as it represents a direct cash realization for the bank from previously written-off or provisioned assets. The disclosure confirms that the recovery amount was substantial enough to warrant immediate public reporting to stock exchanges.

Regulatory compliance

Yes Bank stated that the weblink providing this information is hosted on its website pursuant to the Listing Regulations. The company secretary, Sanjay Abhyankar, signed the digital notice submitted to both the National Stock Exchange of India Limited and BSE Limited.

Yes Bank has received a consolidated order giving effect (OGE) from the Jurisdictional Assessing Officer (JAO) determining a refund of approximately ₹363 crore for assessment year (AY) 2017-18. The order, dated September 30, 2026, follows successful appeals against earlier assessment and reassessment orders.

The bank disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The refund includes interest income determined under Section 244A of the Income-tax Act, 1961, and a tax benefit related to an expense claimed in the income-tax return. The cumulative quantum of these items exceeds the materiality threshold of ~₹120 crore prescribed under amended Listing Regulations.

Background of the Tax Dispute

The dispute originated with an assessment order passed under Section 143(3) in December 2019, which included certain additions and disallowances. Subsequently, reassessment proceedings were initiated, leading to an order under Section 147 read with Section 144B in March 2022. This reassessment order erroneously considered income reported in the return rather than the assessed income for computing tax demand.

Rectification orders were passed by the JAO and Centralized Processing Center (CPC) on April 15, 2025, to correct this mistake. Yes Bank filed a rectification application against this order and received a subsequent rectification order under Section 154 on December 31, 2025.

Appellate Authority Rulings

Yes Bank appealed the assessment, reassessment, and rectification orders before the first-level appellate authority. The appellate authority passed orders in October 2025 and November 2025 favoring the bank. Pursuant to these rulings, the JAO issued the consolidated OGE resulting in the refund determination.

Financial Implications

The bank stated that there are no expected financial implications due to compensation or penalties arising from this specific litigation event. The refund represents a recovery of previously paid or demanded taxes, adjusted for interest and allowable deductions. The disclosure was made via intimation YBL/CS/2026-27/101.