Yes Bank has announced the receipt of ₹189 crores from a single trust in the Security Receipts Portfolio, marking a significant recovery related to its previous asset reconstruction activities. The bank disclosed this development under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as the amount exceeds the prescribed materiality threshold.

Background of the Transaction

This receipt is connected to YES Bank's earlier sale of a Non-Performing Asset (NPA) portfolio to JC Flower Asset Reconstruction Private Limited (JC Flower ARC) on December 17, 2022. The bank had previously disclosed this portfolio sale as part of its asset quality improvement strategy.

Financial Impact and Materiality

The received amount holds particular significance as it exceeds the underlying carrying value of the trust, creating a positive impact for the bank. The following details highlight the transaction's importance:

Regulatory Compliance

YES Bank emphasized that since the received amount exceeds the underlying carrying value of the trust and surpasses the materiality threshold as prescribed under the amended Listing Regulations, the disclosure became mandatory under Regulation 30. This regulatory framework ensures transparency in material financial events that could impact stakeholder interests.

Information Accessibility

In compliance with listing regulations, YES Bank has made the relevant information available through multiple channels. The bank has hosted the weblinks of both BSE Limited and National Stock Exchange of India Limited on its official website at www.yes.bank.in , ensuring stakeholders have easy access to the disclosure information.

Strategic Significance

This development represents a positive outcome from YES Bank's asset reconstruction strategy, demonstrating the potential for recovery from previously sold non-performing assets. The receipt of funds exceeding the carrying value indicates effective asset monetization and contributes to the bank's overall financial position. The transaction showcases the ongoing benefits that can emerge from strategic asset reconstruction partnerships with specialized entities like JC Flower ARC.

YES Bank has secured substantial relief in its ongoing tax dispute, with the Jurisdictional Assessing Officer (JAO) significantly reducing the additional tax demand of ₹292.29 crores for Assessment Year 2017-18. The bank received the rectification order on December 31, 2025, marking a positive development in the case that began earlier in 2025.

Background of Tax Demand Case

The tax dispute originated when the Centralized Processing Center determined an additional tax demand of ₹292.29 crores for Assessment Year 2017-18. YES Bank had initially disclosed this development in April 2025 through a regulatory filing, informing stakeholders about the substantial tax liability.

Following the initial demand, the bank promptly filed a rectification application with the Jurisdictional Assessing Officer in Mumbai to contest the assessment. This proactive approach has now yielded positive results with the recent rectification order.

Rectification Order Details

The key developments from the rectification process are summarized below:

The rectification order represents a significant victory for YES Bank, as the JAO has substantially reduced the additional tax demand. However, the bank has not disclosed the exact quantum of reduction or the remaining balance amount.

Ongoing Proceedings

While the rectification order provides substantial relief, YES Bank continues to pursue relevant proceedings before income tax authorities regarding the balance demand. The bank maintains its position in the ongoing dispute resolution process to address any remaining tax liability.

The regulatory disclosure indicates that the expected financial implications due to compensation or penalty are not applicable given the substantial reduction achieved through the rectification process.

Regulatory Compliance

YES Bank has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has been made available on the bank's website at www.yes.bank.in in compliance with Regulation 46 of the Listing Regulations.

This development provides relief to YES Bank's financial position and demonstrates the effectiveness of the bank's legal strategy in contesting the initial tax assessment. The substantial reduction in tax demand is expected to have a positive impact on the bank's financial outlook.