New Delhi: The Income Tax Department has issued a demand notice of ₹2,209.17 crore, including interest, to Yes Bank Ltd, as per the bank’s stock exchange filing.
Yes Bank had previously received an order on September 30, 2021, for the assessment year 2019-20, which granted it a tax refund based on its filed income return. However, the case was reopened in April 2023 for reassessment.
On March 28, the National Faceless Assessment Unit passed a reassessment order, effectively dropping the initial grounds for reopening the case. As a result, Yes Bank stated that its originally assessed income should have remained unchanged, and no tax demand should have been raised.
The bank asserted that it has strong grounds to support its position and does not anticipate any negative impact on its operations. Yes Bank intends to challenge the reassessment order through appeals and rectification proceedings under applicable laws.
Yes Bank’s stock was trading at ₹16.88 per share on Friday, reflecting a 27.24% decline over the past year. Despite this, the bank reported a nearly three-fold increase in net profit, reaching ₹612 crore for the third quarter ending December 2024, largely due to a reduction in provisions for bad loans.
In the same quarter of the previous year, the bank had posted a net profit of ₹231 crore. Total income rose to ₹9,341 crore from ₹8,179 crore, while interest income increased to ₹7,829 crore from ₹6,984 crore. Net interest income saw a 10% growth, reaching ₹2,224 crore compared to ₹2,017 crore in the corresponding quarter of the previous fiscal year.
