Yes Bank shares declined on Monday, reaching an intraday low of ₹25.05, following the bank's disclosure of a confirmed GST penalty. According to reports from ET Now, the lender received an Order-in-Appeal from the Uttar Pradesh GST department dated June 20, 2026, which confirmed a penalty of ₹3.02 crore related to FY2021-22. The order was issued by the Additional Commissioner (Appeals) and upheld the penalty under Section 73 of the Central Goods and Services Tax Act, 2017, along with associated tax demand and interest. As per the bank's exchange filing, the Order-in-Appeal pertaining to FY 2021-22 confirms the penalty of ₹3,02,31,095 in addition to tax demand and applicable interest in accordance with Section 73 of the Central Goods and Services Tax Act, 2017.
The latest appellate order offers partial relief to the bank by reducing the penalty to ₹3,02,31,095 after dropping a portion of the original demand. The bank had previously informed exchanges on December 25, 2025, about an Order-in-Original passed by the Joint Commissioner, which had imposed a higher penalty of ₹3.31 crore. Yes Bank stated that it believes it has adequate factual and legal grounds to substantiate its position and does not anticipate any material impact on its financial, operational, or other activities resulting from the order. The bank intends to take appropriate steps, including contesting the order through appeal within the prescribed timelines, as confirmed in the disclosure made to the National Stock Exchange of India Limited and BSE Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Despite the GST penalty confirmation, Yes Bank reported exceptional financial results for the March quarter. According to ET Now, the bank achieved a remarkable 123% year-on-year surge in net profit, reaching ₹452 crore, primarily due to benefits on the provision front. The bank's net interest income also demonstrated strong growth, increasing by 2.4% year-on-year to ₹2,017 crore, showcasing effective revenue generation capabilities. This robust financial performance has contributed to increased investor confidence in the bank's stock, helping offset concerns over the GST penalty.
According to ET Now data, Yes Bank has demonstrated strong recent performance across multiple timeframes, significantly outperforming the NIFTY Bank index. Over the past week, the stock surged 6.35%, sharply ahead of the index's 1.12% rise, indicating strong short-term momentum. The outperformance becomes more pronounced over longer periods, with the stock rallying 15.64% in the last month compared to Nifty Bank's 7% gain. On a year-to-date basis, Yes Bank has climbed 17.68% while the broader banking index declined 3.14%. The stock has also seen significant gains, rising over 15% in just five trading sessions, attributed to growing optimism over a potential strategic partnership with Japan's Sumitomo Mitsui Banking Corporation, along with improvements in asset quality and profitability.
As reported by ET Now, Yes Bank has maintained its outperformance trend over extended periods, delivering returns of 28.18% over one year versus the index's 2.82%. The stock's three-year gains stand at 58.06% compared to the index's 32.28%, while over a five-year horizon, it has risen 83.26% ahead of NIFTY Bank's 66.47%. This sustained recovery pattern reflects improving investor confidence in the private sector lender's prospects despite the recent GST penalty confirmation and the strong financial performance demonstrated in recent quarters.
