Yes Bank Penalized Rs 2.77 Crore by Income Tax Department for Inaccurate Income Reporting

The Income Tax Department has imposed a penalty of Rs 2.77 crore on Yes Bank for furnishing allegedly false information with regard to the bank’s incomes for year 2011-12 to 2013-14. As per sources, this was done under Section 271(1)(c) of the Income Tax Act. This penalty came in form of three separate orders that were delivered on 28 September 2024, with the announcement coming the same day.

However, the bank said its penalty amount does not cross the material threshold that can seriously affect its financial conditions. It said it has enough factual and legal rationale to dispute the penalty. The bank has also assured that the orders would not meaningfully affect its financial stability, operations, and other activities.

This is in tune with the improved credit rating accorded to Yes Bank by CARE Ratings in early September. According to CARE, it has delivered consistent growth of advances, particularly the retail and SME segments, while it reduces its corporate advances with higher tickets.

Though currently the bank is liable to be penalized for the tax matter, it still goes on saying that the impact on overall performance and activities would remain minor.