Yes Bank Receives ₹2,209 Crore Notice from Income Tax Department; Stock Down 14% This Year

The Income Tax Department has issued a demand notice of ₹2,209 crore to Yes Bank. The bank informed stock exchanges on Saturday that the notice pertains to the assessment year 2019-20. The tax department originally issued this demand notice in April 2023 for the same assessment year.

On March 28, the National Faceless Assessment Unit of the Income Tax Department reissued the assessment order without adding any additional amount or remarks. The previous order, issued under Section 144, had accepted the income reported by the bank, resulting in the same tax demand without any modifications.

₹2,209.17 Crore Demand Notice

Yes Bank stated that the tax demand notice, issued under Section 156 of the Income Tax Act, includes a total demand of ₹2,209.17 crore, which also comprises ₹243.02 crore in interest. The bank claims that this demand has been raised “prima facie without any substantial evidence.” It plans to present a strong defense and asserts that this order will not have any adverse financial, operational, or other impacts on its business. The bank will appeal against the reassessment order and initiate legal proceedings.

Stock Performance

On Friday, Yes Bank’s stock closed at ₹16.88, down by 2.38%. Over the past 12 months, the stock has declined by 27.24%. Since the beginning of this calendar year, it has fallen by approximately 13.83%.