Yes Bank Limited announced that the Bank has received two Orders from the Goods and Services Tax (GST) Department, Manipur and Punjab respectively on April 30, 2024 raising demand for reversal of input tax credit (ITC) along with interest and levy of a penalty of INR 505,940 and INR 181,623 respectively. This penalty has been imposed in accordance with Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) and the respective State Goods and Services Tax Act, 2017 (State GST Act). Nature and details of the action(s) taken, initiated or order(s) passed: Order-in-Original under section 73 of CGST Act and respective State GST Act.

Details of the violation(s)/contravention(s) committed or alleged to be committed: Reversal of ITC along with levy of interest and penalty. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: The Tax and interest demand in this matter is below the material threshold limit currently applicable to the Bank. The Bank does not expect any material impact on financial, operation or other activities of the Bank due to the said Orders.

Separately, the Bank believes that it has adequate legal grounds to reasonably substantiate its position in this matter and the Bank will pursue an appeal against these Orders.