Yes Bank Limited received two Orders from the Goods and Services Tax department, Tamil Nadu and Maharashtra respectively on April 29, 2024 raising demand for reversal /disallowance of input tax credit (ITC) on various issues along with interest and levy of a penalty of INR 114,346/- and INR 1,594,398 /- 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"). Details of the violation(s)/contravention(s) committed or alleged to be committed: Reversal /Disallowance of ITC on various grounds 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: Penalty levied by the Goods and Services Tax (GST) department, Tamil Nadu and Maharashtra amounting to INR 114,346/- and INR 1,594,398 /- respectively. 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 the said Orders.