Yes Bank weighs capital steps after top court voids AT1 bond write-down
Yes Bank expects CET1 to fall to 11.4% after the Supreme Court reversed the 2020 AT1 bond write-down. Shares have lost about 17% since Thursday.
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what happened
According to Moody's, Yes Bank expects its CET1 ratio to shrink by more than two percentage points, to 11.4% as of September. The cause is a Supreme Court ruling that reversed the 2020 write-down of additional Tier 1 bonds. Since Thursday the stock has fallen about 17%, and on Monday it dropped a further 3.5% to 16.88 rupees on the National Stock Exchange.
CFO Niranjan Banodkar told analysts that repayment to bondholders, where SMBC is the largest investor with a 24.9% stake, depends on the bond terms and the court judgment. He said the bank does not need to pay immediately: the principal of 8,415 crore would move from reserves to liabilities, with no cash outflow. The overall Tier 1 ratio is expected to stay near 13.7%, above the regulatory minimum.
CEO Vinay Tonse said the bank is studying the ruling, including possible legal remedies, and is weighing capital measures while keeping its growth plans. Advances rose 23.7% year on year in the September quarter.
why it matters
The bigger issue for markets is uncertainty: unpaid accumulated coupons remain unresolved and could create an additional obligation. Investors will watch the bank's decision on capital measures and the outcome of its accounting review.
market impact
Indian banks: possible extra obligations and capital measures weigh on Yes Bank shares
tags
instruments
sources
- Yes Bank's Evaluating Capital Actions to Back Growth Plans — Moody's, 20 October 2026 at 04:12 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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