Supreme Court AT1 reversal may reduce Yes Bank CET1 11.4%
Yes Bank is shaking up its capital plans after the Supreme Court reversed a 2020 move that wiped out Yes Bank's AT1 bonds.
This ruling means the bank's key capital ratio (CET1) could drop to 11.4% as of September.
CFO Niranjan Banodkar shared that they're now figuring out how to bring back these bonds and pay their interest.
Yes Bank will shift ₹8,415 cr
To follow the court order, Yes Bank will shift ₹8,415 crore from reserves to liabilities on its books.
No cash leaves the bank just yet.
Even with this shuffle, their Tier 1 capital ratio is expected to remain around 13.7%.
Managing director and chief executive Vinay Tonse says they're sticking to growth plans, and loan advances jumped 23.7% year-on-year last quarter, showing they're staying resilient through all these changes.