Supreme Court dismisses appeals, leaving Yes Bank ₹5,217cr at risk
Yes Bank could lose ₹5,217 crore after the Supreme Court dismissed the appeals against the Bombay High Court order that quashed the 2020 write-off of ₹8,415 crore of AT1 bonds.
The move puts a dent in the bank's finances, especially since it just reported a net profit of ₹1,080 crore for the September quarter.
This all started when the administrator wrote all ₹8,415 crore down to zero on March 14, 2020.
Yes Bank CET-1 could reach 11.4%
With the court calling the write-off improper, Yes Bank's key capital ratio (CET-1) could drop from 13.7% to 11.4%.
Kotak Mahindra Asset Management and Nippon Life India Asset Management have halted fresh investments in their debt and retirement funds that hold the bank's AT1 bonds.
The bank says it's reviewing its options and will keep everyone updated as it figures out next steps.