Yes Bank hit ₹5,300-5,400cr after Supreme Court reverses AT-1 write-off
Yes Bank is staring at a ₹5,300 crore to ₹5,400 crore results hit after the Supreme Court reversed its 2020 move to write off AT-1 bonds.
The court said the write-off wasn't allowed under the bank's rescue plan, so Yes Bank now has to put these bonds back on its books, possibly impacting results as early as the September 2026 quarter or defer it to the third quarter of FY27, but no later than that.
Yes Bank shares fall 15%
This accounting impact is way bigger than Yes Bank's last quarterly profit and also means they'll have to start paying high interest on those bonds again.
The news spooked investors: shares dropped 15% in a day, their worst fall in six years.
The bank says it's reviewing its finances and examining its legal options.
This accounting impact could affect Yes Bank's books and regulatory capital going forward.