is reviewing a order that may require the reinstatement of , potentially reducing the bank's CET1 capital ratio by 250 basis points.
250 bps
Potential CET1 Ratio Impact
⏳ Time Machine
How today’s news fits into the bigger picture
2020
Yes Bank Reconstruction
The RBI stepped in to rescue , replacing its board and wiping out billions in to stabilize its capital base.
2023
AT-1 Bond Legality Cases
Multiple courts across India heard petitions from bondholders challenging the unilateral write-off of their investments.
Today
Yes Bank confirms a potential 250 bps hit to its CET1 ratio following a Supreme Court ruling on AT-1 bonds.
What happens next?
Expect Yes Bank to explore capital-raising options to buffer its balance sheet against this potential payout.
Yes Bank is bracing for a potential capital hit following a Supreme Court ruling that upheld the quashing of AT-1 bond write-offs from the bank's earlier reconstruction period. The bank has indicated that reinstating these bonds could drag its Common Equity Tier 1 (CET1) capital ratio down by 250 basis points. The bank’s leadership is currently reviewing the legal implications and consulting with stakeholders to assess the financial impact. This development adds a layer of uncertainty for the bank, which had only recently stabilized its balance sheet after the massive 2020 reconstruction. The market will be watching for clarity on how the bank plans to preserve its capital strength.
💭 If you're wondering…
No, operational banking activities are distinct from capital structure issues. The RBI regulates the bank to ensure that customer deposits remain safe regardless of bond-related legal outcomes.
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Official sources
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