Yes Bank AT1 Bonds Case: Yes Bank on Friday, October 16, said the reinstatement of Rs 8,415 crore worth of Additional Tier-1 (AT1) bonds following the Supreme Court’s ruling is expected to have a pro forma impact of approximately 250 basis points (bps) on its Common Equity Tier-1 (CET1) capital ratio.
In a regulatory filing to the stock exchanges, the private sector lender said its Tier-1 capital ratio is expected to remain unchanged at 14 per cent on a pro forma basis, despite the reinstatement of the AT1 bond principal.
Yes Bank assesses capital adequacy impact
According to the filing, the bank has assessed the potential impact of reinstating the AT1 bonds on its capital adequacy position as of June 30, 2026.
The bank stated that the “pro-forma impact of re-instatement of AT1 Bonds principal amount on CET1 Ratio (including Profits) as on June 30, 2026 is expected to be ~250 bps.”
However, the Tier-1 capital ratio is expected to remain unaffected at 14 per cent on a pro forma basis.
The bank has not disclosed a revised CET1 ratio in the filing or quantified the broader financial implications of the judgment.
Yes Bank evaluating legal options after Supreme Court ruling
Yes Bank said it respects the Supreme Court’s judgment and is examining the order in detail, including evaluating available legal options and suitable actions going forward.
“The Bank respects the judgment of the Hon’ble Supreme Court. The Bank is examining the judgement in detail including evaluating all available legal options and suitable actions / steps going forward,” the lender said in its exchange filing.
The bank also maintained that it has access to appropriate capital-management measures and retains the flexibility to undertake additional capital actions to support its growth objectives.
It added that it remains focused on maintaining the strength of its banking franchise and providing consistent services to customers.
Supreme Court dismisses appeals over Rs 8,415 crore AT1 write-down
The dispute relates to the write-down of AT1 bonds aggregating to Rs 8,415 crore by the bank’s administrator during its reconstruction in March 2020.
According to the filing, the Supreme Court also directed that annual coupon payments must remain unaffected by the outcome of the appeals and be made in accordance with the relevant information memoranda.
The court further stated that any interim orders would stand vacated, parties would bear their own costs, and pending proceedings could continue independently of the judgment.
What happens next for Yes Bank?
Yes Bank said it is reviewing the judgment and its implications and will make suitable disclosures in due course.