MUMBAI — Yes Bank has said the restoration of ₹8,415 crore in Additional Tier-1 (AT-1) bonds could reduce its core equity capital ratio by 250 basis points. The statement follows the Supreme Court’s decision not to interfere with a Bombay High Court ruling that set aside the bank’s 2020 write-off of the bonds.
The bank said the estimated impact is based on its capital position as of June 30, 2026. It expects its Common Equity Tier-1 ratio to fall by 2.5 percentage points on a pro forma basis if the bond principal is reinstated. However, its overall Tier-1 capital ratio is expected to remain at 14 per cent.
The bonds were written off in March 2020 during the bank’s reconstruction, which was intended to address its financial crisis. The Bombay High Court later ruled against the write-off, and the Supreme Court declined to overturn that decision.
AT-1 bonds are high-risk financial instruments designed to help banks absorb losses during periods of financial stress. The dispute has raised important questions about the powers used during bank restructuring and the protection available to investors who hold such securities.
Yes Bank said it was reviewing the court order. The eventual financial impact will depend on how the reinstatement is implemented and the related regulatory and accounting steps.
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