YBYes Bank532648Banking

Supreme Court ruling on Yes Bank's AT1 bonds could force reinstatement of written-off bonds, creating a major earnings hit

By ScoutQuest · Fri 16 Oct 2026, 2:23 PM IST · 1 min read

AT1 bonds written off 2020

8,415 crore rupees

Estimated after-tax hit

6,300 to 6,400 crore rupees

Estimated net hit after quarterly profit

5,300 to 5,400 crore rupees

Normal quarterly profit run rate

1,000 crore rupees

Q1 net profit

1,071 crore rupees

Heard on business television between 14:29:03 - 14:32:03 IST.

• Sources estimate reinstating the 8,415 crore rupees worth of AT1 bonds written off in 2020 could result in an after-tax hit of about 6,300 to 6,400 crore rupees.
• After adjusting for the bank's normal quarterly profit run rate of about 1,000 crore rupees, the net hit/loss the bank would absorb is estimated at about 5,300 to 5,400 crore rupees.
• Yes Bank reported a net profit of 1,071 crore rupees in the first quarter, making the estimated hit several times its quarterly profit.
• Yes Bank said it is evaluating all legal options; sources indicate it could seek a review of the Supreme Court ruling in consultation with RBI and the government.
• Reinstating the bonds could reduce the bank's CET1 capital ratio by around 250 basis points including profits, and the impact could be recognized in Q2 or deferred to Q3.

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