Yes Bank532648Banking
Supreme Court ruling requiring Yes Bank to reinstate AT1 bonds could lead to a Rs 5,400 crore post-tax hit, sources tell Live TV News Channel
By ScoutQuest · · 1 min read
- Bonds written off in 2020
- 8,415 crore rupees
- Estimated after-tax hit
- 6,300 to 6,400 crore rupees
- Estimated net hit to absorb
- 5,300 to 5,400 crore rupees
- Quarterly profit run rate
- 1,000 crore rupees
- Q1 net profit reported
- 1,071 crore rupees
Heard on business television between 13:04:12 - 13:07:12 IST.
- Sources told Live TV News Channel the Supreme Court's ruling on Yes Bank's AT1 bonds could deal a significant blow to earnings, with reinstating Rs 8,415 crore worth of bonds written off in 2020 resulting in an after-tax hit of about Rs 6,300-6,400 crore.
- After accounting for the bank's normal quarterly profit run rate of about Rs 1,000 crore, the net hit/loss the bank would absorb is estimated at about Rs 5,300-5,400 crore, several times its Rs 1,071 crore Q1 net profit.
- There will not be any immediate cash outflow since AT1 bonds are perpetual instruments with no fixed maturity date.
- Yes Bank is evaluating all legal options and sources indicate it could seek a review of the Supreme Court ruling, in consultation with the RBI and government; it is also examining its discretion on annual interest payments to bondholders.
- The bank disclosed reinstating the bond principal could reduce its CET1 capital ratio by around 250 basis points including profits; the accounting adjustment may be recognized in Q2 results (due the next day) or deferred to Q3; the ruling could also reshape AT1 bond market risk pricing and future bank borrowing costs.
Watch at source
behind live
- 1Open on YouTube
- 2Drag the seek bar left
- 3Watch this moment
Also from Yes Bank
Supreme Court AT-1 bond judgment: coupon decision on 9% bonds still pending
24 Oct 2026
Q2 FY27 call: Supreme Court AT-1 ruling seen cutting CET-1 by ~240 bps pro forma; net profit up 65%
23 Oct 2026
Yes Bank showed a negative technical structure with a death crossover near the 21 level, which is now an important resistance
21 Oct 2026
Source: Live TV News Channel · 16 Oct 2026
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.