Yes Bank Says AT1 Bonds Reinstatement To Hit Capital
The Bank claimed that it has access to appropriate capital levers and preserves the flexibility to undertake additional capital actions, as considered appropriate to pursue its growth objectives.
Mumbai: A day after the Supreme Court upheld the Bombay High Court's decision to quash Yes Bank's write-off of Additional Tier 1 (AT1) bonds worth ₹8,415 crore, the lender on Friday said that the reinstatement of the principal amount of bonds would have a pro forma impact of 250 basis points on its Common Equity Tier 1 (CET1) ratio as of June 30, 2026. However, its Tier 1 capital ratio would remain unchanged at 14 per cent.
CET 1 ratio Indicates the bank’s ability to absorb losses and remain solvent.
YES Bank had a CET1 ratio, Tier 1 capital ratio and overall capital adequacy ratio (CAR) of 14 per cent, 14 per cent and 15.1 per cent, respectively, as of June 30, 2026.
The Bank claimed that it has access to appropriate capital levers and preserves the flexibility to undertake additional capital actions, as considered appropriate to pursue its growth objectives.
“Bank is currently reviewing the order and its implications and will make suitable disclosures in due course. Particularly with respect to Capital adequacy, pro forma impact of reinstatement of AT1 Bonds principal amount on CET1 Ratio (including Profits) as on June 30, 2026 is expected to be ~250 bps. Tier1 Ratio on a proforma basis to remain unimpacted at 14.0%,” the lender informed the exchanges.
The Supreme Court on Thursday upheld the Bombay High Court’s 2023 order that had quashed the decision of the YES Bank administrator to write down the AT1 bonds during the bank’s reconstruction in 2020.
According to some reports, Yes Bank could face a one-time earnings impact of ₹5,300 crore to ₹5,400 crore following the Supreme Court judgement. The bank is assessing how to reinstate the bonds in its financial statements and whether outstanding coupon payments must be recognised. Yes Bank would be announcing its September quarter results on Saturday Oct 17.
The bank’s capital position has been supported by timely capital infusions. Last year, SMBC, one of Japan's leading banks and the core unit of Sumitomo Mitsui Financial Group (SMFG), invested Rs 16,333 crore in Yes Bank through two secondary purchases in September 2025, thereby acquiring 24.22 per cent ownership in the bank. SMBC subsequently hiked its stake to 24.9 per cent.