The sell-off in Yes Bank deepened further in Thursday’s trade on October 29, with the stock falling another 1.15% to ₹15.43 apiece, marking its lowest level since April 2023. The decline has widened its October losses to 26%, putting the stock on track for its second consecutive monthly decline.
Yes Bank shares have come under pressure following the Supreme Court’s decision to uphold the Bombay High Court judgment against the write-off of ₹8,415 crore worth of Additional Tier-1 (AT-1) bonds, undertaken in March 2020 as part of the lender’s reconstruction.
The verdict marks a significant victory for bondholders whose investments were cancelled during the bank’s rescue six years ago.
On October 15, the apex court dismissed appeals filed by Yes Bank, the Reserve Bank of India (RBI), and the Union government, upholding the Bombay High Court’s January 20, 2023, judgment on the matter.
The ruling has raised concerns about the potential impact on the bank’s capital position and the future of the bonds, which were written off during its 2020 rescue.
A day after the Supreme Court ruling, Yes Bank said its Common Equity Tier 1 (CET1) capital ratio could decline by around 250 basis points. However, the bank’s overall Tier 1 capital ratio is expected to remain unchanged at 14% on a pro forma basis, according to its exchange filing.
In a follow-up development, Yes Bank is unlikely to pay coupons due this year on its AT-1 bonds despite the Supreme Court ruling overturning their write-off, Reuters reported last week, citing two people familiar with the matter.
The bank is preparing to seek a review of the ruling, the report said, citing one of the sources. Meanwhile, bondholders are pressing for payment of coupons that have remained unpaid since the bonds were written off in 2020.
Retail investors holding the bonds said they had not received coupon payments due on October 18, according to the report. In a letter to Axis Trustee Services, investors sought clarity on the payments and urged the debenture trustee to intervene.
However, the sources cited by Reuters said the bond documentation gives the bank discretion over coupon payments, and the matter can be considered only after the AT-1 bonds are reinstated on the bank’s balance sheet.
The Supreme Court’s decision has therefore left investors assessing both the potential capital implications for Yes Bank and the unresolved question of coupon payments to bondholders.
Yes Bank shares down over 28% in 2026
After sharp volatility in 2025, Yes Bank shares began 2026 with a steep sell-off, falling 20% in the first three months of the year. However, the stock picked up steam in the following quarter, rebounding 40%, before those gains were wiped out by a 13% decline in the third quarter.
In the final quarter of CY2026, the stock fell another 26%, resulting in a year-to-date decline of 28.56%.
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