From The Economic Times · Saloni Shukla · · 1m
Yes Bank CET1 Ratio Drops to 10% If AT1 Coupons Paid
Yes Bank’s CET1 ratio could fall to 10% if it pays past AT1 bond coupons, Crisil warns.
In brief
Yes Bank’s CET1 ratio could fall to 10% if it pays past AT1 bond coupons, Crisil warns. Yes Bank’s core equity capital may drop to 10% if it pays accumulated coupons on Rs 8,415-crore AT1 bonds. Originally reported by The Economic Times.
Crisil's Capital Ratio Update
Crisil says Yes Bank’s Tier-1 and total capital ratios stay at 14% and 15.1% under principal restatement.
Core Equity Capital Risk
Yes Bank’s core equity capital could fall to 10% if it pays accumulated coupons on Rs 8,415-crore AT1 bonds.
Accounting Impact Estimate
Recognising AT1 liability would cost Yes Bank around Rs 6,200 crore net of tax in the period it is recognised.
CET1 Ratio Decline Scenario
Assuming all prior coupon payments, Yes Bank’s CET1 ratio could drop to 10.0%.
Capital Absorption Plan
Yes Bank can absorb impact through internal accruals and potential capital raise, with Sumitomo Mitsui Banking Corp support.
In short
Yes Bank’s core equity capital may drop to 10% if it pays accumulated coupons on Rs 8,415-crore AT1 bonds.
