From The Economic Times · Saloni Shukla · · 1m 10s
Yes Bank evaluates capital actions for growth
Yes Bank assesses capital moves to fund growth after Supreme Court reverses bond write-down.
In brief
Yes Bank assesses capital moves to fund growth after Supreme Court reverses bond write-down. Yes Bank may reduce CET1 capital to 11.4% as it evaluates repayment terms for bondholders following Supreme Court's reversal of a 2020 bond write-down. Originally reported by The Economic Times.
Yes Bank CET1 ratio drops
Yes Bank expects its Common Equity Tier 1 capital to shrink to 11.4% as of September after Supreme Court voided 2020 write-down of additional Tier 1 bonds.
Bond repayment terms under review
Repayment to bondholders, including Japan's Sumitomo Mitsui Banking Corp with a 24.9% stake, depends on bond terms and Supreme Court judgment.
Stock price impact
Yes Bank stock fell 3.5% Monday to Rs 16.88 on National Stock Exchange after Supreme Court ruling.
Accounting adjustment planned
Principal bond outstanding of Rs 8,415 crore will move from reserves to borrowings without cash outflow.
Growth plans remain focused
Yes Bank reports 23.7% YoY increase in advances and 17.6% normalised loan growth for September quarter.
Capital actions evaluation ongoing
Yes Bank evaluates potential capital measures to maintain growth while meeting regulatory requirements.
At a glance
Yes Bank may reduce CET1 capital to 11.4% as it evaluates repayment terms for bondholders following Supreme Court's reversal of a 2020 bond write-down.
