From mint · A Ksheerasagar · · 1m 20s
Yes Bank Shares Rally 6% After Supreme Court Ruling
Yes Bank shares rose 6% on Friday, extending winning streak to third day after Supreme Court overturned AT-1 bond write-off.
In brief
Yes Bank shares rose 6% on Friday, extending winning streak to third day after Supreme Court overturned AT-1 bond write-off. Yes Bank shares rebounded 6% following Supreme Court's decision to reverse the write-off of ₹8,415 crore AT-1 bonds. Originally reported by mint.
Yes Bank Shares Rally
Yes Bank shares rose 6% on Friday, extending gains to three sessions and lifting weekly returns to 14% amid unusually high trading volumes.
October Sell-Off Trigger
Yes Bank shares declined 28% after Supreme Court upheld Bombay High Court's decision to write off ₹8,415 crore AT-1 bonds in March 2020.
Supreme Court Ruling
Supreme Court dismissed appeals by Yes Bank, RBI, and Union government on October 15, upholding Bombay High Court's January 20, 2023 judgment.
Capital Ratio Impact
Yes Bank warned its CET1 capital ratio could decline by 250 basis points but Tier 1 capital ratio remains unchanged at 14% on pro forma basis.
AT-1 Bond Coupon Payments
Yes Bank unlikely to pay coupons due this year despite Supreme Court ruling, as bond documentation gives bank discretion over payments.
Investor Concerns
Retail investors holding AT-1 bonds sought clarity on unpaid coupon payments since 2020, urging debenture trustee to intervene.
Market Reaction
Trading volumes spiked to 514 million shares, nearly 3.78 times weekly average, helping shares recover from recent weakness.
The headline
Yes Bank shares rebounded 6% following Supreme Court's decision to reverse the write-off of ₹8,415 crore AT-1 bonds.
