YES Bank on Friday said the reinstatement of the principal amount of its Additional Tier 1 (AT-1) bonds worth ₹8,415 crore 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 on a pro forma basis.
The bank said it is reviewing the Supreme Court order that upheld the Bombay High Court’s decision to quash the write-off of AT-1 bonds during its reconstruction phase.
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’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 ₹16,333 crore in YES Bank through two secondary purchases in September 2025, thereby acquiring a 24.22 per cent stake in the bank. SMBC subsequently raised its stake to 24.9 per cent.
The bank has previously received around ₹8,800 crore from two financial institutions between FY23 and FY25. Earlier, as part of the reconstruction scheme in March 2020, the bank received ₹10,000 crore from financial institutions, followed by a ₹15,000-crore follow-on public offer (FPO) in July 2020.
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“The Bank respects the judgment of the Hon’ble Supreme Court. The Bank is examining the judgment in detail, including evaluating all available legal options and suitable actions/steps going forward,” the lender said in an exchange notification on Friday, adding that it has access to appropriate capital-management levers and retains the flexibility to undertake additional capital actions, as considered appropriate, to pursue its growth objectives.
“The Bank remains firmly focused on the continued strength of its franchise and on providing customers with consistent service and support across their banking requirements,” the lender said.
The principal amount of the bonds is equivalent to the bank’s cumulative net profit over 16 quarters. YES Bank’s shares tumbled 14.43 per cent to close at ₹18.15 apiece on Thursday, after plunging nearly 16 per cent intraday, marking their steepest single-day decline since July 2020. On Friday, the bank’s shares were nearly 3 per cent lower than the previous day’s close.
The Supreme Court on Thursday upheld the Bombay High Court’s decision to set aside YES Bank’s ₹8,415 crore Additional Tier 1 (AT-1) bond write-off in March 2020, ruling that the bank’s administrator had acted beyond his authority and contrary to the applicable regulatory framework.
A Bench of Justices Dipankar Datta and Augustine George Masih declined to interfere with the High Court’s January 20, 2023, judgment, which had set aside the write-off announced on March 14, 2020. The Bench also said the RBI had remained a “mere bystander”, allowing YES Bank’s Common Equity Tier 1 (CET1) ratio to fall to an astonishingly low 0.6 per cent while the bank’s business was being carried out in a clandestine manner.