YES Bank announced on Friday that the restoration of the principal amount of its Additional Tier 1 (AT-1) bonds totaling 8,415 crore rupees will have a proforma effect of 250 basis points on the Common Equity Tier 1 (CET1) ratio as of June 30, 2026. Nevertheless, its Tier 1 capital ratio will remain unchanged at 14 percent in the proforma calculation.
The bank stated that it is considering the Supreme Court's decision, which upheld the Bombay High Court's ruling to reverse the write-off of AT-1 bonds during the restructuring phase.
As of June 30, 2026, YES Bank had the following metrics: the CET1 ratio was 14 percent, the Tier 1 capital ratio was 14 percent, and the overall Capital Adequacy Ratio (CAR) was 15.1 percent.
The bank's capital position was supported by timely capital infusions. Last year, SMBC, one of Japan's leading banks and a major subsidiary of Sumitomo Mitsui Financial Group (SMFG), invested 16,333 crore rupees in YES Bank through two secondary purchases in September 2025, thereby acquiring a 24.22 percent stake in the bank. Subsequently, SMBC increased its stake to 24.9 percent.
Previously, the bank received approximately 8,800 crore rupees from two financial institutions between fiscal years 23 and 25. Furthermore, under the restructuring scheme in March 2020, the bank received 10,000 crore rupees from financial institutions, followed by an additional public offering (FPO) of 15,000 crore rupees in July 2020.
The bank noted in its exchange notification on Friday: 'The bank respects the High Court's decision. The bank is closely examining this decision, including assessing all available legal options and suitable future actions/steps.' It added that it has access to appropriate capital management levers and maintains flexibility to take additional capital management measures deemed appropriate to achieve its growth objectives.
The lender also emphasized: 'The bank remains firmly focused on maintaining the strength of its franchise and ensuring stable service and support for customers in all their banking needs.'
The bond principal is equivalent to the bank's cumulative net profit over 16 quarters. YES Bank shares fell by 14.43 percent, closing at 18.15 rupees per share on Thursday after sharply declining by almost 16 percent during the day, marking the steepest single-day drop since July 2020. On Friday, the bank's shares were nearly 3 percent below the previous day's close.
The Supreme Court upheld the Bombay High Court's decision on Thursday to reverse the write-off of 8,415 crore rupees worth of AT-1 bonds made by YES Bank in March 2020. The court ruled that the bank's administrator acted outside their authority and contrary to applicable regulations.
The bench of Justices Dipankar Datta and Augustine George Masih declined to interfere with the High Court's ruling of January 20, 2023, which overturned the write-off announced on March 14, 2020. The bench also noted that the Reserve Bank of India (RBI) remained merely an 'observer,' allowing YES Bank's CET1 ratio to fall to a remarkably low 0.6 percent while the bank's operations proceeded discreetly.