Yes Bank shares have come under intense selling pressure, falling 21.23% in two weeks as uncertainty surrounding the bank's additional tier-1 (AT-1) bond liabilities weighs on investor sentiment. The stock has declined 30.60% over the past month and 11.29% over the past week, as investors assess the potential impact of a Supreme Court ruling on the bank's capital position and future profitability.
The sell-off follows the Supreme Court's 15 October 2026, verdict upholding the Bombay High Court's decision to set aside the 2020 write-down of Yes Bank's AT-1 bonds worth ₹8,415 crore. The ruling has raised questions about the bank's potential liabilities, capital adequacy and the pace of its recovery.
Meanwhile, Nippon Life India Asset Management said on 22 October that it had received in-principle approval from the Securities and Exchange Board of India (SEBI) to settle a dispute relating to its past investments in Yes Bank's AT-1 bonds, according to a Reuters report.
In 2020, as part of Yes Bank's reconstruction, AT-1 bonds worth ₹8,415 crore were written down to zero, while equity shareholders retained their holdings. The bondholders challenged the decision, and the Bombay High Court ruled in their favour in 2023.
The Supreme Court has now upheld that decision, setting aside the bond write-down and restoring the legal claim relating to the bonds. The verdict has created uncertainty over the financial implications for Yes Bank, including the potential impact on its capital ratios and interest liabilities.