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Yes Bank Target Slashed By Citi Following Supreme Court AT1 Bond Ruling
M
Moneycontrol•16-10-2026, 08:47
Yes Bank Target Slashed By Citi Following Supreme Court AT1 Bond Ruling
- •Citi has maintained a Sell rating on Yes Bank and cut its target price to Rs 17.50 per share from Rs 22.
- •The downgrade follows the Supreme Court's decision to uphold the invalidation of the bank's Rs 8,415-crore AT-1 bond write-off.
- •The ruling is expected to reduce Yes Bank's Common Equity Tier-1 capital ratio by around 250 basis points to approximately 11.5 percent.
- •Citi estimates the financial impact could erode Yes Bank's book value by 13 to 14 percent, potentially forcing the lender to raise new capital.
- •Yes Bank stated it is currently examining the judgment and assessing its full financial and operational implications.
Key Questions Answered
Citi has maintained a 'Sell' rating on Yes Bank stock and lowered its target price from Rs 22 to Rs 17.50 per share following the Supreme Court's ruling.
The reversal of the Rs 8,415-crore AT-1 bond write-off could reduce Yes Bank's Common Equity Tier-1 capital ratio by about 250 basis points to roughly 11.5 percent.
The Supreme Court upheld the Bombay High Court's decision, ruling that Yes Bank's administrator lacked the authority to carry out the write-off during the lender's March 2020 restructuring.
