India's Yes Bank AT-1 ruling won't impact ratings despite earnings hit, S&P says

Yes Bank

16/10/2026 04:53

Oct 16 (Reuters) - S&P Global Ratings does not expect India’s Supreme Court ruling against Yes Bank YESB.NS to affect its ratings, though it would weigh on earnings.
India's top court set aside the bank's write-off of 84 billion rupees ($883.7 million) in additional tier-1 bonds, dealing a blow to the lender and regulators that had defended the 2020 wipeout.

Here are some details:

S&P said on Thursday that Yes Bank’s credit profile can withstand the ruling, which addresses procedural lapses in the write-down under the 2020 rescue
S&P expects Yes Bank to remain adequately capitalized, with its risk-adjusted capital ratio projected to remain between 8.0% and 8.5% through March 2028, compared with 9.0% in March 2026
It was unclear whether Yes Bank would challenge the ruling, S&P said
S&P expects the roughly 84 billion rupee hit to common equity to be largely offset by the reinstatement of the bonds
Yes Bank’s regulatory capital is adequate, with its common equity tier-1 ratio of 13.87% at end-March 2026 able to absorb an expected 250-basis-point hit while staying well above the 5.5% minimum requirement, S&P said

($1 = 95.0550 Indian rupees)

 (Reporting by Aleef Jahan in Bengaluru; Editing by Mrigank Dhaniwala)
 ((aleefjahan.cs@thomsonreuters.com;))