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Yes Bank Shares Tumble 15% on SC Bond Ruling
16 Oct
Summary
- Supreme Court ruled against 2020 write-off of AT-1 bonds.
- Yes Bank shares experienced their biggest single-day fall in six years.
- Retail and mutual fund investors reduced their stakes in the bank.
Yes Bank shares experienced a significant 15% drop on Thursday, October 15, 2026, representing the largest single-day fall in six years. This steep sell-off followed the Supreme Court's adverse ruling regarding the 2020 write-off of the bank's Additional Tier-1 (AT-1) bonds. The court mandated that Yes Bank must honor these bonds, originally valued at ₹8,400 crore, with their prescribed coupon rates.
This ruling has substantial financial implications for Yes Bank, wiping out over ₹10,000 crore of its market capitalization. In the July-September quarter of 2026, both mutual funds and retail investors opted to reduce their stakes in the lender. Retail shareholders now own 18.23% of the bank, down from 18.64% in the previous quarter, while mutual funds' stake decreased from 6.43% to 5.48%.
Yes Bank acknowledged the situation in an exchange filing, stating that adequate disclosures were made and they are evaluating the court's order to determine the next steps. The bank assured stakeholders that further disclosures will be made as required. The bank's September quarter results are expected on Saturday, October 17, 2026.
