Supreme Court upholds ban on Yes Bank's AT1 bond write-off, shares tumble

The Supreme Court rejected challenges from Yes Bank, the Reserve Bank of India and the central government, upholding the Bombay High Court’s order that voided the write-off of AT-1 bonds amounting to ₹8,415 crore. The court’s two-judge panel stated there was no basis to interfere with the earlier judgment. In the wake of the ruling, Yes Bank’s shares slid to ₹18.21 and experienced a 20% intraday plunge, touching a low of ₹16.96.

Market commentators described the decision as a surprise and warned that the bank’s future direction remains uncertain. Analysts emphasized that forthcoming quarterly results and management commentary will be crucial for investors. They also noted that without a clear plan, the stock is unlikely to recover in the near term.