Analysts Warn Capital Pressure on Yes Bank Following Bond Ruling

The Supreme Court’s affirmation of the Rs 8,415 crore AT‑1 bond write‑off has prompted brokerage houses to flag heightened capital pressure on Yes Bank. Citi’s team kept a sell rating and trimmed the target price to Rs 17.50, while Morgan Stanley maintained an underweight stance with a Rs 17 target. The court dismissed appeals from the bank, RBI and the government that sought to overturn a high‑court order canceling the bond write‑down. Brokers project a 250‑basis‑point reduction in the CET1 ratio, potentially lowering it to 11.5 %, and a 13‑14 % dip in book value. If these estimates materialise, the bank may need to raise fresh equity to rebuild its capital buffer. The stock closed at Rs 17.72 on the NSE, down 2.21 %.