YES Bank's AT-1 bond reinstatement may cut CET1 ratio by 250 bps
· Business · Business Standard
YES Bank is considering the reinstatement of its AT-1 bonds that were written down in 2020, which could impact its capital adequacy. The move may reduce the bank's CET1 ratio by approximately 250 basis points, according to estimates. This potential reinstatement comes as the bank seeks to strengthen its balance sheet following regulatory changes. The exact timing and final impact on capital ratios remain subject to regulatory approval.
Why it matters
This development affects YES Bank's capital position and could influence investor confidence in the bank's financial stability. A significant drop in CET1 ratio may constrain the bank's lending capacity and affect its ability to meet regulatory requirements.
Read the original report — Business Standard
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