Yes Bank Shares Plunge 10% Following Supreme Court Ruling
· Business · LiveMint, Reuters
Yes Bank shares fell 10% on the NSE, dropping from ₹21.25 to ₹19.08, after the Supreme Court upheld a Bombay High Court judgment quashing the bank's ₹8,415 crore AT-1 bond write-off. The court dismissed the bank's appeals, ruling that the write-off decision lacked a specific provision in the reconstruction scheme and failed to comply with RBI master circulars. Consequently, Yes Bank must now recognize obligations related to these bonds, including annual coupon payments at prescribed rates of 9% and 9.5%. The ruling bench of Justices Dipankar Datta and Augustine George Masih stated there was no reason to interfere with the lower court's decision.
Why it matters
The reversal of the bond write-off imposes a significant financial liability on Yes Bank, directly impacting its balance sheet and investor confidence.
Read the original report — LiveMint
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