Yes Bank Shares Crash 10 Percent After Supreme Court Ruling On Bond Write-Off

Yes Bank shares dropped sharply by ten percent during the closing session on Thursday, falling from 21 rupees and 25 paise to 19 rupees and 8 paise on the National Stock Exchange.

Court Ruling

The sharp sell-off happened after the Supreme Court upheld a previous Bombay High Court judgment that quashed the bank's 8,415 crore rupee AT-1 bond write-off. A Supreme Court bench consisting of Justices Dipankar Datta and Augustine George Masih stated that there was no reason to interfere with the high court ruling which favored the bondholders, and dismissed the appeals.

Market Impact

Anuj Gupta, a market expert registered with SEBI, noted that the shares dropped quickly because the apex court ruling on the AT-1 bonds is expected to hit the private lender early.

Context

AT-1 bonds are risky debt instruments issued by banks to raise capital, and write-offs usually happen when banks face severe financial stress. Legal disputes involving such bonds often create uncertainty for bank investors and stock prices.