Yes Bank CET1 may fall to 10% if past AT1 coupons are paid: Crisil
Benchmarks Nifty22,888.95-257.21FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.8 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.64 % Invest NowEnter search…
Yes Bank CET1 may fall to 10% if past AT1 coupons are paid: Crisil
Yes Bank CET1 may fall to 10% if past AT1 coupons are paid: Crisil
By Saloni Shukla, ET BureauLast Updated: Oct 19, 2026, 07:20:00 PM ISTSynopsisYes Bank faces a potential decline in core equity capital, projected to fall to around 10% due to accumulated coupon payments on AT1 bonds. Crisil Ratings highlighted a significant liability impact estimated at Rs 6,200 crore, while S&P Global Ratings foresees a reduction in common equity by about Rs 8,400 crore. Despite these concerns, both agencies believe the bank's credit profile will remain stable.
Mumbai: Yes Bank’s core equity capital could fall to around 10% if the lender is required to pay accumulated coupons on the restored Rs 8,415-crore AT1 bonds, Crisil Ratings said, significantly below the roughly 11.5% level estimated after accounting only for reinstatement of the principal. Crisil estimated that recognising the AT1 liability would entail an accounting impact of around Rs 6,200 crore, net of tax, in the period in which the liability is recognised.“Assuming the bank makes coupon payments for all prior periods, the CET-1 ratio could decline further to around 10.0%,” Crisil said.
The rating agency, however, said Yes Bank should be able to absorb the impact through internal accruals and a potential capital raise. It also factored in expected support from Sumitomo Mitsui Banking Corp, the lender’s largest shareholder. Crisil does not expect the development to materially affect Yes Bank’s overall credit profile or ratings.
Bonds Corner Powered By
Yes Bank CET1 may fall to 10% if past AT1 coupons are paid: Crisil
Yes Bank faces a potential decline in core equity capital, projected to fall to around 10% due to accumulated coupon payments on AT1 bonds. Crisil Ratings highlighted a significant liability impact estimated at Rs 6,200 crore, while S&P Global Ratings foresees a reduction in common equity by about Rs 8,400 crore. Despite these concerns, both agencies believe the bank's credit profile will remain stable.
US Treasury yields nudge higher as AI fears ebbTitan redeems Rs 1,000 crore commercial paperIndia bonds give up day's gains as oil price spike adds to rate hike fearsIndia corporate bond boom may scale record in 2026 as borrowers lock in rates Browse all Bonds News withAlso read | Yes Bank weighs capital options after AT1 verdict, coupon liability remains uncertain
S&P Global Ratings separately estimated that the ruling could reduce Yes Bank’s common equity by about Rs 8,400 crore, although this would be largely offset in its capital assessment by reinstatement of the AT1 instruments. It expects the bank’s risk-adjusted capital ratio to remain in the 8-8.5% range through FY27 and FY28, compared with 9% as of March 2026.
Live Events
The bigger continuing impact, S&P said, would be on earnings because the restored bonds carry coupons of 9-9.5%. “Going forward, we see this as earnings negative as the AT1s have high coupon payments of 9.0%-9.5%,” S&P said.
Both agencies highlighted uncertainty around the treatment of coupons for the intervening period. While the Supreme Court said coupon payments would have to be governed by the bonds’ information memoranda, S&P noted that the instruments provide for discretionary, non-cumulative coupons, leaving open the question of whether Yes Bank would be required to make payments for the roughly five-and-a-half years since the bonds were written down.
Also read | Public sector banks' Rs 7.8 lakh crore corporate loan pipeline signals capex revival
Importantly, neither Crisil nor S&P expects an immediate ratings impact. Crisil said the bank’s Tier-1 and total capital ratios would remain unchanged at 14% and 15.1%, respectively, under the principal-restatement scenario, because the fall in CET1 would be offset by a corresponding rise in AT1 capital.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onyes bankYes Bank CET1AT1 bondsCrisil RatingsYes bank ratingsyes bank bond caseyes bank share price
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onyes bankYes Bank CET1AT1 bondsCrisil RatingsYes bank ratingsyes bank bond caseyes bank share price
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionOne company, 2 words. Bond yield and CDS: Will they decide the fate of global markets?
Business of Odd Things: Inside an industry that farms fish that nobody is meant to eat
War's second-order effects are becoming visible in critical sectors
US mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?
Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects
What is the real impact of 13x jump in cash transfers to women?
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.