Yes Bank Share Price Tumbles Over 20% in Two Weeks Amid AT-1 Bond Shock: Is More Downside Ahead?
- October 22, 2026
- Posted by: Neeraj Pandey
- Category: News
Yes Bank share price closed at Rs 16.05 on 22 Oct 2026, down 2.19%, and is about 24% below the Rs 21.21 close of 14 Oct, before the Supreme Court restored claims on Rs 8,415 crore of AT-1 bonds written down in 2020. Q2 FY27 profit rose 65% to Rs 1,080 crore, but pro forma figures show a loss of Rs 5,217 crore if the ruling is recognised.
Quick Answer
Yes Bank share price has fallen more than 20% in two weeks because the Supreme Court on 15 Oct upheld the order that set aside the 2020 write-down of Rs 8,415 crore of AT-1 bonds. The bank’s own pro forma figures show that recognising the impact would turn the Q2 profit of Rs 1,080 crore into a loss of Rs 5,217 crore and cut CET1 from 13.7% to 11.4%. Ten of 14 brokerages in one count rate the stock Sell, with targets mostly between Rs 16 and Rs 18, close to the current price. More downside is possible if a capital raise dilutes holders, but strong earnings, falling bad loans and a stock near book value give some support.
Yes Bank share price has been under heavy selling since 15 Oct, when the market learned that the Supreme Court had dismissed the appeals of the bank, the RBI and the Centre. The bonds were written down to zero in March 2020 as part of the rescue plan, and the ruling reopens the claims of investors, including more than 1,300 retail investors and institutions.
This article on Yes Bank share price explains the ruling, the pro forma numbers, the Q2 FY27 results, what brokerages say, the valuation and what could happen next. It is educational and not a recommendation to buy or sell.
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Yes Bank Share Price Today and Since the Ruling
| Yes Bank share price: point | Level |
|---|---|
| Close on 14 Oct 2026 | Rs 21.21 |
| Close on 15 Oct 2026 (ruling day) | Rs 18.15, down 14.43% |
| Intraday low on 15 Oct | About Rs 16.98, down about 20% |
| Low on 21 Oct | Rs 16.03 |
| Previous close on 22 Oct | Rs 16.41 |
| Close on 22 Oct on NSE | Rs 16.05, down 2.19% |
| Volume on 22 Oct | About 13.36 crore shares |
| Fall from Rs 21.21 to Rs 16.05 | About 24% (my calculation) |
The Yes Bank share price lost about 14% on the day of the ruling and kept falling, with a 5% drop on 21 Oct and another 2.19% today. It closed near the 21 Oct low of Rs 16.03, so the Yes Bank share price is testing its lows. The market value is about Rs 50,200 crore at Rs 16.05 (my calculation from the reported figure at the previous close), down from about Rs 60,000 crore before the ruling.
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What the Supreme Court Decided on AT-1 Bonds
| Yes Bank share price: AT-1 ruling point | Detail |
|---|---|
| Bonds written down | Rs 8,415 crore of AT-1 bonds in March 2020, during the RBI-led rescue |
| High Court ruling | Bombay High Court on 20 Jan 2023 quashed the write-down, saying the administrator lacked authority |
| Supreme Court | On 15 Oct 2026 dismissed the appeals of Yes Bank, the RBI and the Centre |
| Post-tax amount | About Rs 6,300 crore, according to Morgan Stanley |
| Argument of bondholders | Equity holders kept value while AT-1 bonds were wiped out, which broke the order of claims |
| Open questions | How much will finally be paid and whether a review petition will follow |
The sources I read did not set out the Supreme Court’s reasoning in detail, so I do not describe it. In March 2023 the Supreme Court had stayed the High Court order, and final arguments continued into early 2026. The important point for Yes Bank share price is the size of the claim relative to the bank’s net worth, not the legal arguments.
Yes Bank Share Price and the Pro Forma Impact
| Yes Bank share price: pro forma measure | As reported | If the ruling is recognised |
|---|---|---|
| Q2 FY27 net profit | Rs 1,080 crore | Loss of Rs 5,217 crore |
| Net worth | Rs 53,268 crore | Rs 46,970 crore |
| Borrowings | Rs 77,734 crore | Rs 86,149 crore |
| Return on assets | 0.9% | Minus 4.3% |
| CET1 ratio | 13.7% | 11.4% |
The bank did not book the impact in its Q2 results and says it is assessing the accounting, its legal options and what it must do. Its auditors warned that the reported results could have differed materially had the impact been recognised. The fall in net worth is about 11.8% (my calculation), close to Nomura’s estimate of a 12% cut. Management says the bank does not face immediate regulatory pressure but is looking at ways to strengthen capital buffers.
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Risk: Brokerages put the CET1 hit at different sizes, from about 190 basis points to 250 basis points, so the final capital number is still uncertain.
Q2 FY27 Results: The Positive Side of Yes Bank Share Price
| Yes Bank share price: Q2 FY27 metric | Figure | Change |
|---|---|---|
| Net profit | Rs 1,080 crore | Up 65% year on year |
| Net interest income | Rs 2,822 crore | Up 22.7% |
| Operating profit | Rs 1,678 crore | Up 29.4% |
| Net interest margin | 2.6% | Down from 2.7% |
| Gross NPA | 1.2% | Down from 1.6% a year ago |
| Net NPA | 0.2% | Down from 0.3% |
| Advances | Rs 3,09,510 crore | Up 23.7% |
| Deposits | Rs 3,54,004 crore | Up 19.5% |
| CASA ratio | 30.0% | Lower than before |
| CET1 ratio | 13.7% | 14.0% in the last quarter |
The operating picture behind the Yes Bank share price is healthy: profit up 65%, bad loans down and loan growth near 24%. Provisions fell 24.2% to Rs 317 crore, and there was a write-back of Rs 395 crore on investments, mainly from gains on security receipts. Goldman Sachs noted that the profit beat relied on recoveries from legacy assets, which can be uneven, and that net interest margin fell 10 basis points from the last quarter. Rating agencies upgraded the bank to AA+ or AA between June and August 2026.
What Brokerages Say on Yes Bank Share Price
| Yes Bank share price: brokerage | Rating | Target price | Change in target |
|---|---|---|---|
| Goldman Sachs | Sell | Rs 17 | Not stated |
| Citi | Sell | Rs 16.50 | Earlier Rs 17.50 and Rs 22 |
| Kotak Institutional Equities | Sell | Rs 16 | Not stated |
| Nuvama | Reduce | Rs 16 | Cut from Rs 22 |
| Morgan Stanley | Underweight | Rs 17 | Not stated |
| Nomura | Neutral | Rs 18 | Cut from Rs 23 |
| ICICI Securities | Hold | Rs 17 | Cut from Rs 24 |
| JM Financial | Not stated | Rs 17 | Cut from Rs 22 |
| Ventura Securities | Buy | Rs 24.20 | Not stated |
A Bloomberg tally quoted in one report shows 10 Sell, 2 Hold and 2 Buy ratings, with an average target of Rs 17.96, which is about 12% above Rs 16.05 (my calculation). Nuvama and Kotak sit at Rs 16, almost at today’s Yes Bank share price, so some brokerages see little room up. JM Financial says the ruling casts doubt on sustaining a 1% return on assets and may bring a capital raise forward. Nuvama says a possible capital infusion by SMFG is a key item to watch, and that a stake above 26% could trigger an open offer.
Yes Bank Share Price Valuation
| Yes Bank share price: valuation measure | Figure |
|---|---|
| Trailing EPS | Rs 1.34 |
| P/E at Rs 16.05 | About 12.0 times (my calculation) |
| Industry P/E | 11.84 times |
| Book value per share before the ruling | Rs 17.00 |
| Price to book at Rs 16.05 | About 0.94 times (my calculation) |
| Book value after an 11.8% net worth cut | About Rs 15.0 (my calculation) |
| Price to adjusted book | About 1.07 times (my calculation) |
| Return on equity | 7.86% |
| Dividend | None |
Before the ruling the Yes Bank share price traded below book value, and it does so again now. After the pro forma cut, the book value falls to about Rs 15 and the stock trades slightly above it, which is why several brokerages value the bank near 0.9 to 1 times book. The return on equity of 7.86% is low for a bank, so a valuation much above book is hard to justify unless profits grow and the capital question is settled.
Is More Downside Ahead for Yes Bank Share Price?
| Yes Bank share price: factor | Could add pressure | Could give support |
|---|---|---|
| Capital | A raise at a low price dilutes holders | No immediate regulatory pressure, per management |
| Earnings | Return on assets of 1% is in doubt | Q2 profit up 65% and bad loans falling |
| Legal | Final payout may be large | A review petition could narrow it |
| Valuation | Brokerages cluster at Rs 16 to Rs 18 | Stock near book value |
| Sentiment | 56.68 lakh small shareholders hold the stock | Strategic investor interest from SMFG |
This is an educational view and not advice. The main uncertainty for the Yes Bank share price is the final cost of the ruling and how the bank funds it. A capital raise would cut the book value per share behind the Yes Bank share price and earnings per share for existing holders, though it would also remove the capital doubt.
What to Watch Next on Yes Bank Share Price
- Any review petition or a formal plan from the bank on how it will recognise the AT-1 claims
- Announcement of a capital raise or an investment by SMFG that affects the Yes Bank share price
- RBI guidance on the accounting treatment and capital impact
- Whether the Yes Bank share price holds the 21 Oct low of Rs 16.03
- Q3 FY27 trends in net interest margin, recoveries and slippages for the Yes Bank share price
Conclusion
Yes Bank share price is down about 24% from Rs 21.21 to Rs 16.05 after the Supreme Court restored claims on Rs 8,415 crore of AT-1 bonds, even though Q2 profit rose 65% to Rs 1,080 crore. The pro forma loss of Rs 5,217 crore and the fall in CET1 to 11.4% explain the caution of brokerages. Read the filings and decide on your own horizon.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Why has the Yes Bank share price fallen over 20% in two weeks?
Ans. The Supreme Court on 15 Oct dismissed the appeals against the Bombay High Court order that set aside the 2020 write-down of Rs 8,415 crore of AT-1 bonds. The stock fell 14.43% that day and kept falling to Rs 16.05 on 22 Oct.
What is the pro forma impact of the AT-1 ruling on Yes Bank?
Ans. The bank’s pro forma figures show the Q2 profit of Rs 1,080 crore turning into a loss of Rs 5,217 crore, net worth falling from Rs 53,268 crore to Rs 46,970 crore and CET1 falling from 13.7% to 11.4%. The bank has not recognised the impact yet.
What are the Q2 FY27 results of Yes Bank?
Ans. Net profit rose 65% to Rs 1,080 crore, net interest income rose 22.7% to Rs 2,822 crore and gross NPA fell to 1.2%. Advances grew 23.7% and deposits 19.5%.
What are brokerage targets for the Yes Bank share price?
Ans. Targets mostly range from Rs 16 to Rs 18, with Nomura at Rs 18 and Nuvama and Kotak at Rs 16. Ventura Securities is the outlier with a Buy and Rs 24.20. One tally shows 10 Sell, 2 Hold and 2 Buy ratings.
Will Yes Bank need to raise capital?
Ans. Several brokerages think a raise could come earlier because of the CET1 fall. Management says there is no immediate regulatory pressure but it is evaluating ways to strengthen capital buffers.
Is the Yes Bank share price undervalued now?
Ans. It trades at about 0.94 times book value before the ruling’s effect and about 1.07 times the adjusted book value by my calculation. With a return on equity of 7.86%, whether it is good value depends on the final capital cost.
Will there be a review of the Supreme Court AT-1 order?
Ans. Morgan Stanley says it is watching for a review petition, and the bank is assessing its legal options. No decision on this was reported in the sources I read.
Is this article investment advice?
Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.
