Sumitomo-backed Yes Bank faces up to ₹5,200 crore earnings hit as SC upholds squashing of its AT-1 bonds write-off
Yes Bank reported results.
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The Supreme Court overturned Yes Bank’s 2020 write-off of ₹8,415 crore in AT-1 bonds. The bank says that it would have reported a net loss of ₹5,217 crore in the September quarter had it recognised the impact. Details here.
The analysis
Yes Bank reported ₹5,200 crore, ₹8,415 crore and ₹5,217 crore. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -3.4% on the day at ₹17.50, and has returned -26.3% over three months. It sits 31% below its 52-week high, which means a good deal of bad news was already in the price. The banks sector has moved -3.1% over the same period, so Yes Bank is running 23.2 points behind its peers.
For Yes Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- The company directly in focus is YESBANK.
- Sector exposure: Banks.
- The immediate tone of coverage reads negative.
In this story
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