Yes Bank shares tumble over 20% in two weeks amid AT-1 bond shock: Is more downside ahead? Here's what experts say
Yes Bank is in focus in a quarterly results development.
· LiveMint Markets
Yes Bank shares have plunged amid uncertainty over the Supreme Court decision restoring claims on ₹8,415 crore of AT-1 bonds written down in 2020. Brokerages warn of pressure on capital, earnings and growth, while improving profits and asset quality offer some support.
The analysis
Yes Bank reported ₹8,415 crore, with movement of 20% attached to those lines. 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 -2.2% on the day at ₹16.05, and has returned -29.1% over three months. It sits 37% below its 52-week high, which means a good deal of bad news was already in the price. The banks sector has moved -6.0% over the same period, so Yes Bank is running 23.1 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, Capital Goods & Engineering, Capital Markets.
- The immediate tone of coverage reads negative.
In this story
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