India's Yes Bank AT-1 ruling won't impact ratings despite earnings hit, S&P says

Agencies

India's top court set aside the bank's write-off of 84 billion rupees ($883.7 million) in additional tier-1 bonds, dealing a blow to the lender and regulators that had defended the 2020 wipeout.

Here are some details:

S&P said on Thursday that Yes Bank's credit profile can withstand the ruling, which addresses procedural lapses in the write-down under the 2020 rescue

S&P expects Yes Bank to remain adequately capitalized, with its risk-adjusted capital ratio projected to remain between 8.0% and 8.5% through March 2028, compared with 9.0% in March 2026

It was unclear whether Yes Bank would challenge the ruling, S&P said

S&P expects the roughly 84 billion rupee hit to common equity to be largely offset by the reinstatement of the bonds

Yes Bank's regulatory capital is adequate, with its common equity tier-1 ratio of 13.87% at end-March 2026 able to absorb an expected 250-basis-point hit while staying well above the 5.5% minimum requirement, S&P said