The biggest one‑day fall in Yes Bank’s history hit the NSE at 18.12 rupees, a 14.53% dip on Tuesday, as the Supreme Court declared the bank’s 8.4‑cr ATO write‑off illegitimate. The decision came after a 2020 rescue plan that aimed to tidy the bank’s balance sheet.
The write‑off was part of a ₹45.7‑cr rescue package that included a ₹12.5‑cr recapitalisation and a ₹33‑cr ATO redemption. By striking down the write‑off, the Court effectively reinstates a major liability that could dent the bank’s capital base, raising concerns about its ability to meet regulatory buffers.
Market sentiment reacted instantly: volume surged to 1.2 million shares, double the quarterly average, as investors rushed to exit. Analysts at Kotak Mahindra Securities noted that the ruling could trigger a fresh review of the bank’s non‑performing assets, potentially leading to further write‑offs and a drag on profitability.
Looking ahead, Yes Bank is slated to report Q3FY27 results on December 15, with analysts expecting a 5–7% decline in net profit versus the 4.6 cr reported in Q2. The RBI’s upcoming policy meeting in late December may also influence the bank’s capital‑raising plans, as regulators weigh the implications of the court’s decision.
Investors will watch the bank’s capital adequacy ratio closely, as a potential downgrade from rating agencies could tighten funding costs. Meanwhile, the broader banking sector remains cautious, with other peers like HDFC Bank and ICICI Bank showing muted price action amid the sector’s heightened scrutiny.