Yes Bank Ltd. CUTS TARGET AFTER SC'S RS 8,415-CR

Yes Bank shares could face further downside after the Supreme Court overturned the lender’s Rs 8,415-crore additional tier-1 (AT-1) bond write-off, raising concerns over its capital position. Global brokerage Citi has maintained its ‘Sell’ rating on the stock and reduced its target price to Rs 17.50 from Rs 22 per share, citing the potential impact on the bank’s capital buffers. Citi’s revised target price indicates a further downside of 3.4% from Yes Bank’s closing price of Rs 18.12 on Thursday. Yes Bank shares have declined 15.7% so far in 2026, underperforming the Nifty 50, which has fallen 12% over the same period. The lender’s market capitalisation stood at Rs 56,877 crore at Thursday’s close. Following the Supreme Court’s ruling, Yes Bank said it was reviewing the judgment and evaluating its implications. In a stock exchange filing on October 15, the bank stated that it was obtaining and examining the final copy of the order and would make further disclosures as required. The verdict has also raised questions about the potential financial implications for Japan’s Sumitomo Mitsui Banking Corporation, Yes Bank’s largest shareholder. SMBC agreed to acquire a 20% stake in the lender in May 2025, after which the Reserve Bank of India approved an increase in its shareholding to as much as 24.99%. SMBC’s total investment in Yes Bank is estimated at around Rs 17,000 crore. The uncertainty surrounding the AT-1 bond write-off could add to investor concerns as the bank assesses the financial and capital implications of the Supreme Court’s decision.