Yes Bank shares fell 2% on October 16, extending their two-day fall to 17% after Supreme Court set aside the bank's write-off of Rs 8,400 crore in additional tier-1 (AT-1) bonds during its 2020 rescue.

Yes Bank said on Friday it expects the reinstatement of its previously written-off AT-1 bonds to reduce its core capital ratio by about 250 basis points.

Yes Bank's tier-1 capital ratio would remain unchanged at 14% on a pro forma basis, the bank said.

At 2:40 pm on October 16, Yes Bank shares were trading 2.2% lower at Rs 17.71 apiece.

Separately, S&P Global Ratings said it does not expect Supreme Court ruling against Yes Bank to affect its ratings, though it would weigh on future earnings

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

S&P expects the roughly Rs 8,400-crore hit to common equity to be largely offset by the reinstatement of the bonds

It said that the lender's credit profile can withstand the ruling, which addresses procedural lapses in the write-down under the 2020 rescue.

The ratings agency expects Yes Bank to remain adequately capitalised, with its risk-adjusted capital ratio projected to remain between 8% and 8.5% through March 2028, compared with 9% in March 2026.

The Supreme Court Thursday set aside the Yes Bank administrator's decision to write down Rs 8,415 crore worth of additional tier-1 bonds as part of a reconstruction scheme. The administrator had no authority to write down the bonds in the absence of a specific provision in the reconstruction scheme, a bench comprising Justice Dipankar Datta and Justice Augustine George Masih said.