Yes Bank shares fell 20% intraday on Thursday, 15 October, after the Supreme Court of India set aside the bank’s plea to write off Additional Tier‑1 (AT1) bonds worth ₹8,415 crore. The NSE data showed the stock dropping to an intraday low of ₹16.96 from the previous close of ₹21.20. Trading volumes exceeded 622 million equity shares across NSE and BSE, amplifying the loss. Investors reacted to the court’s decision, which upheld the Bombay High Court order favouring bondholders and denied the bank’s appeal.

The Supreme Court bench, headed by Justice Dipankar Datta and Justice Augustine George Masih, found no reason to interfere with the earlier High Court ruling. The court dismissed the appeals, stating that it saw no basis to alter the impugned judgment. The decision clarified that annual coupon payments on the AT1 bonds would remain unaffected, offering some relief to bondholders while leaving the bank exposed to a significant negative liability if losses materialise during a financial or funding crisis.

The case centred on whether Yes Bank’s administrator possessed legal authority to cancel the bonds under the official reconstruction plan. The Supreme Court concluded that the administrator lacked such authority, thereby upholding the High Court’s stance that the bonds could not be written off. This outcome directly impacted the bank’s equity valuation, as the potential liability of ₹8,415 crore weighed heavily on investor sentiment.

Yes Bank’s crisis traces back to 2018, when the Reserve Bank of India imposed a moratorium amid rising bad debt, governance concerns and liquidity pressure. The bank had written off the bonds in 2020 as part of its asset reconstruction scheme, a move later challenged by bondholders. The Bombay High Court quashed the write‑off in January 2023, prompting Yes Bank, RBI and the government to appeal to the Supreme Court.

Over the past year, Yes Bank shares have declined 21%, and are down nearly 15% year‑to‑date in 2026. In the last month, the stock fell 20% and has dropped 10% in the last five market sessions. However, over longer horizons, the shares have risen 6.9% in the last three years and 38% in the last five years, reflecting a mixed performance trajectory.

As of the Thursday, 15 October 2026 trading session, the lender’s market capitalisation stood at ₹56,876 crore. The sharp intraday fall underscores the market’s sensitivity to the Supreme Court’s ruling and the bank’s inability to absorb the AT1 bond liability, highlighting the ongoing challenges faced by the institution in its post‑crisis recovery.