Yes Bank received an Environmental, Social, and Governance (ESG) rating of 79 for FY26. This marks an improvement from the rating of 77 assigned for FY25.

The rating was assigned by NSE Sustainability Ratings & Analytics Ltd, a SEBI-registered ESG Rating Provider (ERP). The assessment was based on the bank's FY26 disclosures and other publicly available data.

Independent Assessment Process

The bank clarified that it did not engage NSE Sustainability for this evaluation. The ERP independently assigned the rating without direct engagement with Yes Bank. This distinction highlights the provider's reliance on public data rather than internal consultations.

Disclosure Details

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank stated that links to the BSE and NSE disclosures are hosted on its website for investor reference.

Yes Bank disclosed that the Supreme Court of India has upheld the write-down of ₹8,415 crore in Additional Tier-1 (AT1) bonds. The judgment, delivered on October 15, 2026, dismisses appeals filed by the bank, the Reserve Bank of India, and the Union of India against the Bombay High Court's earlier ruling.

This decision confirms the validity of the Administrator's March 2020 action during the bank's reconstruction. The Court directed that annual coupon payments remain unaffected by this outcome and must be made per the Information Memoranda. Parties were left to bear their own costs, and any interim orders stand vacated.

Capital Adequacy Implications

The bank noted that while it is examining the judgment for legal options, the financial impact on capital ratios has been outlined in its disclosure. The reinstatement of the AT1 principal amount would significantly alter the Common Equity Tier 1 (CET1) ratio, though the overall Tier 1 ratio remains stable.

What the Numbers Show

A key divergence emerges between the CET1 and Tier 1 ratios. While the CET1 ratio faces a substantial ~250 bps reduction due to the potential reinstatement of the AT1 principal, the Tier 1 ratio remains unimpacted at 14.0%. This indicates that the capital structure maintains resilience at the Tier 1 level despite the significant adjustment to the core equity component. The bank stated it retains access to appropriate capital-management levers and flexibility for additional capital actions to pursue growth objectives.

Next Steps

Yes Bank respects the judgment and is currently reviewing the order to evaluate all available legal options and suitable actions going forward. The institution emphasized its continued focus on franchise strength and customer service. No immediate operational disruptions were reported, with the bank committing to make further disclosures as necessary.