Supreme Court rebukes RBI over YES Bank AT-1 bonds
The Supreme Court criticised the RBI and YES Bank over the write-down of ₹8,415 cr in AT-1 bonds, citing a 0.6% CET1 ratio. YES Bank shares fell 14.5%, while futures showed short build-up, according to OI Charts data.
pre-market1 source ↓machine-written, see hownot a recommendation
- YESBANK close
- ₹18.12
- On the day
- -14.53%
- Futures OI, short build-up
- +2.6%
- Put-call ratio
- 0.68
- Max pain
- ₹20.00
The Supreme Court criticised the Reserve Bank of India on 15 Oct 2026 for acting as a “mere bystander” while YES Bank’s financial position deteriorated and its business was allegedly conducted clandestinely. The Bench of Justices Dipankar Datta and Augustine George Masih upheld a Bombay High Court judgment that quashed the March 2020 decision to write down AT-1 bonds worth ₹8,415 cr.
The Court also criticised the bank for selling high-risk Additional Tier-1 bonds to individual investors despite RBI guidelines, and called for tighter scrutiny of such practices. It noted that the bank’s Common Equity Tier 1 ratio had fallen to 0.6%, while material irregularities had allegedly been identified earlier. The ruling keeps the bond write-down at the centre of investor and regulatory scrutiny ⚖️.
OI Charts data showed a sharp market reaction in the bank’s shares on the same session. The stock closed at ₹18.12, down 14.5%, on volume of 667,974,054 shares. It traded at the lower end of its 52-week range of ₹16.96 to ₹25.78, and was down 11.4% over five sessions and 22.6% over 20 sessions.
In derivatives, futures open interest rose 2.6% to 1,298,300,600 shares, indicating a short build-up as the price fell. The futures premium stood at 0.55%, while the put-call ratio was 0.68. For the 27 Oct 2026 expiry, max pain was ₹20.00. The largest call and put open interest were both concentrated at the ₹21.00 strike, creating key positioning levels above the latest close.
The combination of the court’s criticism, the historic capital-ratio disclosure and the fresh short build-up puts governance, capital adequacy and regulatory oversight at the centre of the banking-sector read-through 💼. The next focus is the market’s response around ₹20.00 max pain and the ₹21.00 open-interest concentration, alongside any further court, RBI or bank disclosures. The stock’s 52-week low of ₹16.96 is the nearest recorded downside reference from OI Charts data.
Source: Bar and Bench, 15 Oct 2026
Not investment advice. For informational purposes only.