Yes Bank is currently the top loser on the BSE; going down almost 12.5% to Rs.17.35 with sellers dominating the counter.

Two reasons for this fall today. Firstly, its Q3FY23 earnings were a big disappointment. It reported a 79% dip in its consolidated net at Rs.55 crore as provisions on legacy bad assets made it set aside higher amounts as provisions.

Non-tax provisions were 125% (YoY) and up 45% sequentially at Rs.845 crore.

In terms of asset quality, it got better as Gross NPA fell from 12.89% to 2.02% (QoQ) while Net NPA also fell from 3.6% to 1.03%.

Second reason - the Bombay High Court quashed Yes Bank’s March 2020 decision to write off Rs 8,415 crore of additional tier 1 (AT1) bonds; the only reprieve is that it has given the Bank six weeks to appeal the decision. As a part of the bailout in March’20, the Bank had written off these bonds, earning it the ire of its bondholders who had legally challenged this move. Today, the Court thus decided in favor the bondholders.