Mumbai, Oct. 21 -- JM Financial has lowered its 12-month target price for Yes Bank to Rs 17 from Rs 22 while maintaining its 'Reduce' rating, citing the financial implications of the Supreme Court's verdict setting aside the bank's Rs 8,400 crore Additional Tier-1 (AT1) bond write-down.

In its research report, JM Financial said the October 15 Supreme Court ruling, which upheld the Bombay High Court's decision, could result in an estimated post-tax impact of approximately Rs 6,300 crore on the bank's profitability and reduce its Common Equity Tier-1 (CET1) capital ratio by around 230 basis points to 11.4 per cent.

The brokerage noted that the reinstatement of AT1 bonds would be accounted for through the profit and loss statement without ...