New Delhi, Oct. 17 -- Yes Bank said its Common Equity Tier 1 (CET1) capital ratio could decline by around 250 basis points, a day after the Supreme Court upheld the Bombay High Court judgment against the write-down of Additional Tier-1 (AT-1) bonds worth Rs.8,415 crore, undertaken in March 2020 as part of the bank's reconstruction.

The bank's overall Tier 1 capital ratio, however, is expected to remain unchanged at 14% on a pro forma basis, the bank said in its exchange filing on Friday. Capital ratios measure a bank's financial strength by comparing its capital with its risk-weighted assets, indicating its ability to withstand losses.

Additional Tier-1 (AT-1) bonds are perpetual instruments issued by banks to increase their capital bas...