Fresh blows, disappointments to investors of crisis-hit YES Bank

Auditors cast doubts on bank's ability to remain a going concern, investors holding more than 100 shares barred from selling stock

It was an unprecedented weekend, filled with many disappointments, for investors of YES Bank.

As the first blow to shareholders, both retail and institutional, the reconstruction scheme has imposed a three-year lock-in for 75 per cent of shares held by all those with more than 100 shares.

The second blow crushed the hopes of additional tier-1 (AT-1) bondholders, whose exposure to YES Bank was Rs 8,415 crore. The bank’s administrator indicated these instruments had been fully written down and were extinguished.

The bondholders were confident these would be converted into shares even if they should take an 80 per cent haircut. 

While the matter