InvestorQ : What is the status of my investments in bonds and equity shares of Yes Bank? Will they still have some value?
Moii Chavate made post

What is the status of my investments in bonds and equity shares of Yes Bank? Will they still have some value?

Answer
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Sam Eswaran answered.
6 months ago


Unlike the case of deposits, there are no guarantees offered by the RBI and the Finance Minister on other forms of exposure to Yes Bank. If you are having shares of Yes Bank, you should look at the first opportunity to exit the stocks. A lot of investors tend to hope that, like Ruchi Soya, Yes Bank could also become a multibagger once the SBI deal is done. But, hope can be a good breakfast but a bad supper. Yes Bank is a different ball game as it has a lot of loans of dubious quality. It could eventually see its net worth wiped out leaving little for equity shareholders. It is better not to be too optimistic. Regarding the AT1 bonds, the RBI has already written down the value to zero, so you get nothing. What if your MF is holding Yes Bank bonds? You don’t lose much since these bonds are already written off. You can as well wait! Most likely they will be side pocketed and you could realize some value in the end.