Supreme Court Upholds Bombay High Court Order on Yes Bank AT1 Bonds
The Supreme Court dismissed the appeals challenging the Bombay High Court's January 2023 decision to set aside the write-down of Yes Bank's AT1 bonds.
The judgement relates to bonds worth Rs.8,415 crore that were written down during the bank's reconstruction in March 2020. The Supreme Court's decision upholds the earlier ruling that set aside the write-down.
The court also vacated any interim orders and directed that pending proceedings continue to their logical conclusion without being influenced by the judgement.
Yes Bank Financial Impact
According to the bank's disclosure, the judgement is expected to have a pro-forma impact of approximately 250 basis points on its CET1 ratio, based on figures as of June 30, 2026.
However, the bank expects its Tier 1 capital ratio to remain unchanged at 14.0% on a pro-forma basis.
The bank stated that the annual coupon payments on the bonds will remain unaffected and will continue to be made in accordance with the terms of the Information Memoranda.
Yes Bank Management and Next Steps
Yes Bank stated that it is examining the Supreme Court's judgement in detail and evaluating all available legal options and appropriate next steps.
The bank also said it has access to suitable capital-management measures and retains the flexibility to take additional capital actions, if required, to support its growth objectives.
Yes Bank AT1 Bonds Highlights
- Company: YES BANK Limited.
- Court: Supreme Court of India.
- Previous Order: Bombay High Court judgement of January 2023.
- Bonds Involved: Additional Tier-1 (AT1) bonds.
- Bond Value: Rs.8,415 crore.
- Original Write-down: March 2020.
- Appeals Dismissed: Appeals filed by Yes Bank, RBI and the Union of India.
- Estimated CET1 Ratio Impact: Approximately 250 basis points on a pro-forma basis.
- Pro-forma Tier 1 Ratio: 14.0%.
- Coupon Payments: To continue as per the Information Memoranda.
- Latest Disclosure: October 16, 2026.
What to Watch Next
- Investors may track further stock exchange disclosures from Yes Bank regarding the financial and regulatory capital implications of the Supreme Court's judgement.
- Updates on the bank's legal options, capital-management measures and the treatment of the AT1 bonds may provide further clarity on the impact of the ruling.
- Investors can also monitor subsequent filings for updates on the implementation of the judgement and any related proceedings.
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