Business · Markets · 2 hrs ago
India's Supreme Court upholds ruling against Yes Bank's AT-1 bond write-off
India's Supreme Court upheld a ruling against Yes Bank's bond write-off on Thursday.
The case concerns ₹8,415 crore in Additional Tier-1 bonds, which the bank cancelled in March 2020 during a reconstruction after its financial collapse.
Bondholders challenged the cancellation, and the Bombay High Court ruled in their favour in 2023.
The Supreme Court rejected appeals by Yes Bank, the Reserve Bank of India and the central government, leaving that ruling in place.
The court said the bonds' annual coupon payments must continue under their terms.
The decision may add costs and pressure Yes Bank's profitability, while the bank's capital position is now uncertain.
Yes Bank shares fell sharply after the decision, and investors are waiting for the bank to explain how it will respond.
India's Supreme Court upheld the Bombay High Court ruling quashing Yes Bank's ₹8,415 crore AT-1 bond write-off.
The bank had written off the bonds in March 2020 as part of a reconstruction scheme after its financial collapse.
The High Court ruled in favour of bondholders in January 2023, and Yes Bank, the RBI and the Centre appealed.
The Supreme Court said the annual coupon payments must remain unaffected and be made under the bonds' Information Memorandum.
Yes Bank shares fell after the ruling, dropping from ₹21.25 to ₹19.08 on the NSE, according to Livemint.
- Who
- India's Supreme Court, Yes Bank and the bondholders, including institutional and retail investors.
- What
- The court upheld a ruling quashing Yes Bank's ₹8,415 crore AT-1 bond write-off.
- When
- Thursday, October 15, 2026. Yes Bank wrote off the bonds in March 2020.
- Where
- India; the Supreme Court upheld a ruling by the Bombay High Court.
- Why
- Bondholders challenged the write-off, and the court considered whether the bank's administrator had authority to cancel the bonds under the reconstruction scheme.
Yes Bank, the RBI and the Centre
AT-1 bondholders
Write-off
Yes Bank, the RBI and the Centre
Yes Bank wrote off the bonds as part of its reconstruction scheme in 2020.
AT-1 bondholders
Bondholders challenged the write-off and sought recovery of their investments.
Court challenge
Yes Bank, the RBI and the Centre
Yes Bank, the RBI and the Centre appealed the Bombay High Court ruling.
AT-1 bondholders
Bondholders had won in the Bombay High Court, which quashed the write-off.
Yes Bank wrote off the AT-1 bonds as part of a reconstruction scheme.
The Bombay High Court ruled in favour of bondholders and quashed the write-off.
The Supreme Court upheld the Bombay High Court ruling.
- Bond value
- ₹8,415 crore
- Write-off
- March 2020
- Bombay High Court ruling
- January 2023
- Supreme Court ruling
- October 15, 2026
- Share price movement
- ₹21.25 to ₹19.08 on the NSE
3 sources
What people are saying
The appeals are dismissed
Payment of annual coupon rate shall remain unaffected by the outcome of these appeals and must be made in terms of the Information Memorandum