Supreme Court backs ruling against YES Bank AT1 bond write-off
In short
The Supreme Court upheld a ruling that said YES Bank’s AT1 bond write-off was not valid. The bonds were worth Rs 8,415 crore and were tied to the bank’s March 2020 restructuring plan.
This matters because bondholders may now have a route to recover money. Shares of YES Bank fell 13% on Thursday, but the full cost to the bank is not stated.
What the reporting says
The Supreme Court upheld the Bombay High Court’s verdict that invalidated YES Bank’s write-off of AT1 bonds totaling Rs 8,415 crore, part of a March 2020 restructuring plan. The ruling follows appeals by YES Bank, the RBI and the Centre after bondholders challenged the move. The immediate consequence is a possible recovery path for investors, while the final financial impact on the bank is not stated.
Why it matters
The Supreme Court confirmed the Bombay High Court’s decision against YES Bank’s write-off of AT1 bonds worth Rs 8,415 crore from the March 2020 restructuring plan. Investors had challenged the action, and YES Bank, the RBI and the Centre had appealed. The ruling gives bondholders a possible recovery route, while the market reaction included a 13% fall in YES Bank shares on Thursday.