SC strikes down YES Bank’s ₹8,415-crore AT1 bond write-off
What Happened
The Supreme Court dismissed appeals challenging the Bombay High Court’s January 2023 judgment that had quashed the write-off of YES Bank’s ₹8,415-crore Additional Tier-1 bonds during its 2020 restructuring. The dispute centred on whether the bank’s administrator had the legal authority to extinguish the bonds under the reconstruction scheme.
Key Takeaways
The verdict is a major setback for YES Bank and relief for AT1 bondholders. The stock saw a steep sell-off following the ruling, with different reports recording declines ranging from about 13% to as much as 20% during Thursday’s trade.