Supreme Court Strikes Down Yes Bank’s ₹8,415 Crore AT1 Bond Write-Off
What Happened
The Supreme Court on October 15 upheld the Bombay High Court’s 2023 decision quashing Yes Bank’s ₹8,415 crore AT1 bond write-off during its 2020 reconstruction. The court held that the bank’s administrator lacked authority to execute the write-down after the final reconstruction scheme did not retain that provision.
Key Takeaways
Yes Bank expects reinstating the AT1 bonds to reduce its common equity capital ratio by about 250 basis points, while its overall Tier 1 capital ratio would remain around 14% on a pro-forma basis.