Yes Bank has stated it does not expect material financial impact from the Supreme Court's pending judgment in the AT-1 bond write-down case. The bank's position rests on its assertion that the 2020 write-down was carried out in line with applicable terms and regulations.
The dispute traces to Yes Bank's 2020 reconstruction, when approximately ₹8,415 crore worth of Additional Tier-1 bonds were written down to zero as part of the rescue process. This was a critical step in stabilizing the bank after its earlier crisis.
Bondholders challenged the write-down, and in January 2023 the Bombay High Court set aside the decision, observing that the administrator lacked authority to take that step under the final reconstruction scheme. The ruling created significant uncertainty for the bank and regulators.
Yes Bank, the RBI, and the Central Government then appealed to the Supreme Court. Arguments have been completed and the court has reserved its judgment, meaning a decision is pending but not yet announced.
If the Supreme Court upholds the High Court's decision, Yes Bank has indicated any resulting financial liability will be accounted for in future reporting periods. The bank has not quantified potential exposure at this stage.
The outcome will set precedent for how AT-1 instruments are treated in future bank resolution cases—a matter with implications across India's banking and bond markets.
