Stories
Yes Bank Explores Legal Options Following Supreme Court Ruling on AT-1 Bonds
M
Moneycontrol•17-10-2026, 20:48
Yes Bank Explores Legal Options Following Supreme Court Ruling on AT-1 Bonds
- •Yes Bank announced it is evaluating all available legal options, including a potential review petition, following the Supreme Court's ruling on AT-1 bonds.
- •The Supreme Court upheld the Bombay High Court judgment stating that administrators lacked authority to write off AT-1 bonds worth Rs 8,415 crore in March 2020.
- •The bank has not accounted for the financial impact of the ruling in its Q2 FY27 results, posting a net profit of Rs 1,084 crore instead of a net loss of Rs 5,213 crore.
- •If the financial impact had been recognized, the bank's annualized return on average assets for the September quarter would have turned negative to 4.3 percent.
- •The common equity tier-1 ratio would have dropped to 11.4 percent on a pro-forma basis compared to the reported 13.7 percent.
Key Questions Answered
Yes Bank is evaluating all available legal options, including potential further proceedings before the Supreme Court, in consultation with its legal advisers after the recent ruling on AT-1 bonds.
The Supreme Court upheld the judgment because it ruled that the administrators lacked the authority to write down the bonds in March 2020, and that such action should have been taken by the Reserve Bank of India.
If Yes Bank had recognized the financial impact of overturning the write-off of Rs 8,415 crore worth of AT-1 bonds, its reported net profit of Rs 1,084 crore for the September quarter would have turned into a net loss of Rs 5,213 crore.
