YES Bank files review petition in SC over ₹8,415 crore AT-1 bond write-down

In its 15 October ruling, the Supreme Court dismissed appeals by YES Bank, the Reserve Bank of India (RBI) and the Centre, upholding a Bombay High Court order that held that the bank’s administrator had no authority to write down the bonds as part of the lender’s 2020 rescue.

Mumbai: YES Bank has asked the Supreme Court to review its 15 October order upholding a Bombay High Court ruling against the write-down of ₹8,415 crore of additional tier-1 (AT-1) bonds, a move that could prolong the wait for bondholders.

“The Bank has filed a review petition under Article 137 of the Constitution of India before the Hon’ble Supreme Court of India seeking review of its judgment and order dated October 15, 2026 in relation to the write-down of additional tier-1 bonds aggregating to ₹8,415 crore,” the lender said in a late Friday disclosure to the stock exchanges.

In its 15 October ruling, the Supreme Court dismissed appeals by YES Bank, the Reserve Bank of India (RBI) and the Centre, upholding a Bombay High Court order that held that the bank’s administrator had no authority to write down the bonds as part of the lender’s 2020 rescue.

The case relates to the perpetual AT-1 bonds that were written down as part of the YES Bank Reconstruction Scheme, 2020. Bondholders and the trustee, Axis Trustee Services, challenged the decision before the Bombay High Court, which quashed the write-down in January 2023.

The Supreme court directed YES Bank to restore the bonds to bondholders with immediate effect. However, with the lender yet to act on the judgment, the YES Bank AT-1 Bond Holders Association, which represents around 400-450 affected investors, and Axis Trustee Services have written to the bank seeking restoration of the bonds and payment of pending interest dues.

“The bank will take all such steps and measures as are necessary and permissible under applicable law,” including consequential actions, available legal remedies and other steps that may appropriately be taken in accordance with the law, it said in a letter to Axis Trustee dated 30 October.

The lender has reiterated the same in other public disclosures, and has also informed stakeholders that it is continuing to evaluate and assess the matter

Shares of YES Bank ended 0.3% lower at ₹17.42 on the National Stock Exchange on Friday.

Reinstating the bonds is expected to have a significant capital and margin impact for the lender. In the earnings call, managing director and chief executive director Vinay Tonse had said that reinstatement of the AT-1 principal amount is expected to have a pro forma impact of approximately 240 basis points on the bank’s common equity tier-1 ratio, including profits. As of 30 September, the bank’s capital adequacy ratio was 14.5% and the common equity tier-1 ratio was 13.7%.

“Our overall Tier 1 capital ratio is expected to remain around 13.7% on a pro forma basis. We recognize that the distinction between CET-1 and overall Tier 1 capital is important. We will continue to assess the implications for our capital structure, regulatory buffers, balance Sheet strength, and future growth plans,” Tonse had said.

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Driven by a passion for news and commitment to accurate and ethical reporting, Anshika Kayastha has been covering the full spectrum of BFSI—from banks and NBFCs to fintechs, insurance, payments, regulators, personal finance and money markets for the past 13 years. <br><br>Based in Mumbai, her work at Mint spans comprehensive and insightful stories on sectoral trends, regulatory and policy shifts, corporate strategies, governance, and innovation. With a particular interest in fintech, she keeps a close watch on emerging players, disruptive business models, and the evolving regulatory landscape. <br><br>Prior to joining Mint in July 2024, Anshika honed her craft at The Hindu BusinessLine and Informist Media, to deliver incisive, well-sourced reporting on the forces shaping India's financial services. She holds a degree in media and communication from Symbiosis University. <br><br>When she's not tracking the latest RBI circular or tenaciously pursuing the next story, Anshika is most at home in the mountains of Himachal Pradesh. Warm, social, and endlessly curious, she's a self-confessed credit card enthusiast, and brings that same energy to offbeat TV series, puzzles, beach vacations, and competitive game nights.