Yes Bank is still assessing whether to pay the coupon due on its additional tier-one bonds after the Supreme Court overturned the lender’s Rs 8,415 crore write-off.
Yes Bank said on Saturday it has not yet decided whether to pay the coupon on its additional tier-one bonds, as the lender continues to assess the Supreme Court ruling that overturned the write-off of Rs 8,415 crore of such securities in March 2020. The bank said it retains discretion under the bond terms and has received queries from bondholders over the payment due on October 18, 2026.
In an exchange filing, the private sector lender said it was still examining the court’s order and the options available to it before making any call on the coupon. Yes Bank said it would inform investors once that assessment is complete and would make further disclosures as required under listing rules.
The uncertainty follows the Supreme Court’s decision this month to uphold the Bombay High Court’s ruling that set aside the write-off, saying the bank’s administrator had acted beyond his powers and outside the relevant regulatory framework. The bench also remarked that the Reserve Bank of India had stood aside while the bank’s Common Equity Tier 1 ratio fell to 0.6 per cent. Additional tier-one bonds are a form of bank capital that can absorb losses in stress, but they also carry heightened risk for investors.
Yes Bank has said that restoring the principal on those bonds would have a pro forma impact of about 250 basis points on its CET1 ratio as of June 30, 2026, while its Tier 1 capital ratio would remain at 14 per cent. The bank added that normal operations and customer services were continuing across branches and digital channels without disruption.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
