Supreme Court upholds quashing of Yes Bank's ₹8,415 crore AT1 bond write-off

What happened

• A Supreme Court bench of Justices Dipankar Datta and Augustine George Masih dismissed appeals by Yes Bank and others and upheld the Bombay High Court's judgment of 20 January 2023, which quashed the write-off of the bank's Additional Tier-1 (AT1) bonds, according to Bar and Bench and Upstox.
• The write-off was carried out in March 2020 during the bank's reconstruction. The bonds were worth ₹8,415 crore: ₹3,000 crore at a 9.5% coupon and ₹5,415 crore at 9%, Kotak Neo reported. Kotak Neo quoted a bondholder representative as saying the court found the write-off "illegal and arbitrary".
• Upstox said the ruling means Yes Bank cannot write off the bonds and that the coupon payments on them are unaffected. Kotak Neo said the bank had maintained that the write-down complied with the bond terms and regulations, and that in its FY26 disclosures it did not expect the litigation to have a material financial impact.
• The shares fell to ₹16.96, down 20% from the previous close of ₹21.20, according to Upstox and Kotak Neo, on volume of more than 62 crore shares across NSE and BSE. They closed at ₹18.12 on Kite data, down 14.53%.
• Kotak Neo said the verdict came ahead of the bank's September-quarter results, due on 17 October.

Why it matters

Good to know: AT1 bonds are perpetual bonds that banks issue to raise capital. The terms allow a bank's regulator to write them down in specified circumstances, which is why the legal question was whether those conditions were met in 2020.

Key facts

Bonds at issue

₹8,415 crore (₹3,000 crore at 9.5%, ₹5,415 crore at 9%)

Ruling

Appeals dismissed; Bombay High Court judgment of 20 January 2023 upheld

Day's low

₹16.96, down 20% from ₹21.20

Next date

September-quarter results on 17 October

Read the source

• YES Bank shares crash 20% after Supreme Court sets aside plea on AT1 bond write-off: What investors should knowUpstox
• YES Bank Share Price Crashes 20% After Supreme Court Ruling On ₹8,415 Crore AT1 BondsKotak Neo
• Supreme Court upholds quashing of Yes Bank's ₹8,415 crore AT1 bond write-offBar and Bench

Yes Bank in the news before

1. 19 OCT 2026 · RESULTSYES Bank's Q2 profit rises 65% to ₹1,080 crore; auditors flag Supreme Court AT1 ruling