Key Events and Timeline

Supreme Court Judgment Background

  • On October 15, 2026, the Hon'ble Supreme Court of India delivered judgment in Civil Appeal Nos. 3182-3212 of 2025
  • The judgment upheld the Bombay High Court's January 20, 2023 decision that quashed YES Bank's March 14, 2020 decision to write off AT-1 Bonds
  • The Supreme Court dismissed all appeals filed by YES Bank, RBI, and Union of India
  • The court ordered that "payment of annual coupon rate shall remain unaffected by the outcome of these appeals"

Trustee's Ultimatum (October 28, 2026)

Axis Trustee Services Limited, as debenture trustee for AT-1 Bonds, issued a formal letter demanding:

  • Reinstatement of AT-1 Bonds with face value of ₹8,415 crores (ISIN INE528G08352 and ISIN INE528G08394)
  • Completion of all necessary corporate actions within 3 days (by October 31, 2026)
  • Specific actions required:
  • Reinstate bonds in books and register of debenture holders
  • Carry out corporate actions with NSDL and CDSL for ISIN reactivation
  • Take steps with BSE and NSE for bond restoration and trading resumption
  • Threatened contempt proceedings against YES Bank, its directors and officers for wilful disobedience of SC judgment

YES Bank's Response (October 30, 2026)

The Bank responded to Axis Trustee stating:

  • Acknowledges the Supreme Court judgment dated October 15, 2026
  • Commits to act in accordance with SC Judgment and applicable law
  • Currently examining the judgment and its implications in detail
  • Evaluating consequential actions, legal remedies, and available options
  • Rejects characterization of its conduct as "wilful disobedience"
  • States the assertions in trustee's letter are "baseless and without merit"
  • Will take all necessary steps permissible under applicable law

Previous Disclosures and Ongoing Evaluation

YES Bank had made prior disclosures on October 15, 16, 18, and 24, 2026 regarding the SC judgment. The Bank continues to evaluate:

  • All available options and suitable actions going forward
  • Exercise of coupon discretion rights under the AT-1 Bonds terms
  • Queries from bondholders regarding coupon payments
  • Specifically for 9% YBL AT-1 Bonds (Information Memorandum dated October 17, 2017) which had a coupon payment date of October 18, 2026

Financial Impact

  • Bond value: ₹8,415 crores in Additional Tier-1 Bonds to be reinstated
  • Coupon payments: Annual coupon rate payments must be made as per Information Memoranda
  • The Bank has not quantified the total financial impact of reinstatement and back payments

Parties Involved

  • YES Bank Limited (Issuer)
  • Axis Trustee Services Limited (Debenture Trustee)
  • Reserve Bank of India
  • Union of India
  • National Securities Depository Limited (NSDL)
  • Central Depository Services (India) Limited (CDSL)
  • BSE Limited
  • National Stock Exchange of India Limited
  • Rating Agencies: ICRA Limited, India Ratings and Research Private Limited, CARE Ratings Limited

Current Status

The Bank is still examining the SC Judgment and its implications. No specific timeline provided for completion of evaluation. The Bank expects to complete assessment "in due course" and will make further disclosures as required under Listing Regulations.

Assurance of Operations

The Bank assures that day-to-day operations and customer services continue seamlessly across all branches and digital channels without interruption.