Disclosure Context

Nature of the Event

The disclosure concerns a judgment delivered by the Hon'ble Supreme Court of India on October 15, 2026, in proceedings relating to the write-down of Additional Tier-1 Bonds (AT1 Bonds) undertaken in March 2020. The total value of the bonds written down was ₹8,415 crore, an action connected to the reconstruction of YES BANK Limited.

Details of the Supreme Court Judgment

The Hon'ble Supreme Court upheld the judgment dated January 20, 2023, passed by the Hon'ble Bombay High Court. Consequently, the appeals filed by YES BANK Limited, the Reserve Bank of India (RBI), and the Union of India were dismissed. Any interim orders related to the case stand vacated.

The specific orders passed by the Supreme Court are:

1. The appeals challenging the Bombay High Court's order, which had set aside the write-down of the AT1 Bonds, are dismissed.

2. The payment of the annual coupon rate shall remain unaffected by the outcome of these appeals and must be made in terms of the original Information Memoranda.

3. All parties are to bear their own costs.

4. Any other pending proceedings in the matter may be taken to their logical conclusion, uninfluenced by this judgment.

Alleged Contravention

The contravention relates to an action undertaken by the Administrator appointed during the Bank's reconstruction in March 2020. The Bombay High Court had set aside the Administrator's order to write down the AT1 Bonds, a decision now upheld by the Supreme Court.

Financial and Operational Impact

As per the annexure, the Bank is currently reviewing the order and its implications. Quantifiable financial impact is provided on a pro forma basis:

  • The pro forma impact of reinstating the AT1 Bonds' principal amount on the Common Equity Tier 1 (CET1) Ratio (including Profits) as of June 30, 2026, is expected to be approximately 250 basis points.
  • The pro forma Tier 1 Ratio is expected to remain unimpacted at 14.0%.

The Bank will make suitable disclosures on the financial impact in due course.

Company's Response and Forward-Looking Statements

The Bank states it respects the judgment and is examining it in detail, including evaluating all available legal options and suitable actions or steps going forward.

The Bank affirms it has access to appropriate capital-management levers and preserves the flexibility to undertake additional capital actions, as considered appropriate, to pursue its growth objectives.

The Bank reiterates its focus on the continued strength of its franchise and on providing consistent service to customers.

#Tags: #YESBANK #SupremeCourt #AT1Bonds #SEBIDisclosure #RegulatoryCompliance #Neutral