Supreme Court Dismisses Yes Bank Appeal, Triggers ₹8,415 Crore AT1 Bond Liability

Yes Bank will have to absorb an ₹8,415 crore liability after the Supreme Court rejected its appeal against the March 2020 write‑down of Additional Tier‑1 bonds. The court upheld the Bombay High Court’s Jan 20 2023 ruling that set aside the earlier order to restore the bonds, and it dismissed appeals filed by the bank, the Reserve Bank of India and the Union government. The bonds were originally written down when the government and the RBI stepped in to rescue the crisis‑hit lender in March 2020. Bondholders had challenged that decision, leading to the High Court’s intervention and the subsequent Supreme Court judgment. Yes Bank said it respects the judgment and is reviewing all legal options. In a filing, the bank added that it has sufficient flexibility to manage its capital needs and can use appropriate capital‑management levers to support its growth plans. The pro‑forma impact of reinstating the AT1 principal on the bank’s Common Equity Tier‑1 (CET1) ratio, including profits, is expected to be a 250‑basis‑point rise as of June 30 2026, while the overall Tier‑1 capital ratio would stay at 14% on a pro‑forma basis. The ruling weighed on the share price, which fell 3.20% to close at ₹17.57 on the BSE on Friday. The bank reaffirmed its focus on franchise strength and consistent customer service.## Context