Supreme Court dismisses appeals, upholds set-aside of ₹8,415 crore AT1 bond write-down
Supreme Court dismissed appeals by the Bank, RBI and Union of India, upholding Bombay HC's order setting aside the ₹8,415 crore AT1 write-down.
By ScoutQuest · · 2 min read
- AT1 write-down set aside
- ₹8,415 crore
- Pro-forma CET1 impact
- ~250 bps
- Pro-forma Tier1 Ratio
- 14.0%
What has happened
The Hon'ble Supreme Court of India, on October 15, 2026, delivered its judgment in the proceedings relating to the write-down of Additional Tier-1 Bonds (AT1 Bonds) aggregating to ₹8,415 crore, undertaken in March 2020 in connection with the reconstruction of the Bank.
The Supreme Court has upheld the judgment dated January 20, 2023 passed by the Hon'ble Bombay High Court and consequently dismissed the appeals shared by the Bank, the Reserve Bank of India and the Union of India.
What the order states
- The appeals challenging the order of the Hon'ble Bombay High Court, setting aside the write-down of the AT1 Bonds, are dismissed. Interim order, if any, stands vacated.
- The payment of annual coupon rate shall remain unaffected by the outcome of these appeals and must be made in terms of the Information Memoranda.
- Parties are left to bear their own costs.
- Pending proceedings may be taken to their logical conclusion uninfluenced by the judgment.
What the Bank has said
- The Bank respects the judgment and is examining it in detail, including evaluating all available legal options and suitable actions/steps going forward.
- The Bank 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 remains firmly focused on the continued strength of its franchise and on providing customers with consistent service and support across their banking requirements.
The capital numbers disclosed
- The Bank is currently reviewing the order and its implications and will make suitable disclosures in due course.
- Pro-forma impact of re-instatement of the AT1 Bonds principal amount on the CET1 Ratio (including Profits) as on June 30, 2026 is expected to be ~250 bps.
- The Tier1 Ratio on a pro-forma basis is expected to remain unimpacted at 14.0%.
Points a retail investor can note
- The write-down of the AT1 Bonds has been set aside, and that position now stands upheld by the Supreme Court, with the appeals of the Bank, RBI and Union of India dismissed.
- The update itself puts a number on the capital effect of re-instating the AT1 Bonds principal amount, while stating that the Tier1 Ratio is expected to remain unchanged at 14.0% on a pro-forma basis.
- The order states that payment of the annual coupon rate remains unaffected and must be made as per the Information Memoranda.
- The Bank says it is examining the judgment in detail and evaluating all available legal options and suitable steps going forward.
Also from Yes Bank
Supreme Court AT-1 bond judgment: coupon decision on 9% bonds still pending
24 Oct 2026
Q2 FY27 call: Supreme Court AT-1 ruling seen cutting CET-1 by ~240 bps pro forma; net profit up 65%
23 Oct 2026
Yes Bank showed a negative technical structure with a death crossover near the 21 level, which is now an important resistance
21 Oct 2026
More numbers
- AT1 Bonds write-down amount₹8,415 crore
- Pro-forma impact of AT1 principal re-instatement on CET1 Ratio~250 bps
- Tier1 Ratio on a pro-forma basis14.0%
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