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Supreme Court upheld Bombay High Court ruling against write-down of Yes Bank AT-1 bonds, reinstating them as debt instruments with coupon payments due

By ScoutQuest · Fri 16 Oct 2026, 11:29 AM IST · 1 min read

Impact on CET-1 ratio

250 basis points

Heard on business television between 11:29:57 - 11:32:57 IST.

• Supreme Court ruling came after six years of litigation, upholding Bombay High Court's decision that AT-1 bonds cannot simply be written off.
• Bank disclosed pro forma impact of reinstatement on CET-1 ratio expected to be around 250 basis points, broadly in line with market expectations.
• Ashwin Parekh, managing partner at Ashwin Parekh Advisory Services, said the ruling establishes AT-1 bonds as debt instruments, not equity, meaning coupon interest must be paid as per the ruling.
• He noted multiple classes of investors held these bonds including banks, NBFCs and mutual funds, and earlier the regulator and RBI had upheld the write-off treating it like an equity instrument causing losses to unit holders.
• He said this issue is now addressed since the instrument's debt character has been affirmed.

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