YES BANK bondholders are seeking confirmation on the 9% coupon due Oct. 18 after India’s Supreme Court upheld a Bombay High Court ruling voiding the bank’s 2020 AT1 write-down.
The Supreme Court on Oct. 15 dismissed appeals by YES BANK, the Reserve Bank of India and the Union of India, leaving the lower court’s decision in place. That ruling set aside the write-down of ₹8,415 crore in Additional Tier 1 (AT1) bonds. The Supreme Court said coupon payments must follow the bonds’ Information Memoranda and that the annual rate would not change because of the appeals.
Bondholders say they had not received the Oct. 18 payment on the ₹5,415 crore series, issued in 2017. Reuters said it reviewed a letter in which a bondholders’ association asked Axis Trustee Services to get YES BANK’s written confirmation on whether the coupon had been paid, cancelled or remained outstanding. The Economic Times also reported the request.
A separate ₹3,000 crore AT1 issue, sold in 2016, carries a 9.5% annual coupon. YES BANK’s Basel III disclosure classifies that coupon as fully discretionary and non-cumulative. At an Oct. 19 earnings call, Chief Financial Officer Niranjan Banodkar said the bank was still assessing when to reinstate the bonds and make coupon payments.
Reuters, citing two people familiar with the matter, reported that YES BANK was unlikely to pay coupons due this year. One source said the bank was preparing to seek a review of the ruling. YES BANK did not respond to Reuters’ request for comment.
In an Oct. 16 exchange disclosure, YES BANK estimated that restoring the AT1 principal would reduce its Common Equity Tier 1 (CET1) ratio by about 250 basis points, based on June 30, 2026, figures. The bank said its pro forma Tier 1 ratio would remain at 14.0%. EconoTimes previously reported the bank’s estimated capital impact.
The next coupon date for the 2016 issue is reported as Dec. 23, 2026, by The Economic Times and The Times of India. Bondholders are seeking advance clarity on the payment process and which holders would be eligible.
