# Supreme Court blocks Yes Bank's Rs 8,415 crore bond write-off

> Supreme Court rules Yes Bank cannot write off Rs 8,415 crore AT1 bonds.
- Title: Supreme Court blocks Yes Bank's Rs 8,415 crore bond write-off
- Summary: Supreme Court rules Yes Bank cannot write off Rs 8,415 crore AT1 bonds. Supreme Court voids Yes Bank's write-off of Rs 8,415 crore AT1 bonds, requiring the…
- Keywords: yes bank, at1 bonds, supreme court, bombay high court, rbi, banking regulation, bondholders, yes bank share price, bank restructuring, money, business, Supreme
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/bonds/supreme-court-rules-against-yes-banks-write-off-of-rs-8415-crore-at1-bonds/articleshow/134979517.cms
- Author: Indu Bhan
- Published: 2026-10-15T23:30:00+00:00
- Read time: 1 min
- Topics: yes bank, at1 bonds, supreme court, bombay high court, rbi, banking regulation, bondholders, yes bank share price, bank restructuring, money, business
## Supreme Court upholds HC ruling
Supreme Court Thursday upheld Bombay High Court's decision quashing Yes Bank's write-off of Rs 8,415 crore AT1 bonds during 2020 restructuring.
## Yes Bank shares fall 14.53%
Yes Bank shares tumbled 14.53% Thursday to ₹18.12 apiece after the ruling, while the broader market surged nearly 2%.
## Kotak MF suspends subscriptions
Kotak Mahindra Asset Management Company suspended subscriptions for two debt funds holding Yes Bank AT1 bonds to protect investors.
## AT1 bonds are high-risk securities
AT1 bonds are the riskiest fixed-income securities with high returns but require conversion to equity or write-off during bank distress.
## RBI's role questioned
The court questioned whether the RBI was aware of the consequences of not retaining the write-down clause in the reconstruction scheme.
## SC rules administrator lacked power
The Supreme Court held the administrator lacked powers to write down AT1 bonds not part of the restructuring scheme.
## Bondholders get relief
Yes Bank's AT-1 bondholders now receive Rs 8,415 crore plus interest after the court voided the write-off.
## Yes Bank violated RBI rules
The court found Yes Bank actively offered high-risk AT1 bonds to individual investors, violating RBI's Master Circular.
## RBI lapses noted
The court pointed to material irregularities in Yes Bank's functioning and criminal prosecutions against its personnel.
## Central government decision reversed
The court said the central government's decision to delete the write-down clause was dismantled by the administrator.
## Investor sentiment impacted
The ruling may dent investor sentiment as AT1 bonds feature loss absorption in financial distress.
## Key takeaway

Supreme Court voids Yes Bank's write-off of Rs 8,415 crore AT1 bonds, requiring the bank to pay bondholders.