From mint · A Ksheerasagar · · 1m 20s
YES Bank seeks SC review of AT-1 bond write-down
YES Bank files Supreme Court review over ₹8,415 crore AT-1 bonds after stock rebounds 15%.
In brief
YES Bank files Supreme Court review over ₹8,415 crore AT-1 bonds after stock rebounds 15%. YES Bank asked the Supreme Court to review its October 15 ruling on ₹8,415 crore AT-1 bonds write-down, which could reduce its capital ratio by 240 basis points. Originally reported by mint.
YES Bank files SC review plea
YES Bank has asked the Supreme Court to review its October 15 ruling against the write-down of ₹ 8,415 crore in AT-1 bonds.
Bondholders' contempt petition
Axis Trustee Services filed a contempt petition seeking restoration of AT-1 bonds after YES Bank refused to pay coupons.
AT-1 bonds explained
AT-1 bonds are riskier financial instruments that can be written down during bank distress to absorb losses.
October 15 Supreme Court ruling
The Supreme Court upheld the Bombay High Court's decision to write down ₹8,415 crore in AT-1 bonds.
Stock price impact
Shares fell 28% in October but rebounded 15% in November, remaining down 19.35% from peak.
Capital ratio risk
Reinstating AT-1 bonds could reduce YES Bank's common equity tier-1 capital ratio by 240 basis points.
Review petition details
YES Bank filed a review petition under Article 137 of the Constitution seeking court review of October 15 ruling.
Investor concerns
Investors worry about capital position as YES Bank faces potential write-down of AT-1 bonds.
The key point
YES Bank asked the Supreme Court to review its October 15 ruling on ₹8,415 crore AT-1 bonds write-down, which could reduce its capital ratio by 240 basis points.
