YES Bank Breaks Silence After Market Hours On ₹8,415 Crore AT1 Bond Case, Says Reviewing Supreme Court Judgment

Mumbai: YES Bank on Thursday informed stock exchanges after market hours that it was examining the Supreme Court's judgment concerning the write-off of Additional Tier-1 (AT1) bonds worth Rs 8,415 crore.

The clarification came after the bank's shares witnessed a sharp fall during Thursday's trading session following reports about the Supreme Court ruling.

Bank Responds To BSE Query

In its exchange filing dated October 15, YES Bank said the matter relates to AT1 bonds written down in March 2020 under the applicable contractual and regulatory framework.

The bank submitted its clarification after BSE sought an explanation regarding a CNBC-TV18 report highlighting a 10 per cent fall in its share price following the Supreme Court ruling.

Supreme Court Order Under Review

YES Bank confirmed that the Supreme Court pronounced its judgment on October 15 in appeals arising from the Bombay High Court's January 2023 decision.

The bank said it was obtaining and examining the final judgment to understand its implications.

It added that further disclosures would be made wherever required under applicable regulations.

What Happened Earlier?

In March 2020, YES Bank wrote down AT1 bonds worth Rs 8,415 crore during its financial restructuring.

Bondholders subsequently challenged the decision before the Bombay High Court.

On January 20, 2023, the High Court set aside the write-down. However, the ruling was stayed, and YES Bank approached the Supreme Court.

In March 2023, the Supreme Court extended the stay pending its final decision.

Bank Denies Disclosure Lapse

YES Bank maintained that it had disclosed important developments concerning the legal proceedings to stock exchanges at relevant stages.

It also said it was unaware of any undisclosed information, apart from the judgment, that could explain the sharp movement in its shares.

The bank reiterated its commitment to timely disclosures.

The financial implications of the judgment remain unclear until the bank completes its review of the final order.

Disclaimer: This report is based on YES Bank’s exchange filing. Financial implications remain subject to the Supreme Court’s final judgment.