Yes Bank Seeks Supreme Court Review of AT-1 Bond Ruling
The bank is challenging an October order that left in place the quashing of its 2020 write-off of Rs 8,415 crore in bonds.
Key takeaways
- Yes Bank has asked the Supreme Court to review its October 15 order.
- The case concerns the 2020 write-off of Rs 8,415 crore in AT-1 bonds.
Yes Bank has asked the Supreme Court to review its October 15 order upholding a ruling against the bank’s write-off of Rs 8,415 crore in AT-1 bonds.
The Supreme Court had dismissed appeals challenging a Bombay High Court judgment that quashed the write-off. The High Court ruled that the bank’s administrator lacked authority to cancel the bonds under the reconstruction scheme.
The administrator wrote down the bonds on March 14, 2020, after the government imposed a moratorium on Yes Bank. AT-1 bonds are perpetual bank bonds that can help increase capital, and the source says the Reserve Bank of India can ask for their cancellation if a bank is in trouble.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
