Supreme Court review petition challenges the October 15 ruling overturning YES Bank's ₹8,415 crore AT-1 bond write-down, with potential implications for its capital position

YES Bank has filed a review petition in the Supreme Court against its ruling overturning the ₹8,415 crore AT-1 bond write-down (File Photo)

Subrata Panda Mumbai

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YES Bank has filed a review petition before the Supreme Court seeking reconsideration of its October 15 judgment that set aside the bank’s write-down of Additional Tier-1 (AT-1) bonds worth ₹8,415 crore, according to an exchange filing on Friday.

The bank said it had approached the apex court under Article 137 of the Constitution of India, seeking a review of its judgment and order dated October 15, 2026, relating to the write-down of the bonds issued by the lender.

The development comes after the Supreme Court upheld the Bombay High Court’s January 2023 ruling that quashed YES Bank’s decision to write down the entire outstanding value of the AT-1 bonds in March 2020 as part of the bank’s reconstruction exercise.

The dispute concerns two issuances of AT-1 bonds — ₹3,000 crore carrying a coupon rate of 9.5 per cent, issued in December 2016, and ₹5,415 crore carrying a 9 per cent coupon, issued in October 2017.

YES Bank had written down the instruments in March 2020 following the Reserve Bank of India’s reconstruction of the lender, which was grappling with mounting bad loans, governance concerns and a deterioration in its financial position.

Axis Trustee Services, representing the bondholders, had approached the Bombay High Court in May 2020 against the write-down. The High Court ruled in favour of the bondholders in January 2023, a decision subsequently upheld by the Supreme Court on October 15 this year.

The Supreme Court’s judgment also addressed the payment of annual coupons on the bonds, holding that these would remain unaffected by the outcome of the appeals and would have to be paid in accordance with the respective information memorandums.

Following the judgment, Axis Trustee Services sought restoration of the bonds and their associated rights. The trustee had also sought the restoration of the instruments in the relevant depository and exchange records and indicated that it could initiate contempt proceedings over alleged non-compliance.

The ruling has implications for YES Bank’s capital position. The lender had earlier indicated that reinstatement of the principal amount could have an impact of around 250 basis points on its Common Equity Tier-1 (CET1) capital ratio, based on the June 2026 position. The bank had also indicated that the reinstatement would not affect its Tier-1 capital ratio in the same manner.

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First Published: Nov 13 2026 | 9:39 PM IST