The private creditor Yes Bank has not yet decided on the coupon payments for its Additional Tier 1 (AT-1) bonds, stating that it reserves the right to make decisions regarding such payments according to the terms of the instruments themselves.
In a report submitted on Saturday, the bank stated that it is currently evaluating the Supreme Court's ruling, which overturned the write-off of AT-1 bonds amounting to 8,415 crore rupees, carried out in March 2020, and is studying available options.
The bank noted that it has received inquiries from bondholders regarding coupon payments on its 9% AT-1 bonds, which were issued in accordance with the information memorandum dated October 17, 2017. The coupon payment date was October 18, 2026.
The bank clarified: 'Since the Bank has not yet completed the assessment and analysis, it will communicate its decision, if required, regarding the exercise of coupon discretion on AT-1 bonds after the completion of the assessment and analysis.'
Yes Bank expects to complete its assessment shortly and provide further information in accordance with listing rules requirements.
Listen to this article
Earlier this month, the Supreme Court upheld the Bombay High Court's decision to overturn the write-off, ruling that the administrator of Yes Bank acted outside the scope of their authority and contrary to applicable legal framework. The bench of Dipankar Datta and Augustine George Masih declined to interfere with the High Court's decision of January 20, 2023, which annulled the write-off announced on March 14, 2020. The bench also noted that the Reserve Bank of India remained a 'mere observer,' while Yes Bank's Common Equity Tier 1 (CET-1) ratio fell to 0.6 percent.
The Supreme Court also ruled that annual coupon payments should not depend on the outcome of appeals and must be made in accordance with the information memorandums. However, the bond terms stipulate that coupon payments are discretionary and non-cumulative.
Yes Bank stated that the reinstatement of the bond nominal value would have a pro forma impact of 250 basis points on its CET-1 ratio as of June 30, 2026, while its Tier 1 capital ratio would remain unchanged at 14 percent.
The bank reported that its daily operations and customer service continued uninterrupted across all branches and through digital channels.