Supreme Court upholds quashing of Yes Bank’s Rs 8,415 crore AT1 write-off
Why in the news
On 15 October 2026 the Supreme Court dismissed appeals led by Yes Bank and upheld the Bombay High Court verdict that set aside the write-off of Additional Tier-1 (AT1) bonds worth ₹8,415 crore.
Key facts
- Bench: Justices Dipankar Datta and Augustine George Masih; the court found no reason to interfere with the High Court ruling and decided the case on merits.
- Amount: AT1 bonds of ₹8,415 crore.
- Authority: The Administrator could not write down the bonds without a specific provision in the reconstruction scheme.
- Compliance: The write-down also did not follow the RBI Master Circular or the bonds’ information memoranda.
- Bombay HC (20 January 2023): It quashed the decision of 14 March 2020, noting that the bank stood reconstituted from 13 March 2020, when the final scheme came into force.
| Date | Event |
|---|---|
| 5 March 2020 | RBI places Yes Bank under moratorium |
| 13 March 2020 | Final reconstruction scheme takes effect |
| 14 March 2020 | Administrator informs exchanges of AT1 write-down |
| 20 January 2023 | Bombay HC quashes the write-down |
| 15 October 2026 | Supreme Court upholds HC verdict |
About the Yes Bank reconstruction
After the moratorium, the RBI framed a reconstruction scheme for Yes Bank under the Banking Regulation Act, 1949. The draft scheme contained a clause to write down AT1 bonds, but that clause was removed from the final scheme sanctioned by the Central Government. The original challenge was filed by Axis Trustee Services Limited on behalf of debenture holders, along with individual bondholders and other investors.
Exam angle
- The case turned on whether an Administrator can write down AT1 bonds without express power in the final scheme.
- Bank reconstruction schemes are made under the Banking Regulation Act, 1949.
- Remember the amount (₹8,415 crore) and the HC verdict date (20 January 2023).