Supreme Court Upholds Ruling on Yes Bank AT1 Bonds

India’s Supreme Court has upheld a ruling quashing Yes Bank’s 2020 write-off of ₹8,415 crore in Additional Tier 1 bonds, dismissing appeals by the bank, the Reserve Bank of India and the Union government. The decision reinstates the bonds’ principal liability, while the bank says it is reviewing the judgment and its legal options. The Supreme Court’s decision upholds a January 20, 2023, Bombay High Court judgment that set aside the write-down. The bonds were written off in March 2020, after authorities intervened to restructure the crisis-hit lender. Bondholders challenged the action, and the bank, the RBI and the government later appealed the High Court ruling. The Bombay High Court had concluded that the government-approved reconstruction scheme did not authorize the administrator to write down the bonds after Yes Bank was reconstituted. The Supreme Court’s dismissal of the appeals leaves that decision in place. Yes Bank said in a stock-exchange filing that it was examining the judgment in detail, including available legal options and possible next steps. The bank also said it had flexibility to manage its capital requirements and could consider additional capital actions as...