Supreme Court deals setback to Yes Bank over bond write-off
The Supreme Court has delivered a ruling that affects Yes Bank's handling of Additional Tier-1 (AT-1) bonds during its 2020 financial crisis. The Reserve Bank of India had intervened in the bank that year, appointing an administrator to oversee operations. The administrator subsequently wrote off AT-1 bonds valued at ₹8,415 crore, a move designed to shore up the bank's capital position during the bailout process.
The court's decision now casts doubt on aspects of that debt restructuring, creating fresh complications for the troubled lender. The ruling underscores ongoing disputes surrounding the bank's recovery and the adequacy of the RBI's regulatory approach during the intervention.
