Yes Bank unlikely to pay AT1 bond coupons despite bondholder demands

Yes Bank has signalled that it may not pay coupons on its additional tier-1 (AT1) bonds this fiscal year. The move comes after a Supreme Court decision that annulled the earlier write-off of these bonds.

Bondholders are pushing for repayment, arguing that the court's ruling emphasises that the dues remain unsettled. They say the obligations should be honoured in line with the judgment.

Yes Bank, however, maintains that it has the final authority over coupon payments. The bank's position raises concerns about how its ongoing financial losses could affect these obligations.

The standoff leaves bondholders and the lender at odds over the scope of the court's decision and the bank's discretion on payouts.