Yes Bank said it is examining a Supreme Court judgment and remains committed to acting in accordance with it after a trustee demanded the reinstatement of ₹8,415 crore in Yes Bank bonds written down in 2020.

Key Takeaways

  • Axis Trustee Services gave the bank three days from its October 28, 2026 notice to take necessary corporate actions.
  • The trustee warned it could initiate contempt proceedings; Yes Bank rejected allegations of wilful disobedience.
  • The notice seeks restoration of two bond series in records and on trading platforms.

What the trustee wants for Yes Bank bonds

Axis Trustee Services, acting for holders of the Additional Tier 1 (AT-1) bonds, asked Yes Bank to reinstate the instruments and take all necessary corporate actions within three days of its October 28 notice.

The trustee said it would be constrained to initiate contempt proceedings before the Supreme Court against the bank and its directors and officers without further notice if the requested steps were not taken within its specified timeline.

Bank reviews judgment and implications

Yes Bank said it was examining the Supreme Court judgment and its implications in detail and would take steps necessary and permissible under applicable law. It rejected the trustee’s characterization of its conduct as wilful disobedience, calling the assertions baseless and without merit.

The Supreme Court upheld a January 2023 Bombay High Court judgment reinstating the bonds, which the bank’s then-administrator had written down in March 2020. Earlier that month, the Reserve Bank of India’s draft reconstruction scheme had proposed a permanent, full write-down of the bank’s qualifying AT-1 instruments.

Restoration of records and trading

In a communication addressing bondholders’ concerns about unpaid coupons, the trustee said its notice sought reactivation of the bonds in the bank’s books and holder registers, along with action through NSDL and CDSL.

The trustee also sought reversal of entries, write-offs and cancellations and steps with BSE and NSE to restore the bonds on their platforms, including the resumption of trading. The two series carried coupon rates of 9% and 9.50%.

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