Business & FinanceTop StoryTop StoryLatest News
Yes Bank Delays Decision on AT-1 Bond Coupon Payments
Sentiment: NeutralHigh Priority
What Happened?
Yes Bank has not yet decided on coupon payments for its AT-1 bonds, pending evaluation of a Supreme Court ruling. The bank is assessing options after the court set aside a previous write-off.
Key points
- Yes Bank is evaluating a Supreme Court judgment regarding ₹8,415 crore worth of AT-1 bonds.
- The coupon payment for the 9% AT-1 bonds was due on October 18, 2026.
- The Supreme Court ruled that the write-off of the bonds was beyond the administrator's authority.
- Yes Bank's CET-1 ratio would be impacted by 250 basis points if the bonds' principal is reinstated.
- The bank's operations continue without interruption across branches and digital channels.
Key insights
- The Supreme Court's ruling may set a precedent for future bondholder rights.
- Yes Bank's ongoing evaluation could lead to significant changes in its bond management strategy.
- The bank's CET-1 ratio is crucial for its regulatory compliance and investor confidence.
Why it matters
The decision on coupon payments could affect bondholders and the bank's financial stability.
Entities
Yes Bank· CompanySupreme Court· OrganizationReserve Bank of India· Organization
Source
Business Standard
