ATSL’s notice on re-instatement of written-down AT-1 Bonds: Yes Bank says fully committed to acting in accordance with SC Judgment

Yes Bank said it remains fully committed to acting in accordance with the recent Supreme Court (SC) Judgment, which upheld a January 2023 Bombay High Court judgment re-instating the Additional Tier-I bonds that were written-down by the Bank’s then Administrator in March 2020, and applicable law.

The aforementioned statement comes in the backdrop of Axis Trustee Services Ltd/ ATSL (in its capacity as the trustee for the AT-1 Bonds issued by the Bank) issuing a “letter/ notice” to the Bank on October 28, 2026, calling upon the Bank to re-instate the AT-1 Bonds (aggregating ₹8,415 crore) and take all necessary corporate actions within three days.

ATSL has also stated that unless such steps are taken within the timelines specified in its letter, it will be constrained to initiate contempt proceedings before the SC against the Bank and its directors and officers without further notice on the grounds of wilful disobedience by the Bank of the SC Judgement.

Yes Bank, as per its regulatory filing, has informed the Trustee that it is cognizant of the matters and is examining the SC Judgment and its implications in detail. The Bank will take all such steps and measures as are necessary and permissible under the applicable law, it added.

The Bank does not accept the characterisation in your Letter of its conduct as wilful disobedience and the assertions in your Letter are baseless and without merit. The Bank's examination of these matters and evaluation of the consequences is towards compliance with the SC Judgment. The Bank will take all such steps and measures as are necessary and permissible under applicable law.

The Bank said it does not accept the characterisation in ATSL’s letter of its conduct as wilful disobedience, stating that the assertions in the Trustee’s letter are baseless and without merit.

Yes Bank underscored that its examination of these matters and evaluation of the consequences are towards compliance with the SC judgment. Further, it will take all such steps and measures as are necessary and permissible under applicable law.

Responding to the Yes Bank AT1 Bond Holders’ Association’s concerns relating to unpaid coupons on the bank’s two series (coupon rates: 9 per cent and 9.50 per cent) of AT-1 Bonds, ATSL, in a communication to the Association, said its notice to the Bank seeks re-instatement/activation of the said Bonds in the bank’s books and in its register of debenture holders/beneficial owners or their successors.

Further, the notice also wants the Bank to carry out the requisite corporate actions with NSDL and CDSL for reactivation of the two bond series, for reversal of all entries, write-offs and cancellations effected pursuant to the impugned decision and take all steps with BSE and NSE for restoration of the said bonds on their respective platforms, including resumption of trading therein.