Bondholders of Yes Bank’s additional tier one (AT1) bonds say they have not received a coupon that fell due just days after the Supreme Court restored Rs 8,415 crore of the written-down bonds. An association of bondholders has asked Axis Trustee Services to get written confirmation from the bank on whether the coupon has been paid, cancelled or is still outstanding. A second coupon is due in December.
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Yes Bank AT1 Bond Case: Key Dates
| Date | Development |
| March 14, 2020 | The administrator wrote down the full value of the AT1 bonds a day after announcing the reconstruction scheme. |
| January 20, 2023 | Bombay High Court quashes the write-off. |
| March 3, 2023 | The Supreme Court extends the stay on the High Court order. |
| October 15, 2026 | Supreme Court dismisses appeals by Yes Bank, RBI and the Centre, upholding the quashing |
| October 18, 2026 | Annual coupon on the 9% bonds falls due |
| December 23, 2026 | Annual coupon on the 9.5% AT1 bonds scheduled |
What Bondholders Want From the Trustee
Bondholders have asked the trustee to clarify:
- Whether the October coupon has been paid, cancelled, or remains outstanding
- How the December coupon will be treated
- The relevant record date
- How eligible beneficial owners will be identified
- Arrangements for making the payment
They are relying on the judgment, which states that the annual coupon rate will remain unaffected by the outcome of appeals and that payments must follow the respective information memoranda.
Why the Supreme Court Backed the Investors
The Supreme Court dismissed appeals by Yes Bank, the RBI and the Centre. Its core finding is that the power to write down AT1 bonds had to flow from the reconstruction scheme itself. The court also questioned the RBI-appointed administrator’s authority to order the write-down. The ruling came nearly four years, 23 hearings and six bench changes after the High Court decision.
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Yes Bank AT1 Verdict: Impact on Capital, Profit and Share Price
Yes Bank’s Q2FY27 net profit rose 65% to Rs 1,080 crore, but the verdict’s impact is not booked in it. Pro forma figures show a net loss of Rs 5,217 crore and a CET1 ratio of 11.4%. Nomura estimates a hit of about Rs 6,300 crore and cut its target price to Rs 18. Crisil says CET1 could fall to about 10% if the bank must pay past AT1 coupons.
The stock ended 3.14% lower at Rs 16.36 on Wednesday and slipped to about Rs 16.05 on Thursday, around 20% below its pre-judgment level.
Management is calmer. The bank says it does not need to raise capital immediately. Moody’s has affirmed its Ba1 deposit rating. Sumitomo Mitsui Banking Corp holds about 25%, so any capital infusion or dilution will matter.
What Happens Next
The trustee’s response on the unpaid coupon will be the first test of how the ruling is applied in practice, and the December 23 payment on the 9.5% bonds is the next date to watch. Meanwhile, Yes Bank says it is evaluating options to further strengthen its capital buffers. Investors in India’s AT1 market are also likely to watch how the ruling shapes the treatment of bondholders in future bank rescues.
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