The trustee’s letter on Oct. 28 demands Yes Bank restore ₹8,415 crore of AT1 bonds, citing the Supreme Court’s decision that the 2020 write‑off was unlawful. The letter warns of contempt proceedings if the bank fails to act within three days.
In its Oct. 30 exchange filing, Yes Bank said it had communicated with the trustee and reiterated its commitment to comply with the court’s judgment. The bank rejected the allegation of wilful disobedience, calling the trustee’s assertions baseless.
The bonds were written off in March 2020 as part of Yes Bank’s reconstruction, a move that was later annulled by the Bombay High Court and upheld by the Supreme Court. The annulment allows bondholders to seek reinstatement.
Axis Trustee has requested the reversal of write‑off entries with the National Securities Depository Ltd. and Central Depository Services Ltd., and the reinstatement of the bonds on the BSE and NSE. This would restore the bonds to the market and affect the bank’s capital structure.
The bank has not yet issued a timetable for resolution, but the dispute could tighten headroom for its CET1 ratio and increase scrutiny from regulators. Market participants will watch the next board meeting for any decision.