BUSINESSBusiness Today · 19 hours agoLive
Yes Bank unlikely to pay AT-1 Bond coupons this year despite Supreme Court ruling: Report
Reported by Business Today, not nibnow. We are not the publisher of this story, only the source is.
WHY IT MATTERS
Investors in Yes Bank's AT-1 bonds may not receive coupon payments this year, affecting their returns and signaling ongoing financial stress at the bank.
WHAT HAPPENED
On October 15, the Supreme Court dismissed appeals filed by Yes Bank, the Reserve Bank of India (RBI) and the Union government, upholding the Bombay High Court’s January 20, 2023, judgment against the write-off of AT-1 bonds worth ₹8,415 crore.
KEY CONTEXT
AT-1 bonds are a form of contingent capital that banks issue to meet regulatory requirements; they can be written off or have coupons suspended if a regulator deems the bank's capital insufficient.
WHAT TO WATCH
- •Any further legal challenges or appeals by the bank or government
- •Potential RBI directives regarding Yes Bank's capital management
- •Market reaction and price movements of Yes Bank's AT-1 bonds
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