Yes Bank is unlikely to pay coupons due this year on its additional tier-1 (AT1) bonds, even though the Supreme Court has set aside their 2020 write-off, according to a Reuters report carried by the Economic Times, which cites two people familiar with the matter. Yes Bank did not respond to a request for comment. Spectate Media has not seen the judgment and relies on press reports and a legal analysis.
What the court held
On 15 October 2026, a bench of Justices Dipankar Datta and Augustine George Masih dismissed appeals by Yes Bank, the RBI and the Centre and upheld the Bombay High Court's 2023 order, ThePrint reports. The bonds were ₹3,000 crore issued in December 2016 and ₹5,415 crore in October 2017, a total of ₹8,415 crore. The court held that the administrator ordered the write-off on 14 March 2020, a day after the final reconstruction scheme had dropped that provision, and that a general savings clause cannot confer a specific power. It called the RBI "a mere bystander". The Tribune says the coupon rates were 9.5% and 9%, and that the stock fell 15% in the report's body but 20% in its headline.
The coupon dispute
Retail holders say they did not receive the coupon due on 18 October. Bank sources say the bond terms give discretion over payment, that coupons can only be considered once the bonds are reinstated on the balance sheet, and that a review petition is being prepared. Losses from fiscal 2020 and 2021 are expected to be offset fully only by fiscal 2028. The bank's profit and loss account carried a debit balance of ₹5,279 crore, per its annual report. Bondholders have written to Axis Trustee Services asking for written confirmation. Spectate Media found no report of a stay or of a filed review petition as of 22 October.
Key numbers
- Write-off set aside: ₹8,415 crore (Supreme Court, 15 October 2026)
- Coupon due 18 October: Reported unpaid (Retail holders' account)
- Bank's profit and loss debit balance: ₹5,279 crore (Per annual report)
- Review petition: Being prepared (Per bank sources; none reported filed)
What boards and CFOs should note
Three points stand out. First, the ruling restores the bonds but not, so far, the interest. Second, if the quoted rates apply, annual coupons on ₹8,415 crore would be roughly ₹760 to ₹800 crore, Spectate Media's own estimate, since rates by tranche are not confirmed. Third, banks and investors will watch how regulators' powers are read after this case.
Source: Economic Times, citing Reuters, October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
