Supreme Court upholds quashing of Yes Bank’s ₹8,415-crore AT1 bond write-off
The Supreme Court upheld the Bombay High Court ruling that quashed Yes Bank’s ₹8,415-crore Additional Tier 1 bond write-off. The Court held that the bank’s administrator lacked legal authority to write off the bonds. The ruling affects investors who challenged the cancellation of the securities. AT1 bonds are designed to absorb losses when a bank faces financial stress. The judgment raises questions about the powers of administrators under banking-resolution frameworks. It is significant for banking regulation, investor protection, and financial-stability questions. [2]
Try the question
Which type of instrument was involved in the Yes Bank dispute?
Answer: (b) Additional Tier 1 bond
The correct answer is (b) Additional Tier 1 bond.