Yes Bank reviews capital strategy after Supreme Court backs AT1 bond reinstatement
Yes Bank said it is assessing how to handle reinstated AT1 bonds and unpaid coupons following a Supreme Court ruling, while keeping its growth agenda unchanged.
After the Supreme Court upheld the Bombay High Court’s order overturning the write-down of Yes Bank’s AT1 bonds, the lender announced it is evaluating how and when to reinstate those bonds and settle any outstanding coupons. CFO Niranjan Banodkar said the bank will assess the bond information memoranda and the court judgment before deciding on repayment to bondholders, including major investor Sumitomo Mitsui Banking Corp, which owns 24.9% of the bank.
Vinay Tonse added that any capital move will balance regulatory requirements, the cost and availability of capital, shareholder interests and the bank’s long-term objectives. Yes Bank expects its overall Tier 1 ratio to remain near 13.7%, comfortably above the Indian regulatory floor. While the treatment of unpaid coupons could add to the bank’s obligations, the institution affirmed that its business growth targets remain intact, citing a 23.7% year-on-year rise in advances and 17.6% normalized loan growth in the September quarter.
Why it matters
The bank's capital choices will influence its stability and credit supply in India's financial system.
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