Axis Trustee gives Yes Bank three working days to restore ₹8,415 crore AT1 bonds

The bank’s decision will have implications for its capital ratios and its obligations to bondholders. Reinstating the bonds would reduce Yes Bank’s common equity tier-1 (CET1) ratio by about 240 basis points, according to its management. The bank has said it is still assessing the judgment and has yet to decide whether to pay or cancel the unpaid coupons.

In a separate letter the same day, the trustee sought clarity on three coupon payments. These include coupons for the period from 14 March 2020 to 15 October 2026, the 9% coupon payable on 19 October and the 9.5% coupon due on 23 December. It also asked Yes Bank to specify a definite timeline for completing its assessment. The trustee asked the bank to set its own timeline. It did not impose a deadline.

According to a letter the trustee sent to the bondholders’ association on Thursday, Yes Bank had replied on 18 October that it was still evaluating the implications of the Supreme Court judgment. In an exchange filing on 24 October, the bank said it retained contractual discretion over the coupons and had not decided whether to pay or cancel them.