YES BANK Limited has announced the invocation of Bank Guarantees (BGs) amounting to ₹281.44 crore. These BGs were issued in favor of the Department of Telecommunications (DoT) on behalf of a borrower, securing deferred spectrum payment obligations. The borrower is currently undergoing insolvency proceedings, and the bank’s claim has been admitted. The bank is evaluating its next steps in consultation with legal advisors.
Material Disclosure on Bank Guarantee Invocation
YES BANK Limited has disclosed the invocation of Bank Guarantees (BGs) totaling ₹281.44 crore. These guarantees, issued in 2018, were in favor of the Department of Telecommunications (DoT) to secure deferred annual spectrum payment obligations for a borrower. The borrower is presently involved in a corporate insolvency resolution process, and the bank’s claim for the BG amount has been acknowledged within these proceedings.
Bank’s Response and Ongoing Assessment
The DoT invoked these BGs on August 14, 2026. Given the ongoing insolvency proceedings, YES BANK is currently assessing the appropriate course of action in consultation with its legal counsel. The aggregate amount invoked, less the provisions already held by the bank, exceeds the materiality threshold prescribed under the applicable listing regulations, necessitating this disclosure.
Disclosure Context
This intimation is being made under the relevant listing regulations due to the material nature of the event. Further information regarding this disclosure will be hosted on the Bank’s website as per regulatory requirements.
Source: BSE
