YES BANK is facing a severe ultimatum from its trustee, Axis Trustee Services Limited, demanding the reinstatement of Additional Tier-1 (AT-1) Bonds within three days. The trustee has threatened contempt proceedings before the Supreme Court of India if the bank fails to comply with the court’s judgment dated October 15, 2026. YES BANK has acknowledged the judgment and stated it is examining its implications and legal options.
Trustee Demands Bond Reinstatement Under Threat of Contempt
Axis Trustee Services Limited has issued a stern ultimatum to YES BANK, demanding the immediate reinstatement of the Additional Tier-1 (AT-1) Bonds and the undertaking of all necessary corporate actions within three days. This demand follows the Supreme Court of India’s judgment dated October 15, 2026, which affirmed the restoration of these bonds, aggregating to ₹8,415 crores.
Contempt Proceedings Looms
In a letter dated October 28, 2026, the Trustee explicitly stated that failure to comply with the judgment within the stipulated timeline will compel them to initiate contempt proceedings against YES BANK and its directors and officers. This action is on the grounds of alleged wilful disobedience of the Supreme Court’s directive.
YES BANK’s Response
YES BANK, in its reply dated October 30, 2026, acknowledged the Supreme Court’s judgment and reiterated its commitment to act in accordance with the ruling and applicable law. The bank stated it is fully examining the judgment and its implications, and will take necessary and permissible steps. However, the bank rejected the characterisation of its conduct as wilful disobedience, deeming the assertions in the Trustee’s letter as baseless.
Background of the Judgment
The Supreme Court’s judgment on October 15, 2026, upheld a previous Bombay High Court ruling from January 20, 2023. This ruling had quashed the bank’s previous decision from March 14, 2020, to write down the AT-1 bonds. The Supreme Court’s decision mandates that the payment of annual coupon rates shall remain unaffected.
Current Status of Bonds
The Trustee noted that despite the Supreme Court’s judgment and subsequent communications calling for the restoration and activation of the relevant ISINs (INE528G08352 and INE528G08394) with depositories like NSDL and CDSL, the bonds have not yet been restored. The Trustee indicated that they have received no confirmation of restoration and believe the bank has not initiated any corporate action to this effect.
Disclosure History
This development follows prior disclosures by YES BANK on October 15, 16, 18, and 24, 2026, regarding the ongoing examination of the Supreme Court’s judgment and evaluation of legal options.
Source: BSE
