Supreme Court upholds ruling setting aside ₹8,415 crore Yes Bank bond write-down

This case involves an appeal by Yes Bank, the Reserve Bank of India, and the Union of India against a Bombay High Court judgment that set aside the Administrator's decision to write down ₹8,415 crore of Additional Tier-1 (AT-1) bonds issued by Yes Bank in 2016 and 2017.

Who it concerns: Appellants: Yes Bank Limited, Reserve Bank of India, and Union of India. Respondents: Axis Trustee Services Limited, Indiabulls Housing Finance Ltd., and others. Bench: Justices Dipankar Datta and Augustine George Masih.

What the court decided

• The Court decided the matter on October 15, 2026.
• The Court framed three specific issues for consideration: (A) whether a decision on merits is warranted given subsequent developments, (B) whether the Administrator could write down the bonds without a specific provision in the Reconstruction Scheme, and (C) whether the action was consistent with the RBI Master Circular and bond terms.
• The Court rejected the argument to close the matter based solely on subsequent financial improvements, stating it must resolve the legal questions based on the circumstances existing on March 14, 2020.

Also in the document

• The judgment is described as potentially the first of its kind by the Supreme Court to interpret parts of the RBI's Master Circular on Basel III Capital Regulations.
• The Court noted that the Solicitor General of India appeared for the RBI and State Bank of India, while senior counsel appeared for Yes Bank and the respondents.