What the court decided
Yes Bank disclosed that the Supreme Court of India delivered judgment on 15 October 2026 in the long-running dispute over the write-down of its Additional Tier-1 (AT1) bonds, carried out in March 2020 during the bank's reconstruction. Per the filing, the court upheld the Bombay High Court order of 20 January 2023, which had set aside the Administrator's decision to write down those bonds, and dismissed the appeals filed by the Bank, the Reserve Bank of India and the Union of India. Any interim order stands vacated, and parties were left to bear their own costs.
The operative order also records that the payment of annual coupon shall remain unaffected by the outcome and must be made in terms of the Information Memoranda, and that pending proceedings may be taken to their logical conclusion uninfluenced by the judgment.
The capital question for a holder
The filing is candid that the full consequences are still being worked through: the bank said it is reviewing the order and its implications and will make suitable disclosures in due course. What it does quantify is a pro-forma capital effect — re-instating the AT1 principal would reduce the bank's CET1 ratio as on 30 June 2026, while the Tier-1 ratio on the same pro-forma basis would remain unchanged. That split — a dented core-equity ratio but an unchanged Tier-1 figure — is the central financial disclosure here.
The bank also stated it has access to capital-management levers and preserves flexibility to undertake additional capital actions, and that it is examining the judgment in detail, including evaluating available legal options.