Suryaa National Desk: Yes Bank has formally denied allegations of willful contempt of court regarding the restoration of Additional Tier-1 (AT-1) bonds valued at approximately ₹8,415 crore. The bank provided this clarification in an official filing to stock exchanges following a dispute with Axis Trustee Services, the trustee for the bondholders.
The conflict follows a March 2020 bank reconstruction process during which an administrator wrote off the bonds. The Bombay High Court later set aside this write-off, a decision that was upheld by the Supreme Court on October 15. Axis Trustee Services had issued an ultimatum to the bank, alleging that the institution was intentionally delaying the restoration of the bonds in depositories and failing to complete necessary corporate actions.
In response, Yes Bank stated that the allegations are baseless. The bank noted that it is carefully reviewing the legal and operational implications of the Supreme Court order and intends to implement the judgment according to legal processes. Additionally, the bank reiterated that under the terms of the AT-1 bonds, it retains discretionary rights regarding coupon payments and is currently seeking legal advice on the corporate process for bond restoration.