NEW DELHI: Yes Bank has moved the Supreme Court seeking a review of its order that upheld the Bombay High Court's direction quashing the bank administrator's decision to write off Additional Tier 1 (AT-1) bonds worth Rs 8,415 crore in March 2020.
Yes Bank has sought a review of the October 15 order of the top court, which dismissed the appeals challenging the Bombay HC's January 20, 2023, judgment that had quashed the write-off.
The October 15 order is now the subject of the review. The HC, in its judgment, had quashed the administrator's March 2020 decision to write off AT-1 bonds worth Rs 8,415 crore.
Following this, Yes Bank filed appeals in the Supreme Court, and on October 15, it dismissed them, upholding the HC's direction that the write-off could not stand.
Now, Yes Bank wants the top court to review that dismissal and reconsider the matter afresh.
It is to be noted that AT-1 bonds are perpetual bonds issued by banks to increase their capital base, and they are riskier than traditional bonds, offering higher interest rates.
The RBI can ask a bank to cancel them if the bank is in trouble. AT-1 bonds are different from normal bonds. They have no fixed maturity; they are perpetual and are meant to strengthen a bank's capital base in times of stress. Because the risk is higher, the return is also higher.
Yes Bank's review petition seeks a hearing on whether the order suffers from any error that warrants reconsideration. If the top court finds merit in the review, it will rehear the question of whether the write-off of Rs 8,415 crore worth of AT-1 bonds was valid. If not, the October 15 order upholding the quashing will stand.