Axis Trustee Services has issued a strong warning

Axis Trustee Services has issued a strong warning to Yes Bank regarding ₹8,415 crore worth of AT-1 bonds, which were written off during the bank's 2020 reconstruction. On October 15, 2026, the Supreme Court upheld the Bombay High Court's decision quashing the write-off, paving the way for restoration of these bonds to investors. Subsequently, Axis Trustee issued a three-working-day notice on October 28, asking Yes Bank to reinstate the bonds in its records, reactivate them through NSDL and CDSL, and restore trading on NSE and BSE. The trustee also warned that failure to comply could lead to contempt proceedings against Yes Bank, its directors and responsible officers before the Supreme Court. However, Yes Bank has rejected allegations of wilful disobedience and stated that it is examining the judgment and its legal implications. This development is important for Yes Bank because restoring the bonds could reduce its CET1 capital adequacy ratio by approximately 240 basis points, from 13.7% to around 11.3–11.4%, creating pressure on its capital position. The matter remains significant for shareholders as well as AT-1 bondholders, particularly regarding pending coupon payments.