Supreme Court on October 15 rejected Yes Bank's Rs 8,415-crore additional tier-1 (AT-1) bond write-off, following which the private lender's shares fell 15%.
The apex court bench of Justices Dipankar Datta and Augustine George Masih upheld Bombay HC decision quashing write-off of Rs 8,400-crore AT-1 bonds and ruled the lender must honour Rs 8,400-crore AT-1 bonds at prescribed coupon rates of 9.5% and 9%.
Consequently, the private lender is now liable to pay the AT-1 bonds liability of Rs 8,400 crore plus interest to the bondholders.
At 2:45 pm on October 15, Yes Bank shares were trading 15% lower at Rs 18.02 apiece.
Currently, it is unclear whether SMBC, which holds a near 25% stake in Yes Bank factored in the possibility of this liability, should the Supreme Court uphold Bombay High Court's decision on the AT-1 bondholders case.