Yes Bank Denies Deliberate Non-Compliance in AT-1 Bond Row

Yes Bank has responded to a compliance notice from Axis Trustee Services, categorically rejecting suggestions that it deliberately failed to adhere to regulatory directives relating to its AT-1 bond structure.

The lender clarified that a comprehensive review of legal and operational implications of the Supreme Court's judgment was undertaken as a prudent measure to ensure full compliance with the verdict and applicable regulatory frameworks. The bank maintained that this exercise was part of its standard governance protocols rather than an attempt to circumvent court orders or regulatory requirements.

The AT-1 bond controversy emerged following the bank's 2020 crisis when the Reserve Bank of India mandated a write-down of the bonds to recapitalize the lender. The Supreme Court later intervened in the matter, leading to the recent judgment that has now become the subject of compliance discussions between the bank and its trustees.

Yes Bank's response underscores the institution's commitment to regulatory compliance and suggests that ongoing deliberations with stakeholders aim to resolve the matter through proper legal channels. The bank's position reflects its broader effort to rebuild credibility following its financial distress and subsequent recovery under new management.