RBI to appeal HC order on Yes Bank AT-1 bonds

Bombay high court ruling could have a huge sectoral impact

- Gopika Gopakumar

The Reserve Bank of India will likely appeal the Bombay high court ruling that quashed the regulator and Yes Bank administrator's decision to write off additional tier-I (AT-I) bonds to save the lender from collapsing, according to two officials familiar with the matter.

This high court on Friday granted six weeks to Yes Bank to file its appeal against the order in the Supreme Court.

"RBI believes the writ petition is not maintainable and the order could have a huge sectoral impact. The central bank also believes that the administrator had all the powers of the board to write off the bonds and, therefore, the court's argument is not valid," said one of the two officials aware of the matter, requesting anonymity.

RBI approved the Yes Bank administrator's March 2020 decision to write off the AT-I bonds as part of a restructuring plan to save bank depositors from losing their savings.