Mumbai, Oct. 15 -- According to media reports, the Supreme Court upheld the Bombay High Court's decision to quash Yes Bank's write-off of AT-1 bonds worth Rs 8,415 crore during its 2020 rescue and reconstruction.

The reported ruling is a setback for the bank. It has also raised concerns about the potential financial implications of the bond dispute.

The Supreme Court reportedly declined to interfere with the Bombay High Court's January 2023 order. The order had set aside the bank administrator's decision to write down the bonds. The write-off took place in March 2020 as part of Yes Bank's restructuring, backed by the Reserve Bank of India (RBI) and a consortium of lenders.

Yes Bank had written down two tranches of AT-1 bonds issued in ...