New Delhi, Oct. 15 -- In a setback to private lender Yes Bank, the Supreme Court on Thursday upheld the Bombay High Court's judgment quashing the bank's Rs.8,415 crore AT-1 bond write-off.

The verdict has implications for how banks use these instruments to absorb losses during a financial crisis and for investors who hold them. It could clarify the extent to which banks can write off these instruments during a financial crisis and the legal procedures they must follow.

A bench of Justices Dipankar Datta and Augustine George Masih delivered its verdict after reserving judgment on 20 May, following submissions from the Centre, the Reserve Bank of India (RBI), Yes Bank, bondholders represented by Axis Trustee Services and other investors....