Yes Bank rejected claims of wilful disobedience after Axis Trustee Services threatened contempt action over Rs 8,415 crore in AT-1 bonds. The bank said, "The bank does not accept the characterisation in your Letter of its conduct as wilful disobedience." It is now working to comply with the Supreme Court judgment.

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Yes Bank has rejected allegations of wilful disobedience by Axis Trustee Services over the delay in restoring Rs 8,415 crore worth of Additional Tier-1 (AT-1) bonds, even as the trustee has threatened to initiate contempt proceedings against the lender, if the bonds are not reinstated within three days.

In a stock exchange filing on October 30, Yes Bank said it had communicated with Axis Trustee Services regarding the Supreme Court judgment. The trustee had written to the bank on October 28, asking it to reinstate the bonds and complete all necessary corporate actions within three days.

"The bank does not accept the characterisation in your Letter of its conduct as wilful disobedience…The Bank's examination of these matters and evaluation of the consequences is towards compliance with the SC Judgment," the lender said in a letter to Axis.

In a seperate disclosure on October 24, Yes Bank said that under the terms of the AT1 Bonds, the bank retains the right to exercise coupon discretion in respect of the bonds.

Axis Trustee Services had given Yes Bank three days to restore the bonds failing whichvit will initiate contempt proceedings against the lender for alleged non-compliance with the Supreme Court's order in October.

The trustee had written to Yes Bank on October 28, asking the bank to reinstate the bonds and complete all necessary corporate actions.

Supreme Court upheld Bombay High Court order

The dispute dates back to March 2020, when Yes Bank's administrator decided to write down Rs 8,415 crore worth of AT-1 bonds as part of the bank's reconstruction.

Axis Trustee had challenged the decision before the Bombay High Court, which, in January 2023, quashed the write-off. YES Bank, RBI and the Union government subsequently challenged the order before the Supreme Court.

On October 15, 2026, the Supreme Court dismissed the appeals and upheld the Bombay High Court judgment.