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NEW DELHI: Private lender YES Bank’s additional tier 1 (AT1) bonds worth Rs 8,415 crore have been written down to zero, the company informed exchanges.
“The perpetual subordinated Basel-III compliant additional tier 1 bonds issued by the bank for Rs 3,000 crore on December 23, 2016 and perpetual subordinated Basel-III compliant additional tier 1 bonds worth Rs 5,415 crore on October 18, 2017 have been fully written down and stand extinguished with immediate effect,” YES Bank said in a regulatory filing on Saturday.
The lender added that as per rules if authorities decide to reconstitute or amalgamate a bank with any other, then such a bank is deemed as non-viable, and a conversion or write-down of AT1 instruments is then activated.
“Accordingly, the AT1 instruments will be fully converted or written-down permanently before amalgamation or reconstitution,” the cash-strapped lender said.
The Reserve Bank of India on March 5 had put YES Bank under moratorium and proposed a SBI-led restructuring package, which entails writing-down of over Rs 8,400 crore outstanding to AT1 bondholders.
Earlier, ET reported that bondholders had approached the Bombay High Court, but they later decided to postpone the matter after RBI showed willingness to negotiate with them.
YES Bank also late on Saturday reported a loss of Rs 18,564 crore at the end of December 31 against a profit of Rs 1,000 crore a year ago.
It had reported a loss of Rs 629 crore in the September quarter.
The lender’s bad loans shot up substantially to Rs 40,709 crore during the period under review.
Such loans were at Rs 5158 crore a year ago.
The gross NPA ratio came it at 18.87% versus 2.10% during the corresponding period last year.
It’s net NPA ratio was at 5.97%.
In line with the rise in bad loans, the lenders provisions rose to Rs 24,765 crores during the period of review versus Rs 548 crore last year.
