Yes Bank to move Supreme Court
Yes Bank on Saturday said it will file an appeal in the Supreme Court against the Bombay High Court order that quashed its decision to write off Rs 8,400 crore of additional Tier 1 (AT-1) bonds in 2020.
Speaking to reporters on Saturday, Prashant Kumar, chief executive and managing director of Yes Bank, confirmed that the bank would file an appeal in the apex court. Legal opinions point to strong grounds for a challenge, he added.
Pointing out that the order will not have an adverse impact on its core Tier 1 capital, Kumar said the Bombay High Court has only put a question mark on the process of writing down the perpetual bonds, and has not questioned the regulatory norms for carrying out such a process.
The Bombay High Court has given six weeks time for it to appeal, during which the order will be in abeyance, he said. The lender has not set aside any cash as provisions following the order.
Kumar’s announcement came on a day Yes Bank disappointed as it reported an 81 per cent drop in standalone net profit to Rs 51.52 crore from Rs 266.43 crore in the same period of the previous year.
This came as provisions jumped to Rs 844.75 crore from Rs 374.64 crore in the year-ago period.
Gross non-performing assets fell to 2.02 per cent from 12.89 per cent in the preceding three months as the lender transferred a bulk of its bad loans to J C Flowers Asset Reconstruction Company.