Nivedita Bhardwaj Comments on Supreme Court Verdict on YES Bank’s ₹8,415 Crore AT1 Bond Write-off and Its Impact on Foreign Investors

The Supreme Court’s verdict on YES Bank’s ₹8,415 crore Additional Tier-1 (AT1) bond write-off has raised important questions regarding investor confidence, regulatory certainty and the treatment of creditors in bank resolution proceedings. Nivedita Bhardwaj shared her perspective on the potential implications of the verdict for foreign investors and the future of hybrid capital instruments in India’s banking sector.

Nivedita observed that the verdict is likely to shape how foreign investors perceive India’s banking sector, as its implications extend beyond a single lender. She noted that overseas investors place considerable importance on predictable rules, legal clarity and consistent treatment of creditors, particularly in situations involving the rescue of a bank.

She further highlighted that while the Supreme Court has found the particular AT1 bond write-off illegal, it has not ruled out the possibility of such instruments absorbing losses altogether. Emphasising the distinction, she noted that uncertainty surrounding the financial implications of the verdict may make investors cautious in the near term. However, long-term investor sentiment will depend on how quickly the resulting liability is clarified and absorbed, along with the regulatory guidance issued for future resolutions.

Nivedita added that transparent handling of these issues and clear regulatory directions could strengthen confidence in India’s legal and regulatory framework, rather than undermine it.

Read the full article here: https://www.businesstoday.in/markets/stocks/story/yes-banks-at1-bonds-writeoff-what-scs-decision-means-for-foreign-investors-562068-2026-10-16 

Last Updated on 2 November, 2026