Private sector lender Yes Bank Ltd announced that Reserve Bank of India (RBI) has withdrawn its request to reimburse interest on its tier II bonds due on 29 June.
It also informed that the “Reserve Bank of India has revealed its inability to endorse to bank’s request for payment of interest dues since the bank fails to meet the minimum capital requirements at this moment.”
On 20th June, in a regulatory filing, the bank made it clear in terms and conditions of the memorandum dated 25 June, 2012, that the interest due and remaining unpaid shall be assembled and be paid by the bank later, subject to it following with regulatory obligation.
On 13th March, the government had sanctioned a rescue plan for Yes Bank supported by State Bank of India. As per the plan, domestic investors including SBI, Housing Development Finance Corp, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank, and IDFC First bank invested ₹10,000 crore into Yes Bank. In this procedure, Yes Bank’s AT1 bonds worth ₹8,415 crore were written down in full in the month of March.