What happened at Yes Bank in March 2020?
On 5 Mar 2020, the central government placed Yes Bank under a moratorium. A moratorium is a legal pause: the bank could pay out only limited sums, and actions against it were stayed.[S3]
The government acted on an application from the Reserve Bank of India (RBI). It used section 45 of the Banking Regulation Act.[S1]
The same day, RBI removed the bank's board and put an administrator in charge.[S2]
Eight days later, a rescue plan called a reconstruction scheme came into force. State Bank of India and seven other lenders put in new money.[S5][S6]
Why did RBI say it acted?
RBI's press release of 5 Mar 2020 said the bank's finances had declined steadily. It named the "inability of the bank to raise capital to address potential loan losses".[S1]
It linked that to rating downgrades, bondholders invoking conditions in their bond agreements, and deposit withdrawals. It also pointed to serious governance problems at the bank over the years.[S1]
RBI said it had given the management time to draw up a revival plan, which did not happen. It said private equity firms named in the bank's filing of 12 Feb 2020 met RBI officials but did not invest.[S1]
What was filed, and when?
Each step below is tied to the document it comes from. The bank's own letters were filed with NSE and BSE, the two stock exchanges.
RBI supersedes the board and appoints an administrator[S2]
RBI used section 36ACA of the Banking Regulation Act to remove the board for 30 days. It cited "serious deterioration in the financial position". It named Prashant Kumar, a former deputy managing director and CFO of State Bank of India, as administrator.
Government orders a moratorium on RBI's application[S1][S3]
The Gazette order S.O. 993(E) ran from 6 pm on 5 Mar to 3 Apr 2020. A depositor could be paid at most ₹50,000 in total. RBI could allow up to ₹5 lakh for medical treatment, education, marriage or another emergency.
Yes Bank files the orders with the exchanges[S3]
The bank filed the government order and both RBI press releases. It said the administrator had taken charge that day.
RBI publishes a draft reconstruction scheme[S4]
RBI invited comments until 9 Mar 2020. In the draft, State Bank of India would buy 49% of the bank at no less than ₹10 a share. One clause said the bank's AT1 bonds would be written down permanently, in full.
Final scheme notified in the Gazette[S5]
The Ministry of Finance notified the Yes Bank Limited Reconstruction Scheme, 2020 (G.S.R. 174(E)). It came into force the same day. It set the lock-in, a new board and the end of the moratorium.
Bank files the scheme, the lock-in and new shares[S5][S6]
The bank filed the scheme and drew attention to the lock-in clause. It allotted 1,000 crore new shares at ₹10 each, raising ₹10,000 crore. State Bank of India took 605 crore shares for ₹6,050 crore.
Bank discloses that its AT1 bonds were written down[S7]
The bank said two AT1 bond issues, of ₹3,000 crore and ₹5,415 crore, were "fully written down and stand extinguished". It cited RBI's Basel III master circular of 1 Jul 2015.
Bank files its Q3 FY20 results[S8]
The results were for the quarter to 31 Dec 2019. The bank reported a net loss of ₹18,560 crore and a gross NPA ratio of 18.87%.
Moratorium ends at 6 pm[S5][S9]
The scheme stated that the moratorium would end at 6 pm on the third working day after it took effect. A CRISIL rating rationale filed on 19 Mar 2020 recorded that it was lifted on 18 Mar.
Bombay High Court sets aside the AT1 write-down[S10]
The bank disclosed that the court had set aside its decision to write down the AT1 bonds. At the bank's request, the court stayed its own order for six weeks.
Supreme Court extends the stay[S11]
The bank had appealed. The Supreme Court extended the High Court's stay, subject to its final orders. The bank filed the order on 4 Mar 2023.
Locked-in shares are released[S12]
The bank said the depositories NSDL and CDSL released the locked-in shares at the start of 13 Mar 2023. The lock-in had run from 13 Mar 2020 to 12 Mar 2023.
Supreme Court dismisses the appeals on the AT1 bonds[S13]
The bank disclosed on 16 Oct 2026 that the court upheld the High Court judgment. The appeals of the bank, RBI and the Union of India were dismissed.
Bank files an update on the AT1 coupon[S14]
The bank said it was evaluating its options after the judgment. It said the bonds' terms let it use coupon discretion, that is, not pay a coupon (interest payment). It would announce any decision after its assessment.
What did the scheme say about existing shareholders?
Clause 3(8) of the scheme locked in 75% of existing shareholders' shares for three years from 13 Mar 2020. The same applied to 75% of the shares allotted to the new investors.[S5]
Anyone holding fewer than 100 shares was left out of the lock-in. Yes Bank's filing of 14 Mar 2020 said 75% of larger holdings would be "automatically under the lock-in".[S5]
State Bank of India had a separate rule. It could not cut its holding below 26% for three years from the date its shares were allotted.[S5]
What are AT1 bonds, and what happened to them?
AT1 stands for Additional Tier 1. These are bonds with no maturity date that count as part of a bank's capital, the cushion that absorbs losses.[S7]
The bank's filing quoted RBI's Basel III master circular. It states that reconstituting a bank under section 45 triggers the write-down of its AT1 bonds.[S7]
The draft scheme of 6 Mar 2020 included a clause writing them down in full.[S4] The scheme notified on 13 Mar 2020 had no such clause.[S5]
The write-down was announced in the bank's own filing of 14 Mar 2020. The filing said the bonds were written down under that clause of the circular.[S7]
Writ petitions challenging it were filed in the Bombay High Court. The court set the write-down aside on 20 Jan 2023.[S10]
The bank, RBI and the Union of India appealed. The Supreme Court dismissed those appeals on 15 Oct 2026.[S13]
The order, as the bank filed it, said annual coupon payments "must be made in terms of the Information Memoranda". Those are the bonds' offer documents.[S13]
On 24 Oct 2026 the bank said it was still assessing the judgment and its options.[S14]
Where do these kinds of filings appear?
RBI's press release of 5 Mar 2020 referred to capital, loan losses, rating downgrades, bond terms and deposit withdrawals.[S1] The list below shows the kind of filing in which each topic appeared for Yes Bank.
- Loan losses. Bad loans appear as gross and net NPA in a bank's quarterly results. Yes Bank's Q3 FY20 filing showed gross NPA of 18.87% and net NPA of 5.97%.[S8]
- Provisions. The share of bad loans already set aside for is the provision coverage ratio. Yes Bank reported 72.7% for Q3 FY20.[S8]
- Deposits. Results show total deposits and the CASA ratio. Yes Bank's deposits were ₹1,65,755 crore at 31 Dec 2019, down 26% from a year earlier.[S8]
- Ratings. Yes Bank filed rating actions with the exchanges, such as CRISIL's rationale of 19 Mar 2020.[S9] Read how rating actions are disclosed.
- Regulator orders and court rulings. Yes Bank filed RBI's orders and the court rulings as exchange announcements.[S3][S10] Read how to find NSE and BSE announcements.
What does this case file leave out?
It tells what each order and filing said, and when. It does not judge the bank, its management or the people named in the documents.
It also does not cover the bank's business after these events. That is in the bank's own filings after March 2020, which anyone can search on the exchanges.