RBI bars YES Bank from coupon payment on Upper Tier II bonds

The private lender had approached banking sector regulator RBI seeking approval to pay interest due as on June 29, 2020 for Upper Tier II Bonds

The Reserve Bank of India (RBI) has restrained YES Bank from paying interest (coupon) on upper tier-II bonds as its capital adequacy ratio is below regulatory requirements, the private sector lender has informed the BSE.

The bank had approached the RBI seeking approval to paying interest due as of June 29 for upper tier-II bonds. These unsecured non-convertible upper tier-II bonds carry coupon of 10.25 per cent. 

Its overall capital adequacy ratio stood at 8.5 per cent at the end of March, below the regulatory requirements of 11.5 per cent, with common equity tier-I (CET-I) of 6.3 per cent. Its stock on