MUMBAI, Jan 21 (Reuters) – India’s Sure Financial institution (YESB.NS) has “robust” authorized grounds to enchantment towards a court docket order quashing the write-off of its extra Tier-1 (AT1) bonds, Chief Govt Officer Prashant Kumar stated on Saturday.
“The judgment in itself is just not questioning the regulatory tips when it comes to writing off (AT1 bonds). I believe there are questions when it comes to the method,” Kumar instructed reporters after publication of the lender’s quarterly outcomes.
“We have now robust authorized advises and opinions which interpret the problem differently and that makes a robust floor for us to enchantment within the Supreme Courtroom.”
The Bombay Excessive Courtroom invalidated the write-off of extra AT1 bonds issued by the non-public lender on Friday. The bonds have been written off as a part of a restructuring plan to rescue Sure Financial institution in March 2020.
The court docket didn’t go into the deserves of the bonds and dominated that there have been procedural lapses within the choice to put in writing them down.
Sure Financial institution stated in a inventory alternate submitting late on Friday it’s within the technique of making ready an enchantment to the Supreme Courtroom.
Kumar stated on Saturday the financial institution had requested six weeks from the tribunal to enchantment within the greater court docket. It means there is not going to be any rapid influence of the order on the banks’ books, he stated.
Because the financial institution already has robust authorized opinions in its favour, there is no such thing as a have to make any contingent provisions for the written off bonds, Kumar added.
Moreover, Sure Financial institution could have the discretion on the curiosity cost of the AT1 bonds, he stated, including that any remark on this regard will likely be made following the Supreme Courtroom’s choice.
The write off may also not influence Carlyle Group and Introduction’s fairness infusion within the financial institution, he added.
In December, non-public fairness majors Carlyle Group and Introduction every bought a ten% stake within the financial institution.
Reporting by Siddhi Nayak and Nupur Anand; Modifying by Mike Harrison
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