Finance Ministry Has A Point On AT1 Bonds; Yes Bank Disaster Should Not Mean Killjoy Regulation Either by R Jagannathan - Mar 15, 2021 08:20 AM A Yes Bank branch. Snapshot AT1 bonds are important instruments for banks to raise non-equity capital. They should not be made victims of the Yes Bank failure. AT1 bonds, a.k.a. known as perpetual bonds that need not ever be redeemed, came to the limelight last year when the Reserve Bank of India (RBI) forced Yes Bank investors to write off their entire holdings of such bonds as part of the effort to rescue the failing bank.