HomeIndustryYes Bank to sell its ₹48,000-crore bad loans to JC Flowers...

Yes Bank to sell its ₹48,000-crore bad loans to JC Flowers ARC

Published on


Private lender Yes Bank’s board has approved the transfer of stressed assets worth 48,000 crore to private equity firm JC Flowers. YES Bank will also pick up a 19.99% stake in the ARC, subject to regulatory approvals, the lender said in a BSE filing.

The Yes Bank board has approved JC Flowers as the winner of the Swiss Challenge process. The decision follows a Swiss Challenge auction where the bank didn’t receive any competing bids against base bidder JC Flowers ARC.

“The Swiss Challenge process has now concluded and the Bank not having received any Challenger Bids to the Base Bidd, the Board of Directors of the Bank, at their Meeting held on September 20, 2022, has approved the declaration of JC Flowers ARC as the winner of the Swiss Challenge process,” Yes Bank said in a statement.

“Further, pursuant to the binding term sheet signed by the Bank with JCF ARC LLC and JC Flowers ARC for strategic partnership in relation to sale of the Identified Portfolio of the Bank, the Board of Directors of the Bank, at their Meeting held on September 20, 2022, has also approved the necessary investment for acquisition of up to 19.99% equity stake in JC Flowers ARC by the Bank (in single or multiple tranches), subject to required regulatory approvals,” the statement read.

JC Flowers ARC won Yes Bank’s non-performing loan portfolio for 11,183 crore in a Swiss Challenge auction, after a consortium of Cerberus Capital and Asset Reconstruction Company of India (ARCIL) withdrew its bid.

The ARC will have to pay 1,677 crore within 60 days of Yes Bank formally approving the offer. It had paid an earnest money deposit of $50 million at the time of submitting the bid.

“Once the board approves the JC Flowers bid, it will take about a month for the paperwork to be completed and the assets to be transferred,” a source said.

As of June end, Yes Bank’s gross NPAs were 13.4%, compared to 15.6% during the corresponding period of last year. Gross NPAs were 27,747 crore at the end of June 2022 compared to 28,506 crore at the end of June 2021.

The bank had already provisioned for over 80% of the total loan value, which will now be transferred to JC Flowers.

 

Catch all the Industry News, Banking News and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Post your comment



Source link

Latest articles

Rakhi Sawant calls herself ‘Smriti Irani pt 2,’ is to join politics! WATCH

New Delhi: Rakhi Sawant is one of the most active celebrities on social media...

From Malaika Arora to Mrunal Thakur: Fashion hits and misses (September 19-25)

From attending parties to going for work meetings, B-town celebs always make a...

RBI rate decision, FII flows among key factors that may guide markets this week

Benchmark indices tumbled nearly 2.7 per cent in the last three sessions amid...

Scientists use drones to learn more about active volcanoes

On average, there are up to 50 volcanoes actively erupting on the planet...

More like this