[ad_1]
On Friday, private sector lender YES Bank informed the Bombay Stock Exchange (BSE) that it has selected JC Flowers ARC as its partner for the sale of stressed loans.
The bank has decided that the JC Flowers ARC will be the base bidder for a proposed sale of an identified stressed loan portfolio of the private sector lender aggregating up to Rs 48,000 crores.
In accordance with the Reserve Bank of India guidelines, the bank has proposed to run a transparent bidding process on the Swiss Challenge basis for the sale of such portfolio using the JC Flowers ARC’s bid as the base bid.
YES Bank CEO Prashant Kumar in April said that the private sector lender is planning to set up an asset reconstruction company (ARC), and it will transfer all its bad loans to the entity by the end of June.
As of 31 March 2022, YES Bank’s gross bad loans stood at Rs 27,976 crore.
In August last year, the bank invited interests to set up the ARC, where it was planning to own a 20 per cent stake.
This came after the RBI had rejected YES Bank’s application to start its ARC, citing a conflict of interest. After this, the private sector lender tweaked the proposed ARC structure and offered to hold a minority stake in the entity.
At 11.00 am, shares of YES Bank were trading 0.8 per cent lower at Rs 13.19 on the BSE.
[ad_2]
Source link
