Following the lender's invitation for bids to sell Rs 4,234 crore of non-performing assets, Yes Bank shares surge 7%

12 Dec 2023 , 03:07 PM

As the private sector lender looks for purchasers for its corporate and retail loans with outstanding debt of Rs 4,234 crore, Yes Bank’s shares surged 7% to reach the day’s high of Rs 21.68 per share on December 12.

Yes Bank’s shares has increased by more than 17% in the last month, compared to a 7% increase in the benchmark Sensex.

A bank notice states that Yes Bank is seeking expressions of interest (EoI) for the proposed sale of Rs 4,234 crore worth of non-performing assets (NPAs). The purpose of inviting bids is to identify the anchor bid for the sale of stressed assets. All bids will be made on a 100% cash basis up front.

In the period between September 2019 and June 2022, almost eight enterprises went bankrupt. These included Umritha Infrastructure Development, Indrajit Power, ATS Realworth, ATS Township, ATS Realworth, ATS Infrastructure, UK-based Malvern Travel, and Prometheon Enterprises.

By December 18, offers are being accepted for the sale of stressed debts by the private sector lender.

As of September 2023, Yes Bank’s gross non-performing assets (NPAs) totaled Rs 4,319 crore, of which Rs 2,236 crore came from corporate banking, Rs 219 crore from mid-corporate, Rs 452 crore from SME NPAs, and Rs 1,413 crore from retail.

Yes Bank’s net profit increased 47.4% year over year (YoY) in the July–September quarter, while net interest income increased by 3.3% YoY.

For feedback and suggestions, write to us at [e-mail]