National Treasure Hunt: Big Names Vie for Yes Bank's Rs 4,200 Crore NPA Haul

8 Jan 2024 , 10:59 AM

According to an ET report, eight investors are competing for Rs 4,200 crore in bad loans that Yes Bank had offered to both corporate and retail customers. Among them are JC Flowers ARC, Ares-backed Acre ARC, and Edelweiss ARC. Omkara ARC and ARCIL are among the other participating ARCs.

Eight accounts in the corporate portfolio stopped working after 2019. These include Rs 1,496 crore in debt held by Prometheon Enterprises, Rs 537 crore held by Malvern Travels, UK, and Rs 521 crore held by Katerra India.

The retail portfolio of Yes Bank is at Rs 1,142 crore, while the soured corporate loan pool is around Rs 3,091 crore.

The deadline for interested investors to submit bids was January 6.

Most of these loans become non-performing assets in 2019 or later.

As of September 2023, Yes Bank’s gross non-performing assets (NPAs) had dropped from Rs 27,419 crore to Rs 4,319 crore. Its net NPA ratio is 0.9%, while its gross NPA ratio is 2%.

Unlike the last time, which took place in December 2022, this time the loan sale is conducted on a cash basis.

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