Yes Bank is on the verge of receiving a $1 billion investment

21 Jun 2022 , 10:17 AM

According to Mint, Yes Bank is on the cusp of concluding a $1 billion financing round from private equity companies Carlyle and Advent International, after a significant delay owing to an ongoing plan to sell a major percentage of its problematic debts to an asset reconstruction company (ARC).

CNBC TV18 reported earlier this month that Carlyle Group, located in Washington, is interested in purchasing a 10% share in Yes Bank through convertible debt.

As per Mint, the bank’s board of directors will convene in mid-July to review the financing. Carlyle is reportedly considering a Rs 3,750-4,500 crore ($500-600 million) investment in Yes Bank, according to previous reports.

In April, Moneycontrol reported that Carlyle will sell its whole investment in SBI Cards & Payments Services in a block sale for up to Rs 2,558 crore.

Yes, Bank has picked JC Flowers ARC as its partner to dispose of bad loans of Rs 49,000 crore, according to Mint, in order to clean up its books and acquire money for credit development. The Rs 49,000 crore bad loan book comprises Rs 17,000 crore in so-called technical write-offs and sour investments, according to the study.

The lender stated on June 8 that it has commenced the process of quitting the rebuilding program, two years after the Reserve Bank of India and the government devised a special plan to salvage Yes Bank, according to the Mint.

Following great success in putting the bank around, the scheme’s board of directors suggested forming a new board and seeking shareholder approval.