Yes Bank rallies upto ~5% on sale of stressed asset portfolio; appointment of non-executive chairman

21 Sep 2022 , 01:54 PM

Yes Bank Limited’s counter surged up to 5% in today’s trade following the company’s announcement of the sale of a portfolio of stressed assets and the appointment of a new chairperson.

At around 1.43 PM, Yes Bank was trading 2.74% higher at Rs16.85, against the previous close of Rs16.40 on NSE. The counter hit an intraday high of Rs17.25 in Wednesday’s trade.

The private lender announced that its board of directors has authorized the sale of stressed assets worth around Rs48,000 crore to JC Flowers ARC, which was the sole bidder for the portfolio.

In July 2022, the US-based asset reconstruction company (ARC) emerged as the base bidder for the planned sale of Yes Bank’s identified stressed loan book worth up to Rs48,000 crore.

The bank further informed that the Board of Directors approved the appointment of Rama Subramaniam Gandhi as the Non-Executive (Part-time) Chairman of the Bank, via its letter dated September 20, 2022.

According to the binding term sheet between the bank, JCF ARC LLC, and JC Flowers for the sale of the designated portfolio, the board members authorised the required investment for the bank to acquire up to a 19.99% stake in JC Flowers ARC.

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