Following the declaration of JC Flowers Asset Reconstruction as the winner of the Swiss Challenge process, YES Bank has now completed the assignment of the identified stressed assets to the company.
The private sector lender has transferred stressed loans worth ₹48,000 crore to the ARC under the 15:85 structure for ₹11,183 crore.
Herein, 15 per cent of the sale value will be paid upfront and the remaining will be held as security receipts (SRs), after adjusting for the recoveries between April 1 and November 30. Accordingly, the bank is expected to receive ₹1,678 crore upfront.
Prashant Kumar, MD and CEO had recently told businessline that once the transfer of assets is done, YES Bank will seek the RBI’s permission to increase its stake in JC Flowers ARC to 20 per cent. Currently, the bank has invested ₹14.14 crore as equity in the ARC for a stake of 9.99 per cent.
YES Bank and JC Flowers ARC had entered into a agreement for the sale of NPAs in July, following which in September, the bank had said that JC Flowers ARC has emerged as the base bidder. Post the sale of assets, YES Bank’s gross NPA is expected to fall to 2 per cent from 13 per cent in September.