YES Bank says JC Flowers ARC core bidder for bad debts up to Rs 48K crores

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YES Bank said on Friday it had selected JC Flowers ARC as its partner for the proposed sale of a portfolio of stressed loans which the private lender values ​​at Rs 48,000 crore.

In line with Reserve Bank of India guidelines, the bank said in a BSE filing that it proposed to launch a transparent bidding process on the basis of the Swiss Challenge for the sale of the portfolio using the offer of JC Flowers ARC as a basic offer.

YES Bank CEO Prashant Kumar said in April that the private sector lender planned to set up an asset reconstruction company (ARC) and would transfer all its bad debts to the entity by the end June.

As of March 31, 2022, YES Bank’s gross bad debts stood at Rs 27,976 crore.

In August last year, the bank invited interests to set up ARC, where it planned to hold a 20% stake.

This came after the RBI rejected YES Bank’s request to start its ARC, citing a conflict of interest.

After that, the private sector lender tweaked the proposed structure of ARC and offered to hold a minority stake in the entity.

As of 11:00 a.m., YES Bank shares were trading down 0.8% to Rs 13.19 on BSE.

(With contributions from BS Reporter in Mumbai.)

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