Yes Bank expects to complete the sale of stressed assets to JC Flowerers ARC by the end of the month: CEO – Jammu Kashmir Latest News | Tourism


04Mumbai, Nov 3: Private sector lender Yes Bank expects to complete its sale of stressed assets to JC Flowers ARC by the end of November, a senior official said on Thursday.
The transfer of failed loans of over Rs 48,000 crore to the Asset Reconstruction Company (ARC) will take place by November, the lender’s managing director and managing director, Prashant Kumar, told reporters.
It can be noted that almost all of the stock of these non-performing assets are loans inherited from the loan made by the lender under older management led by its co-founder Rana Kapoor, who was later arrested for alleged crimes.
The transfer of the loans will result in a massive reduction in the gross NPA ratio reported by the bank to less than 2% from the current level of 12.89%.
ARC was selected through a competitive process and pays a certain component as initial cash for the loans it will seek to resolve.
Speaking on the sidelines of FIBAC 2022, Kumar said legal formalities were ongoing at the moment and expressed confidence that the deal will be completed by November.
Meanwhile, Kumar said the bank would take a 9.9% stake in ARC as per the deal, and would wait for RBI’s nod to take it further to the planned 20% level.
JC Flowers has pledged to pay the bank Rs 11,183 crores for the entire pool of stressed loans, which provides a 23% recovery to the bank.
Separately, the bank also plans to raise more than Rs 8,000 crore in seed capital from private equity funds Carlyle and Advent.
Speaking at the same conference, the Chief Executive and Managing Director of his counterpart RBL Bank, R Subramaniakumar, said the private sector lender would launch a series of secured retail products such as home loans, home loans, etc over the next few months to protect its net interest margin. .
He said there was a rush for deposits among banks amid strong demand for credit, which would lead to deposit rate hikes due to competitive pressures, and added that difficulties would persist for the next two years. next quarters.
Over a three-year period, the bank’s plan is to increase the share of retail loans in the overall mix to 65% from 50% currently, he said, adding that retail will include 20 % of credit cards and 10% of microcredit.
The Yes Bank certificate was trading up 1.94% at Rs 15.80 and RBL Bank up 1.05% at Rs 135.25 on BSE. (PTI)


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