Yes Bank Initiates Sale of Rs 4,200 Crore Distressed Corporate and Retail Loan Portfolio

Yes Bank has set the wheels in motion for the sale of its distressed loan portfolio, putting up assets amounting to over Rs 4,200 crore for prospective buyers. This move comes almost a year after the bank successfully sold a distressed loan book worth Rs 48,000 crore.

In an effort to streamline its financial position, Yes Bank is actively seeking buyers for both its corporate and retail loans, encompassing a diverse range of accounts with an outstanding debt of Rs 4,233 crore. The bank has issued notices to finance companies and asset reconstruction companies (ARC) inviting expressions of interest (EoI).

The corporate loan portfolio, valued at Rs 3,091 crore, includes eight accounts, with notable mentions such as Prometheon Enterprises Ltd, UK (debt: Rs 1,496 crore) and Malvern Travels, UK (debt: Rs 537 crore), both affiliated with the bankrupt travel agency Cox and Kings. Katerra India Pvt Ltd, recently admitted for corporate insolvency, is also part of this portfolio, carrying a debt of Rs 521 crore. Additionally, loans from companies like Indrajit Power (debt: Rs 353 crore) and real estate developers ATS Realworth Pvt Ltd, ATS Infrastructure, ATS Township, and Umritha Infrastructure are up for grabs.

While the earlier sale to JC Flowers ARC involved a combination of cash and security receipts, this time, Yes Bank is specifically seeking offers in cash.

The bank has invited expressions of interest for the corporate loan book but has refrained from setting a reserve price or specifying a bidding date.

In a parallel effort, Yes Bank has also opened expressions of interest for its retail portfolio, amounting to Rs 1,142 crore, with a deadline set for December 18. This includes diverse categories such as personal loans, vehicle loans, credit cards, commercial vehicle loans, construction equipment loans, healthcare, and hospitality equipment loans. Notably, the retail portfolio comprises women microfinance borrowers and business loans.

Yes Bank has communicated to ARCs that this initiative aims to identify an anchor bidder, and a Swiss challenge auction will be held upon finalizing an anchor bidder. The bank’s gross NPA stood at Rs 4,319 crore for September 2023, compared to Rs 27,419 crore a year ago, according to an analyst presentation.

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