YES Bank says JC Flowers ARC base bidder for bad loans up to Rs 48K crores

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YES Bank said on Friday it has selected JC Flowers ARC as its partner for the proposed sale of a stressed loan portfolio the private lender estimates to be at Rs 48,000 crore.

In accordance with the Reserve Bank of India guidelines, the bank said in a BSE filing it proposes to run a transparent bidding process on the Swiss Challenge basis for the portfolio’s sale using the JC Flowers ARC’s bid as the base bid.

YES Bank CEO Prashant Kumar in April said that the private sector lender is planning to set up an asset reconstruction company (ARC), and it will transfer all its bad loans to the entity by the end of June.

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

In August last year, the bank invited interests to set up the ARC, where it was planning to own a 20 per cent stake.

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

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

At 11.00 am, shares of YES Bank were trading 0.8 per cent lower at Rs 13.19 on the BSE.

(With inputs from BS Reporter in Mumbai.)

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