The corporate portfolio includes eight accounts that turned non-performing after 2019. These include Prometheon Enterprises with a debt of ₹1,496 crore, Malvern Travels, UK, with a debt of ₹537 crore, and Katerra India with ₹521 crore.
Yes Bank’s soured corporate loan pool is ₹3,091 crore, while the retail portfolio amounts to ₹1,142 crore.
Yes Bank sought only cash bids. Interested investors had until January 6 to submit the bids.
Spokespersons of Yes Bank, ACRE ARC, Edelweiss ARC, JC Flowers ARC, Omkara ARC and ARCIL ARC did not respond to requests for comment.
The sale also includes a retail portfolio of ₹1,142 crore. This includes personal loans, vehicle loans and credit card loans.
Most of these loans have turned NPAs in or after 2019.Yes Bank has reduced its gross NPAs to ₹4,319 crore as of September 2023, from ₹27,419 crore a year ago. Its gross NPA ratio is 2% and its net NPA ratio is 0.9%.
This time, the loan sale is put on a cash basis, unlike last time where in December 2022,
JC Flowers ARC completed the purchase of a pool of NPA assets worth ₹48,000 crore from Yes Bank for cash and security receipts. The portfolio purchase price was ₹11,200 crore as of March 2022, adjusted for activity since then.
Following the acquisition, the ARC has been managing the portfolio to manage recoveries. The ARC acquired 15% of the NPAs, while Yes Bank retained the rest in the form of security receipts.
The portfolio comprised of nonperforming and underperforming large corporate loans with significant exposure to real estate and infrastructure assets.