Yes Bank is seeking buyers for its corporate and retail loans with outstanding debt of Rs 4,233 crore, according to two separate notices issued to finance companies and asset reconstruction companies (ARC).
Last year, the bank sold a Rs 48,000 crore non-performing loan portfolio to JC Flowers ARC in what was seen as the largest secondary market trade in the distressed loan segment.
The bank’s corporate loan portfolio comprises eight accounts totalling rs 3,091 crore, while the retail portfolio is worth Rs 1,142 crore. While the sale of distressed loans to JC Flowers ARC was through a mix of cash and security receipts, this time, the bank is seeking offers only in cash.
The corporate portfolio includes two UK-based companies – Prometheon Enterprises with a debt of Rs 1,496 crore, and Malvern Travels, UK, with a debt of Rs 537 crore. Both are affiliates of Cox and Kings, the travel agency that went bankrupt. The other company on the list is Katerra India with a debt of Rs 521 crore. It was admitted for corporate insolvency recently, and Yes Bank is the sole lender.
Yes Bank also wants to sell loans from Indrajit Power, a company promoted by the Miglani family of Uttam Galva. The company that provided power supply to Uttam Galva’s steel units, has outstanding debt of Rs 353 crore.
The bank has also put loans of some real estate developers for sale, such as ATS Realworth with a debt of Rs 115 crore, ATS Infrastructure at Rs 8 crore, ATS Township at Rs 26 crore, and Umritha Infrastructure at Rs 16 crore.Yes Bank invited expressions of interest (EoIs) but refrained from setting a reserve price or a bidding date for the corporate loan book.
In a separate notice, it invited EoIs for its retail portfolio of Rs 1,142 crore by December 18. This includes a personal loan portfolio of Rs 380 crore, vehicle loan books of Rs 183 crore, credit card portfolio of Rs 118 crore, commercial vehicle loan book of Rs 119 crore, construction equipment of Rs 102 crore and healthcare and hospitality equipment loan of Rs 102 crore. The retail portfolio also includes women microfinance borrowers with loans of Rs 166 crore and business loans of ?70 crore.
In a communication to ARCs, the bank has said it has launched this exercise to identify an anchor bidder and will hold a Swiss challenge auction to finalise the anchor bidder.
The bank has reduced its gross non-performing assets (NPAs) to Rs 4,319 crore as of September 2023 from Rs 27,419 crore a year ago, according to an analyst presentation.