Investors who have made presentations include Los Angeles-based $149-billion Ares-SSG Capital, $15-billion alternative investment firm Verde Partners, US-based $55-billion Cerberus Capital and troubled assets giant $156-billion Oaktree Capital and private equity firm Jesse Flowers. Are included. People familiar with the move said.
Individual investors could not be immediately contacted. Yes Bank did not respond to ET’s query.
Yes Bank will hold a minority stake in the proposed ARC as per the directions of the Reserve Bank of India (RBI). One person said that the selected investor is likely to have an 80% to 85% majority in the new venture. EY is helping Yes Bank in this process.
“Model is more than one” hell type. Banks are not encouraged to hold major stake in any ARC. So they are selling it,” said a senior executive involved in the matter.
He was referring to the government-backed National Asset Reconstruction Company (NARC), which has been set up to resolve old bad loans from the banking sector.
A third person with knowledge of the matter said, “The investors are yet to be officially informed about the shortlisted firms, so the selection of partners will take some more time.”
Yes Bank is breaking ranks with the industry in bad loan resolution as it will sell no default loans to the newly proposed National Asset Reconstruction Company (NARC) as it believes it will be able to recover more than the proposed bad loan aggregator. would be able.
The bank is pursuing its objective of being a majority-owned asset reconstruction company (ARC) and is waiting for a fresh set of guidelines from the Reserve Bank of India (RBI), CEO Prashant Kumar told ET earlier this year on May 2. Told. RBI has denied Yes Bank’s permission to hold majority stake in ARC.
Yes Bank’s gross non-performing assets stood at Rs 28,506 crore in the June quarter as compared to Rs 32,703 crore a year ago.