The deal, the biggest-ever sale of bad loans in the Indian banking sector, comes more than two years after the central bank alarmed investors and depositors following a dramatic rise in toxic assets.
The lender’s stock has shown signs of recovery after falling sharply over the past two years, though it remains a fraction of its 2018 peak of Rs 404. It is up nearly 56% so far this year, last trading at Rs 21.4.
“This transaction will further strengthen our balance sheet, allowing the bank to fully focus on growth and profitability as future strategic objectives,” Yes Bank Chief Executive Officer Prashant Kumar said in a statement.
bad condition of yes bank loan The ratio declined from 13.45% at the end of June to 12.89% at the end of the September quarter. By December 2019, this number had increased to 18.87%.
Yes Bank also completed the allotment work last week. shares and share warrants worth $1.1 billion for private equity firms Carlyle and Advent Internationalin its bid to promote it Capital and fund growth.
Yes Bank CEO said in August that the lender is looking to grow its loan book by 15% financial year Expires March 2023 as it shifts its focus to mortgages, vehicle loans and small and medium-sized business loans.