It may be noted that almost the entire stock of these non-performing assets are legacy loans given by the lender under the old management led by its co-founder Rana Kapoor, who was later arrested for the alleged offences.
Transfer of loans will result in a drastic reduction in the reported gross of the bank NPA The ratio is less than 2 per cent from the current level of 12.89 per cent.
arch Following a competitive method was chosen and is paying a certain component in the form of cash upfront for loans that it would aim to solve.
speaking on the occasion of FIBAC 2022Kumar said the legal formalities were still on and expressed confidence that the deal would be completed by November.
Meanwhile, Kumar said the bank will take a 9.9 per cent stake in ARC as per the deal, and will wait reserve Bank of India Approval was given to take it further to the desired level of 20 per cent.
JC Flowers has promised to pay Rs 11,183 crore to the bank for the entire pool of stressed loans, which assures 23 per cent recovery to the bank.
Separately, the bank is also planning to raise over Rs 8,000 crore in core capital from private equity funds Carlyle and Advent.
Speaking at the same conference, its colleagues RBL BankR Subramaniakumar, Chief Executive and Managing Director, said that the private sector lender will launch several secured retail products like home loans, loans against property etc in the next few months to protect their net interest margins.
Banks are rushing for deposits amid high credit demand, which will lead to a hike in deposit rates due to competitive pressures, he added, adding that difficulties will persist for the next two quarters.
Over a period of three years, the bank plans to increase the share of overall retail credit to 65 per cent from the current 50 per cent, he said, adding that retail will include credit cards to 20 per cent and 10 per cent. micro credit.
Shares of Yes Bank were trading 1.94 per cent higher at Rs 15.80 and RBL Bank up 1.05 per cent at Rs 135.25 on the BSE. PTI AA DRR