“The Bank has signed a binding term sheet with JC ARC LLC and JC Flowers Asset Reconstruction Pvt Ltd for strategic partnership in connection with the sale of the bank’s identified stressed loans,” Yes Bank said in a regulatory filing.
ET had first reported on May 20 that Yes Bank has chosen it. JC Flower ARC as its joint venture partner.
Yes Bank said it has decided that JC Flowers ARC will be the base bidder for the proposed sale of the identified stressed loan portfolio up to Rs 48,000 crore.
The bank said that the term-sheet between the two is effective from July 15 reserve Bank of India Guidelines, Yes Bank is proposing to conduct a transparent bidding process on the basis of Swiss Challenge for sale of such portfolio using JC Flowers ARCR bid as the base bid.
Yes Bank MD Prashant Kumar told ET in an interview in May this year, “The setting up of ARC is not only to resolve our NPAs, we see it as a huge business opportunity. “We have a huge stressed asset book; it will take a long time to resolve within the bank. Alternatively, when an investor is looking for a bank that has 14% GNPA compared to that bank, “Who doesn’t have this issue, valuations look different. The flip side is that a lot of management is going into bandwidth recovery, which should be the focus of the bank’s growth.”