“As per the competent approval of the Board of Directors dated May 06, 2022 and final approval from the Board Credit Committee on July 13, 2022, the Bank has signed a binding term sheet with JCF ARC LLC and JC Flowers Asset Reconstruction Pvt Ltd. ( “JC Flowers ARC”) for strategic partnership in connection with the sale of the Bank’s identified stressed loans,” it said.
The said term sheet has now become effective from July 15, 2022.
“The Bank has decided that JC Flower ARC Rupee. 48,000 crores. As per the guidelines issued by the Reserve Bank IndiaThe bank proposes to run a transparent bidding process Swiss Challenge basis for the sale of such portfolio using the bid of JC Flowers ARC as the base bid,” it said in a release.
Soon after the Reserve Bank of India rejected plans to set up ARC as its subsidiary in March 2021, Yes Bank had invited bids worth Rs 51,000 crore for its distressed loan portfolio. The possible closure of the transaction was reported to be the largest sale of distressed assets in India, resulting in Yes Bank Becoming a nearly zero non-performing asset (NPA) bank, making it easier for the bank to raise capital.
Rana Kapoor founded Yes Bank, which was bailed out by
Two years ago, it was seeking equity raise of Rs 10,000 crore for over a year, but was unable to deal due to huge amount of NPAs in its books.