Yes Bank scouts for partner to set up asset reconstruction firm

They indispensable besides person demonstrated quality to perpetrate funds for concern oregon deployment successful Indian companies oregon assets of astir $0.5 billion.

Yes Bank connected Wednesday said successful a nationalist announcement that it is looking for a spouse to articulation the slope successful mounting up an plus reconstruction institution (ARC).

The prospective capitalist indispensable beryllium a subordinate with acquisition successful the distressed assets space, and it volition beryllium the pb spouse successful the ARC.

“The Prospective Investor would beryllium the pb partner/sponsor of the ARC, with the Bank arsenic the different important partner/sponsor, for conducting the concern of plus reconstruction successful adherence with existing RBI (Reserve Bank of India) guidelines governing identification, sourcing and solution of stressed fiscal assets,” Yes Bank said successful the notice.

Ernst & Young sought expressions of involvement from prospective investors connected behalf of the bank.

Those putting successful bids oregon their sponsors indispensable person had minimum assets nether absorption and funds deployed globally of astatine slightest $5 cardinal successful the preceding fiscal year.

They indispensable besides person demonstrated quality to perpetrate funds for concern oregon deployment successful Indian companies oregon assets of astir $0.5 billion.

Bidders indispensable person planetary acquisition successful the distressed assets space, and a way grounds of turning astir oregon resolving non-performing assets (NPAs), isolated from satisfying the cardinal bank’s ‘fit and proper’ criteria.

Yes Bank MD & CEO Prashant Kumar declined to remark connected the improvement oregon to stock immoderate further details connected Wednesday.

After Yes Bank declared its fiscal results for Q4FY21, Kumar said that the slope had reached retired to the RBI for its support for the ARC.

While the RBI had not approved the program for the ARC successful the signifier it was initially envisaged, Yes Bank was continuing to prosecute its program for the company.

“Now we would beryllium waiting for the study of the adept committee which has been acceptable up by the Reserve Bank of India connected the full ARC model and past we volition determination according to those guidelines,” Kumar had said.

Kumar had guided that successful FY22, Yes Bank’s currency recoveries would beryllium much than its slippages.

In Q1FY22, the lender reported a gross NPA ratio of 15.6%, up from 15.41% successful the erstwhile quarter, and a nett NPA ratio of 5.78%, down from 5.88%.

Slippages stood astatine Rs 2,233 crore, portion recoveries and upgrades were to the tune of Rs 2,325 crore.