New Delhi
The board of Yes Bank has approved the sale of a stressed loan portfolio of Rs 48,000 crore to asset reconstruction company JC Flower ARC. The bank informed the exchange on Tuesday.
The decision was taken by the board after the bank received no further bids for the stressed loan portfolio. The bank had earlier declared JC Flowers Asset Reconstruction Private Limited as the base bidder for the proposed sale.
Using the JC Flowers ARC as a base bid, the bank conducted a transparent bidding process on a Swiss Challenge basis under the Reserve Bank of India’s guidelines. However, it did not receive any challenger bids to JC Flowers’ base bid of Rs 11,183 crore. This is said to be the largest sale of stressed assets in domestic markets.
According to the term sheet signed by Yes Bank with JC Flowers, the former will buy 20 per cent stake in the ARC at a cost of Rs 350 crore.
