Prashant Kumar, the lender’s chief executive and managing director, told reporters that the transfer of nonperforming debt totaling more than Rs 48,000 crore to the Asset Reconstruction Company (ARC), will take place by November.
According to a senior official on Thursday, private sector lender Yes Bank anticipates concluding the sale of stressed assets to JC Flowers ARC by the end of November.
The bank’s reported gross NPA ratio will drop dramatically from its current level of 12.89% to under 2% as a result of the loan transfers.
The ARC was chosen following a competitive process and is paying a portion in advance cash for the loans that it will attempt to resolve.
A 23% recovery for the bank is guaranteed thanks to JC Flowers’ commitment to pay it Rs 11,183 crore for the available pool of stressed loans.
Additionally, the bank intends to obtain more than ₹ 8,000 core capital from the private equity firms Carlyle and Advent.
The bank intends to increase the proportion of retail loans in the overall mix from the current 50% to 65% over a three-year period, he stated, adding that retail will include 20% from credit cards and 10% from microlending.
The price of the Yes Bank share increased by 1.94 percent to Rs 15.80.